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Capitalise on People Development to Retain Employees

According to the latest Gartner research, Australian employees plan to stay with their current employers, with the numbers actively seeking new positions falling by almost 7%. While on the one hand, that might give HR professionals a reason to smile; the reality is now is not the time to sit back and assume attraction and retention of talent is not a challenge. […]

Capitalise on People Development to Retain Employees

According to the latest Gartner research, Australian employees plan to stay with their current employers, with the numbers actively seeking new positions falling by almost 7%. While on the one hand, that might give HR professionals a reason to smile; the reality is now is not the time to sit back and assume attraction and retention of talent is not a challenge.

Original source: Gartner  

The Gartner study reaffirms my belief in the power of opportunity. Career opportunity to be precise. Now is the ideal time to implement a unified talent development strategy that builds a strong employer brand, encourages employee engagement and retention, and leads to increased productivity. This strategic approach ensures employees see not just a way to secure their future, but also a way to expand their skill arsenal.

How an organisation can develop employees, so they stay

 

Before we go any further, I want to be clear about one thing. Developing your employees is more than investing in training. It is a holistic approach that encompasses all aspects of the employee lifecycle. Think of it as your organisation’s employee value proposition (EVP), the combination of benefits and rewards that an organization offers to its employees in return for their work and skills… a strong EVP also includes intangible components such as culture, opportunities for personal and professional development, and more”.

My colleague’s blog post, How to Use an Employee Value Proposition (EVP) to Attract Top Talent, provides a brief introduction to the many ways a strong EVP is the cornerstone of an organisation’s talent development strategy.  A robust EVP enables employers to create talent personas that relate to the specific roles they need to fill and highlight critical components of the job most attractive to these personas. Think of it like this, designers tend to be most interested in working with companies who have a strong sense of identity, brand and aesthetic, while engineers and programmers are more likely to favor companies that prize and highlight their commitment to innovation and cutting-edge technologies. Tailoring EVPs to specific roles and individuals help organizations stand out in a big way.

The Five essential characteristics of an EVP

According to Gartner, EVPs portray the value of working in an organization across five attributes:

  • Opportunity: Can I learn and grow here? Is the company growing?
  • People: Will I connect with my co-workers, manager, and can I see myself here? Do I have confidence in upper management?
  • Organization: Is the company socially responsible? Do I connect to the causes it promotes? Are the products or services from the company those I place value in?
  • Work: Will my new role facilitate a work-life balance?
  • Rewards: What sort of compensation is on offer? What is the salary, the health benefits package, and how much paid time off is part of the package?

Technology’s role in your EVP

The discussion around the profound changes artificial intelligence brought about – from attraction, onboarding to performance management — is not new. The changes are happening across the board, and HR professionals are all too aware of the transformational impact technology is having on their profession and their daily tasks.

While it is highly beneficial to have at your fingertips the means to automate performance reviews or onboarding, it is technology’s role in facilitating career paths for employees that seals the deal for me. When employees can see where and how they can progress within their company, they feel valued. Career pathing is also an invaluable tool as you design and implement your personalised succession plan. It enables employees and employers to see what skills a candidate possesses and what they require to be eligible for future opportunities.

 Four steps to establishing career paths

  1. Build an individual employee profile (IEP). Be sure to list include skills/competencies, education, and experience.
  2. Based on the IEP, identify what skills are missing and recommend the relevant training
  3. Incorporate manager input on skill gaps and recommendations
  4. Utilise your learning management system (LMS) to execute the development plan

 

To learn more about establishing and implementing career pathing in your organisation, check out this free webinar: Career Planning & Pathing: How to Develop a Strategic Vision.

How to Use an Employee Value Proposition (EVP) to Attract Top Talent

In an era of skills shortages and low unemployment rates, the task of recruiting employees is getting more challenging. Plus potential employees have access to insight about a prospective company on an unprecedented scale. Glassdoor is a wonderful tool and a real boon to candidates wondering if they should take a job with one organization or another. […]

How to Use an Employee Value Proposition (EVP) to Attract Top Talent For Your Organization

In an era of skills shortages and low unemployment rates, the task of recruiting employees is getting more challenging. Plus potential employees have access to insight about a prospective company on an unprecedented scale. Glassdoor is a wonderful tool and a real boon to candidates wondering if they should take a job with one organization or another. While I am happy that such transparency means job seekers can make a more informed decision, I am also acutely aware of the pressure it now places on employers and often HR, in particular, to rethink just how the organization presents or markets itself to new potential employees.

The answer to how enterprises can effectively market themselves to job candidates lies in the concept of employee value proposition (EVP). Not to be confused with an employer value proposition, this EVP “refers to a combination of benefits and rewards that an organization offers to its employees in return for their work and skills… a strong EVP also includes intangible components such as culture, opportunities for personal and professional development, and more.”

With an EVP, employers create talent personas which cater to the specific roles they need to fill and highlight critical components of the job most attractive to these personas. Think of it like this, designers tend to be most interested in working with companies who have a strong sense of identity, brand and aesthetic, while engineers and programmers are more likely to favor companies that prize and highlight their commitment to innovation and cutting-edge technologies. Tailoring EVPs to specific roles and individuals helps organizations stand out in a big way.

The Five essential characteristics of an EVP

According to Gartner, EVPs portray the value of working in an organization across five attributes:

  • Opportunity: Can I learn and grow here? Is the company growing?
  • People: Will I connect with my co-workers, manager, and can I see myself here? Do I have confidence in upper management?
  • Organization: Is the company socially responsible? Do I connect to the causes it promotes? Are the products or services from the company those I place value in?
  • Work: Will my new role facilitate a work-life balance?
  • Rewards: What sort of compensation is on offer? What is the salary, the health benefits package, and how much paid time-off is included

Be sure to communicate your EVP

A 2018 poll of 12 Fortune 500 companies found that 59% of employers neglect to provide information on why employees would want to work for them. Ignoring your EVP is a lost opportunity for HR to attract and retain top-performing employees and build positive brand awareness and ambassadors. Highlighting the benefits offered is important, but framing the value and perks of your company through a lens of differentiation is the most powerful way to harness these traits. EVPs are not only about what an employer offers to its workforce; they are also about how these offerings make a company different from its competitors.

How to strengthen your EVP

Leading HR research firm Mercer simplifies what it means to have a compelling EVP into three components: contractual, experiential and emotional.

Contractual rewards are basic salary and benefits like healthcare and PTO. Most companies phrase their EVP only in terms of these contractual rewards, and these are features that make your company competitive. While salary and benefits are essential, they’re the baseline for competitiveness in today’s world. Research shows that money isn’t your best stronghold against attrition. For every 10% rise in pay, employees are only 1.5% more likely to remain with their employer.

Tip: Make sure your salary and benefits are competitive in your market for each role. Be sure to consistently review your remuneration scales. The current competitive marketplace means changing salary benchmarks. Falling behind may leave your organization at a competitive disadvantage.

Experiential rewards are essentially to “reflect how employees experience their organizations, both in and outside of work.” Included under this category are wellness benefits, retirement savings, 401K plans and social interaction in the workplace. These are some of the benefits that can help differentiate your organization.

Tip: Make sure you deliver a robust set of non-traditional benefits. These include wellness benefits and other suggestions, such as parental leave.

Emotional rewards are the most meaningful, useful and powerful components of an EVP. These rewards characterize the actual level of engagement an employee feels to their employer and work. These are often intangible but are the things that make an employee feel as though their work is purposeful. Many times, organizations that excel in the emotional rewards, and therefore have the strongest EVPs, are socially oriented companies. It’s the social capital of employers like this that galvanizes a sense of fulfillment and purpose in work. Organizations who articulate their business objectives into a broader societal purpose tend to foster a heightened emotional connection between organization and employees.

Tip: While emotional rewards are tough to articulate, employees appreciate acknowledgment from managers and colleagues of a job well-done, which contributes to creating a culture where employees feel valued.

Leading global employers and HR departments are using the EVP to answer the all-important question, “how does the organization I work for, work for me?” If you have not established your EVP, attracting and hiring new talent will get even more difficult, and your oversight will be the competition’s gain.

Want to learn more about the strategic value of a clearly defined EVP? Read the new whitepaper, The EVP is the New MVP, by Jim Poisson, SumTotal’s Senior Director of Product Management.