The employment value proposition (EVP) is no longer a novel concept for organizations; instead, the COVID-19 pandemic has accelerated a need for companies to adapt to significant changes in employee expectations and working preferences. The increased adoption of remote and hybrid work models, coupled with heightened demands for work-life balance, has led to a more nuanced understanding of EVP. While many organizations are still in the early phases of reworking their EVP structures, the focus on achieving work-life harmony has become a pivotal topic in talent management.
Businesses are actively taking steps to enhance their EVP perception, both directly and indirectly. Companies globally are in a race to increase their competitiveness, rapidly accelerating digital transformation and technology adoption that would typically unfold over a decade into just a few years. This shift significantly alters the landscape of talent acquisition. Nations are now competing for talent, with the public sector losing employees to the private sector. Furthermore, industries no longer contend with one another for talent within their fields; instead, they all vie for expertise under the umbrella of technology.
According to Gartner, only 32% of IT employees express a strong commitment to remaining with their organizations, compared to 39.9% of non-IT workers. If Chief Information Officers (CIOs) fail to create a human-centered EVP, they risk facing elevated turnover rates in critical IT roles, jeopardizing their organizations’ digital transformation efforts. To counter this, CIOs should consider the following strategies:
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Communicate EVP Strategies to Current and Potential Employees
Many organizations do not explicitly articulate their EVP strategies at the enterprise level, thereby placing the onus on CIOs to mitigate tech talent risks. This involves taking action to address immediate concerns while also planning a more comprehensive response to evolving tech talent expectations. A staggering 76% of candidates report withdrawing from the hiring process due to at least one mismatch in EVP preferences, hence compensation, benefits, work-life balance, and flexibility are top reasons for discontinuation. To attract new talent, CIOs, in collaboration with HR, should promote employee referral programs aimed at tech and digital talent recruitment and provide incentives for participation. - Reframe EVP with a Focus on the Human Experience
Traditionally, EVP has centered around providing an exceptional employee experience by catering to employee needs. However, ongoing challenges in engagement and attraction, along with the human crises of 2020, have underscored the limitations of these principles. Employees are individuals with lives outside of work, and their value comes from emotional connections rather than mere features. A more human-centered EVP must encompass the entirety of an employee’s life experience and the emotions associated with their work.
To create this human employment deal, organizations should consider five key components:
- Deeper Connections: How leaders help employees strengthen ties with family and community, beyond just workplace relationships.
- Radical Flexibility: Offering flexibility across all aspects of work, not just regarding time and location.
- Personal Growth: Supporting employees’ growth as individuals, not solely as professionals.
- Holistic Well-Being: Encouraging the utilization of well-being resources, rather than simply making them available.
- Purpose: Employees feel a sense of investment when organizations actively pursue a collective purpose rather than making superficial corporate statements.
Progress in any area of the human deal can result in tangible benefits such as higher employee recommendations, enhanced performance, increased retention intentions, and improved overall well-being.
- Enhance EVP by Addressing Individual Needs
Organizations that capture what employees value most and swiftly adapt their messaging and investments tend to outperform their competitors. Instead of relegating EVP evaluations to an annual plan, which can be slow and inadequate in a fast-paced market, CIOs should remain attuned to changes that affect employees. With rising economic uncertainty, IT employees are gravitating toward organizations with a clear growth trajectory. In response, companies should adapt their communications and emphasize the aspects of their EVP that resonate most with these employees.
The trend of moving from work-from-home to work-from-anywhere has led to an expansive talent market without borders. Expectations vary significantly among different demographics, regions, and levels of experience. Consequently, CIOs must account for diverse EVP drivers that influence talent attraction and retention to maintain a competitive edge.
CIOs who prioritize leadership, culture, and people in their strategies to attract and retain top talent should address talent shortages by taking the initiative to lead IT talent discussions and collaborating with HR. They should reframe EVP elements to align with the human experience, focusing on real-life experiences and emotional resonance. Additionally, they need to make EVP more responsive by recognizing shifts in preferences and promptly addressing individual needs based on factors such as career milestones, work location, tenure, and experience level.
Image: Gabriela Vogel/Gartner
Gabriela Vogel serves as a VP Analyst in the Executive Leadership of Digital Business practice at Gartner, offering practical insights to executives on C-suite dynamics, effective leadership during times of change, and strategies for enhancing leadership effectiveness, managing corporate politics, and navigating conflicts.
