Give me three reasons why any talented, suitable, and ambitious person is supposed to work at your company? What do you offer as an employer? I want to know what your Employer Brand and Employee Value proposition is.
Let us start with the basic definition of the two. An Employer Brand is simply a company’s reputation as an employer and the value it brings to its employees. An Employee Value Proposition (EVP) is the unique set of benefits that an employee receives in return for the skills, capabilities, and experiences she brings to a company. In other words, the Employee Value Proposition (EVP) is “the promise from the employer to the employee for working with them.
Why is an Employer Brand and Employee Value Proposition Important? I’m glad you asked! In the era of The Great Resignation a good employer brand becomes even more important for organizations that want to attract and retain top talent. According to a study from recruiting network MRINetwork 69% of prospective job seekers would reject an offer from a company with a bad employer brand even if unemployed. What is your employer brand representing today? According to the same survey from MRINetwork 92% of employed persons would consider leaving their current jobs if offered another role with a company that had an excellent reputation. Further, 45% of 35–44-year-olds would leave their current job for less than a 10% pay increase to join a company with an excellent company brand. How does your employer brand and employee value proposition help you retain desirable talent?
Now let us look at how companies with great employer brands are identified.
No one works more diligently each year like Great Place to Work Inc. to determine the Fortune 100 Best Companies to work for each year. The methodology Great Place to Work Inc. use to evaluate and certify thousands of American organizations includes the largest annual ongoing annual workforce study based on 870,000 employee survey responses and data from companies representing more than 6.1 million employees for the 2022 Fortune 100 Best Companies to work for list.
The survey focuses on both quantitative and qualitative feedback about their organizations culture by answering 60 statements on a 5-point scale and two opened ended questions. These statements focus on the employee experience related to trust, respect, credibility, fairness, pride, and camaraderie.
But what do these companies that make this list have in common? All have managed to create an employer brand that is aligned with their employees’ noble purpose as described by Lisa Earle McLeod in her book “Leading with Noble Purpose”. She states “Human beings are hardwired for meaning. We want our lives to count for something. Connecting key business strategies with employee’s noble purpose provides a roadmap for creating both a meaningful and profitable workplace.
With this in mind lets take a look at three of the companies that made it to the top of Fortune 100 2022 Best Employer Brands and Companies to work for.
1. Cisco – Our purpose is to power an inclusive future for all.
2. Hilton – WE make the world a better place through hospitality. At a time when the world needed it the most our team members made all the difference.
3. Salesforce – We work as a team to deliver success for our customers while giving back to our communities.
All the above companies have an average employee rating of 94% for Great Place to Work compared to the typical company Great Place to Work rating of 57%.
Now let us shift to 3 bottom-line benefits of a good employer brand and 4- steps you can take to achieve and sustain that spot in the hearts and minds of current and prospective employees.
Bottom Line Benefits of a Good Employer Brand
1. Retain existing employees and attract great ones: Today’s savvy job seekers invest time looking at company’s social profiles to see if the company’s core values align with their noble purpose.
2. Reduced Cost-of -Hire: A good employer brand means candidates will come to you which reduces cost and time to hire. A University of California Berkeley study found that the average cost of hire ranges $4K - $7K with approximately 42 days to complete a hire. This amount and time doubles and even triples for organizations with a bad street reputation.
3. Employee Advocacy – More than 50% of job seekers rely on employee reviews. Your organization best brand ambassadors and company advocates are your current employees. Build a dynamic work culture and employee experience and they will tell your o r g a n i z a t i o n s story…FREE!
Steps to Achieve and Sustain a Good Employer Brand
1. Demonstrate Your Unique Culture and Diversity: Candidates want to work for an organization that has an exciting culture and a diverse workforce. They want challenging work and recognition for a job well done. Make certain that your Talent Acquisition team promotes your employer brand, work environment, company culture and perks to seal the deal.
2. Incorporate Corporate Social Responsibility: Studies show that millennials are driven by Corporate Social Responsibility. To attract the generation that will represent most of the workforce within the next decade make certain your companies Corporate Social Responsibility priorities are embedded in your organizations DNA.
3. Modernize Your Message: Human Resources and Internal Communications should partner with your marketing organization to help modernize your Employer Brand message so its fresh and appeals to your target population otherwise you risk losing out on talent that may view your organization as an outdated relic.
4. Just Say It – Clearly and succinctly articulate your employee value proposition that validates your reputation in the marketplace. Be honest and uphold your end of the deal and deliver on what your promise is to employees. If you promise employees can bring their authentic self to work, you better have an accepting culture. Failure to deliver on your promise will result in losing valuable employees and lasting damage to your employee brand.