Editor’s Note: This is a guest post by Kayla Matthews. Her opinions are her own.
When employees look for a new position, compensation isn’t the only factor they take into consideration. They tend to look at the whole package: the employee value proposition.
If you’re ignoring the value your business has to offer employees, you could be missing out. Companies with unsatisfied workers can face higher rates of absenteeism, turnover, shrinkage and safety incidents. In turn, this can lead to lower customer satisfaction and profitability.
What Is Employee Value Proposition?
Decades ago, many people held strong values focusing on company loyalty. You got a job and stuck it out, slowly rising in the ranks over many years. However, employees of today — mostly strong-willed, educated millennials — aren’t afraid to speak up or leave due to mistreatment and poor conditions.
That doesn’t mean retaining young employees is a difficult task. It involves assessing your business’s EVP to determine if you’re offering enough benefits for a worker to stick around.
The employee value proposition is what you as an employer are doing to attract and keep workers. This includes anything from compensation and benefits to work environment and office culture. It’s what makes an employee choose to work for you as opposed to someone else.
The Importance of Employee Value Proposition
Your business has an employee value proposition, whether it’s been purposefully maintained or simply left to grow wild. The benefits of taking control of your EVP are endless.
With a strong employee value proposition, your business will have the advantage of:
- Advocacy: Employees will speak highly of your brand.
- Retention: Workers are more likely to stay committed to the business.
- Attraction: You company will bring in better-qualified candidates.
- Competition: You’ll have the edge over competitors who ignore EVP.
Employee retention, which can have a drastic impact on your bottom line, is significantly influenced by a strong value proposition. Studies show organizations with a compelling EVP can decrease turnover rates by about 70 percent and increase new hire commitment by nearly 30 percent.
No matter the state of your current EVP, there are plenty of steps you can take to make improvements.
How to Improve Your Business’s EVP
Whether you already have a structured EVP or are just getting started, the first step is to assess your business’s current state of affairs and determine what can be improved. Once you know what you can do better, you can draft a plan with actionable goals.
Conduct a Survey
The best way to create a successful EVP is to employ goals that focus on what employees want. To understand this, it’s easiest to just ask them. If you assume the types of benefits workers are looking for, you could miss a critical opportunity to emphasize how you’re a quality employer.
A company-wide survey, if done the right way, can uncover the truth about your employees’ praises and complaints. You should also research the types of workers you’d like to attract and which benefits are most important to them. Don’t overlook qualities that can set your business apart, such as an exciting company culture, rewarding work and on-site perks.
Offer Career Development
Employees don’t want to feel stagnant in their careers. They want to learn, develop new skills and continue to grow. The No. 1 reason people leave their jobs is because of the lack of growth and advancement opportunities in the workplace.
Young workers are no longer taught to wait for opportunity to knock. If your business doesn’t allow room for advancement, employees will eventually find the exit door. Part of your EVP should focus on worker development plans that focus on establishing target goals for internal promotion. Merely recognizing your employees’ accomplishments can go a long way.
Calculate Pay Carefully
Your employees put a large chunk of hours and effort into your business. Don’t make them feel cheated or unappreciated by being vague about money. Today’s workers want information about salary and monetary benefits to be transparent, allowing them to know when they can expect a boost in earnings.
Research the job market in your area and what competitors are paying. You should also consider economic fluctuations, such as rising gas and rent prices. Next, create a payment policy that outlines what employees can expect to earn. You should also include a flexible timeline for achieving raises and monetary bonuses.
Boost Employee Engagement
One value you can offer employees is an interesting and engaging work atmosphere. Workers who stay engaged often feel more connected and passionate about what they do. One way businesses are increasing employee value is by utilizing apps that enhance engagement during training, meetings and more.
With an app, employees can easily reference training materials and track progress from anywhere. Employers can also measure how new hires are utilizing the materials and whether they’re effective. The use of apps in the workplace has also been shown to boost worker productivity by 34 percent.
Conduct Stay Interviews
You’ve probably heard of an exit interview, where an employee sits down with a manager or HR to discuss why they’re leaving. The problem with this strategy is you only learn helpful information after losing someone. Plus, a worker who has no stake in the future of the business is less inclined to be honest or forthcoming.
Instead, consider conducting stay interviews, where you sit down with long-term employees to see why they’re sticking around. You should also ask them what attracted them to the position in the first place and what would make them leave. This can be a good way to highlight your current virtues while also figuring out any areas that need improvement. EVP in HR is best put to use throughout someone’s employment, not just when they’re resigning.
Upgrade the Office
There are two factors to every office: the company culture and the environment itself. Company culture is tricky to pin down, as it can vary greatly based on employees, location, industry and much more. It can involve assessing management tactics and weeding out any problem employees. Overall, the effort of a more positive workplace can be worth it.
Work environment, on the other hand, is easier to control. It involves creating a space workers want to come back to each day. Focus on how the office looks and feels. Consider hanging artwork to add color and style. Make sure all fixtures are working and provide access to natural light, a sought-after workplace perk.
Attract Candidates With an Improved EVP
Remember, even if you don’t plan and cultivate an employee value proposition, one will still exist. It just means you aren’t actively managing it and controlling the narrative.
By ignoring your EVP, you can miss out on a lot of benefits, including the chance to find and retain highly qualified employees. Truly good workers know their worth and aren’t willing to settle for less. By improving the value your business offers them, you can spur growth, increase productivity and raise overall profits.