When it comes to the labour market, as Baby Boomers retire and Gen Z enter at a much lesser rate, workforce talent is a seller’s market, and this is likely to be sustained for a long while yet. In an environment where high-calibre hires are hard to come by, applicants with in-demand skills can and are selective when it comes to who they choose to work for. To be an employer that these applicants seek, a quality Employee Value Proposition (EVP) is required, one that is a unique and provides a compelling set of benefits, rewards, and opportunities to its employees. A good quality Employee Value Proposition is the employer’s promise which either attracts and retains high-calibre hires.
What are High-calibre Candidates looking for?
Leading internal business advisors, McKinsey & Company report that there are 4 dimensions good quality talent look out for when weighing up their selection options:
- Great Job – What do I get to do and What Skills will I develop?
- Great People – Who do I get to work with?
- Great Company – Why would I be proud to say that I work here?
- Great Rewards – How will I be rewarded for my efforts.
How does the Employee Value Proposition make a difference?
An EVP is a bit like a product brochure that a consumer may look at before they buy a new car however the a prospective employee, the brochure takes shape as they find more information out about the company or business they are looking to join. Therefore, to be seen as a great place of work, one that ticks all of the boxes for a prospective high-calibre hire, an Employer should shape up a high value Employee Value Proposition. Reflecting on the work of McKinsey weve pulled together some ideas for small to medium business to consider:
- Have clear purpose and aligned values: A strong EVP starts with a clear understanding of the company’s culture, values, and mission. New starters are onboarded with this in mind, and every aspect of their employment is set around this. High-calibre employees like to understand what a company is about, its mission and impact on a its customer base and how they can make a difference.
Alignment between personal values and company values is a major point of consideration for high-calibre talent and intuitively they know when there is a disconnect. There authenticity of values is important. Values are more than just what appears on the walls, they reflect what happens around here inside the workplace when the boss is not here and sets out what an employee’s experience is.
Leadership or being led by people who have good leadership skills is also critical. Good leaders generate excitement for the future, have strong sense of duty in the care for their team, and hold people accountable through exceptional communication standards where incompetent and clumsy leaders do exactly the opposite.
Meritocracy is also heavily favoured over workplaces that how low regard for merit. McKinsey research highlighted that not only do high-calibre employees want an opportunity to advance they want to be reassured, that all things being equal they have just as must chance as anyone else, and that people aren’t promoted just because of seniority.
A culture that is equally employee and customer centric is an ideal workplace for someone looking for an employer they are proud to have worked for. A high calbre employee is seeking to filter out and will often reject, even when the money is great, employers whose reputation and community standing is tarnished in the harts and minds of the consumer.
- Offering competitive compensation and benefits: Having the best pay on offer isn’t needed but having a competitive pau offering is. Other compensation and benefit factors high-calibre candidates look out for include:
- Flexible work options – Not being locked into tightly enforced rosters and being able to take time to attend events with kids.
- Performance based incentives – Access to incentive payment arrangements that recognise when performance is over and above what is ordinarily expected.
- Perks – Other perks such a movie vouchers, access to networking events, paid professional memberships etc are all really useful ways of building a suite of benefits beyond rates of pay.
- Wellbeing perk: Having options for employees to access free and confidential counselling support along with other health and well being perks such as associations with GYMs and Sports club which offer free or discounted rates for employees.
High calibre hire also looks out for inclusivity and high standards of physical and psychosocial safety. This is reflected in the business’ policy, its values and the accompanying behaviours that are on display by its leaders and the team. It is also evident by what people see and hear about your business in the community. For a potential high calibre hire who is weighing up their options, when it comes to identifying and weeding out employers whose culture is known to give employees a hard time physically and emotionally, nothing is more reliable then the grapevine.
- Opportunities for growth and development: Employees seek organizations that encourage and are willing to invest in their professional growth. A strong Employee Value Proposition highlights opportunities for:
- Career development. This is perhaps the single most cited factor we here about when it comes to sizing up employers of choice
- Skill development programs which includes avenues to learn off the job either by way of college, university or access to training,
- Mentoring whether this be via someone in their team or a recognised professional outside of the business,
- A workplace that is supportive of learning. Having training and learning offerings online is a cost effective way of demonstrating this.
- Work-life balance: A good Employee Value Proposition emphasizes flexible work arrangements, remote work options, paid time off, parental leave policies, and other similar initiatives. Flexibility at work isn’t just a nice to have it is pretty much an expected standard across today’s modern workplace, and because of Covid-19, working from home is considered a viable option. This doesn’t mean an expectancy of working from home all the time, but perhaps having the option to do so to help juggle work-life balance needs.
Its well known that high-calibre hires try to steer clear of workplaces that are known for providing a poor employee work-life experience. Workplaces that follow rigid old-school traditions are also shied away from in favour of workplaces that celebrate family and diversity and provide time for employees to have good connection with their community. Paid community service leave days and or even the flexibility to take time away from work to participate in community events can help in setting an employer apart from others.
How do I tell people about our Employee Value Proposition?
A company can spend thousands on building a glossy cover approach for their EVP, and many do. You see the outcome of these expensive marketing initiatives represented at careers fairs and on Billboards etc, and for companies who have an EVP that matches what they promote they will get a return from this investment. However, if the reality is far different it’s a lot of money wasted and for most part it is largely unnecessary.
Arguably the best and most cost-effective way that a great EVP is promoted is via word of mouth. This represents what existing employees say about your business, to their friends, families and professional peers. It is also what others see. A company with a great EVP will:
- Be seen through its employees being able to attend school athletic carnivals;
- Be seen through its people being present at local professional networking events;
- Be seen through its employees being involved in community groups on days that they would ordinarily be at work;
- Be seen through circumstances where a neighbour gets to see an employee able to work from home.
- Be seen when the employee says great things about his or her employer at a social gathering or BBQ,
- It is moments like these that truly promote a great EVP and these moments do not cost much at all.
When it comes to creating a great place of work, one that attracts great people having a solid EVP is vitally important. Active HR are specialists in help business shape themselves as great workplaces. If you are a business owner that would like to discuss what your EVP looks like and options to bring about an important get in touch with either Shan or Rhett today