EVPs play an integral role in building a strong company brand and reputation.
As competition for talent continues to heat up, it’s more important than ever that CEOs develop a compelling Employee Value Proposition (EVP) to attract and retain the best people. It’s not enough anymore to offer competitive salaries and benefits packages. Companies need a compelling EVP, which details career pathways and opportunities for professional development. According to the National Center of the Middle Market, 50% of the time, top talent turns down an offer from a middle market firm because of the lack of a strong employer brand or EVP.
An employee value proposition is defined as both the total tangible and intangible rewards and benefits that an employee receives in return for working at a company. Strong EVPs increase company loyalty and reduce payroll costs when recruiting talent since they sell the benefits of working in the company.
While salary and benefits packages are essential, middle-market companies should also promote opportunities for growth and development along with their culture. According to a recent study by the National Center for the Middle Market, the following is what attracts potential job candidates.
2. Growth opportunity
3. Work/Life Balance
4. Promotion from the current level
The most enticing EVPs provide a broad range of concrete and intangible rewards, including financial incentives. According to the survey findings, a happy work atmosphere is more important than financial benefits for most middle-market companies. Money certainly matters but other factors usually attract top talent. Once again, based on the National Center of the Middle Market research, the following have been rated as other compelling components of a company’s EVP.
- Quality of the people within the company–one of the most effective ways to attract top talent to your company is having teams of talented individuals in place. This creates a positive work environment, leading to increased productivity and innovation.
- Meaningful work–when individuals feel like their work is making a difference, motivation and engagement increase. As job satisfaction increases, employees become brand ambassadors and promote your company to others.
- Company culture–organizations with a strong culture can create a sense of community and belonging within their workforce. It is also very attractive to potential employees looking for a company with a great culture and a place to grow their careers.
When constructing your EVP, consider what your mid-size company can offer that larger organizations can’t match, such as getting more face time with experienced senior leaders. Also, identify factors that directly connect to your company’s brand. Don’t forget that your growth rate is a significant factor.
The employer value proposition is the key to finding and recruiting the best talent. It sets your business apart from competitors, aligns with your goals and objectives, and stands out in the increasingly noisy world of recruitment. Proper planning, research, and analysis are necessary to create a strong EVP to attract potential applicants and help you find the right individuals for your company. Investing time into developing an effective EVP can pay dividends for years to come – so don’t delay in creating yours!