HOW YOU CAN INSPIRE TOP TALENT TO CHOOSE YOU (AND STAY)
From job postings to career boards, onboarding to performance reviews, a good Employee Value Proposition (EVP) is an essential tool for leaders and business owners.
But when it comes to EVPs, it can sometimes feel like we're reading straight out of a Hallmark card. And the truth is, a lot of EVPs work about as well as a generic store-bought sentiment. However, just like a good love letter, an authentic EVP will help woo the right talent to your team and keep them head over heels for your company.
Which means less turnover, more buy-in, and ultimately bigger profits.
Statistics consistently show that organizations with well-defined EVPs enjoy numerous advantages in recruitment, retention, and cultivating a motivated and engaged workforce. According to a survey conducted by LinkedIn, 86% of HR and talent acquisition professionals agree that a strong EVP plays a crucial role in attracting top talent. Additionally, organizations with well-communicated EVPs experience 22% lower turnover rates than those without them, as stated by a study conducted by the Corporate Leadership Council.
So what is an EVP?
Simply put, an Employee Value Proposition is a statement that describes the unique benefits and opportunities that a company offers to its employees. It defines what an employee can expect from working for a particular organization, and it is a powerful tool for attracting and retaining top talent. It’s the unique deal you make with your people - what they get for working with you, and what you expect in return.
Recruitment is undoubtedly a key area where an EVP can make a significant impact. In today's candidate-driven job market, potential employees are increasingly seeking more than just a paycheque. They desire a sense of purpose, growth opportunities, and a supportive work culture. An authentic EVP communicates these intangible aspects, setting an organization apart and appealing to high-performing individuals.
An EVP can also help to differentiate a company from its competitors. With so many organizations vying for top talent, it can be difficult to stand out and attract the right people. By highlighting the specific benefits and opportunities that a company offers, an EVP can help to make a company more attractive to potential employees and increase its chances of attracting the best candidates.
A compelling EVP not only attracts top talent but also fosters employee loyalty and retention. When employees feel that their organization genuinely cares about their well-being and development, they are more likely to remain committed and engaged. The Society for Human Resource Management reports that employees who believe their organization delivers on its EVP are 4.5 times more likely to be engaged and 3.5 times more likely to feel their work has a positive impact.
Building a culture that is engaged and motivated is a critical aspect of organizational success. An EVP aligned with an organization's mission and values creates a shared sense of purpose among employees. This sense of purpose inspires individuals to go above and beyond their responsibilities and fosters a collaborative and high-performing environment. Research conducted by Gallup found that companies with highly engaged workforces experience a 21% increase in profitability.
However, it is important to emphasize that an EVP only works if it is authentic and accurately represents the experience of working within the organization. In today's hyper-connected world, employees and job seekers have access to an abundance of information, enabling them to scrutinize an organization's claims. If an EVP is perceived as misleading or inauthentic, it can damage the organization's reputation and lead to employee disengagement.
Creating an effective EVP
In order to create an effective EVP, companies should start by identifying the real benefits and opportunities that they offer to employees. This might include things like competitive compensation, opportunities for career advancement, a positive work-life balance, or a unique company culture. Anything that makes you different, both in terms of benefits and cultural fit, should be showcased and celebrated.
Once these benefits have been identified, companies can then craft an EVP that effectively communicates these points to potential employees. Beyond job postings and career pages, this might also involve creating a tagline or slogan that summarizes the key points of the EVP that can be branded, or creating a video or other visual materials that help to bring the EVP to life.
Of course, an EVP is not only a statement, it should also be a reality. Therefore, the company must strive to deliver on the promise they made. You must continuously assess the culture and benefits you offer employees, ensuring your EVP is authentic and truly reflects the unique experience you offer as an employer.
Your bottom line
The ability to effectively recruit and retain the right employees can have a significant impact on a company's bottom line. When a company is able to attract and retain top talent, it can focus on growing the business and achieving its goals without being constantly sidetracked by the need to find and train new employees.
On the other hand, high turnover rates and difficulty in recruiting new employees can be costly to a company. The average cost of hiring a new employee can range from tens of thousands of dollars to several times the employee's annual salary, depending on the position and industry. This cost includes expenses such as advertising, recruiting, and interview costs, as well as the cost of onboarding and training the new employee.
In addition to the direct costs of hiring and training new employees, high turnover rates can also lead to indirect costs, such as lost productivity, decreased morale among remaining employees, and damage to the company's reputation.
An effective EVP can help to minimize these costs by making a company more attractive to potential employees and reducing turnover rates. By highlighting the unique benefits and opportunities that a company offers, an EVP can help to attract people who are more likely to be satisfied and stay with the organization for the long-term.
In addition to helping to attract new employees, a good EVP can also be a valuable tool for retaining current employees.
One of the main reasons why an EVP can be effective for retention is that it helps to create a sense of pride and engagement among employees. When employees understand and can relate to the unique benefits and opportunities that the company offers, they are more likely to feel valued and motivated to stay with the organization.
A good EVP can also help to promote a positive work culture and foster a sense of community among employees. By highlighting the company's mission, values, and goals, an EVP can help employees to understand how their work fits into the broader context of the organization and how they are making a difference. This can lead to employees feeling more invested in the company and more likely to stay for the long-term.
Moreover, EVPs can also act as a touchpoint for the company to assure that the company's culture, benefits, etc are in line with what they are promising to the employees. This helps employees to trust the company more and have faith in their future with the company.
It's also important to note that an EVP should never be a one-time effort, but a continuous process of assessment, evaluation, and improvement. By consistently evaluating and updating the EVP to ensure that it remains relevant and aligned with the needs of employees, companies can demonstrate that they are committed to creating a positive and rewarding work environment.
Final thoughts
A good EVP can be a valuable tool for both attracting and retaining employees. By clearly outlining the unique benefits and opportunities that a company offers, an EVP can help attract people who align with the company's vision, differentiate from competitors, create a sense of pride and engagement among employees, promote a positive work culture, and foster a sense of community. Continuous evaluation and improvement of the EVP can help to ensure that it remains relevant and aligned with the needs of employees, thereby promoting trust and faith in their future with the company.