Research indicates that a majority of millennials are on the lookout for new positions. Usually, compensation and benefits are used to determine whether or not an employee will remain in a company. However, this seems to no longer work, especially with the current diverse workforce, majorly constituted by millennials. They now seek a “total reward package” from their employers. This is regarded as the Employee Value Proposition (EVP).
Businesses that fail to pay attention to the values they should offer their employees will undoubtedly breed unsatisfied workers. When employee performance evaluation happens, some reactionary attitudes from their employees, such as absenteeism and turnover, become obvious over time. This, in turn, affects the employees’ relationship with clients or customers, who also become less satisfied. Subsequently, such customers develop apathy towards the company and profitability is affected negatively.
What is an EVP?
An employee value proposition (EVP) is the set of benefits that an employer offers their employees in exchange for the inputs, skills, capabilities, and experience they provide to the company. As an employer, an EVP is what makes your employees stay with you without making plans to hunt for a new job. It is also a source of motivation for your employees.
Businesses require a point of differentiation that makes them stand out among their competitors to attract its targeted market. Likewise, companies also require unique offerings (a differentiated EVP) to retain top performers as well as attract great talents. An EVP is the human aspect of your company. Beyond benefits and compensation, it also encompasses the work environment and office culture.
Why Do You Need a Unique EVP?
As an employer, you may be wondering why you need an EVP in the first place. After all, you issue paychecks to your employees without delay. Studies reveal that organizations with a compelling EVP have the potential to minimize turnover rates by about 70% as well as increase new hire commitment by almost 30%.
With prospective employees becoming more discerning in their job search, only a company that offers better employee experience will attract job hunters. If you have a strong EVP, employees are more likely to stay committed to your company. Not only that, but you are also able to attract better-qualified candidates.
All of these will give you a competitive advantage. In other words, having a compelling EVP is a win-win solution for both employees and their employees.
How to Develop a Strong Employee Value Proposition
Whether you have an existing EVP or you are about to start developing one, the first step in developing or enhancing an EVP is to conduct business culture and value assessment.
Source Information from your Employees
Just as you would seek certain pieces of information from prospective customers if you are to pitch your product or service to them, you should conduct a survey with your employees. The same way you would do market research for your product or service to know what prospective buyers want is the same way you should conduct a survey with your employees. As a mandatory measure, this could be done in an anonymous fashion to protect the identities of the employees. This also promotes them giving authentic and genuine answers.
A couple of questions to ask in the employee’s survey include the following: What attracted you to the company? What do you think makes the company unique? What do you value most about working in the company? What keeps you in the company year after year? What can change in this company to make you consider leaving? These questions can also feature during exit interviews.
Determine your Unique Qualities
After the survey, you can have a team review the responses indicating what employees value the most about your company which is one of the goals for employee evaluation. Have them determine if the points highlighted really differentiate your company. Is it inspirational? Does it have mass-appeal qualities? How well does it align with your company’s objectives?
Communicate the Message
Upon defining you employee value proposition , the next step is to communicate with the target market in the most creative and attractive manner. State it on your company’s website, convey it through all hiring channels and even include it during interview sessions. With this, the prospective employee can determine if the company and its employee’s offerings are suitable to them. Companies that openly communicate their EVP are perceived positively by the labour market.
You can also incorporate the EVP into every activity and operation of the company – induction ceremonies, company policies, and internal communications. Most importantly, it must be reflected in the way its daily operations are carried out. An EVP is always subject to an annual employee evaluation review as it should be a reflection of the ever-changing employee experience.
Elements of a Unique EVP
Apart from benefits and compensations, a compelling EVP offers a platform that allows for career development for its employees. Millennials are greatly concerned about growth and development as they prepare them for internal promotion.
Another great offering that can position your company in an attractive way to prospective employees is a conducive and engaging work atmosphere. When employees are engaged, they feel more concerned and connected about what they do. According to research, one proven way to increase engagement is through the use of apps during training, meetings, among others.
In summary, ignoring an employee value proposition denies you of numerous benefits, some of which include missing out on retaining highly qualified employees and attracting new hires. Millennials consider themselves as more deserving than what mainstream companies currently offer them. You never can tell who might be planning to leave your company as a result of poor employee conditions. Why not take the opportunity to improve the value you offer your employees to increase overall productivity and profitability?