Top talent has a long list of potential employers to choose from, and you have to work hard to outrun the competition. For, you need to present a strong employer value proposition (EVP).
An EVP is a collection of benefits, offerings, and advantages that employees receive in exchange for their time with the company. During the recruitment stage, this proposal helps candidates make decisions.
An excellent EVP increases employee satisfaction, drives retention, develops a positive and inclusive culture, and enhances engagement. It can also help your workforce become brand ambassadors and recruit new talent.
Improving EVP is always challenging, especially for small and mid-size businesses with limited HR budgets. The most cost-effective way is to partner with a comprehensive HR outsourcing solution, such as a professional employer organization (PEO).
What Is a PEO?
A professional employer organization is a company that provides comprehensive HR services. Besides taking over administrative tasks that slow down your internal HR department, a PEO becomes an “employer of record" to administer benefits and file taxes.
In addition to taking the burden of manual and time-consuming tasks from your HR experts, a PEO can help you provide better benefits, reduce workers' comp claims, streamline HR compliance, and much more.
While PEO takes over many HR tasks, the control remains with the employer. Business owners and HR leaders simply gain more time to make critical HR-related decisions.
What are the components of a good Employer Value Proposition?
An effective EVP should have several essential elements, including:
- Compensation – the combination of financial rewards an employee is getting with the company, including salary, bonuses, and stock options.
- Benefits – includes all types of benefits, such as health benefits, retirement options, paid leaves, company-sponsored activities, gym memberships, and the like. According to a Glassdoor survey, 60% of candidates strongly consider benefits before accepting a job offer.
- Work-life balance – more than 70% of workers believe that work-life balance is an important factor when choosing a job, so a good EVP should describe possibilities of ensuring such a balance.
- Career development – the ability to hone existing skills and climb the career ladder are major factors that define the job choice for many candidates.
- Company culture – surveys show that 77% of job seekers consider the company culture before making a choice. Meanwhile, 73% wouldn't apply if they knew that company values don't align with their values.
- Recognition and rewards – a robust employee recognition program is an integral element of an EVP since it demonstrates the company's desire to ensure employee success and satisfaction.
Another vital element of EVP is job security. Amidst the Great Resignation, candidates still want an opportunity to work in one place for a long time without worrying about instability.
How PEOs Improve Employer Value Proposition
A partnership with a professional employer organization can improve significant components of your EVP and take you closer to becoming an employer of choice.
Access to a Comprehensive Benefits Package
PEOs use economies of scale to provide their clients access to Fortune 500–level benefits. As employers of records, PEOs group all their clients' employees and use the volume to negotiate better premium options.
This approach makes higher-tier employee benefits affordable and allows you to add more benefits, such as 401(k) or dental insurance, without becoming prohibitively expensive.
Streamlined HR Processes
A PEO is a team of experienced HR specialists who can take over manual and time-consuming tasks such as payroll processing, tax filing, and benefits administration. This gives your internal team more time to focus on employee engagement, satisfaction, and retention.
HR Compliance
PEOs protect your reputation and help your business avoid unexpected fines by keeping you updated with local, state, and federal regulations. A PEO keeps your EVP in top shape by minimizing the chance of errors and ensuring compliance.
Training and Development
A PEO can arrange high-quality safety training as well as other programs related to professional development. An excellent safety program reduces workers' comp claims and helps you maintain a stellar reputation.
Meanwhile, other training and development programs can attract and retain employees looking to acquire new skills and climb the career ladder.
Enhanced Work-Life Balance
According to studies, 87% of workers would gladly accept flexible work opportunities. A professional employer organization can help you implement remote or flexible work arrangements. This can attract more talent and make existing employees happier.
Partnering with a PEO is Affordable
While companies can improve EVP independently, the expenses will likely be substantial. Partnering with a PEO saves you on enhancing EVP and increasing employee satisfaction.
If you choose to work with a local PEO, you can also save on their services. Local PEOs charge less than nationwide PEOs while providing the same level and quality of services.
