Employee expectations have changed, and with it, the ways that companies need to recruit. Employers must compete for top-tier candidates in today’s candidate-driven job market, where jobs are abundant. To set your company apart, business leaders should develop an employee value proposition (EVP) relevant and compelling to today’s job seekers.
Responsible for attracting, engaging, and retaining talent, an employee value proposition (EVP) is a set of values that defines your company, what it stands for, and what makes it unique. Companies that can more clearly express the benefits and rewards that they offer, in exchange for an employee’s performance at the workplace, have a more significant advantage when it comes to attracting the skills and employees they desire and keeping them engaged in a competitive job market.
Developing a solid EVP and communicating who you are as an employer are crucial components of your brand identity. Safeguard Advisors specialize in branding and can help business leaders cultivate a strong and compelling brand, driving long-term business success.
Why are job candidates ghosting?
In a tough hiring market, having job candidates ghosting is becoming a growing problem. When used in the workplace context, ‘ghosting’ refers to one party completely vanishing from the interview process. Research shows that ghosting increased from 18 percent in 2019 to 28 percent in 2020. Ghosting from job candidates can happen anytime, from the interview process through the new hire stage. Some employers report candidates ghosting after an initial screening interview, but 25 percent of employers report having new hires’ no-showing’ on their first workday. The reasons job candidates are ghosting in ever-increasing numbers vary. Still, some of the top reasons include a competing offer with higher wages or better benefits, poor communication, a lengthy or complicated hiring process, and an insufficient explanation of a company’s EVP.
Developing an Employee Value Proposition
Research shows that when you invest in cultivating a strong EVP, you can increase new hire commitment by nearly 30% while decreasing annual employee turnover by almost 70%. A tool to help employees understand what they need to be successful at work each day, an EVP is a comprehensive description of everything that an organization has to offer its employees and can be used to boost attraction, engagement, and retention. It’s vital that the EVP sees employees not just as workers but as people and provides value for them both in and out of the office.
A well-formed EVP generally has five main components, composed of both monetary and non-monetary benefits:
1. Company Culture: Encompassing organizational dynamics, leadership style, internal communications, collaboration, and positive relationships between team members, company culture refers to the beliefs and behaviors of a company and its employees. Employees want to know what their company stands for, and company culture embodies how individuals within an organization interact and work with each other.
2. Benefits: This component of the EVP is associated with a wide range of benefits, including things like paid time off, healthcare, retirement benefits, and remote work or flexible schedules. A company’s benefits package should be tailored to the organization, the industry, specific employee needs, and even where a company operates.
3. Opportunity: Employees want to visualize a clear career development and growth plan, with opportunities for training, education, mentoring, career guidance, and personal development. Employees are looking for opportunities for personal growth, and employers can help by making them feel valued.
4. Work Environment: To facilitate a positive work environment and create a space where employees can thrive, employees need a clear understanding of their roles and responsibilities. Organizations can take additional steps to contribute to a healthy work-life balance for employees, such as offering flexible working hours, employee recognition, and team building.
5. Compensation: Covering all financial offerings, including salary, stock options, bonuses, and other monetary rewards, a compelling EVP needs to combine fair compensation with other thoughtful benefits. Too often seen as the key selling point, financial compensation should be one piece of the complete EVP.
Aligning Your Employee Value Proposition (EVP) With Your Unique Value Proposition (UVP)
A unique identifier for your business, your unique value proposition, or unique selling proposition, succinctly expresses the benefit your business offers, how you can solve your customer’s needs, and what distinguishes your business from the competition. While your UVP is an outward-facing attribute, and your EVP is internal-facing, these two propositions are intrinsically linked.
A well-rounded EVP can strengthen your brand and the culture of your company. By being intentional with your internally focused EVP, you can attract and retain top talent, influencing company productivity and morale, and ultimately creating a positive work environment that will drive your organization to success.
At Safeguard, we know that a strong employee value proposition (EVP) can provide a strategic advantage for your business, helping attract and retain top employees while distinguishing your organization from the competition. Rely on Safeguard for the right products, services, and ideas to make managing and marketing your business more accessible and more productive. Call 855.778.3124 to get started.
Key Takeaways
- Business leaders should develop an employee value proposition (EVP) that is relevant and compelling to today’s job seekers.
- An employee value proposition (EVP) is a set of values that defines your company, what it stands for, and what makes it unique.
- A well-formed EVP has five main components: company culture, benefits, opportunity, work environment, and compensation.
- Your Safeguard Advisor can help you be successful with the right products, services, ideas, and planning.