KPM

Major Payroll Taxes Deciphering Background Checks 401(K) Missing Participants Mentorship Program Remote Work Policies Cafeteria Plan Employer Emergency Savings Accounts Retaining a Motivated Team Long-Term Care Insurance Payroll Best Practices Skills-Based Hiring Train Supervisors To Use Constructive Feedback Exemptions On Form W-4 DOL Final Rule On Independent Contractors Benefits of a Payroll Process Review Leadership Development Program Final Rule On Electronic Recordkeeping Orientation Employee Fraud Electronic Filing Qualified Retirement Plans COLAs Compensation Philosophy 2024 Health Coverage Year-End Payroll Educating Employees About Retirement Hiring Process Training Programs FUTA Neurodiversity Qualified Retirement Plan Audit HSA at-will employment Club Memberships custodial account esop Employers Payroll HRA ADA 401(k) Employee Value Proposition Agricultural tax breaks W-2 Filing Employment Tax When Hiring Loved Ones returnship programs

Strengthening Your Employee Value Proposition for the Future

In recent years, the “Great Resignation” caused significant worry among employers. However, according to many experts, it appears that this trend of employees choosing to leave their jobs voluntarily has largely subsided. Nonetheless, this does not imply that the balance of power has completely shifted back to employers.

Unemployment remains relatively low, and job candidates still have a plethora of resources to compare employers. So, you’ve still got to put in the work to win over the best job candidates and retain valued employees. One way to ensure you’re ready for the road ahead is to tune up your employee value proposition (EVP).

Employee Value Proposition | Five Things To Assess & Monitor  

Simply defined, your EVP is everything of value your organization offers employees. That doesn’t mean only a paycheck, though compensation is certainly part of the equation. It includes all the tangibles and intangibles that make up your employer brand. Most graphical representations of EVP encompass five sections:

  1. Compensation. As mentioned, pay is undoubtedly important to candidates and employees — just as it’s always been. You still need to offer competitive salaries or wages as benchmarked within your industry and geographic location. In addition, your EVP needs to account for how raises are determined under a fair and equitable evaluation system.
  2. Employee benefits. The old term “fringe” benefits is starting to look more and more dubious, as most candidates and employees now expect a robust and varied benefits package. A strong EVP should generally include a substantial list of offerings such as paid time off, a retirement plan, and health insurance as well as many additional benefits that suit the distinctive demographics and needs of your workforce. These might include child and dependent care benefits, paid sick leave, and life insurance.
  3. Career development. Many, perhaps most, candidates and employees want more than just a job. They want a position that can take them somewhere both professionally and personally. So, your EVP needs to describe how your organization can help employees define a career path; partake in continuing education, training, and upskilling; and receive constructive guidance from supervisors and others.
  4. Work environment. What’s it like to work for your organization on a day-to-day basis? People want to know they’re stepping into a positive, supportive, and inclusive environment. Today’s candidates and employees also increasingly expect flexibility. Do you permit remote work? Can they adjust their schedules to support work-life balance? How much autonomy is granted to each position? Your EVP should clearly answer questions such as these.
  5. Organizational culture. Think of your culture as the invisible cloud that hangs over your work environment. Is it a white fluffy cloud with blue skies all around? Or is it a dark cloud that unnecessarily and counterproductively casts a shadow on your workplace? Obviously, if it’s the latter, you’ve got some work to do! The point is, your EVP needs to honestly articulate the culture of your organization in things such as mission and vision statements, as well as perhaps testimonials from employees.

 
Internal & External
It’s important to note that a truly effective EVP encompasses both internal and external functions. That is, you should be able to use the concept to keep tabs on all five areas of your organization while also using your EVP to communicate with job candidates and employees. Contact us for help assessing the costs of all the ways you’re offering value to both current and prospective employees.

Related Articles

Talk with the pros

Our CPAs and advisors are a great resource if you’re ready to learn even more.