Your Employee Value Proposition (EVP) is a critical tool in your efforts to attract top talent and keep your best employees. Think of your EVP as the elements that would make up the second half of this sentence spoken by one of your employees, “I give my time, talents, best effort, ideas for making things better and drive to succeed to (fill in your company name) and in turn I get…”
These should be your key selling points when you are talking to great candidates and when you are reminding your employees why they continue to make the good decision to stay with your organization.
The Corporate Executive Board has released data demonstrating the importance of the EVP. An attractive EVP can reduce the compensation premium needed to hire top talent by 50 percent. An effective EVP enables an organization to improve the commitment of employees by up to 37 percent.
Now let’s be clear, I realize not every employer can have Google-level perks. But you need to concentrate on the key things that differentiate you as an employer against the other companies with which you compete for talent.
Here are a few areas where you can differentiate:
- Health insurance benefits
- Vacation and paid time off
- Work-life balance or blend
- A clear organizational purpose/mission
- Meaningful work
- Career development and learning opportunities
- Positive work environment
- Big goals and a driven workforce
It’s not just one thing that makes a difference. And despite the fact that I listed pay first, that is only one piece. Many people would be more than happy to take the average wage for their role to work in a great environment where they are well respected, with a great work-life balance and the chance to make meaningful contributions.
Evaluate your organization’s EVP. If you are not sure what it is, ask a group of your best employees. Capture it. Put it on paper.
Now think about the audience who you want to be able to attract and keep at your organization. Do research on that group. Does your EVP match up to what’s important to them in an employer? If not, what do you need to change to make your organization a more attractive destination for them?
An important point is that you need to make sure your EVP aligns with the wants and needs of the talent you want to attract and keep. If it doesn’t, you are investing money in the wrong things. Reevaluate the situation and make choices based on what you know about your audience.
Having a well-formulated EVP based on strategic choices you’ve made as an employer will give you an advantage over your competition for talent. If you haven’t already developed a clear EVP, now is the time to do so.
At CAI, we are happy to talk you through this and all of your other HR issues and opportunities. Feel free to give our Advice & Resolution team a call at 919-878-9222 or 336-668-7746.