The labor market in Japan continues to be a seller's market, and many companies are constantly facing the challenge of a labor shortage. In addition, the way of working has been in flux, where workers are no longer staying with the same company for life as they used to under Japan's lifetime employment system, and talented people are increasingly changing jobs in search of new opportunities and career advancement.
In this increasingly competitive environment for human resources, companies are under pressure to introduce an EVP (Employee Value Proposition), providing initiatives to improve job satisfaction, benefits, and career development support in order to secure talented employees.
In this article, we will discuss the importance of EVP and specific tips for successfully attracting and retaining top talent. We will then discuss how EVP can help you not only attract the best talent, but also reduce turnover, and create a competitive advantage.
Estimated Read Time: 5 minutes
What is EVP?
EVP stands for Employee Value Proposition. It refers to the value a company provides to its employees. Specifically, it includes not only compensation packages and benefits, but also career paths, work-life balance, growth opportunities, social contribution activities, leadership support, and many other elements.
Since employees are attracted to work environments where they can utilize their skills and talents and to companies that support their growth, implementing EVP can be expected to have many benefits, such as increasing employee satisfaction and retention. In other words, EVP is not just a means of securing human resources, but also an important factor in a company's growth and ability to maintain competitiveness.
EVP is expected to become even more important in Japan, where many companies are currently experiencing a chronic shortage of human resources and where it is said that one out of every two employees* are changing jobs.
* "Questionnaire on Job Change by Working People" by Risk Monster, Inc
Why EVP is important: 5 benefits
So, what are the specific benefits of developing an EVP?
1. Attract the best talent
With a declining workforce and an active job market, it is becoming increasingly difficult to recruit the best talent in any industry. By creating an attractive EVP, you can differentiate yourself from your competitors and attract top talent whose values align with your own.
2. Retain talented people
Another important issue for companies is to retain talented people in their company once they have been hired. Currently, the number of people changing jobs is on the rise in Japan, and employee turnover is increasing. In other words, there is an increasing likelihood that excellent human resources will flow to competitors. Therefore, building an attractive EVP is essential to increase your employee's engagement, loyalty, productivity, and retention.
3. Increase productivity
EVP is also effective in increasing your team's satisfaction and motivation. Implementing EVP measures that make your employees feel that their efforts are properly recognized through compensation and evaluation systems increases engagement and creates a more productive work environment.
4. Establish your company’s vision
By having EVP measures consistent with your company's stated mission, it will help to clarify and instill the company's culture and values. When your teams empathize with your vision and share common values, it fosters a sense of team unity and creates a strong organizational culture for your organization over the long term.
5. Improve your brand image
Building a good EVP is also one of the most important factors in building public trust. If you can communicate that you value your employees through attractive EVP measures such as compensation and benefits, you can differentiate your company from others and improve your brand image to candidates and stakeholders. In addition, as corporate social responsibility (ESG) becomes increasingly important, presenting an attractive vision of values and providing a good working environment will also contribute to improving the image and sustainability of your company.
Specific examples of EVP measures
There are a wide variety of items and measures that companies should consider when building an EVP. Below are some examples of measures that should be considered to determine what value proposition should be provided.
- Establish a performance-based compensation system: Motivate employees by introducing a fair compensation system based on their achievements and contributions.
- Enhance benefits: Offer attractive benefits that meet the needs of your employees, such as various types of insurance, holidays, and child-care support.
- Clarify career paths: Design clear career paths and implement career development programs to help your teams improve their skills and advance in their careers.
- Implement training programs: Offer training programs that support the development of professional and leadership skills and promote your employee's growth.
- Support work-life balance: Provide flexible work styles, such as remote work and flexible working hours, to create a work environment where your teams can better balance their work and personal lives.
- Improve the office environment: Create a work environment which allows your teams to work comfortably and efficiently, such as installing the latest office equipment or updating your tools and applications.
- Encourage communication: Build a culture that encourages open communication and respects input and feedback.
- Strengthen corporate culture and values: Foster a corporate culture that emphasizes teamwork, respect for diversity, etc., and create an environment where your teams feel safe and proud to work.
- Participation in social contribution activities: Support volunteer activities and contributions to local communities, and promote initiatives that enable everyone to share in corporate social responsibility.
Use these examples of EVP items and measures to build your company's EVP to help you attract top talent and grow your business over time. Building your EVP is an ongoing process, and it is also important to constantly update it to meet the needs of your employees and changing market conditions.
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