HR & The ‘Employee Value Proposition’
Tom Croughton
Co-Founder of JGA US | Connecting your business to the brightest minds in HR Tech & Global Payroll?? LinkedIn Top Recruiting Voice???
In the talent tug-of-war, is your company pulling its weight or getting pulled apart?
In this edition of #InsideTrack, we are looking into crafting a compelling EVP in a competitive talent market.
Picture your Employee Value Proposition (EVP) as a gourmet menu. Salary might be the main course, but benefits are the appetizers, sides, and desserts that create a truly satisfying experience. In today's talent market, you need to offer a Michelin-star worthy spread to attract and retain the crème de la crème of employees.
The world of work has undergone a dramatic transformation in recent years, driven in large part by the COVID-19 pandemic and the rapid shift to remote work. As companies have surfed the waves of change in this new reality, they've been forced to confront a harsh truth: they are no longer just competing for talent with the businesses within a 30-mile radius of their office, but with organizations across the globe.
In this new landscape, salary alone is no longer enough to attract and retain top talent.
While compensation remains an important factor, employees are increasingly looking for employers that offer a compelling employee value proposition (EVP) that goes beyond just financial rewards. This includes a strong focus on benefits, job security, and a positive work culture that supports their overall well-being.
As a recruitment business leader, with extensive experience working alongside senior HR professionals, I have gained valuable insights into how companies can craft a compelling employer brand that sets them apart in this highly competitive talent market.
In this article, we will delve into the recent shifts in employee attitudes, the growing importance of benefits, and the implications for business, job seekers, and HR teams.
How Attractive Is Your EVP? Take the Quiz!
Before we dive deeper, let's see how your current EVP stacks up. Rate your company on a scale of 1-5 (1 being "Needs Major Work" and 5 being "Perfect") for each of the following:
Total your score:
Now that you've assessed your EVP, let's explore how recent shifts in employee attitudes are reshaping the talent landscape.
The Changing Tide of Employee Retention
The past year has witnessed a significant shift in employee attitudes towards job security and retention.
A recent survey by global advisory, broking, and solutions company, Willis Towers Watson (WTW), revealed that 54% of UK employees are now choosing to stay with their current employers, a notable increase from 45% in 2022. This trend signifies the end of a tumultuous period marked by high turnover rates and attraction and retention challenges for employers.
Furthermore, the survey found that only 9% of employees are currently open to job offers, a sharp decline from 21% in 2022. This change in employee sentiment can be attributed to the ongoing cost of living crisis and global political unrest, which have prompted workers to seek a greater sense of stability and security from their employers.
The Growing Importance of Benefits
While pay remains a primary driver for both attraction and retention, the WTW survey highlighted the increasing importance of benefits in employee decision-making. A significant 37% of employees chose their current employers based on their benefits package, and an even higher 44% reported staying with their employers for the same reason.
Strikingly, 39% of employees stated that they would leave their current employer for better benefits elsewhere, even without a change in salary. This finding underscores the pivotal role that benefits play in attracting and retaining top talent, and the need for employers to offer competitive and comprehensive benefits packages that reflect employees' evolving needs.
The Power of Choice in Benefits
The WTW survey also shed light on the importance of choice in benefits, with 68% of employees reporting that they have the ability to alter core benefits or use a flexible benefits fund to access voluntary offerings. When employees have the greatest choice in benefits, an impressive 72% report that their benefits meet their needs, while 76% would recommend their employer as a good place to work.
This expanded choice in benefits is reportedly helping to build trust between employees and employers, fostering a more positive and engaging work environment.
As Andy Leighton, Health & Benefits Director at WTW observed,
"The war for talent is no longer just about pay – benefits matter to employees, with higher levels of appreciation seen when they have the ability to choose those benefits that best meet their individual needs."
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Implications for Businesses
In today's highly competitive talent market, it is crucial for businesses to understand the growing importance of benefits and choice in attracting and retaining top talent.
To position your organization as an employer of choice, you must develop a strong EVP that encompasses a competitive and flexible benefits package, as well as a commitment to job security and employee well-being.
To achieve this, businesses should:
By taking these steps, your organization can create a compelling EVP that sets you apart from your competitors and attracts the best and brightest talent in the market.?
Implications for Job Seekers
As a job seeker, it is essential to understand your current benefits and aspirations for future roles. By clearly communicating this information to potential employers, you can more effectively find opportunities that align with your needs and preferences, ultimately leading to higher levels of job satisfaction and retention.
To better navigate the job market and find the right fit, job seekers should:
By taking a proactive and informed approach to your job search, you can find opportunities that not only meet your salary requirements but also provide the benefits and support you need to thrive in your career.
The Evolving Role of HR & Reward Teams
The shifting priorities of employees also have significant implications for HR & Reward teams. These teams will need to work closely with senior leaders to develop and implement more attractive and flexible benefits packages that resonate with employees and differentiate the organization from its competitors. It’s not a one-time thing either – in today’s ever-changing world, I suggest reviewing your EVP either quarterly or half-yearly.
To differentiate yourself for competition, you should:
By taking a proactive and data-driven approach to benefits design and communication, HR/Reward teams can play a critical role in shaping their organization's EVP and employer brand.
In summary, the COVID-19 pandemic and the rapid shift to remote work have fundamentally transformed the talent market, forcing companies to compete for top talent on a global scale.
In this new landscape, salary alone is no longer enough to attract and retain the best and brightest employees. Instead, companies must focus on crafting a compelling EVP that offers a strong focus on benefits, job security, and a positive work culture that supports employee well-being.
As Talent Leaders, we have a unique opportunity to help businesses and job seekers navigate this changing landscape. By understanding the latest trends and best practices in benefits design and communication, and by taking a proactive and consultative approach to our work, we can play a critical role in shaping the future of talent acquisition and retention.
Ultimately, those organizations that prioritize their EVP and employer brand, and that offer competitive and flexible benefits packages that reflect the evolving needs of their employees, will be best positioned to succeed in the years ahead. By working closely with our clients, candidates, and HR teams, we can help to make this vision a reality and drive positive change in the world of work.
Until next time!
Tom Croughton
Co-Founder | JGA US
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Global Workforce Transformation Leader
3 个月This is something I've spent a fair amount of time thinking about recently. Over the past decade or so there has been a dramatic shift with employees looking at the totality of their experience at a company as the EVP or even just their compensation package. HR departments are still mostly structured in silos with no one person responsible for overall employee experience and the head of compensation not responsible for things like mentoring, performance management, learning opportunities etc... Meaning we have a significant consumer shift without the corresponding adjustment by the business exacerbating the disconnect.