One word that accurately describes the business landscape today is ‘volatile’. From technological advancements and ever-changing market dynamics to one global disruption after another, businesses are being forced to realign and reassess their business and talent strategies repeatedly – and this constant shifting of the goalpost is impacting organisations negatively.
In today’s dynamic world of work, organisations are focusing on creating a resilient workforce as the sure-shot path to becoming inherently successful and disruption-proof. This pivot towards a more people-centric approach to talent management becomes all the more important amid the ongoing war for talent – employees today are more clear than ever before not only about the value they bring to the organisation but also about what they expect in return.
And among the most efficient methods of improving an organisation’s employment brand is by creating a strong, well-formulated employee value proposition. An EVP helps companies to build a workforce that is resilient, agile, while driving a sense of belonging to the organization.
Why EVP matters
Today, the bar on the cost of “talent” has been reset, with firms having to look beyond pay competitiveness as a hygiene factor and think beyond. EVP can serve as a powerful differentiator and help organisations take their talent game to the next level. Research by Aon shows just how competitive the market is for top talent. “To ensure your organisation can attract and retain the best, you need to leverage on all the data that is available to inform decisions on how to develop an employee value proposition (EVP) that is compelling, authentic, and differentiating,” the research says.
There are a number of valuable reasons why an EVP is important:
1. Attracting top talent
Organisations, both big and small, have understood the importance of having high-potential talent on board and are ready to go the extra mile to attract top talent. A well-articulated and well-presented EVP can help create a great first impression on candidates. It also puts the prospective employees to take a more informed decision by communicating the unique value and benefits that employees can expect by working for a particular organisation.
2. Creating a sense of belonging
Companies around the globe are grappling with high levels of employee disengagement. The modern employee is different and comes in with a set of expectations from his/her employer. This can range from progressive organisational culture, focus on a career growth roadmap or access to leadership programs. An EVP sets clear expectations and aligns employees' values with the company's mission and culture. When employees feel a sense of purpose and belonging to the organization and their work, they are more likely to be engaged and satisfied.
3. Positive employer branding
A solid EVP can act as a great advocate and can do wonders for an organisation’s employment brand. It shapes the company’s perception as an employer of choice and can help enhance its reputation in the job market. In fact, a compelling EVP can attract not only active job seekers but also passive candidates who may be open to new opportunities if presented with an attractive proposition.
4. Internal alignment
By clearly communicating an organisation’s overall values as well as clarifying expectations from the employee, HR leaders can utilise EVP to better manage employee expectations and also align them with larger organisational objectives. Additionally, EVP can also help in bringing consistency to organisational messaging, which can help enhance an organisation’s credibility and authenticity.
5. Future-proofing your business
Through a well-structured EVP, organisations can emphasise opportunities for growth, work-life balance, learning and development, and purpose-driven work that can attract forward-thinking individuals vital to long-term success in an ever-changing business environment. By crafting an EVP that aligns with future trends and addresses emerging needs, businesses can build a resilient workforce, foster innovation and agility, and adapt to the challenges of tomorrow.
A brand new POV
Firms need to look at tailoring their EVP to guide the employee experience. Using data, firms can then focus on their differentiating factors to align their HR strategy and drive organisational resilience.
Modern talent managers must remember that a strong EVP can contribute to higher employee commitment and lower employee turnover, which, ultimately, has a positive impact on both customer and business results.
“For an EVP to be realistic and impactful, firms need to start leveraging data more effectively. We need to remember it is not a PR exercise, firms need to walk the talk. An EVP rooted in data is economical on effort and effective” Rahul Chawla, partner and head of human capital solutions, SEA at Aon, said.
Overall, an effective EVP helps organisations attract, engage, and retain top talent while driving employee performance and contributing to a positive employer brand. It aligns employees with the company's mission and values, fostering a thriving work environment. It is, without a doubt, the most strategic and effective way forward as HR leaders navigate talent acquisition in a new, more volatile world of work.
To dig a little deeper into this subject, PeopleMatters, in association with Aon, will look at talent management practices and EVP from the lens of the changing employee-employer relationship in an exclusive webinar. Click here for more details.