Attracting Top Talent with a Strong Employee Value Proposition (EVP)

Someone looking for a new job in today’s labor market can have many choices. According to the U.S. Bureau of Labor Statistics, the current unemployment rate is 3.6%, and employers are having difficulty retaining workers. This labor shortage gives job seekers the advantage of choosing the best opportunity available to them. As an employer, if you want the best job candidates to join your team, it usually takes a strong Employee Value Proposition (EVP) to attract them to your company.

What does an EVP typically include?

An EVP is what companies offer their employees in exchange for their talent and commitment to the organization. According to the Academy to Innovate HR, typically, most Employee Value Propositions will cover salary, benefits, stability, location and respect. 

Salary – This would be all forms of compensation and would include a worker’s base salary, stock options, commissions and bonuses.

Benefits – These are the non-monetary items that an employee would receive such as paid-time-off, holidays, retirement, flex-time, health benefits, and parental leave.

Stability – Career stability includes training and development for staff to advance in their career which can include certifications and mentoring programs.

Location – Beyond the physical location, job candidates are seeking a good business culture with a work-life balance that encourages autonomy.

Respect – An environment that fosters good working relationships that are respectful, including a company culture that is inclusive and values integrity.

Most candidates are seeking an EVP package that focuses on all these areas. Many employers are also realizing a comprehensive EVP is necessary in order to retain future employees. Because many workers, especially Millennials and Generation Z are determining how their employment choices affect their overall well-being.

What are candidates asking for now and why?

The pandemic made many workers reassess how much of their life was being devoted to their job and became acutely aware of the toll it took on them physically, mentally, and emotionally. According to the Labor Department’s Job Openings and Labor Turnover Summary (JOLTS), over 4 million workers resigned in April of 2021, starting what became known as “The Great Resignation.”

This trend has continued, resulting in a total of 47 million resignations by the end of 2021. The latest JOLTS summary from April of 2022 showed that 4.4 million people had resigned at that time. These resignations are being driven by workers who are willing to change jobs more frequently in order to receive the following items as part of their next EVP package:

Higher Compensation – In March of 2022, Gartner did a HR survey of 157 executives and 63% said they would be making salary adjustments due to inflation this year. Although many younger workers don’t focus solely on compensation when considering their next job, it’s still important. In a Deloitte’s 2022 Gen Z and Millennial Survey, financial security is a strong motivator due to the increased cost of living, debt and the inability to save for retirement.

Physical Health Benefits – The pandemic made physical health a concern for everyone and having good medical benefits, including dental and vision, is important to job seekers. According to a 2021 McKinsey survey of 1,640 employers who choose benefits, 78% are also offering voluntary benefits including life, disability and accidental insurance. Also, providing a safe work environment for workers who do return to the office is something job candidates look for as it shows the company’s commitment to employee health. 

Mental Health Benefits – According to the New York Times, over 1.01 million people have died from the pandemic, and as a result many family members experienced depression, stress and burnout. Treating mental health concerns is no longer seen as an optional benefit and instead has become essential. Many employers are offering stress management classes and counseling as they recognize that people need dependable resources to cope with difficult situations, and maintain good mental health.

Flexibility – A flexible work schedule is important to workers, and according to a Zapier survey, 60% would rather find another job that offered flexibility, if their current employer didn’t have that option. Many workers who adjusted to the work from home arrangement found they liked eliminating their commute, and enjoyed spending more time with their family, which gave them a better work-life balance.

What are employers offering to stand out as a top company?

Gartner researched 5,000 employees and 85 HR professional responses regarding traditional EVP practices and found they could be much stronger. They also found that when an EVP took a more humanized approach, employee satisfaction increased by 15%. The ways employers are making this shift is by incorporating these practices into their EVPs to make them more human-centric including:

Deep connections – employees feel understood in all relationships

Radical flexibility – employees feel empowered in how they work

Personal growth – employees feel valued as a person beyond the workplace

Holistic well-being – employees feel cared about physically, mentally and emotionally

Shared purpose – employees feel a shared purpose with the company and support it

How does a strong EVP benefit the employer?

According to Gartner, 65% of job candidates have stopped the hiring process due to unsatisfactory EVP.  A strong and competitive EVP makes you stand out as a top employer especially when your EVP is flexible and customized to fit your employees needs. By having a robust EVP, employers have also seen their retention rates increase by 69% according to Gartner. Besides attracting the talent that stays at your company, you’ll likely also gain new brand ambassadors who will recruit on your behalf based on their employee satisfaction.

Choosing the best EVP options that attract top talent along with a more human-centric approach will help protect your reputation as an employer of choice.