Written by: Kim Benedict, Talent Solutions Consultant, & Guest Lecturer, Schulich School of Business
Regardless of the size of company, retaining your best employees is top of mind for most executives. There’s stockpiles of data and studies that show compensation is not the number one motivating factor why employees stay or jump ship. And in my experience, if you’re having the “I need more money or I’ll leave” conversation, then you’ve already lost them.
Commodities like salary, benefits and bonuses are standard ingredients for most organizations; these are transactions and in the long run do little to retain the right people. What makes you special as an employer (your value proposition) is what makes the difference for your employees.
A recent global talent management study that surveyed over 1600 employers found that organizations that defined and developed their broader employment value proposition had fewer retention issues than those that did not. A strong EVP captures a company’s values, culture and behaviors that truly make them a special place to work. If properly executed, an authentic EVP can create an emotional connection and affection between employees, colleagues and the organization.
Here are some of the ways your EVP helps you retain staff:
1 – EVPs deliver candidates who are pre-sold with your mission and culture; you spend better quality time with better quality people
2 – Your EVP helps you stand out but also ensures that the ‘packaging’ reflects the contents resulting in less disappointment once reality sets in
3 – Let’s face it – many organizations (self-proclaimed!) stink at on-boarding – your EVP promise can improve the commitment of new hires by up to 29%
Only 57% of employers say they clearly understand and can communicate their employment value proposition. The real challenge for employers will be to define key characteristics that make them truly unique, then use that knowledge to their advantage to bring those emotions to life to attract and retain the right talent.
If you’re interested in learing more about EVPs I’ll be speaking at Innovation Factory’s upcoming LiFT Seminar which explores employee value proposition. Click here for more info!