Does your EVP have a CVP?

 I was recently talking to a client about the challenges they face  in attracting the right contingent staff (both contractors and freelancers) into the business in the same way they are able to attract their permanent employees. Now this business is not an unknown brand with an out-of-date talent attraction strategy rather this was not an area that had been given specific thought. We backtracked and discussed other methods that had been used to improve permanent hiring, such as data analytics, and stumbled across one gaping omission - the business had an Employee Value Proposition (EVP) but not a Contingent Value Proposition (CVP). What I mean is all the work that had gone into developing an EVP had led to a focus on permanent employees, without considering the contingent workers who are equally as vital to the business

I started thinking, could organisations that use contingent workers be missing a trick here – especially those that have invested significant time (and money) investing in an EVP strategy? Could there also be some relatively simple solutions in order to rectify this? With only 18% (yes I checked) of companies having a defined EVP, it is possible that I’m not too late to influence thinking on this, and what businesses actually need is a Workplace Value Proposition (WVP).

So, what is an Employee Value Proposition (EVP)?

An EVP is the balance of the rewards and benefits that are received by employees in return for their performance in the workplace. Organisations generally develop an EVP to provide a consistent platform for employer brand communication and candidate experience management.

I have highlighted the word employees – it is important to remember that it is not only permanent employees whose hard work and loyalty should be recognised and invested in. If you read my last blog ‘the rise of the contingent workforce’, you will know that in the last quarter of 2015 the contingent workforce rose by 71,000 to over 4.6m, with no signs of slowing down, and I referenced the importance of having an HR strategy to engage with contingent workers and include them in wider business planning.

Consider your contingent workforce and pick a specific role, for example an IT developer (as we nearly all have these contractors within our organisations) and think about the reasons why they would take a contract. It will be for numerous reasons; from money and learning a new skill (i.e. improve billable rate), to improving a CV or location and benefits. Does your organisation even offer benefits to non-permanent workers? In a highly competitive world this could be the difference between finding and retaining the right people. If you are Facebook, Google, LinkedIn, Twitter or any other large tech company, you will always be able to attract top IT talent but would a finance or HR interim choose you over one of the ‘Big 4’ or a Canary Wharf finance house? This is where the offering must be right.

With contingent workers on the rise, from PAYE to contractors (LCC) and freelancers, I think that HR professionals that want to lead with workforce planning and delivery in the future need to start thinking about a CVP  alongside the rest of the talent attraction strategy. Ask “What is the value proposition that would make contingent staff want to come and work for us?” If you get the answer to this question right, you may not only find it reduces time to start, but also turnover for minimal day rate rises, or even your average day rate due to your temporary workforce  being more engaged.  This will help to create a single workforce view and a total workforce solution.

I personally know contractors that have turned down rate increases of up to 20% because they are happy in a role, have the right benefits, work life balance and felt loyalty to the company to finish the project.

If you want to discuss engaging contractors, developing a Workplace Value Proposition or any other aspect of talent and workforce management, please feel free to get in touch.