Many industries in Australia are facing critical skills shortages. For instance, in mining sourcing quality talent is becoming more difficult thanks to a lift in activity around the country. This trend is predicted to worsen with reports that mining-focused university enrolments are at a 17-year low.
To combat this war for talent, organisations need to rethink their employee attraction and retention strategies to allow them to engage the necessary workforce to help them achieve their goals.
This is where an EVP (or Employee Value Proposition) comes in.
Much like marketing’s customer value proposition, an EVP outlines the appeal of your organisation to employees and why they should work for you. It’s the combination of rewards, benefits and opportunities you deliver to employees in exchange for their loyalty, productivity and energy.
Your EVP could be made up of elements like salary, benefits, organisational culture, company mission, career opportunities and employee programs (e.g. development training, wellness programs and flexible working arrangements).
Why it matters in the war for talent
Essentially, an EVP is what can set your organisation apart from your competitors and make it easier to attract the best talent. In a tightened labour market this can be a significant competitive advantage.
Plus, the benefits don’t stop there. Research has shown that companies with a strong EVP are:
- Less likely to report problems in attracting and retaining critical-skill employees
- Five times more likely to report their employees as highly engaged
- More than twice as likely to financially perform better than their competitors
- Able to reduce new-hire costs by up to 50%
What an EVP can do for your business
- Re-engage and inspire your current workforce – Helps to build trust and strengthen commitment as employees are included in the EVP process.
- Resonate with critical-skill employee groups – Addresses the wants and needs of key employee groups.
- Takes the focus off compensation – Even if you aren’t offering the highest salary you can still attract quality employees.
- Strengthens your employer brand – A strong EVP positions your company as a place where people want to work.
- Make more compelling job offers – In the process of creating and implementing an EVP you need to understand what’s important to your employees and potential new hires. This information can help you create more attractive job offers to candidates.
Developing an EVP is the first step in PeopleStart’s 3-Step Strategic HR Management Process which is all about setting up the right HR foundations that will set an organisation on a path to success.
If you’d like to learn more on how your business could implement an EVP to help you attract better talent, contact one of our experienced consultants today.