Employers, Enhance Your Employee Value Proposition for the Future Ahead

In recent years, the widespread phenomenon known as the "Great Resignation" has prompted significant concern among employers. While it appears that the trend of employees voluntarily departing from their positions has largely subsided, it's important to recognize that the balance of power in the job market may not have fully reverted to employers just yet.

Although unemployment rates have remained relatively low, job seekers continue to have a wealth of resources at their disposal for evaluating potential employers. Consequently, it remains essential for employers to invest effort in attracting top-tier candidates and retaining their valuable employees. A proactive approach to achieving this goal is to fine-tune your Employee Value Proposition (EVP).

Assessing and Monitoring Key Elements

In essence, your EVP encompasses all the valuable offerings that your organization provides to its employees. While compensation certainly plays a crucial role, your EVP extends beyond just a paycheck. It encompasses both tangible and intangible components that contribute to your employer brand. Typically, an EVP can be divided into five main categories:

1.  Compensation: Undoubtedly, competitive pay remains a pivotal factor for candidates and employees, as it always has been. It is imperative to offer salaries or wages that align with industry and geographical benchmarks. Additionally, your EVP should outline a transparent system for determining raises based on a fair and equitable evaluation process.
   
   
2. Employee Benefits: The notion of "fringe" benefits is rapidly evolving, as candidates and employees now expect a comprehensive and diverse benefits package. A robust EVP should encompass an extensive range of offerings, including paid time off, retirement plans, health insurance, and tailored benefits that cater to the unique demographics and requirements of your workforce. These could encompass childcare and dependent care benefits, paid sick leave, and life insurance.
    
3. Career Development: Beyond mere employment, a significant proportion of candidates and employees seek a role that offers professional and personal growth opportunities. Your EVP should outline how your organization facilitates employees' career progression through avenues such as defined career paths, continuous education, training, upskilling, and constructive guidance from supervisors and mentors.
   
   
4. Work Environment: Prospective candidates and employees seek insight into the day-to-day experience of working at your organization. It's essential to convey a positive, inclusive, and supportive work environment. Moreover, the modern workforce increasingly values flexibility. Does your organization endorse remote work? Can employees customize their schedules to achieve work-life balance? The EVP should provide clear answers to these inquiries.
   
   
5. Organizational Culture: Think of your organizational culture as an intangible aura that permeates your work environment. Is it akin to a bright, welcoming sky dotted with fluffy clouds? Or is it a more ominous presence that casts unnecessary shadows over the workplace? If the latter scenario resonates, it's crucial to address such issues. Your EVP should candidly articulate your organization's culture through elements like mission and vision statements, potentially complemented by testimonials from existing employees.

Internal and External Perspectives

It's worth emphasizing that a truly effective EVP operates on both internal and external levels. This entails using the EVP as a tool to monitor and manage all five dimensions within your organization while also leveraging it to engage with prospective job candidates and current employees. Feel free to reach out to us for assistance in evaluating the comprehensive value you provide to both your existing and potential workforce.

HoganTaylor Employee Benefit Plans Practice

If you have any questions about the content of this publication, or if you would like more information about HoganTaylor's Employee Benefit Plans practice, please contact Gwen Mazzola, Employee Benefit Plans Practice Lead.

INFORMATIONAL PURPOSE ONLY. This content is for informational purposes only. This content does not constitute professional advice and should not be relied upon by you or any third party, including to operate or promote your business, secure financing or capital in any form, obtain any regulatory or governmental approvals, or otherwise be used in connection with procuring services or other benefits from any entity. Before making any decision or taking any action, you should consult with professional advisors.