Winston Churchill once said, “Never let a good crisis go to waste.” That’s so true because now is the perfect time for businesses to re-assess whether their employee proposition still aligns with the changing needs of their employees post the pandemic. Being an ‘employer of choice’ today has never been more important. Increased competition and the ability to work remotely means attracting and retaining the top talent can be challenging and vital for success.
Simply put, the Employee Value Proposition is the phrase used to describe the following: ‘why work ‘here’ versus somewhere else?’. Employees and prospective employees have their own ideas of what an organisation offers, and they will have shared those views with others. It’s also an employer brand image, and a two-way psychological contract between employees and the organisations they work for.
Every organisation has a Employer Value Proposition, whether it is something that has been intentionally designed or whether it’s developed over time. Ask any employee why they work for a business and they’ll provide an insight into the aspects which are important for them.
It’s all about the money right?
Your first guess might be that the most important aspect for a current or prospective employee is salary. But the reality is that a competitive salary and benefits package are no longer enough to attract, retain, motivate and engage top talent. Your employment ‘pitch’ needs to encompass far more.
The Employee Value Proposition is a broad concept that can be broken down into 5 main components:
- Financial compensation
- Employment benefits
- Career development
- Work environment
- Company culture
Why does it matter?
Re-evaluating your ‘pitch’ or employment proposition today will help you hire new talent and retain existing talent tomorrow. Despite the pandemic, talented individuals always have alternative employment options. Employers who adopt a closed minded approach, ‘that people need to be grateful to have a job here’, are going to struggle remaining employers of choice.
Organisations who have a strong employee proposition, have greater competitive advantage over their competitors, have higher retention and attraction rates and have strong employee advocacy because people become brand ambassadors and culture champions.
How do we know what our employees value?
If you want to attract the right talent for your business, you need to segment and personalise your employee value proposition for the target audience. Figure out what is important for them. Ask your people what they value and why.
Remember, a better offer does not necessarily mean a bigger salary. It could be flexible or hybrid working, career growth opportunities, involvement with interesting projects or educational support. It’s not a one size fits all approach.
Where do we start?
- Assess what you currently offer.
- Interview your existing and past employees to obtain their feedback about what they value and why.
- Define the key components of your employment proposition now that you understand what your people value.
- Write your new employment proposition and ensure it answers why would people want to work for your business.
- Promote your employment proposition internally and externally.
- Review the results and make refinements if necessary.
Human beings are complex and treating people like “rats in a maze” where everyone is given the same incentive for achieving various tasks may work for a limited period, but it is not a sustainable model for growth.