There is no question in any employer’s mind that we have entered a new era of recruitment and workforce trends. What started as the War for Talent became the Remote Work Revolution, quickly followed by The Great Resignation. Fancy titles aside, each of these phases has represented a major shift in workforce patterns, all embodying the short labor market and the trend of professionals prioritizing work-life balance over the traditional rat-race.
In part, it is because employers have lost the numerical advantage. There are now more jobs than professionals to fill them, and the workforce has far more options to choose from. Remote work technology has overcome its past limitations and gig marketplaces have changed the landscape for the talented who want to make money on their own terms. The War for Talent had already introduced a new wave of professionals focusing on well-being and best-fit jobs as a way to compete for in-demand professionals. The changes that occurred during lockdowns merely acted as a catalyst for a workforce transformation already in progress.
Today, without EVPs – Employee Value Propositions – many companies are struggling to stop attrition and to hire valuable talent.
What is an EVP and Why Is It So Important to New-Era Recruiting?
An EVP stands for Employee Value Proposition. It is the pitch that employers make to new candidates and valuable current employees. It is the value-added promise outlining what employees will get in return for choosing your company as their workplace. Your company’s EVP is what you have to offer employees in terms of compensation, perks, and a rewarding work-life balance that sets you apart from your hiring competitors.
Employees have become the commodity. According to recent. Simply building a better employee package, taking a comprehensive view of employee experience, and spotlighting these perks to new and existing team members can help your brand rise above the fold in terms of both appeal to new hires and long-term rewards for current employees.
Reducing Employee Attrition
According to recent Gartner data, employers who invest in a strong EVP can achieve up to 70% reduction in employee attrition. The Great Resignation has been primarily driven by employers who fail to adapt their employee experience to the demands and priorities of the modern workforce. Many brands adapted poorly during the remote work transition, from abandoning their teams to micro-managing beyond the point of sanity. Others adapted poorly to the return to the office, failing to realize that priorities and standards had transformed after months of working at home. Even before the shift, a greater focus had been growing on employee wellness and the negative health benefits of a rat-race work culture.
Building an EVP is not just about the benefits package. Employee attrition is reduced by taking a new and fresh look at the overall employee experience you are creating – and aiming to create something both more rewarding and more competitive in the modern hiring landscape.
Competitive Recruiting Strategy
It has also been found that a strong EVP can allow brands to gain up to 50% greater access to talent pools. When your employee value proposition offers a more fulfilling work-life experience, you can win talent away from freelance, gig, and contract work as well as drawing those few who are still looking for a traditional 9-5.
EVPs serve a critical role in the recruiting process, and it’s important to get your value proposition out there from the opening of your job offers and throughout the hiring process. Not only will you be able to attract more talent to apply, but a well-integrated EVP can keep candidates engaged and eager to join the team instead of choosing another option in the interim.
Powerful Employer Branding
Once your company becomes known for a great EVP package, you can use this to boost your employer brand and super-charge your recruitment efforts. Those who have already heard (or research and discover) that your company offers a great set of benefits and a rewarding work-life balance, candidates who place these as a top priority will begin to seek your employ.
Work-Life Balance and Long-Term Productivity
Lastly, a well-built EVP can result in longer-term employees who provide greater productivity per person. The push for employee wellness has always been rooted in data showing that employees who get enough time for self-care and personal lives are more focused and dedicated during work hours.
Strategies for Building a Powerful EVP
If you want to start winning and keeping the best talent in your sector, it’s time to build a powerful EVP. McKinsey outlines the importance of building a comprehensive EVP plan that includes not just pay, benefits, and perks, but a complete view of the employee experience your brand creates for each team member. Building and then pitching a strong EVP is the best way to accelerate recruitment, reduce attrition, and create a great employer reputation that will snowball into long-term staffing success.
There are six unique and vital strategies for creating the right EVP for your team-building goals.
1) Rebuilding Your View of an Ideal Employee
McKinsey’s report outlines how the ideal employee has long-since evolved from the traditional college graduate with an unbroken formal work history. Today, many of the most capable professionals in the industry have a more diverse and informal skill-building history. Many are self-taught or learned through online courses. Many have spent a few years on gig work, contract work, and in a larger range of industries.
So, it’s time to work backward from your ideal employee to your ideal new hire. In the modern workforce, it’s the skills, capabilities, and attitude that matter more than one’s college degree, and gaps or leaps in work history are now the norm rather than the exception.
2) Considering the Needs and Motivations of the Shifting Workforce
The US Bureau of Labor Statistics has provided copious data on why employees have left their previous workplaces. The two most important factors are leaving a toxic work environment and prioritizing personal life matters like physical health and time to spend with family. The modern workforce is acting on a greater variety of needs and motivations. With the shifting landscape of work opportunities, people are also free to find jobs that suit their specific lifestyle demands and priorities.
The best way to build a strong EVP is to keep in mind that people are building more complete lives in conjuction with their work schedules. By offering both time and perks that support a well-rounded life, your EVP becomes stronger and more appealing to a deeper pool of diverse talent.
3) A Comprehensive Approach to Employee Benefits
Those brands who have seen the most success through EVP strategy are the ones with a comprehensive approach. It’s not just about lunches, health benefits, or vacation time; it’s everything. You never know if your next great data scientist, sales guru, or genius engineer will be a new parent, a returning retiree, disabled, putting themselves through school, a dog-lover, or a travel bug – or anything else!
The best approach is to build a truly comprehensive EVP in which all lifestyles enjoy equal support with perks that fall into several categories of work-life balance, from professional development to building a family. Building a culture of receptivity and an evolving EVP is a value-proposition of its own, as well.
4) Offer Competitive Compensation and Benefits
Of course, great perks don’t overshadow the importance of competitive compensation. One of the most refreshing EVPs we have seen are employers who welcome team members motivated by paychecks and good insurance. After all, this is the core reason to seek employment, and if not for the need to pay bills, most people would find ways to stay entertained on an endless vacation.
Competitive compensation makes it clear that you value your employees on every level, including their desire to live well and build a career that frees them from budgetary concerns. From this angle, don’t forget the many financial programs that you can include to increase the financial wellness and growth of your team in your employ.
5) Broadcast What Makes Your Employee Experience Special
Once you have a great EVP, get it out there in the open. Broadcast your great program and company culture with every job description and employee newsletter. Build your EVP offerings into company activities and make sure that your perks become a part of your company culture. Not only will a strong EVP become a powerful selling point when hiring new talent, but an ongoing culture that promotes your EVP will build on-team satisfaction and establish a positive employer reputation for your company in the long-term.
6) Get Talent In the Door Quickly
Lastly, don’t hesitate to get your talent in the door. Be ready with same-day offers with details on your comprehensive employee benefits package using tools like Platinum Group’s Attract & Hire HCM module. We can help you provide same-day offer package so that when your best candidates say “I’ll think about it,” you leave them with a very positive employee value proposition to consider accepting as they join your team.
Inspiring Examples of EVP In Action
One of the best ways to build your new EVP is to take inspiration from programs that are working phenominally today. There are several great brand examples that you can learn from, and each takes the comprehensive approach to building a rewarding employee experience. Today, we’re spotlighting LInkedIn, Gartner, Hubspot, and Nike – four brands you’ve likely already heard of and have some idea of their glowing brand reputations.
Linkedin’s EVP is tagged #LinkedInLife, creates a well-rounded set of benefits separated into 5 categories:
Using this framework, LinkedIn has been able to offer an incredible variety of perks that fit every employee’s unique set of needs and priorities for work-life balance. By using the 5-category approach, it is easy to fill out each category and consider the many lifestyles that youre team members may represent to predict the value-propositions they would find most uplifting.
Gartner is a marketing research firm that already has the data behind employee success, so their EVP model is definitely one to take a close look at. Gartner also makes use of a 5-pillar model to ensure their EVP appeals to everyone and offers a competitive set of perks:
- Challenging Work
- Talented People
- Limitless Growth
- Community Impact
- Big Rewards
While clearly targeted a little differently, you can see how employees can find their passion and pursue their goals through EVPs with this categorical approach. We love that challenging work is on the list, as many ambitious professionals know that they will only be happy in a job that offers new challenges and opportunities in order to achieve longevity with an employer. Gartner’s EVP is designed to draw a team with an ambitious mindset, while still providing for a healthy work-life balance.
Hubspot takes a more holistic approach with a great deal of focus on providing employees personal time and flexibility. Hubspot's EVP includes
- Unlimited vacation
- Fully remote work
- Five-year sabbatical leave
- Parental leave, and
- “Fun stuff”
Hubspot clearly favors productivity through balance, encouraging team members to take the time they need to be their best when on the job. One of our favorite examples in Hubspot’s EVP is the five-year sabbatical – embracing the idea that an employee who has been with you for 5 years will stay another 5 if they can enjoy a mental refresh rather than seeking new opportunities.
Nike, a notoriously sporty brand, has coined it’s EVP with “Win as a team.” Their package of persuasive benefits features a company culture of activity and innovation. Nike's benefits feature
- Fitness discounts
- Relocation benefits
- Competitive pay and retirement plans
- Advanced learning opportunities
For employees seeking work with Nike, fitness discounts and relocation make perfect sense to include in the EVP, while advanced learning allows both employees and Nike as the employer to benefit from the natural human desire to learn and grow.
Unlock Your Company’s Powerful EVP Strategy with Platinum Group
To discover and build the ideal EVP strategy for your brand and the workforce you hope to build, explore Platinum Group’s all-in-one, cloud-based HCM platform, isolved. It will help you Attract, Hire, and Onboard top talent in your sector. We are here to help you establish a sound, efficient HCM system that will promote personal freedom, wellness, and growth for every member of your team. Explore the self-guided tour today.