The Great Resignation is not slowing down, although it's still below the astonishing number of last quarter, the data suggests that HR leaders shouldn’t rest on their laurels when it comes to recruiting and retention. The great resignation has reshaped the talent landscape making it more difficult to attract and retain top talent. To combat the staffing shortage , employers are having to increase their compensation and benefits packages beyond the traditional offers. Experts believe that the most important thing that employers need to focus on is their Employee Value Proposition ( EVP).
EVP has historically been defined as a ‘part of an employer's branding strategy that represents everything of value that the employer has to offer its employees’. A great EVP is made up of several components . These characteristics taken together, affect how your employees and recruits view your company as an employer. The following are some of the vital characteristics of EVP – Compensation, Work-Life Balance, Stability, Location and Respect.
Organisations are realizing that pre-pandemic EVPs will no longer prove practical after the pandemic. Companies need a better version of their EVPs and post pandemic benefits so that they can have better impact. Few shifts that progressive Organisations are making are moving from Employee Value Proposition to Human centered proposition, that treats employees as people and not workers ( Gartner 2022).
Traditional EVP must evolve
Why is EVP important ? According to Gartner, having a strong EVP can lower your turnover by 69%. In addition, a strong employer brand can help decrease your cost per hire by 43% according to a report by LinkedIn.
Before the pandemic, EVP were often a combination of traditional motivators like salary, benefits and paid time off, coupled with in-office perks like free snacks and after-hours social events. But the transition to remote work in certain industries has led to a wider shift in employee priorities, requiring Organisations to adapt their offering accordingly. What talent values at work and the factors they prioritize in career decisions has shifted . At the same time, many sectors are facing the most volatile hiring landscape they’ve encountered in their generation. As a result, employees are demonstrating high levels of confidence in their ability to find new opportunities if their current job fails to meet their expectations. In the current scenario, the traditional approach to EVP is falling short and needs to evolve.
Pandemic has changed the relationship between people and their work and the Employee Value Proposition must evolve to reflect these changes ( Mercer 2022). Experts believe that HR leaders must evolve their EVP by delivering a more human deal centered around the whole person , focusing on features and feelings that match employees' needs. Smart employers who want to take control of the resignation wave are dialling into their EVP. Workers are leaving companies faster than companies can replace them. Organisations must redefine their attraction and retention strategies and build a value proposition that takes employees who live into account.
Some of the elements worth considering in designing EVPs are – Employee Wellbeing, Flexible Work Arrangements, Business Stability, Diversity and Inclusion. A strong recommendation would be to give talent the EVP they want. Organisations can dig into the data to analyse what the prospective candidates and employees now value. What motivates them in the wake of Covid ? What kept your employees at your Organisation through Covid ? What do they wish their companies would have done or been doing better ?
Stated Vs Reality
Although traditionally EVP has fallen to HR teams, in the current landscape, EVP targets need to be championed by Organisational leaders across the company and at every level. EVP has to be grounded in reality. For it to be successful, it can't be completely aspirational – it has to match up with the lived experience. Organisations can no longer afford to neglect their EVP, or provide one that falls short of what’s been promised. In the current hiring landscape, Organisations are under greater pressure to promote an attractive and engaging employee experience. Those that can effectively promote and follow through on providing a strong employee experience will be in a much better position to weather the talent challenges of today and tomorrow.
The value of an EVP extends beyond acquiring new employees. Your EVP is a promise you make to your employees and if you maintain it, it will increase employee engagement and trust in you as an employer. If you have got an engaged and loyal workforce – because you have made it clear you value their perspective and you’re going to be authentic and transparent with them – you are already ahead of the game.
To conclude, no one knows how long the great resignation will last, but one thing is clear: people will continue to look for companies that make their work-life meaningful and add value to them. Crafting a compelling EVP is an impactful way to ensure employees, and prospects alike have a clear perspective on what your Organisation has to offer today, and the promises it's making for the future.