The great resignation and higher expectations from candidates have made hiring talent and maintaining retention harder. Regardless if it’s a manufacturing or social media business, everyone is having difficulty learning new strategies for hiring. Employers have to provide prospective workers with great benefits so they are motivated to go through the hiring process and eventually stay in the company long term.
Employee value propositions (EVPs) decrease training materials and talent acquisition spending. It can also boost employee quality of life and long-term retention. There are many ways for businesses to create desirable employee value propositions and present them to prospective employees.
What is an Employee Value Proposition?
Employee value propositions are comprehensive methods that contain what an employer is doing to entice and maintain employees. Some companies may view this as mere benefits packages, but this is not the full scope. With work-life balance being the highest priority for job prospects, the benefits extend beyond the traditional offerings. Classic benefits are part of what draws employees to work for organizations, including but not limited to:
- Health and dental care
- Retirement savings and matching
- Leave benefits, such as disability and parental
- Career development, like seminars and tuition assistance
- Flexible work hours, such as remote days or flex time
- Financial benefits, like investment options
Concrete benefits like these are not all that make up successful EVPs. Though it sounds like creating EVPs costs businesses unnecessary money, it’s also about soft benefits such as instilling strong company values and situations to develop camaraderie among employees. Giving valuable benefits to employees will also save a business money in the long run, as more workers could stay and work harder.
Employers can see the benefits compound even if there is an upfront investment for some of these assets. For example, organizations that effectively deliver on their EVP can decrease annual employee turnover by just under 70% and increase new hire commitment by nearly 30%, according to recent data.
What Should I Include in EVPs?
Standard benefits attract motivated candidates and are excellent jumping-off points for an EVP foundation. Before affirming and refining an EVP, it’s essential to question whether the company’s values are well defined. Business culture creates organization, profit and morale in any successful enterprise. This also creates a vision for how the ideal employee looks in the workforce, further guiding what the EVP should target.
Companies must instill authentic values and goals to create happy and motivated employees. This gives them a sense of purpose while feeling appreciated and comfortable yet challenged. In a 2018 report, 15% of people turned down a job offer because of poor business culture and 32% were willing to take a 10% pay cut to work somewhere more passionate. Every year, this becomes more important for applicants.
There are more imaginative, clever ways to stand out above the countless job listings on websites outside standard benefit offerings:
- Rewards and recognition: This can look like superlatives like “Most Improved” to giving one-time bonuses for completing arduous projects. Merit-based raises are also a sustainable option for motivating employees to better themselves professionally.
- Office supplies and improved equipment: It’s time to look around the office to see how old the printer is. What about everyone’s computer monitors? Would more work be done if the staff brought quality-of-life improvements from home like diffusers, timers and desk plants?
- Family-friendly benefits: Company picnics are a classic, but offices that are child-friendly and pet-friendly, if possible and providing families gift cards for free dinners help staff understand work doesn’t usurp family time.
- Perks: Memberships to local gyms and discounts at restaurants are simple for hardworking staff, as most local establishments are happy to increase local customer bases.
There are limitless creative examples. The pizza chain &pizza has a unique policy they call No Ceiling. This is a drive to change the perspective to food industry jobs being careers, not just jobs, by telling everyone there is no limit to how far they can rise. Unlimited growth opportunities are at their fingertips if they choose to pursue them.
How Can I Make My EVPs More Effective?
This change does not happen overnight, so it’s essential to exercise patience while the business mindset turns into a growth mindset. A growth mindset can also strengthen any initiative to offer great EVPs.
Once the values are a company’s foundation, research can begin on the present perception of the existing EVPs. This is a time to look internally. The first and most obvious method of obtaining answers is asking current employees. EVPs give employees reasons to apply and stay and asking tenured workers will provide worthwhile insight if the proposition contains enough value.
These are example questions to ask staff that will deliver the necessary data for further EVP development:
- What sets this business apart from its competitors or others you applied to?
- How much value do you find working for this company? More or less than previous jobs?
- Are there any opportunities you wish you could see offered for the staff?
- Do you feel satisfied with the quality of the benefits and recognition you give?
Then it’s time to look externally and see how the world perceives a business’ offerings. Social media and job review sites are excellent resources for collecting this data. Be prepared to change the EVPs as time passes since this process takes incredible attention.
As these changes begin implementation, let current employees know — it’s not practical to wait until all the new ideas are solidified and push them all at once. Employees are 23% more likely to stay at a job if they feel management effectively communicates.
This motivates employees to be productive and engaged, decreasing the likelihood of voluntary resignation or interviewing while under a company’s employ. Providing great EVPs gradually keeps employees excited, as they see management continually caring about improving the work environment.
Eventually, all of it will become part of the brand, but it’s never a finished project. Improving and providing great EVPs for employees is an ongoing task that adapts and evolves with the times.
Providing Value for Employees
The endless value EVPs provide for employers and not just employees is non-negotiable for a business’s success. It can create more satisfied employees and drive profits because a company chooses an extraordinary culture with intention. A great deal of effort makes successful employee value propositions, but their worth will be seen in the performance and smiles of the workforce.