We all know that the jobs market has been red hot since the pandemic. In a candidate short market, it’s key that firms remain attractive to prospective hires. However, this need doesn’t disappear now the economy has normalised. Your Employee Value Proposition (EVP) is more important than ever, and for reasons many firms may not have thought about.

Firstly, let’s define what an EVP is. Think of an EVP as a mutual agreement between an employer and its workforce - it’s part of the psychological contract.  It sets the expectations and contributions on both sides to establish a strong and positive employer-employee relationship. A well-crafted EVP not only attracts top talent to the organisation, but it also fosters higher employee engagement, satisfaction, and productivity. It also lays the foundation for a positive employer brand, which is crucial in today's digital age where prospective employees can easily access company reviews and reputations.

A compelling EVP acts as a magnet, drawing potential employees to choose a specific organisation over its competitors. At the same time, it cultivates loyalty and reduces turnover by making employees feel valued, supported, and aligned with the company's values and vision. In short, it boosts colleague engagement. When an EVP is well-communicated and understood, employees become more engaged. They feel a sense of purpose and pride in their work, leading to increased productivity and creativity. It plays a crucial role in shaping the organisation’s culture. By emphasizing the right values and principles, it creates a positive and inclusive work environment.

During economic downturns or challenging job markets, the value of a robust EVP becomes even more evident. Companies may face limitations in offering extravagant financial rewards, or may not be able to promote colleagues due to a lack of growth, but a strong EVP goes beyond monetary rewards. It focuses on elements that hold significant appeal for employees during uncertain times. These could be things like job security, flexible working, recognition initiatives, training and development, or a benefits programme that focuses on well-being and provides discounts.

Whilst it helps retain your talent until good times return, it may also help you prize away top talent from your competition. In a downturn, employees often look for job security, which means that the people you want to hire maybe harder to meet. Candidates often just stop looking for a job believing in the old adage of “last in first out” - which has never been true in our experience. However, if your team feel frustrated with a lack of opportunities, it’s likely that your competition has the same issues with keeping people engaged. A strong EVP could help you to secure your dream employee. Our experience is also that strong firms who invest in talent, or new business lines, emerge from downturns much larger.

Have you ever had a management session on what your EVP is? What do you want to stand for as a firm, how do you engage your teams, how do you reward positive contributions beyond financials, how do you compare to your peer group? As hiring markets have slowed a bit from the heady days of the pandemic, we’d strongly urge all firms to spend time on this. Now is the time to ensure that you are an employer of choice, even if business isn’t booming. Indeed, this is something we can help with free of charge. We can meet, via Teams, to help you formulate your ideas and do contact us at: [email protected].

A well-crafted EVP should be at the centre of many firms business strategy, encompassing working arrangements, recognition, training, benefits, and culture.