Why your business needs a new Employee Value Proposition
By: John Bradbury
People Experience Growth Advisor - EMA
In New Zealand’s current challenging labour market, businesses are finding it harder than ever to fill vacancies, job advertisements are running at record levels and staff turnover is increasing.
It is essential that your business clearly defines a relevant and compelling Employee Value Proposition (EVP). Your EVP sets out what is unique about working for your business and helps you to differentiate working for you from working for a competitor. As such, it is a vital tool to enable you to recruit, engage and retain staff.
A well-designed EVP enables you to:
- Attract better quality candidates, by ensuring their needs are aligned with what your business offers
- Enhance engagement and productivity, by motivating employees to deliver better business results
- Reinforce your culture, increase employee loyalty, and reduce turnover.
The heart of your EVP are your existing employees’ experiences. Your recruitment branding and advertising must match the lived experience of working in your business. Failure to do this will lead to a higher churn of new recruits, when they quickly realise that their reality does not match the promises made during the recruitment process. Over 31 per cent of resignations are currently by staff in their first year of employment. This warns us that new employees are more likely than ever to move on to another role if their expectations are not met.
Your EVP needs to be built collaboratively, using employees’ experiences as well as senior leaders’ aspirations. Formal sources of data, such as business plans, engagement surveys and exit interviews must be supplemented with one-to-one interviews, focus groups and collaborative workshops. These methods ensure that the EVP is grounded in, and brought to life by, the “moments that matter” for employees.
Finally, even if your business has defined your EVP, the likelihood is that post January 2020, you now have new policies and practices in key areas such as, total financial rewards, learning and development, and flexible working. It is vital to review and update your EVP to ensure those new policies and practices have maximum business impact by enabling you to attract and retain high quality staff.
To hear more about the work EMA’s People Experience Team have done to enable members to develop or update their EVPs, and to access our resources, please contact email@example.com