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Historically, businesses have focused on delivering high-quality experiences for their customers rather than their employees. The working landscape has shifted, and with new ways of working comes a new focus on the needs of modern-day professionals. Organisations now find themselves analysing the employee experience to identify what their contemporary workforce values most.

Closely tied to this approach are the concepts of employer branding and employee value proposition. While each component is different, they are closely interconnected when it comes to talent management. As this blog will explore, their alignment is essential in attracting and retaining top talent in Australia's competitive employment market.

First, let’s take a moment to review each concept.

Employer Branding

Put simply, if you employ people you have an employer brand.

Employer branding is the process of forming a positive image and reputation that establishes your company an attractive employer.

While it is ever evolving, you may be surprised to know that your employer brand is somewhat out of your control. You can try your best to shape it through marketing or social media, but, ultimately it lies with your talent touchpoints – past, present and prospective employees.

How these audiences perceive you and feel about you will have a major impact on the way they behave – what they say about you to others, whether they are committed to staying with you and whether they feel compelled to join your team.

Related: How to ask for employee testimonials and why they’re so valuable

Employee Value Proposition

When you attract great talent, you need to keep them engaged.

An employee value proposition refers to your talent offer - the bespoke set of benefits and rewards that your employees receive in exchange for their skills, knowledge, and experience. Consider it your proposition of ‘why you should work for us’.

Unlike employer branding, an employee value proposition is controlled by you as the employer. It’s your chance to articulate your organisational values and the benefits that set your business apart from your competitors. This might include: parental leave policies, flexible work arrangements, remuneration and discounted memberships.

Related: How to create a compelling employee value proposition to attract top talent

Connecting employer branding and employee value proposition

A strong employer brand can help to attract great talent, but it’s the employee value proposition that makes them stay and thrive.

Think of it in the context of product marketing. As a customer, you may be drawn to a product through compelling marketing, however, if you’re expectations aren’t met it’s unlikely you’ll become a long-term customer.

Similarly, in the case of attracting top talent, it’s essential that both components align so that candidate expectations are met (and hopefully exceeded).

To strengthen the connection between employer branding and an employee value proposition, actively work towards:

  • Streamlining your messaging – Using consistent messages that ensure your branding promises come to fruition with real life value.
  • Showcasing your employee value proposition – Advertising your employer value proposition as part of your branding campaign.
  • Spotlighting employees – Leverage your best advocates! Positive employee experiences go a long way in strengthening your strong employer brand and reinforcing your employer value proposition.

It doesn’t stop here. Be sure to measure the success of your employer branding and employee value proposition to assess their alignment. Consider factors such as employee retention, turnover, engagement and satisfaction rates.

Related: How to attract more candidates through social channels

Why create an employee value proposition?

There is immense value in the articulation of an employee value proposition.

Research has shown that organisations that deliver on their employee value proposition improve loyalty and commitment by 30% and decrease turnover by 69%.

That said, additional research shows that only 18% of organisations differentiated their employee value proposition from other organisations with whom they compete for talent.

Therefore, significant benefits await organisations who invest time and energy into the creation of considered, competitive and compelling employee value propositions.

Short Term Benefits

  • Attract top talent – A strong employee value proposition will speak the language of the right people with the right values. This powerful tool can set you apart from the competition, making you the employer of choice.
  • Improve employee engagement – There is great value in employees who feel valued. Expect a sense of purpose, belonging and engagement in return for a clear set of employee value proposition benefits.
  • Increase retention rates – An enriching employee experience is mutually beneficial. A strong employee value proposition can fuel employee satisfaction and loyalty, saving you the expense of rehiring and retraining.

Long Term Benefits

  • Enhance corporate culture – Put simply, connected people perform better. A solid employee value proposition emphasises an organisation’s values, creating a sense of community and a collective purpose.
  • Improve Productivity – An engaged workforce is the best kind of workforce. Motivation inspires efficiency and a solid employee value proposition clarifies employee expectations, fuelling a sense of value, purpose and productivity.
  • Enhance brand image – A good reputation is earnt not bought. A distinct employee value proposition provides a compelling set of benefits for employees. When an organisation is known for valuing its employees, it can help to attract clients and customers who share those same values.

Employee value proposition and the influence on employer brand

In Australia’s competitive employment market, a well formulated employee value proposition has the power to influence and elevate your brand, making it more attractive to potential employees. With employers in desperate need of talent, it’s time to level up when it comes to the employee experience.

Will Cannaby, director at Robert Half and specialised finance and accounting recruiter believes that experience is everything, especially in the digital age. “Before I try a new restaurant, the first thing I do is seek out reviews. The same now applies to workplaces”, he says. “We live in an era where employee reviews and experiences have huge reach in the online space. This can be a blessing or a curse for businesses depending on the quality of their employee value propositions.”

Crafting a well-rounded employee value proposition take time, effort and resources but, the investment is well worth it when it comes to the three major branding benefits:

  1. Competitive Advantage – Communicating clear values and benefits differentiates your business from others. With a unique edge comes a greater chance of becoming the preferred employer for star candidates.
  2. Employee Satisfaction – A compelling set of benefits elicits a feeling of appreciation amongst employees. This engagement fuels retention, mitigating the need for recruitment and unnecessary training costs.
  3. Corporate Reputation- When an organisation is revered for valuing and rewarding their workforce, their market reputation is strengthened. Positive word of mouth and employee referrals can ultimately position them as an employer of choice.

Employer branding and an employee value proposition are vital elements of talent management. While a strong employer brand can attract top talent, it’s the employee value proposition that drives them to stay. In today’s competitive market, it’s critical to align both components to attract and retain top talent. In doing so you can elevate your employer brand, enhance employee experience, increase productivity and improve the quality of new hires by becoming an employer of choice.

If you’re looking for your next candidate, our experienced team of talent specialists are here to help. Contact us today.