Talent Matters

Employee turnover is expensive. We see distributors struggle with retention, especially among the hourly-wage and entry-level employees. It is not a unique challenge to distribution. According to the Bureau of Labor Statistics (January 2024), the median tenure of all employees in the U.S. is 3.9 years. The median tenure of workers aged 55–64 (9.6 years) was more than three times that of workers aged 25–34 (2.7 years). We can speculate on the reasons, but a key reason is they can – because the number of available jobs exceeds the number of available employees.

Successful companies today realize that people are critical to sustaining a profitable operation and growth. To succeed, you must be an employer of choice – a talent magnet! To do so, a company has to develop an authentic and unique employee value proposition (EVP). An EVP simply answers the question, “Why would someone work for your company?”

TALENT PICKS YOU – NOT THE OTHER WAY AROUND

An EVP is what an employee gets in return for their time and effort invested. This includes tangible rewards (compensation, benefits, growth, development, etc.) and intangible rewards, such as work that is meaningful and challenging, great culture, work/life balance, etc. An EVP clearly defines your company values, benefits, culture, and approach to developing people in a way that causes someone to want to work for you.

A clearly understandable and articulated EVP differentiates your company from your competition and helps to ensure that your hiring managers and HR team communicate a clear and consistent message during their recruiting efforts. We must consider the emotional component of our messaging in talent recruitment, development, and retention. Being able to identify these differentiating emotional factors is the key to developing a unique EVP.

STEPS TO DEVELOPING AN AUTHENTIC, UNIQUE EVP

1. Identify the key points that you want to communicate. The first step is to develop an accurate and relatable description of the work being done (think job description). Document your culture and work environment, including your history. A good way to do this is with ‘Stay Interviews.’ Ask your long-term employees why they work at your company, why they stay, and what it is about the company they like most. This will help keep it authentic. Then, list your rewards and benefits. Finally, think about your career paths, training, and development opportunities.

2. Formulate concise, understandable phrases or sentences for each of the EVP points. Use the above information to develop concise and specific sentences with key phrases that highlight each of the areas. These are key reasons why someone should come work for your company. Arrange the phrases and sentences in an order that has an engaging flow. This is your EVP.

3. Does it work? Check the EVP list for effectiveness with your key employees: Is it concise? Is it easily understandable and relatable? Does it engage emotions? Does it pique curiosity? Does it answer the question, “Why would someone want to be a part of this?”

COMMUNICATE IT WELL

Employer branding is largely influenced by how you communicate your EVP. This is how your company is perceived both internally and externally. Factors impacting this perception are marketing collateral, website, social media, and internal communication. To be authentic and unique, an EVP must be personalized. Consider tailoring the EVP for these generational differences. This is of particular importance when attracting Gen-Z talent. EVP emphasis may differ based on job profile, location, and prospective candidate. For someone in their 20s, career opportunities may be most important, whereas stability and benefits might be the deciding factors for someone in their 40s.

To be most effective and ensure a consistent message concerning the development and management of your EVP and employee branding, it is essential to coordinate the communication language of hiring managers, HR, and marketing efforts. Everyone has to “sing” from the same EVP sheet when talking to a prospective candidate. Make them choose you with your EVP!

NEVER STOP IMPROVING

Like many things in today’s disruptive environment, your EVP is always a work in progress. It should be reviewed and periodically updated when needed. When updating, you may also want to consider: Is it still relevant? Does it resonate with my target audience? Does it differentiate me from my competition? Will people be impacted by it? Is it memorable?