Retention of key employees is important to your company. What was your retention rate last year? Whatever it was, if you want it to improve this year you will need to have a strong Employee Value Proposition. An Employee Value Proposition explains why a highly qualified employee would want to work for your company and why that highly qualified person would want to stay.
This Employee Value Proposition would be tied to your strategic plan and include your vision, your values, and, your mission. The values should include such things as social responsibility, ethical conduct, and reputation.
Strong employee engagement produces successful business outcomes including a loyal customer base. And this leads to increasing sales and profits. The reverse is also true. Employees who are not engaged have no passion for their work, are frequently absent, make mistakes, and cost the organization its customers. Understanding what engages employees involves connecting with them.
The Employee Value Proposition EVP matters. Although people work for money there are other factors, and these other factors matter to the new workforce. A study done in 2013 by PwC and others reported that more than half of the workforce in many organizations will be Millennials by 2020.
The study found that Millennials want to feel that their work has meaning and is worthwhile. They want to work for an organization that has values that makes them feel proud. Furthermore, most Millennials say they would consider leaving an employer with values that no longer meet their expectations.
Think of your employees as your greatest asset. Without engaged employees you are less likely to have loyal customers and be successful. Therefore, employment branding and the employee value proposition takes on new importance.
Building the employee value proposition and brand requires spreading a message. It uses marketing and communications channels like those used to market your products or services.
What action would you take if your employees were to give a negative answer to the statement, “At work, I have the opportunity to do what I do best every day?” Of course, you would want to give them work that made use of their skills. But do you know how to do that? Meaningful work means different things to the different people. It is affected preference, personality and generational and cultural differences. Your Employee Value Proposition should consider the diversity of talent, age and culture.
If your organization is suffering from a retention challenge this can be costly in expense and lost customers. When you consider recruiting and training, lost customer service, lost productivity, and lost morale in others who are left, the cost is at least two times the employee’s salary. An engaged employee becomes more valuable as he or she grows. In addition, high-performing companies have loyal customers because they have loyal employees.
What is your Employee Value Statement? Is it supported by a line item on your P&L? This is an investment rather than an expense. The strategy should also include careful selection to see that an employee is matched to a job where he or she has a chance to excel, an assessment plan to identify key employee strengths, and a development plan to leverage those employee strengths.
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