As the landscape of the job market changes, so do the expectations of employees. Attracting and retaining top talent is becoming increasingly difficult and many companies have turned to creating a strong Employee Value Proposition (EVP) in an attempt to address this challenge. So, what exactly is an EVP? and how does it help in talent acquisition?
What is an Employee Value Proposition?
An EVP, put simply, is essentially how you brand yourself as an employer, and the value and benefits you offer current and potential employees. It is typically a distinctive statement designed to entice new recruits by reflecting the company culture, values, goals, and benefits. The overarching goal of an EVP is to outline to employees why they should pick you as an employer over your competitors.
Why is EVP so important? and how does it help in talent acquisition?
An EVP can be a determining factor in retaining or losing talent, hence the importance of implementing one and the need for it to be unique, compelling, and relevant. In a tight job market, companies must look to differentiate themselves to attract top talent. By developing an EVP that resonates with employees, you are able to reap many benefits, some of which include:
- Enhanced performance: With a strong EVP, you will likely attract higher quality and more capable candidates. Companies with strong EVP’s are 5 x more likely to have highly engaged employees and 2 x more likely to exceed company targets.
- Increased employee engagement: By defining your EVP, you understand your organisation You are able to see what employees like about working for you and where there may be areas for improvement. You can also understand what is important to your employees and their preferences in benefits and rewards. Offering meaningful benefits and rewards for your employees can help them engage and focus on their work, and as a result they are more likely to be committed and invested in their roles.
- Decreased recruitment costs: An appealing EVP helps in attracting top talent by highlighting why candidates would be better off working for you. This has a direct impact on hiring costs as less time and money is spent on talent acquisition expenses. You are also likely to reduce your payment of compensation premiums to new hires by up to 50% as you won’t need to win candidates over with an attractive salary given, they are already drawn to your company by your EVP.
- Reduced turnover: There is an abundance of research that shows companies with a strong and effectively delivered EVP decrease their annual turnover rates by almost 70% and increase new hire commitment by nearly 30%. When employees feel aligned with company values and goals, and are suitably rewarded and recognised for their efforts, they are more likely to stay with the company for the long term.
Summary
A strong EVP can add significant value to your company. It’s crucial for attracting and retaining top talent. Developing an EVP that appeals to current and prospective employees can enhance overall business outcomes by improving performance, increasing employee engagement, decreasing recruitment costs, and reducing turnover.
Part Two will provide you with an understanding of what elements to consider when designing your EVP and the necessary steps to take when developing it.
By Ellie Sloan