The Growth Hack to Attracting Talent: An Employee Value Proposition

Compensation costs are rising in the U.S. and according to a recent McKinsey study, employers think compensation is one of the top reasons employees leave companies. The study found that employees actually rank the lack of being valued by the company and the challenges of work life balance as higher priorities than compensation.

This is good news for small to mid-sized businesses. Compensation will always be a difficult benefit to compete on against large organizations, but small businesses can be much more nimble and effective in employee retention programs such as developing and managing their Employee Value Proposition.

What is an Employee Value Proposition?

An Employee Value Proposition (EVP) is the center of a company’s internal brand and is used to engage and retain employees. It’s the unique reasons employees want to work for a company.

Why is an Employee Value Proposition important?

These propositions are critical for smaller to mid-size businesses to articulate to employees and job applicants because it helps them differiante themselves from other competitors.

How do you create an employee value proposition?

A business leader or human resources professional can lead the development and management of an employee value proposition. People Architects can help consult and guide the process to develop one for your organization. Here are four elements of an Employee Value Proposition, outside of compensation and benefits, that small/mid-size companies can focus on as they seek to engage their employees.

1. Career Opportunities

According to the McKinsey study mentioned earlier, lack of career or job advancement is a prime reason people resign. Small businesses can more closely monitor career advancement and create opportunities for workers to learn new skills. Creating an internal Mentorship Program or an Apprenticeship is a great way for employees to learn. Cross training to cover absences benefits the company, but also exposes a worker to a greater variety of roles. Another option is using interim managers and trial roles as ways to give employees new opportunities as they seek job satisfaction.

2. Work Environment

According to Gallup the number one reason people leave their jobs is a lack of recognition. Employees want more recognition from their direct managers. Smaller to midsize companies can make this a priority for managers. For instance, just simply saying “thank you” to employees can make a difference.

Flatter organizations allow supervisors to better connect with employees. Managers can more readily identify the factors that play a key role in a positive work environment and lead to job satisfaction.

Work life balance is a key factor for small to mid-size businesses, especially for Generation Z. According to LinkedIn 17% of Gen Z are more likely to apply to a remote job.

Remote roles attract over twice the job views and 2.5 times the applications compared to the on-site jobs. Offering a flexible schedule, remote work opportunities, flexible PTO, and meaningful relationships go very far and can matter more than compensation. Organizations strongly agree that workplace flexibility is a key driver of employee engagement - 12% higher than compensation.

3. Culture

Culture has a huge impact on a company’s profit. If the employees feel more connected and supported, they are going to want to perform better and be more productive. Companies with a healthy culture have less turnover and lower levels of absenteeism which directly impacts the company. A way to create a positive and caring culture could be simply sending notes to employees when they do a great job. Providing lunch occasionally or having a company cookout could help develop a positive culture as well. Simple gestures can go a long way.

4. Meaningful Work

According to the Harvard Business Review 9 out of 10 people are willing to make less money to do more meaningful work. An employee may derive great meaning from work if they feel their contributions are integral to the company’s success. Workers also enjoy seeing how their work assists their customers. Customers can be both internal coworkers and outside customers. Another example of meaningful work would be people working for non-profit organizations. Working at a non-profit gives you the opportunity make a positive impact by spreading awareness of your organization’s cause and helping the organization be as efficient as possible. Employees also find meaningful work at for-profit organizations when their personal goals and values align with the mission of the company.

Does your company have an employee value proposition? People Architects can help you develop one. Contact us to get started.