Have you been facing challenges in recruiting experienced and skilled employees? If so, most probably, your company’s employer value proposition (EVP) is not strong enough. You might be thinking about an employer’s value proposition and what it does. Don’t worry; in this blog, we will walk you through this aspect of your business and discuss the benefits in detail.
Attracting talented and skilled employees to your organization is a formidable challenge in today’s competitive landscape. Especially because exceptional candidates have numerous options for job opportunities, and they take time and analyze a lot of things before considering potential employers.
In the current job market, establishing a skilled and productive workforce that aligns with business objectives and future expansion requires the creation of a compelling and competitive employer value proposition (EVP). And if you want to take your company to the next level, you must define your company’s employer value proposition. But the question is, why is it so important, and how can you possibly set a good value proposition as an employer to all the applications and employees?
Let’s get to the topic in detail and learn how employer value proposition benefits your company! But before that, let us explain what an employer value proposition is.
What is Employer Value Proposition (EVP)?
Do you think only employers check on their candidate’s value proposition? You are wrong! We live in a fast-moving modern world where employees know about their own values, and when skilled employees look for a job, they consider many things before joining a job. In particular, they look for their employer’s value position. But what is the employer value proposition?
An Employer Value Proposition refers to the unique offerings, benefits, and rewards that an employer provides its employees in exchange for their skills, experience, and dedication. It encompasses why they would choose to work for your company over your competitors.
Imagine a candidate is considering two job offers: one from your company and another from your competitors. Let’s say your company offers benefits such as a competitive salary, comprehensive healthcare coverage, and a structured career path with opportunities for advancement. Besides, they also provide good employee training and development opportunities. On the other hand, your competitor offers a similar salary, a flexible work environment, the opportunity to work on innovative projects, a collaborative company culture, and the ability to make a tangible impact on the company’s growth.
In both scenarios, the employer value proposition serves as a powerful tool to attract and retain the candidate. These value propositions show how you value your employees. But the question is, who the job seeker will go for?
It depends on the person’s understanding of the EVP. The candidate will go for you if he thinks about the other packages. But if he thinks about his future and growth opportunities, he will go for your competitor.
The question is, why?
Well, each potential employer has unique offerings, and these companies allow the candidate to evaluate which factors are most important for him in his career. It helps the candidate assess whether the company’s values, culture, benefits, and growth opportunities align with his own professional goals and aspirations.
Ultimately, if you can define a proper set of value propositions as an employer aligning with your company’s goal, you can help candidates make informed decisions about joining your company.
Hope you understand what the employer value proposition is. Now let’s get to the main topic and learn how employer value proposition benefits your business.
How Does a Strong Employer Value Proposition (EVP) Benefit Your Organization?
You might have already understood the importance of a strong employer value proposition. However, if you have any confusion, let us clear this up with a detailed discussion on this topic.
Let’s not make it stretch out proportion and give you a clear idea with numbers,
According to research from Gartner,
“Companies that effectively deliver on their EVP can decrease annual employee turnover by just under 70% and increase new hire commitment by nearly 30%.
Still wondering why it’s important for you to have an employee value proposition? Here are some benefits to consider;
1. Gain Competitive Advantage
Like candidates, companies are also competing with each other. They try to improve their company culture, attract top talents, and grow the business itself. Doing all these is not as easy as it sounds.
In order to grow your company and attract top talents, you need to defeat your competitors in every aspect, and here comes the employer value proposition. A clear employee value proposition gives a clear understating of your potential as an employer and a competitor in the market.
Let’s say you are trying to hire an employee, but that employee got an offer from your competitor, and eventually, you lose that employee to your competitor. How would you understand why that candidate went for your competitor? Well, if you have an employer value proposition, you can check what you did wrong that forced you to lose that potential candidate. Note that if your company’s EVP is better than your competitor’s, you would not have lost the candidate.
2. Attract Skilled and Experienced Employees and Retain Them
One of the most important reasons for defining an employer’s value proposition is to attract the most talented employees. We already know that employees are the most important asset for every company; thus, it is important to attract top talent and retain them for company growth.
A well-crafted employer value proposition (EVP) helps you attract top talent in your Industry. When candidates clearly understand your company’s unique rewards, benefits, and work culture, they are more likely to choose you over competitors. For example, if your EVP highlights a supportive and inclusive work environment, candidates who value diversity and collaboration will be drawn to your company.
Similarly, a good and maintained EVP can help you retain your talented employees. But if you don’t have a balanced EVP, your employees, at a certain point, will feel undervalued and leave the company for a better place.
3. Improves brand Image in the Industry
In today’s world, brand image is everything. If your brand image is not good and the Industry itself does not consider you a good employer, then it is highly likely, your customers will not trust you either.
In this case, an EVP enhances your overall employer brand for your employees and customers. When employees and potential candidates clearly comprehend the advantages of working for your company, it positively influences how customers perceive your business. It can lead to increased interest from top talent and create a positive reputation in the market.
Let’s say your EVP emphasizes a strong commitment to work-life balance and employee well-being; your employer brand will be associated with a caring and supportive work environment.
4. Boost Employee Engagement and Productivity
A good work environment and better severance packages are always the main motivations behind your employee’s engagement with the company and productivity. And it is connected to a defined employee value proposition.
A defined EVP clearly communicates the value placed on employee well-being, growth opportunities, and a supportive work environment. And it fosters high levels of employee engagement. We should know that engaged employees are more productive, innovative, and committed to achieving company goals.
For example, if your EVP emphasizes a culture of trust, autonomy, and recognition, employees will feel empowered to take ownership of their work and contribute their best efforts.
Hope this gives you a clear understanding of the importance of employer value proposition. Now let’s learn what the most potent components of a strong employer value proposition are.
Potential Components of a Strong Employer Value Proposition
Hope you have already understood the importance of a strong employer value proposition (EVP); now it is time to consider its main components. A holistic and well-considered employee value proposition (EVP) encompasses several key components influencing a job seeker to work for your company.
1. Remuneration
A fair and transparent compensation package is the main foundation of a good employer value proposition (EVP). And your EVP needs to clearly reflect the employees’ value ensuring the company’s attention to the employee and the role he plays.
2. Other Benefits
Only salary does not motivate a skilled employee to join a company. They also look for other benefits. Among the benefits includes o cash benefits, such as bonuses, incentives, health insurance, etc. The non-cash benefits may include leave policies, paid vacation facilities, etc. So, providing a comprehensive benefits package enhances the overall value employees receive from the organization.
3. Training & Career Development Opportunities
A strong EVP emphasizes opportunities for growth and development. This involves offering learning and development programs focusing on technical and human skills, enabling employees to progress in their careers.
4. Happiness and Well-being
Employee well-being has become a very important EVP, and most wise and skilled employees look for these facilities. Therefore, you need to prioritize employee well-being and create a positive work environment to attract talented people. You can include work-life balance, employee engagement, mental health support, and a culture of appreciation among the well-being offers.
5. Purpose
Connecting employees to the purpose of the organization is essential. A strong EVP articulates the organization’s mission, values, and how employees contribute to that purpose. It fosters a sense of meaning and fulfilment in their work, making them more engaged and motivated.
6. Technological Alignment
Last but not least, technology is another reason many employees consider joining a company. The world is highly technology-intensive, and gaining tech literacy can be a game-changer for everyone. So, suppose your company’s EVP has a clear indication that they will have hands-on experience with technology tools such as HR solutions or CRM. In that case, candidates will be interested in joining your company.
When preparing an attractive employee value proposition, remember that it stays within the organization’s budget and capacity. Some people think EVPs are limited to large corporations, but we are afraid that’s not right. Every company should define an employer’s value proposition to further its business by attracting skilled employees. So, if you want to have a strong brand reputation, focus on these components. It will definitely help you attract and retain top talent and expand your business beyond your limits.
In short, an employer value proposition is crucial for attracting and retaining top talent. Besides, it helps establish a strong employer brand, foster employee engagement, shape organizational culture, and drive overall performance. It helps create a mutually beneficial relationship between employees and the company, resulting in increased satisfaction, productivity, and long-term success.
