It’s MORE than just the money.

by Rob Sheppard

[Approx 3.5 min read]

In the wake of the COVID-19 pandemic and a tight labour market, small and medium-sized enterprises (SMEs) in Australia have been faced with a growing gap between the salaries and wages they can offer compared to the salaries and wages offered by big business.

“Traditional methods” to attract and retain people (offering higher wages than the competitors or structured career pathways over a longer period) are giving way to a more holistic approach, centered around EMPLOYEE VALUE PROPOSITIONS (EVPs).

Let’s revisit and explore why EVPs have become a crucial tool for SME to close this gap with their larger cousins.

1. The holistic team shift

I think we can all agree that the business landscape has been forever altered by ‘the pandemic’.

As SMEs in Australia continue to adapt, they are fast recognising the significance of a ‘holistic approach to building their teams’. This shift acknowledges that employees are not assets (a traditional view) but are in fact integral components to a business’s success (a human view).

This shift also realises that teams need more than just a paycheck. They need a sense of purpose, belonging and fulfillment in their work.

2. Employee Value Propositions: A roadmap

An EVP is essentially the total and unique set of benefits and rewards that employees receive in return for their skills, capabilities and experience.

An EVP encapsulates the essence of what the organisation stands for as an employer and what team members can expect in return for their contributions.

It doesn’t need to be a 100-page document, in fact, a concise EVP on one page can be just as effective in attracting and retaining top talent.

It’s more about identifying what makes your organisation special and communicating it clearly to potential and existing team members.

3. It’s more than just money

As we said at the start of this article, large corporations have the resources to outmatch SMEs in terms of monetary compensation and rewards…

… and this is where SMEs can still outshine by offering something more.

SME, by their very nature, are more agile and responsive to change…. which means offering packages that include genuine work-life balance, development opportunities, a positive work culture and a sense of belonging can be quickly turned into action from just words on a bit of paper.

….SME, by their very nature, are more agile and responsive to change….

4. Be aspirational, stay realistic

While it’s important to have an EVP that inspires and motivates, it’s equally vital to be realistic about what you can offer.

Creating overly ambitious EVPs that promise more than you can deliver will lead to disappointment and disengagement among employees. The exact opposite of what we’re trying to achieve.

Focus on what sets your organisation apart and the value you genuinely provide. Honesty and authenticity in your EVP will resonate with candidates and team members alike who genuinely align with your values and offerings.

What does it all mean?

Employee Value Propositions have emerged as a guiding star that any size organisation can consider- offering a roadmap for attracting and retaining people.

In today’s evolving business landscape, SMEs that prioritise the development of a compelling EVP will not only survive but thrive in the face of uncertainty and change.

And if it’s all still confusing?

If you need help or have a sense this might be a future issue for you and your business, please click the link below and we’ll be happy to speak to you about any ideas this article has raised for you (or your team).