One of the often discussed topics of employee attraction and retention strategies has been focused on Employee Value Proposition (EVP). At times, the purpose of EVP has been tied to employee branding and marketing. In the final analysis, EVP is about how an organization keeps employees engaged in purposeful and productive work.
As Critical As Ever
An organization’s ability to maintain its competitive advantage in the market place lies in how it harnesses their human capital. The ability to maintain a talent advantage is as critical as ever. To attract and retain top talents gives top companies its competitive edge.
Two key advantage of a strong EVP in recruiting is the ability to attract top talent and lowered costs associated with recruiting. A higher retention rate reduces turn-over and improves employee productivity.
People join organizations (whether professional or personal) because of the tangible or perceived values that group has to offers. Specifically, in the workplace, these attributes include: organization, people, reward and opportunity. Organization strategy around culture and work encapsulates those attributes.
Badges of Honor
Everyone has seen various “badges of honor” bestowed upon companies ranking the “best” of XYZ (you fill in the variables). These include “Fortune World’s Most Admired Companies” or “Hewitt Best Employer in Asia.” These recognition are reviewed and evaluated by reputable journalistic or consulting companies. They do lend a certain credibility to a firm’s approach to company organization climate. But, this is only one element to the EVP message.
Increasingly, companies are speaking directly to their audience through social media such as Twitter and Facebook. Company career website only a few years ago were primarily lists of job opening and static texts of marketing info. Today, companies have blogs allowing employees to communicate across borders and time zones, virtually without boundaries. These new communication medium offer companies new approaches to getting the EVP message across.
Companies are often caught trying to balance what programs to deliver and meeting the various constituent needs. There certainly is no lack of needs. This really becomes a question of how many programs is enough and how to make the most of the program budget available. There is also a need to design and deliver programs that make a difference. Alas, we continue to do “more of the same.”
In times such as the the current economic down cycle, companies are making some very tough choices in cutting back on programs. Headcount reduction, salary freeze and other workplace program reductions have negative impact and erodes the EVP – the employer brand is tarnished. It will take a long time to rebuild that trust the employee has with the organization.
Next Time: We will discuss 3 simple strategies for a more sustainable Employee Value Proposition (Part 2)