Our Risk & Compliance team have written this Quarterly Market Update to help keep you up to speed with what is happening within the Risk & Compliance industry, we hope you find it useful: VIEW THE RISK & COMPLIANCE MARKET UPDATE
The Importance of an Employee Value Proposition (EVP) in a Competitive Market
Hyper-competition demands a strong Employee Value Proposition (EVP)
Compared to just a few years ago, candidates now have far more power during the job search. According to our research, current job market is 88% candidate driven. That means you don’t pick talent anymore. Talent picks you.
Today’s workforce, especially with the emergence of millennials, seek meaningful positions that grow them both professionally, and as individuals. And today, there are more ways than ever to be informed, especially through word-of-mouth on; social media, blogs, company surveys, interviews and much more.
This all contributes to the perception of a company, which is crucial when you consider that 75% of jobseekers consider an employer’s brand before even applying for a job. This means that companies need to do more than simply advertise a job; they need to create a desire around working for their company.
[pullquote align=”right” cite=”” link=”” color=”” class=”” size=””]To beat the competition, you need to do everything you can to understand your EVP. Strengthen it. Develop it. If necessary, transform it.[/pullquote]
With a boost in Irish employment by three per cent over the past year and the economy nearing full employment, now more than ever businesses need to find a way to stand out from competitors.
Central to this approach is ‘Employee Value Proposition’ (EVP), a term used to describe a set of values that you, as an employer, offer to your employees, and use as a magnet for attracting new hires. It’s the sum of everything people experience and receive while they are part of your organisation – from basic satisfaction of the work, to the environment, leadership, colleagues, customers, remuneration and more.
Your EVP, in tandem with your Employer Brand, will be the determining factor in retaining or losing talent from your organisation in 2019. To beat the competition, you need to do everything you can to understand that EVP. Strengthen it. Develop it. If necessary, transform it.
Employee Value Proposition (EVP) at its Best
An EVP is an important incentive for staff, since office culture and values are highly regard by today’s workforce. Indeed, a recent report by LinkedIn found that 67% of professionals in Ireland placed company culture and its values above ‘perks and benefits’ when wanting to learn more about a company.
EVP can also add value to existing staff, by helping them feel valued and recognised in the workplace. With recent reports suggesting that it the costs of replacing staff has doubled over the past year, it also makes good business sense to retain good staff.
In a recent study of HR managers by Linkedin, 72% of recruiting leaders worldwide agreed that employer brand has a significant impact on hiring. Furthermore there’s ample evidence that a great employer brand makes it easier to recruit and it also impacts the business’ bottomline with an average reduction of 50% in the cost per hire, according to the survey.
Don’t think you have an EVP? You do, whether it’s been formally written down or not. You’re already sending a message to current and potential employees about your company’s values and priorities. This year will see more companies invest in comprehensive content strategies and storytelling, promoting the people behind their brand using video, article content and social media to reach new talent.
So how do you go about starting the EVP process?
Step #1: Defining your Employee Value Proposition (EVP)
The first step is to get your EVP formalised on paper, even if it has already been defined by your company in the past. Take the time to scope this out properly and present an authentic, differentiated EVP. Many companies fall into the trap of choosing the wrong attributes or fail to differentiate themselves from their competitors. Others show a significant gap between promise and reality, resulting in reduced employee commitment in the long term. Research suggest that organisations that effectively deliver on their EVP can decrease annual employee turnover by just under 70% and increase new hire commitment by nearly 30%.
To help you design and define your EVP, we have put together a comprehensive template that you can use that will help you begin, define and improve your EVP journey.
Download the EVP Design Template
This template will help you plan and present your employment value proposition (EVP) design to key stakeholders.
Step #2: Activate your Employee Value Proposition (EVP)
Once you have your EVP defined the next step is to communicate it and turn it into a compelling narrative that resonates with the right people, in the right places. Now it’s time to live it out each day, through every touchpoint someone has with your brand. You should be channeling your company messages consistently through all your communications; from your career site, advertising, talent networking email campaigns, events, to social media and blog posts to recruitment. Those in the know call this ‘employer branding’ – think of it as your calling card and reputation as a good place to work. It is widely regarded as one of the most important features in your company infrastructure.
A fully activated EVP controls the conversation—starting from the first moment a candidate begins to consider your company. As the right candidates join your team and experience your EVP every day, they become engaged, loyal, passionate brand advocates. That’s priceless.
Step #3: Sustain your Employee Value Proposition (EVP)
Finally, we recommend that employers review their EVPs regularly to make sure they remain relevant. You should keep a living document of your EVP, constantly review it, and improve it. Asking EVP-related questions when employees join or leave the company, during performance reviews, and in employee surveys can provide ongoing data about how employees perceive the EVP. Recruitment and retention metrics can also indicate how well the EVP fits with employee needs and expectations.
At Lincoln, we are able to help you define your EVP strategy and optimise your employer brand and resourcing approach. Our consultants have extensive market and creative experience to guide companies through this process. All too often, resourcing is seen as a reactive, cost intensive process. We work with our clients to ensure their total resourcing approach is clearly focused around acquiring long term value for their organisation.
Our Insurance team have written this Quarterly Market Update to help keep you up to speed with what is happening within the Insurance industry, we hope you find it useful: VIEW THE INSURANCE MARKET UPDATE
Salaries have fluctuated so much within the funds sector since we published our Salary Survey at the start of the year that we have produced a revised version, we hope you find it useful: VIEW THE FUNDS MARKET UPDATE