Updated: Oct 11, 2021
Rapid growth in technology has led to the explosion of new industries and resulted in a robust and easily accessible job market. Gone are the days when “loyalty” is the norm and employees stay with one company for the majority of their working lives. There have never been so many options to choose from, and employees know it.
This creates two key challenges for savvy businesses in the pursuit of top talent for their arsenal. The first being, how to stand out in a saturated job market? And secondly, how to give top performers reasons to stay once onboard? This is a pressing question given a 2017 report by The Work Institute estimated it costs around 33% of an employee’s annual wage to replace them. That’s almost $33,000 for an employee earning $100,000 per year.
The good news is that you can clear these hurdles by developing an Employee Value Proposition (EVP).
What is an Employee Value Proposition?
An EVP is the unique set of benefits a company offers its employees in exchange for their skills and experience. As a function of the Human Resources department, your EVP acts like a magnet that attracts new employees and discourages current ones from scanning job sites and directories.
Much like Marketing’s Unique Selling Point (USP), the EVP is designed to differentiate you from your competitors. However, in this context, you're targeting job candidates rather than customers. To ensure it’s compelling, it should be unique and capture the essence of your business. It should highlight key selling points such as your company culture, vision for the future, and the main reasons employees enjoy working for you. And when people are passionate about what they do and connect with your mission, they are more likely to stay, contribute more and thrive.
Know your target audience
It should answer a job prospect’s burning question, why should I work for you? And while compensation is important, it’s not all about money. Job searchers are increasingly looking at the whole package as they seek better working conditions, career progression and flexibility. See below for a full list:
The work from home trend has launched into the stratosphere since COVID-19 and now considered as a standard perk for most industries. A recent survey by the Boston Consulting Group found that 60% of Australian workers want to work from home two or three days per week. The implication is that businesses need to be aware of these trends and incorporate them into their EVP to attract, win, and retain top talent.
Our Top Tips for developing your EVP:
1. Investigate internally
It’s important not to assume you already know the attributes employees value the most in your business. By conducting surveys, focus groups and exit interviews, you can gather information straight from the source. You may be surprised at what you find.
2. Highlight valuable findings
As part of your investigation, be sure to highlight the most valuable attributes. These could be things like flexibility, career progression or training and development programs.
3. Make sure the message is clear
Your Employee Value Proposition should be simple and align with your strategic objectives. It should be realistic, make your company stand out and inspire job seekers to find out more.
4. Test for success
Before letting everyone know why your company is so great, be sure to test your EVP with both existing employees and with a sample from the external market. Receiving feedback early gives you better chances for success.
By taking the time to get your Employee Value Proposition right, you’ll immediately notice increased responses to your job postings as well as a higher calibre of candidates. You’ll remind current employees of the perks of working for your company, and chances are, you’ll avoid future headaches from talent walking out the door in search of greener pastures.
To find out how The Epiphany Group can assist with your Employee Value Proposition, contact us here.