According to Forrester’s US Customer Experience Index (CX Index™) rankings, CX quality among U.S. brands has reached an all-time low, declining for three consecutive years. Despite this grim situation, savvy CX organizations see a real opportunity to exceed customer expectations and challenge competitors.
To improve CX, consider focusing on creating an exceptional employee experience. A positive employee experience correlates with higher levels of employee engagement and lower levels of employee turnover. Companies leading in customer experience have 60% more engaged employees. When employees feel valued, supported and engaged, they are more likely to remain committed to their roles and contribute positively to the organization’s goals.
In previous CX Insights articles, we’ve waxed poetic about the importance of the employee experience and how happy employees make for happy customers. We’ve discussed how to deliver extraordinary employee experiences through recognition and incentives, training and mentoring, empowerment and leadership development. In this article, we are taking a foundational approach and talking about something that impacts all of those … the employee value proposition (EVP).
An EVP is the unique set of offerings and benefits that an employer provides to its employees in exchange for their skills, experience and commitment to the company. It’s a strategic statement that reflects the core values, culture and overall rewards that the organization offers. It is a promise to both current and potential employees that you are invested in their experience.
In this article, we share how having a well-crafted and communicated EVP can help hire and retain exceptional talent, identify perception gaps that prevent a positive employee experience, and create a more engaged and productive team.
| HIRE & RETAIN THE RIGHT EMPLOYEES
According to a survey conducted by Glassdoor, 77% of job-seekers consider a company’s culture before applying for a job. Further, 73% of all adults surveyed would not apply to a company unless its values aligned with their own personal values.
An EVP that is communicated early in the recruitment process can play a crucial role in attracting and retaining candidates who resonate with a company’s culture and values. It provides insight to applicants about the employee experience they can anticipate when working with the organization.
This enables a cultural alignment between personal and professional goals and values that benefits the organization, but more importantly, the candidate. However, it is important to note that in hiring for a cultural alignment, an organization should be cautious to not create a homogeneous workforce. An EVP that embraces diversity and inclusion creates a supportive workplace that balances corporate value alignment with skills and qualifications.
An EVP doesn’t just help companies hire the right people; it helps them keep them too. Organizations that effectively deliver on their EVP can decrease annual employee turnover by just under 70% and increase new hire commitment by nearly 30%. The influence of employee turnover shouldn’t be overlooked. It can make or break a company’s customer experience. Organizations with below average employee turnover are known for excelling in the customer experience.
MORLEY EXPERIENCE:
Morley developed an employee value proposition with both “give and receive” in mind, to set the right expectations for potential candidates who will stay longer if they know what they’re getting into. We use our EVP as a guidepost in all talent acquisition efforts, including:
Incorporating the EVP into our job postings, highlighting the elements that resonate most with each role
Sharing real-life examples of our EVP in action during interviews and within other candidate communications
Reinforcing our commitment to aligning our associate experience to our EVP when responding to employer reviews
Insight 1: A robust and well-communicated EVP can attract top talent, as potential employees are drawn to companies that share their values and provide fulfilling workplace experiences.
| IDENTIFY & MINIMIZE PERCEPTION GAPS (KNOW YOUR EMPLOYEES LIKE YOU KNOW YOUR CUSTOMERS)
EVP plays a crucial role in bridging the gap between management perception and employee perception. The assumption that you know what your employees value means certain death for your EVP.
Employee engagement, which we will discuss further, is intrinsically linked to a positive customer experience. However, according to Right Management’s The Engagement Illusion Report, leaders vastly overestimate the level of employee engagement and wildly underestimate the degree to which employees are disengaged.
Leaders grossly overestimate employee engagement – 83% of leaders responded that their workforce is fully engaged, while only 48% of employees would categorize themselves as fully engaged. This suggests a large disconnect between what leaders think and reality.
Gathering insights through employee surveys, focus groups and one-on-one interviews is a vital step in developing an authentic and robust EVP. These methods uncover valuable feedback on what employees truly value about their workplace experience.
By understanding their needs and preferences, you can build an EVP that is impactful and authentic and enhances overall employee satisfaction.
MORLEY EXPERIENCE:
A great deal of research was involved in developing our EVP, including, but not limited to:
Identifying trends within employer reviews
Gathering insights from existing surveys in the organization
Candidate and new hire surveys
Persona surveys
Leadership development surveys
Client surveys
Exit surveys
Surveying senior leaders
Insights from recruiters and HR Consultants
Findings from our research into mapping the associate journey
Third-party research
The findings were compared against our mission, vision and values statements; organizational goals; and current leadership objectives and aspirations for the business and key initiatives. We prioritized what resonated most with talent, what was most important to leadership and what was authentic to our associate experience.
Insight 2: A thoughtfully designed employee value proposition (EVP) ensures that management’s commitments align with employees’ actual experiences, leading to a positive perception and bridging any gaps.
| DELIVERING ON YOUR EVP LEADS TO HAPPY, ENGAGED & PRODUCTIVE EMPLOYEES
“Employees who believe that management is concerned about them as a whole person – not just an employee – are more productive, more satisfied, more fulfilled. Satisfied employees mean satisfied customers, which leads to profitability.”
– Anne M. Mulcahy, former chairperson and CEO of Xerox Corporation
When organizations ensure that the commitments they make to their employees are reflected in everyday experiences, they can nurture a deeper sense of engagement, pride and trust. This strategy promotes a dynamic organizational culture, encourages impactful communication, bolsters customer loyalty and improves managerial efficiency.
Engaged employees are more likely to exhibit higher commitment, motivation and productivity. They are inclined to go above and beyond what is expected, show initiative, and assume ownership for their tasks.
When employees experience the company’s mission, vision and values via an authentic, transparent and human-centered EVP, the business prospers, propelled by the strength of its dedicated and inspired workforce. Gallup notes that highly engaged teams can increase profitability by 23% and improve customer loyalty by 10%.
Conversely, not engaged or actively disengaged employees account for approximately $1.9 trillion in lost productivity nationally.
Morley Testimonials:
Family Comes First. “I feel like I am cared about at Morley. I am not a number. Morley as a company as a whole cares about me. My direct supervisor as well. I never took the “we are family” seriously. But now, I am close to people here, never even met them. I am closer to people here than anyone I have ever worked with in person. It has a lot to do with Morley and the way we operate. Just that family first value.”
Do What’s Right. “I really like how understanding they are of family issues that come up. As much as we try to be here every minute of our scheduled time and scheduled shift, things come up. We are human and have families. They are very understanding and I love that. I love my new team leader.”
Be Your Best Self. “Morley is really geared at creating you to be the best person you can be. Leadership support that a lot of other positions don’t have. Morley is always encouraging people to keep growing, and to keep being better versions of themselves.”
Insight 3: Delivering on EVP promises cultivates highly engaged and motivated employees who, in turn, contribute to exceptional customer experiences and drive organizational growth.
Summary
An impactful EVP should be human-centric, differentiated and fluid. As organizational pillars shift over time, revisiting and adapting the EVP ensures alignment with evolving employee needs and organizational culture.
When organizations provide a compelling EVP, they gain a competitive edge and enhance employee experiences, ultimately benefiting customers.
Sources:
Right Management: 2024 State of Careers Report
Blu Ivy Group: The Crucial Link Between Employee Experience and The Employee Value Proposition (EVP)
Gallup: Indicators – Employee Engagement
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