What gets you out of bed in the morning and gets you to work? Your coworkers? The work you perform? Your paycheck? Maybe it is to try to find another job outside your current employer?
EVP, Employee Value Proposition. EVPs delineate a company’s employee expectations and what, in turn, that employee gets for fulfilling that expectation. It is what drives employees to go to work and what keeps them coming back day after day and year after year. The EVP includes total rewards, work environment, leadership stamina and compassion and the employee’s personal connection to the company. A balanced EVP helps retain organizational knowledge, customers, values and, of course, employees. Some of the best companies in the world build total reward strategies that are both sustainable and are uniquely employee-centered, thus tapping in to and maximizing each employee’s discretionary effort to the benefit of the company. A solid and robust EVP is a win-win for the company and employee.
As we all know, the cost of turnover is high and growing every day. In healthcare, the cost of RN turnover can range from $35,000 to almost $50,000 for each bedside nurse who leaves. And with economic recovery and a lowering of unemployment rates, companies are seeing rising turnover costs. A phenomena of sorts that I am seeing where I live is a sharp increase in the value of real estate. While this can be a good thing for sellers in the market, it is creating a bit of a “perfect storm” for my company. Employees who have been trying to sell their homes are finally doing so and they are relocating to less expensive parts of the state – outside of our area. This in turn drives the living expenses higher and higher and thus shutting out certain employee levels from living locally. Coupling this with an unemployment rate hovering around 4%, recruiting can be a challenge with affordable housing supplies very limited and access to public transportation almost non-existent. This makes the case for our hospital to have an even more vigorous EVP in order to attract and retain stellar talent. Fortunately, our employment brand is well known and respected locally and regionally however some other companies I know are not as lucky. Either they will have to raise their stake in employment valuation or find alternatives to staffing predicaments. Either way, the EVP standard will continue to rise and companies with high levels of employee engagement will have to find new ways to attract and retain talent.
What is your company’s EVP?
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