The much anticipated Essential Services Commission (ESC) determination on the 2016-17 Higher Cap applications is now out.
What is an Employee Value Proposition?
A challenge for businesses is not just competing for business, it’s also competing for talented employees who can drive the organisation into the future (De Angelis, 2004). One possible way of attracting new people and retaining existing talent is through the development and enhancement of an Employee Value Proposition (EVP). An EVP is the sum of everything that people in an organisation experience and receive; from the intrinsic satisfaction of the work, to the environment, leadership, colleagues, remuneration and so forth (De Angelis, 2004). Ruebusch (2002) adds that organisations keeping good talent deliver an EVP that satisfies people’s expectations of a healthy and happy workplace.
How to harness the power of your Employee Value Proposition
Employers interested in firming up their EVP can assess whether their organisation has what it takes to identify, recruit and retain the most talented individuals. Ask yourself: “Why would a talented person choose to work here?” In answering this question, the focus should be on three key areas: relationships, infrastructure and compensation.
- Relationships represent the adhesive bonds that “connect” employees to an organisation, such as its core purpose, corporate culture, management style, institutionalised values and policies and procedures
- Infrastructure describes the processes and procedures that the company uses to manufacture or sell its goods. To compete for talent, organisations must utilise state of the art equipment and techniques to keep employees challenged and fulfilled (De Angelis, 2004)
- Compensation includes income, benefits and equity or profit sharing
An organisation that performs well in these areas of an EVP is positioned well to attract and retain its best people. The degree to which any of these areas is ignored can represent vulnerability in terms of not attracting the right people or losing the talent an organisation needs to succeed and secure its growth in the years to come.
Using a staff survey to develop an effective EVP
The three areas outlined previously, need to be assessed in a formal way. This may be achieved with the aid of focus groups and/or staff surveys. Information gathered can then be used to drive improvement initiatives if your EVP isn’t quite up to scratch.
Insync offers a comprehensive range of staff surveys which can be customised and adapted to gather information relevant for defining and/or improving an EVP. In seeking answers to why employees want to be a part of your organisation, a staff survey may include questions that cover:
- why employees choose to join the organisation
- why employees stay with the organisation
- what employees get from their work experience that allows them to be and feel successful
- what employees gain from their work that furthers their professional and personal development
- what experiences have resulted in employees to feel committed to your organisation
- what environment your organisation can provide to encourage employees to perform at their best
The information gathered may reveal many strengths that can be used to write and position your EVP but some shortcomings may also highlight the need for some important improvement programs so a better EVP can be created.
A staff survey may show potential gap areas between perceived and existing values. Insync’s employee survey measures “importance” and perceived “performance” of your organisation. The gap between these areas helps organisations recognise things employees want, but currently do not get.
To maximie the staff survey data gathering process in relation to your EVP, the following relevant stakeholders can be evaluated:
- current employees with a staff survey
- new recruits with an entry survey
- staff who have recently left with an exit interview
- those who have rejected job offers at the organisation (Cornish, 2003)
In the process of recognising or enhancing your EVP, your organisation may also need to address its purpose at a higher level. Insync can help organisations:
- envision, develop and communicate inspiring statements of your organisation’s direction, purpose and values (most commonly referred to as your vision, mission and value statements)
- embed your vision, mission and values in all your organisation’s actions, thinking, culture and DNA so that it becomes a way of life
- measure the extent to which your plans, actions, culture and messaging are aligned with your vision, mission and values and the extent to which your employees are engaged
In summary, employers can determine what exactly attracts and retains people within their organisation to identify or enhance their own EVP. This can be achieved via the use of staff survey tools, such as Insync’s: employee engagement survey, entry survey, exit interview and focus groups. Organisations may also look at their vision, mission and value statements and the role they play in creating their EVP. All this valuable information can then be used to develop an EVP, which makes your organisation the obvious choice for attracting and retaining talented people over your competition.
Cornish, A. (2003) How to…form a resourcing strategy. People Management, p.44-45.
De Angelis, D. (2004). The Employee Value Proposition- Competing for talent to drive your growth. BONEZone, p.49-50.
Ruebusch, P. (2002). Attracting high performers- What’s your Employee Value Proposition, CT&L, p13.