In a skills-short market, businesses across all sectors are looking more closely at their strategies for attracting and retaining their talent. And whilst a focus on employer branding has been a part of business DNA for a number of years (prevalent in the early 1990s and usually straddling both the marketing and HR functions), the last decade has seen a new phrase coined that takes the concept a step further.

The Employer Value Proposition (EVP) has become somewhat of a buzzword more recently – especially as businesses operate in an increasingly competitive and borderless world that is economically volatile.

Pioneer of employer branding research, Brett Minchington defined an EVP in 2005 as “a set of associations and offerings provided by  an organisation in return for the skills, capabilities, and experiences an employee brings to the organisation.”

In simple terms, it is the way that businesses differentiate themselves in their particular market allowing them to not only attract and recruit ‘right fit’ new employees but also impact the engagement and retention of existing staff members.

Why Your EVP Could Be Your MVP

While there seems to be more jargon and acronyms than ever – what is clear is that it is more important than ever for businesses to communicate the compelling reasons why future hires should choose to work with/ for them.

In the past, many businesses assumed the key to a successful EVP was simply offering their team the best salary and benefits. However, teams today are looking for more than just financial value in their careers.

As attitudes to the workplace have changed, so have priorities as professionals now have more opportunities than ever to consider where, how, and when they work.

Vacancies offering fully remote or hybrid contracts means that staff are no longer restricted by geography when assessing new opportunities in the market, and with the net cast wider – so too are the opportunities (and indeed, competition).

Fundamentally you need to communicate all the specific and unique benefits an employee can expect to receive when they join your business. These should seek, where possible, to differentiate yourself from competitors operating in the same region and/or practice area; describing (and making tangible) what the business stands for – vision, culture, and working environment.

According to Gartner, a leader in people management, an EVP can massively strengthen your position in the hiring landscape and improves your chances of retaining talent, decreasing annual employee turnover by just under 70%, whilst increasing ‘new hire commitment’ by nearly 30%.

The War For Talent Is Over. Talent Won.

The quote above by PwC’s US Chairman, Tim Ryan in October last year continues to do the rounds as the UK’s drought of talent is still felt across many industries and professional sectors. As highlighted in a recent article on Maddyness, UK unemployment rates remain at a historic low of 3.75%, and with vacancies still at heady heights (compared to pre-pandemic levels), there remains a disconnect between demand and supply.

Furthermore, those businesses that were proactive in securing talent by offering inflated salaries may no longer have this option against a backdrop of economic uncertainty, and squeezed budgets.

And whilst this may on the surface start to level the playing field between small and medium-sized companies who couldn’t compete on price, the challenge around standing out on the things that matter very much remains.

Creating a stand-out working culture and work environment, and offering staff a holistic package of perks and rewards is only the first step, however. Finding innovative, bold, and creative ways to communicate this externally (and through internal channels) is key – and should go beyond one-dimensional lists on websites and job descriptions.

Attracting The New Generation Of Talent

It is a well-publicised fact that Generation Z, the youngest generation to approach the working world, will soon surpass Millennials as the most populous generation on earth. By 2030, this group will make up 30% of the workforce, bringing new demands, expectations, and priorities for employers to consider.

Often raised by innovative millennials, Gen Z is the most diverse and educated age group in the professional world today. Born into a connected, digital, and empathetic world they spend approximately half of their waking hours interacting with technology. Shaped by an era of social feeds and internet culture, the slew of powerful social justice movements they’ve witnessed in recent years have given them a unique sensibility and a strong stance regarding ethical business practices and equity.

Generation Z undoubtedly has several valuable characteristics to bring to the workplace, yet their approach may cause certain challenges for business leaders as they aren’t motivated or moved by the same things as their millennial parents (we looked at some of these recently in our detailed guide on Motivating Gen Z Employees).

What has been already noted, however, is that this demographic cohort (known colloquially as ‘zoomers’) is emerging as the ‘sustainability generation’ – impacted massively by global events like the Pandemic which, according to Forbes, didn’t start the sustainability revolution necessarily, but certainly put it into overdrive (with Gen Z in the driver’s seat).

Attracting and retaining this generation will therefore need to focus on green and eco-credentials, and general CSR initiatives as part of a wider employment proposal that is demonstrably ethical, moral, and has a societal purpose. 

CSR & ESG – as easy as ABC?

Employer value propositions are evolving, due to shifting business priorities, working patterns, and employee values as well as external factors like the economy and political landscape. A focus on well-being and wellness initiatives, work-life balance, diversity, and inclusion are continuing themes setting value propositions apart across the professional landscape, alongside programmes and statements centred around Corporate Social Responsibility (CSR).

But with a new acronym on the block for businesses to get their heads around – ESG… it’s no wonder there is some confusion around where they should place their focus amidst this ‘alphabet soup’ of initiatives.

Corporate Social Responsibility (CSR) is a business approach designed around making a social impact and focus beyond profits. It is designed (or should be) to benefit society and the local community as well as the environment for the collective good – and in turn will also, by proxy, enhance the company’s image, generate more business, and earn customer and employee loyalty.

It is generally split into 4 areas:

1. Environmental
2. Ethical
3. Philanthropic
4. Economic

All are aimed at providing benefits to both the general public as well as company shareholders and employees.

Environmental, Social, and Governance (ESG) isn’t quite the same – although according to a Harvard Law School study in 2021, both terms do appear interchangeable. Rather, this programme is more data driven, and increasingly  an act of corporate compliance; defined as ‘a set of standards measuring a business’s impact on society, the environment, and how transparent and accountable it is.’

In brief, the three areas or factors look at:

• Environmental – a business’ impact on the environment, such as carbon emissions, waste management, and resource usage.
• Social – a business’ impact on society, including issues such as labour practices, human rights, and engagement with the local community.
• Governance – a business’ management and oversight, such as board and management structure, executive compensation and remuneration, and shareholder rights.

ESG has become increasingly important for investors and businesses as stakeholders demand greater accountability and transparency on sustainability and ethical issues. The key difference therefore compared to CSR, is that it is viewed as the outcome (measured and reported on) of a business’ sustainability, whilst CSR focuses on their voluntary actions to improve its impact.

An even simpler comparison by Akepa:

• CSR: a general sustainability framework, mainly used by companies
• ESG: a measurable sustainability assessment, popular with investors

In Conclusion

As a Managing Director, Manager, or Hiring professional within a business, getting your head around the many acronyms and initiatives is the first hurdle in understanding the evolving values that current (and prospective) employees have when it comes to their employer.

Understanding what these shifting ideologies are is critical when it comes to retaining, engaging, and attracting talent  – although it is equally as important not to pay lip service or view things like your EVP as a box-ticking exercise.

What is clear, is that embracing CSR (Corporate Social Responsibility) has become a necessity for businesses around the globe, not least because it remains high on the agenda of both Millennials and Gen Z employees who are ever critical of their employer’s ethical stance, reputation in the market, and values that they hope will mirror their own.

In a LinkedIn News article from earlier this year, it was reported that these demographic cohorts actively consider “conscious quitting” if the company doesn’t align with their values. It also highlighted research from KMPG which stated that 46% of employees want their employer to ‘demonstrate a commitment to environmental, social and governance’, with 1 in 5 turning down the offer of a new role if they felt a disconnect.

Clayton Recruitment’s Commitment

Of course, CSR, ESG, EVP, and any other business-related acronym are relevant to all businesses – ours included.

As a prominent Northwest employer that has been in business for nearly 25 years, we also recognise the importance of our own value proposition when it comes to our people and our community.

Our commitment to CSR can be seen here, where we detail our approach, programme, and statement of intent as we strive to become a socially responsible business, both internally and externally – making a positive impact on our people and workplace, our clients and suppliers, our local community, and our local and global environment.

The purpose of our programme is to sustain a business that is successful and respected in its ethical standing by our stakeholders. These include candidates, clients, investors, regulators, suppliers, and the wider community.

We are particularly passionate about supporting causes that have roots and impact here in the UK, and in the Northwest. One initiative that we have recently joined and committed to is Ecologi, a certified B-Corp social enterprise, and platform for Climate Action; helping individuals, families, and businesses become Climate Positive.

This market leader is certainly gaining traction and publicity, and we are delighted to join the other 40,000 members in taking simple, but impactful climate action. This year we have committed to fund the planting of trees in the UK for every placement we make and are also involved in the Beta trial to calculate our carbon footprint, and put plans in place to reduce our emissions.

You can see the impact of Ecologi’s work and their UK reforestation projects here.

In addition, Managing Director, Lynn Sedgwick and Performance and Development Director, Louise Kearns joined the Good Growth Programme in February this year, ran by Lancaster University and supported by Boost, Lancashire’s Business Growth Hub.

The 5-month Programme was underpinned by world-leading research produced by Lancaster University Management School and focused on business strategies that are centred around the environment, community, and social justice. It was a great chance to connect and collaborate with other SME leaders and contribute to solving local and global challenges.

About Clayton Recruitment

Clayton Recruitment has been partnering with organisations across the country since 1989, and during that time has built up an excellent reputation for trust and reliability.

With specialist divisions covering Commercial, Financial, Industrial, and Engineering appointments, on both a permanent and temporary basis. If you are looking for your next career move, we can help. Call us on 01772 259 121 or email us here.

If you’ve never heard of an employer value proposition or brand before, now’s the time to expand your education.

According to the CIPD, an employer value proposition is a way your business will differentiate itself from competitors when it comes to attracting talent.

The question is, what characteristics do you need to demonstrate to attract talent in your sector today?

The U.K. is currently in the grip of one of the worst skills shortages in the last twenty years. Skilled candidates are in the driving seat of their careers, and many will naturally  pick a company based on their brand presence in the market and the narrative related to how they treat their employees.

The last few years have seen talented people re-evaluate their careers and the expectations of the companies they work for. Today, employees will consider moving to get what they want. That might be better pay and conditions, development opportunities and the option to work remotely, amongst other reasons.

Considering the commercial value good talent brings to your firm, perhaps it’s time to energise your current employer brand to attract the talent you now want to take your business forward.

Let’s explore this more in today’s post.

Definitions: EVP versus Employer Brand

According to various sources online, employer branding became prevalent in the early 1990s. Since then, it has become a recognised term in both H.R. and recruitment circles.

An employer brand is an impression your business gives as a good place to progress your career to current employees and key players in the external market. From a talent perspective, these would be active and passive candidates.

So, EVP versus employer brand, what is the connection? The CIPD reminds us that we have an employer brand whether we have consciously developed it or not.

If we were to sit around a table and talk about Wetherspoons or Uber, we would all have an opinion about their brand and how they treat their employees.

The employee value proposition for both these brands could potentially do with some work when it comes to their EVP; in other words, “why would I want to work for Uber of Wetherspoons?”.

EVP is, therefore, the conversation and communication points around why I would want to work for this brand.

Building a Stronger EVP

The topic of this post relates to energising your current EVP to attract and keep talent.
Fundamentally an employer value proposition is a list of specific and unique benefits an employee can expect to receive when they join your business.

Vision, motivation, development, acceptance, a diverse and inclusive environment, benefits, pay, wellbeing, and community. The CIPD defines EVP in a simple and jargon-free way: “The value proposition describes what an organisation stands for, requires and offers as an employer.”

If your people are leaving your business, your recruiting partner is offering feedback about your perception in the market, and your job offers are being turned down, it’s time to look at your EVP and how you are communicating ‘why you’ into the market place.

Considering the changed expectations of talent today, which parts of your EVP need a revamp?

If you want some ideas, look at Microsoft’s Workplace Trends Index. The report highlights an important point that over 40% of the global workforce are considering leaving their current employer for an opportunity to work remotely.

Remote work has created new job opportunities for some, offered more family time, and provided options for whether or when to commute.

Review and Redefine Your EVP

The much-used term related to talent wars is based on the current volatile market and a shortage of skilled applicants for your roles.

More now than ever, it is critical to communicate your compelling offer and make the connection in a candidate’s mind that you are the firm to join.

As a specialist recruiter for over twenty years, we have seen past clients struggle because they have not given their EVP the importance it deserves.

Our role is to showcase your firm to prospective candidates, but it’s not easy if your EVP isn’t an attractive offering in today’s marketplace.

So how do you become more attractive?

As a starting point, review your current state and EVP as you plan your journey.

• What is our vision and mission; has it changed?
• When did we last conduct an employee survey?
• What is our purpose and ‘why’ as a business?
• How engaged is our current team?
• Do we have a strong leadership team to represent our brand?
• Why would people join us, and why do they stay?
• Do we have an attractive development culture?
• Is our current offer relevant and on point for the talent we want today?
• Do we have an experienced recruitment partner that can support our growth goals?

Create an Action Plan With Milestones and Timelines

Once you have assessed where you are, it is vital to take the necessary action. It is all too easy to procrastinate and blame what has happened and assume the current market will change; it won’t.

We are in an age of rapid innovation and digital disruption, with a workforce expecting more from their employers, including support, vision, direction, and development.

Knowing that candidates’ expectations from you, their employer are different, how will you change?

About Clayton Recruitment

Clayton Recruitment has been partnering with organisations across the country since 1989, and during that time has built up an excellent reputation for trust and reliability.
With specialist divisions covering Commercial, Financial, and Engineering appointments, on a permanent basis.

If you are looking for your next career move, we can help. Call us on 01772 259 121.

If you would like to access our free guides, view them all here.