The world that all businesses operate in is fundamentally changing, along with the workforce. Three-quarters of companies say that talent shortages will limit their organizational growth plan—despite the concern over rising interest rates and the threat of recession. Therefore, it is no shock that creating a people strategy came in as a top HR priority from our recent survey of 550 HR leaders and subject matter experts.
The race for talent kicked into high gear with the Great Resignation, and the trend is still going strong as recruiters continue to jockey for candidates amid a tight market—with 72% of respondents concluding their organization needs to refresh how they communicate the specific advantages they can offer to talent, in order to strengthen their Employer Value Proposition.
“As expectations shift and the fierce competition for talent continues, employees have come to expect more consumer-grade experiences in the workplace,” says Laura Manson-Smith, Korn Ferry’s Global Leader of Organization Strategy Consulting.
Developing a future-fit EVP presents some big dilemmas for CHROs: How do they balance what employees want today (career growth, development, alignment to purpose) with the things that organizations are worried about for tomorrow (the economy, political uncertainty, labor cost inflation, etc.)? And how do they develop an EVP that will help them stand out from the competition?
Manson-Smith advises using market research tools to help you understand, attract and retain the talent you need. “The biggest mistake organizations make is being too internally focused,” says Manson-Smith. She advises leaders not to rely purely on self-generated ideas but to reach out to the people who are representative of the future to create an EVP that appeals to them.
The importance of manager development
Another big dilemma in crafting a new EVP is how to balance authenticity with aspiration. “It’s not enough to communicate an enticing story—the next challenge is how you activate it so that employees live and feel that every single day?” says Manson-Smith.
Developing managers—specifically their ability to inspire, motivate and retain talent—is a further top priority the survey found. Manson-Smith says wise organizations will center manager attention on creating a customized, consumer-grade experience for employees across multiple generations.