The modern business landscape has undergone significant changes in just a few years. As we know, COVID-19 has disrupted the way we live and work, resulting in a shift in priorities for employees. At ICG Medical, we've noticed that there has been a decrease in employee retention globally. According to the Bureau of Labor Statistics report in 2021, the overall turnover rate is 57.3%. However, when considering only voluntary turnover, the rate drops to 25%. Employee retention is a significant issue, with one-third of new employees leaving their jobs within six months. Additionally, a survey found that 94% of employees would stay with their current employer if they invested in their long-term learning. Retaining employees is crucial because turnover is expensive and time-consuming, involving costs such as advertising, recruitment, screening, and hiring. It is worth noting that the turnover rate for high-performers is only 3%. Lack of challenge and feeling underappreciated are common reasons employees leave, highlighting the importance of making employees feel valued and providing growth opportunities. Employees now have more digital tools for work, empowering them to be independent and strive for a healthy work-life balance.
In this case, employers need to adjust strategies to attract and keep the best talent since traditional employee value proposition (EVP) is not effective. It's time for employers to reconsider their approach. We've noticed this shift and have been actively working to create a new EVP that reflects the current times. Let's explore EVPs, their significance, and how you can reimagine them to foster an inspiring and engaging workplace culture.
An Employee Value Proposition (EVP) is rewards or perks that employees receive. They usually receive it for their outstanding work performance, or it incentivises them to continue working in their current role. EVPs can include compensation, benefits, career growth, workplace culture. It distinguishes an employer apart from its competitors, playing a vital role in attracting and retaining exceptional talent.
A well-defined EVP is essential for any organisation looking to create a positive employer brand. It helps to communicate the company's values, culture, and vision, and plays a crucial role in attracting and retaining top talent. In the current job market, where the competition for talent is fierce, having a compelling EVP is more critical than ever.
The traditional approach to EVP is becoming increasingly obsolete. The modern workforce has different expectations and priorities that go beyond salary and benefits. Employees, especially the rise of GenZ employees, desire a workplace culture that relates with their
Employers who fail to recognise these changing priorities risk losing their best employees to competitors.
Over the last couple of years, we've become increasingly aware that a successful EVP is about more than just a paycheck. Employers should prioritise creating a stimulating environment, promoting employee engagement, fostering a supportive community, and facilitating personal and professional growth. Our mission at ICG Medical is to create a culture that encourages our employees to reach their full potential and achieve great success. We do this by rethinking our Employee Value Proposition (EVP) and building a work environment that empowers our team members.
We're fostering a workplace culture that facilitates personal and professional growth is a top priority. We've recognised that a successful EVP must go beyond traditional incentives like salary and benefits. Instead of solely focusing on employee productivity, a workplace should consider various aspects that contribute to an employee's overall well-being. This approach will not only encourage employees to reach their full potential, but also inspire them to do so.
We believe that a positive workplace culture is essential for employee engagement and retention. To unleash employees' full potential, organisations should create an inclusive, supportive, and collaborative workplace culture. This will foster a strong sense of community and belonging. Developments that can promote this can include:
We've been working closely with our Learning & Development team to uncover ways to develop training and development programmes. We have began to notice it helps employees build strong relationships and develop skills they need to succeed in their roles.
Organisations should focus on cultivating an engaging environment while investing in initiatives that promote the holistic well-being of their employees. Our new EVP includes a range of employee incentives that go beyond traditional compensation and benefits:
We've also recognised that career growth and development are essential for employee engagement and retention. Providing opportunities for career advancement and learning and development programmes lead to higher job satisfaction and a greater staff retention.
Organisations that offer professional development support to employees begin to see their employees take ownership for their role. In turn, they begin to make a positive impact on the overall success of the organisation. Investing in employee development can lead to a more skilled and versatile workforce, which can lead to increased productivity and innovation. We began to see a massive increase in employee satisfaction because employees feel that they have a sense of purpose.
ICG Medical recognises that the traditional approach to EVP is becoming obsolete. The modern workforce has different expectations and priorities that go beyond salary and benefits.
We're focusing on programmes that help our employees grow and improve, take care of their well-being, and balance their work and personal lives. This includes training and development, wellness initiatives, and flexible work arrangements. This inspires and engages its employees, fosters a sense of community, and supports their personal and professional growth.