If you’re looking to build up your team in 2023, you surely know that competition for talent is fierce. After all, Monster’s Future of Work survey found that 92% of U.S. businesses are planning to recruit this year. And they’re wasting no time finding right-fit candidates — in the first month of 2023 alone, the U.S. Bureau of Labor Statistics jobs report showed that more than half a million payrolls were added to the economy. Not to mention, there are still plenty of open positions on the table with nearly two jobs available for every worker.
With so many employers hiring, it’s never been more imperative — or more challenging — to attract suitable candidates quicker than your competition. In fact, in Monster’s Future of Work survey, 14% of all recruiters expressed difficulty differentiating and describing the value of working for the company for which they are hiring. That’s where an employee value proposition (EVP) can help.
What is an Employee Value Proposition?
An employee value proposition is an important element of any employer branding strategy. Think of it as a promise of what you, as an employer, will give to your employees in return for their time, loyalty, and productivity.
“An employee value proposition gives an employer the opportunity to express the more nuanced facets of their organization, such as clarifying company culture or unique company assets,” says Amy Casciotti, vice president of human resources at TechSmith. “If the Great Resignation has taught us anything, it’s that applicants are looking to join a flexible, welcoming work environment, but oftentimes, they won’t know a company’s corporate culture until they’ve committed to a position. The employee value proposition is a great place to clarify what the company stands for, its values, and what its organizational culture is like. Moreover, this statement can set your company apart from others by identifying any special perks that come with the position, such as flexible work arrangements, catered lunches, or company-wide events.”
In addition to employer branding, an employee value proposition can also be a useful tool in talent acquisition. Casciotti says “developing a thoughtful yet clear employee value proposition that goes beyond the traditional work benefits can entice potential candidates to inquire about your company.”
In fact, Gartner research found that effectively delivering an employee value proposition has its benefits, including:
- Attracting 20% more candidates
- Increasing new hire commitment by 29%
- Reducing annual employee turnover by 69%
Updating Your Employee Value Proposition
Creating an employee value proposition is not a one-and-done assignment — it needs to be continuously maintained in order to be effective. “The EVP should be reviewed and updated regularly to reflect changes in the company and in the market,” says Sven Patzer, chief executive officer at Sveny Corp. “At minimum, it is recommended to assess and revise the EVP once a year to ensure it remains relevant and appealing to potential candidates.”
With that, employers should acknowledge that candidate expectations have certainly evolved over the past few years, and many simply don’t want to “go back to normal.” To survive and thrive in today’s labor market, employers will need to tout more than health insurance and the number of PTO days offered (although, those are still important, too!). Monster’s Future of Work survey found that companies will need to do a better job communicating benefits like workplace flexibility and salary protection in their employee value proposition, provided it’s authentic.
“To meet the evolving expectations of candidates, employers need to embrace flexibility and prioritize salary protection in their EVP,” Patzer says. “This can be achieved by actively listening to employee feedback, staying current on industry trends, and adjusting policies and practices to better support work-life balance.”
Here are a few ways companies can update their employee value propositions for today’s challenging economic climate:
Offer Work Flexibility
During the COVID-19 pandemic, many employees found favor in the flexibility of working from home. This is still true today. On Monster, the #1 candidate search overall continues to be for “work from home” or “remote” jobs.
Allowing employees to work from home at least a few days a week, or have greater flexibility in creating their daily work hours, can make a huge difference when it comes to attracting talent. In fact, Monster’s Future of Work survey found that about half of employers believe offering flexible work options gives them a recruiting edge.
Action: Promote the various flexible work options offered within your employee value proposition, job descriptions, and employer branding.
In the aforementioned Future of Work survey, just 5% of all recruiters rated diversity, equity, and inclusion (DE&I) as one of their top three priorities. Yet, DE&I continues to rank as a top priority among candidates for the past three years. This presents a prime opportunity for employers who are actively promoting DE&I not only within their organizations but also in the world, to stand apart from their competition.
Action: It’s important not just to communicate your company’s commitment to DE&I in your employee value proposition, but also to show your commitment. This can be accomplished through imagery, partnerships, inclusive language, and more.
Foster Meaningful Connections
Even in today’s remote work environment, it’s important for managers to build connections with their workforce. “Employees are at the heart of every organization, so it’s important for corporate leaders to keep a pulse on their employees’ values, concerns, and opinions and make sure that those are directly feeding into the employee value proposition,” Casciotti says. “Maintaining an open channel of communication will not only keep employers in tune with employees desires but what potential candidates may be looking for in a workplace.”
Action: When crafting your employee value proposition, don’t forget to ask your current workforce what they love most about working for your company.
Provide Stability and Support
Amid high inflation and news of mass layoffs, it’s hard not to be concerned about the future. That’s why we weren’t surprised to see that the security of a consistent paycheck has become so desirable for workers. Offering salary protection can help ensure that employees and their families are taken care of in the event they are unable to work.
Action: Your employee value proposition should put the employee first. This means communicating company values that go beyond making a profit.
Build Your Employer Brand Today
In the race to attract great employees, taking control of your employer value proposition is crucial. Want to learn more? Contact one of our employer brand specialists at Monster Strategic Talent Solutions to see how we can help establish your value proposition, show candidates why they should work for you, and gain a competitive edge.