The process of recruiting and retaining top talent is today’s toughest job. Because as an employer, you need your employees as much as they need you, you should actively communicate your employee value proposition (EVP) to potential and existing employees.
Importance of an EVP
An EVP is a strategy of everything a company has to offer to an employee. It is usually divided into salary and benefits, and it varies depending on the employee’s role, tasks, credentials, and skills. If an EVP is planned out well and laid out in detail, the employee will know the actual value of the compensation package they’re getting, and also the reasons they are getting it.
Were they headhunted from a competing company, and are now being offered a compensation package they should find irresistible? Did they perform well in the past year and now have given a significant raise not just in salary but in perks as well? Then they should know all about it through their personal total compensation statement. An EVP is essentially a sales pitch, and should be treated as such.
All companies have their own particular EVP, whether well-defined or not. Nevertheless, for the sake of attracting and maintaining top talent, it behooves you to have your company’s EVP clearly defined. How does your EVP compare to your competition? Or maybe the better question is, is your EVP, and whatever actions you take to communicate it, working well to recruit and retain employees?
Is your company’s EVP in sync with your company’s core values? For example, if your company values loyalty, your EVP might include additional incentives for employees who meet a specific length of service.
Role of Employee Compensation Software
An EVP is not a one-time thing. You don’t develop it and then just leave it there. It has to be regularly reviewed and continuously improved to be competitive.
For example, technology is rapidly changing the way people work. Think about it: If the last time you’ve updated your company’s EVP was five year ago, then your telecommuting perks (if you have them in the first place) need to be revised in light of the new digital solutions that have made remote working easier and smoother. Instead of offering just one day for working from home, maybe your company can now afford to make it the whole five days. But that’s just one thing to look out for.
Aside from streamlining your EVP, employee compensation software can also help with highlighting the important values that can drive an employee’s compensation. As with marketing to customers, marketing to employees shouldn’t come across as generic if you want to make a lasting impact. Because, today, you can tailor your EVP on a total compensation report accordingly.
Employee compensation software solutions, like those from COMPackage, also help with transparency. You never want your employees to feel shortchanged, so you must be able to explain their compensation package instantly, regularly and repeatedly in order to promote your EVP.