How do you get the best hired?
This table is a simple way to calculate how the candidate will think about the new opportunity. They will mentally ADD the anticipated “Pros” value of a new position and will also then SUBTRACT the “Cons” or problems associated by making the change. Very simply, an employee knows what they already have. In order to consider other opportunities they will seek an improvement by a margin large enough to overcome any unknowns about the change, also known as a risk premium. Risk premiums will be higher for opportunities such as commission oriented jobs, remote locations, and in general where the Value Proposition was not very well sold.
By demonstrating clarity about the new opportunity, the Pros as well as the Cons, a case can then be made. Focus on the non-compensation factors first. As the unknowns are answered for the candidate, the decision to make a change becomes much easier. A well sold and well explained value proposition will, in most cases, save on the amount of “risk premium” in compensation an employer must pay to get the good prospect, because much of the added value may be seen in the non-compensation factors. In short, the solution is to remove the “unknowns” and in particular explain on what the prospect’s future might look like.
In summary, the solutions for both retention and new hires involve virtually the same list. Match up your solutions to the Reasons Why Employees Leave:
1. Improve your supervisor–employee relationships. Consider some training in management communications to help make the difference.
2. The picture of the FUTURE is a very key selling point to get a great new employee on board. Provide a clearer image on how a person will and can grow within your company, a path to their goals.
3. Keep compensation on par with competitors.
4. Offer challenging projects to employees from time to time, and if they excel, perhaps those can be good tests on the paths to a promotion.
5. Recognize employees. Certain behavioral styles respond better than others, but most all will appreciate the fact that they’ve been recognized for their contributions.
6. Improve working conditions, perhaps something as small as a fresh coat of paint on the office walls.
7. Offer targeted training.
8. The senior leadership should be the first to offer a positive attitude.
Any employer should begin by improving the value proposition with existing employees first. Try to imagine that you, as a supervisor will apply to your own company for a key position. Can you list all of the good reasons why one should join your company? If you can, then you are well on your way to creating your own good Value Proposition.