The ROI of EVP
We are all aware that the 1st rule of marketing is to have a value proposition. an EVP applies this same concept internally (Employee Value Proposition) .
As more and more organizations treat their employees like internal clients, an EVP is a great way to articulate the value that you, the employer, provide to the employee.
With the highly competitive labour market that dealerships are seeing, this is a great time to develop and shape your EVP. Your dealership has an EVP even if you are not actively working on it, so remember that strengthening your EVP will be a key way to up the ROI and be a bigger contender in the talent landscape.
There are 5 components that are analysed in an EVP:
1) OPPORTUNITY- What level of professional growth and development do you offer for the employee, as well as the company's overall growth projections.
2) PEOPLE- Are your people seen as an asset to both the company an each other? Is there a sense of camaraderie? How is upper management perceived? Do your employees feel they have quality co-workers and managers?
3) ORGANIZATION- Are you seen to be producing/selling a quality product and great service as well as if your organization is seen as having a high level of social responsibility.
4) WORK- Does the work that your employees perform align with their values, personal interests and integrate into their work-life philosophy.
5) REWARDS- These are the traditional attraction and retention tools such as benefits, salary, vacation and other whole compensation aspects
An EVP will go well beyond the basic foundation of compensation, compensation is your baseline and research sows that it alone will not retain performers. Your EVP needs to indicate how your position in the above 5 areas is unique and separates you from the competition. Keep in mind that you may be well aware of what makes you distinct, but now you need to communicate it to your staff. A Harvard Business Review report indicates that only 25% of small businesses are sharing their differentiators to prospective employees. If you aren't part of that 25% you are losing top talent to a dealership or other competitor who is.
Where do you start? Start at the top, the 5% of your people who do the 95% of the best work are the key top talent that you need to focus on retaining first. Tailor your EVP to these mission critical roles to keep your top talent and for the ones that are vacant, be sure you are attracting the best and the brightest because you are now part of the 25% who know that an great EVP means a higher ROI.
Need help or want to know more? Contact firstname.lastname@example.org.