The employers’ quick guide to effective Employee Value Propositions for 2023.
At the end of 2019, Gartner’s research into Employee Value Propositions found that the pre-COVID employee most valued compensation, work-life balance, stability, location, and respect.
Three years later, we have seen an unprecedented change in both the workplace and the workforce. As we buckle down into the winter of a global cost-of-living crisis, whilst still feeling the intermittent grasps of COVID, we ask, have these values changed? What do today’s employees want? And what elements of your Employee Value Proposition will make them choose to leave or stay in 2023?
What is an EVP?
Employee Value Propositions outline the incentives, development and rewards your company offers employees in return for their skills, experience, and contribution.
A good EVP is more than a list of benefits. EVPs also encompass your company’s culture, values, and vision so that, when used in recruitment, you attract people who align with your company’s ethos, culture, and goals. Beneficially, research shows those new recruits also arrive more excited to work for you and stay working for you for longer, complimenting and propelling the very culture and values that you originally presented in your EVP.
Why is an EVP important?
Here at Planning Recruitment, we recognise that having a compelling and engaging EVP is the strongest recruitment tool your company has for attracting and retaining high-quality candidates.
If your USP is why customers might choose your product or service, then your EVP is why employees might choose to work for you. Your competitors are not only your competitors in business, but they are also your competitors in attracting the top skills and experience in your industry. Your EVP must appeal to the candidates who have the values you want to help you drive business growth, innovation, and development.
It is not only in recruitment where EVPs are key, Gartner’s research also shows that organisations that deliver on their EVP can decrease employee turnover by nearly 70% providing significant savings on recruitment, induction, and training costs in the long term.
Create your company with your EVP. The benefits beyond recruitment.
An EVP is a valuable tool in helping you and us to sell your organisation to the right candidates. As well as reducing recruitment costs, improving retention, and reducing turnover rates, the benefits of EVPs are extensive. Below are a few of our favourites:
The best EVPs effectively represent and build your brand as an employer, reflecting those values that are important to you and that you want in your workforce.
Your EVP serves as a tool to help you shape your culture and workforce. Whether you’re building on a current position, or looking to make changes, your EVP can be used to immediately start attracting people who resonate with your values and have the work ethic that you need or want.
An appealing Employee Value Proposition improves staff motivation, morale, and engagement – all key indicators of growth, innovation, and business success.
You can enhance your business brand by showing existing and potential clients the value you place on your people and their work environment.
Performance-based incentives are a targeted way to energise your workforce and level-up their performance in the exact areas you need, whilst simultaneously making them more invested in your company’s success.
Employees are less likely to leave a company that offers good benefits and a culture where they feel valued and respected.
Research shows that candidates that are aligned with a company’s values are more likely to accept a lower salary. There is value in being proud of where you work and in feeling part of something each day.
A good EVP creates company ambassadors. When people are proud, they speak about their company and their job, and this encourages others to join. Each member of your team becomes a walking potential recruiter.
What do candidates want in 2023?
We surveyed our database of architectural and interior design staff, asking them what was important to them in 2023? Survey says…
Current working patterns 28% were currently in office-based jobs, 20% were completely remote working with the remaining 52% with hybrid working hours.
When we asked what working pattern was most desired the highest voted ratio was 3 days office / 2 days home with over 30% choosing this option, quickly followed by 2 days office / 3 days home at 28%.
Only 7% wanted to return to the office full time, and 16% working completely remote.
Over a third of those surveyed cited money as the main reason for looking to change jobs in 2023. This was closely followed by career progression and better company benefits.
Of the non-salary benefits annual leave was the most valued benefit, quickly followed by hybrid working and flexible hours. This shows that, for those surveyed, work-life balance is still a critical indicator of employee satisfaction and engagement with a company.
53% of those who took part in the survey planned to change jobs in 2023. The rest reflected a high proportion of passive candidates, those not planning to actively look for a role in 2023 but who are open to the right opportunity.
Nearly 50% of those surveyed reported their main reasons for a job change would be those elements reflected in an EVP, i.e., flexible/ hybrid-working, better benefits, career progression, and company management and culture. With just 15% citing a change in location, industry, or role as their reason for a job change, this shows how powerful a well-developed and well-executed EVP can be in attracting and retaining skilled people.
Conclusion
With 2023 set to be another diverse year, employers continue to recognise the value of good people. And, in turn, employees continue to recognise the value of good companies. The EVP works as an exceptional tool to facilitate this symbiotic handshake, inspiring employees to work with their leaders to build better and more progressive companies.
The candidates of 2023 are not only looking for higher salaries to help them ride out the current economic climate, but they continue to value work-life balance in the form of hybrid-working most highly. By tailoring your EVP to the candidates of 2023, you can attract and retain the people your company both wants and needs to achieve a new year of innovation, growth, and success.