Surging inflation; we’re all talking about it! The cost of living is rapidly increasing with rises in wages barely keeping pace. Though the Office for National Statistics has reported a 10.3% wage increase compared to pre-pandemic figures, wage growth continues to lag behind the cost of living.
Now add to that the current skills shortage in the UK. With unemployment continuing to fall and new vacancies at a record high, Employers are feeling continued pressure to increase salaries in a bid to attract and retain talent.
The whole situation raises more questions than can be feasibly answered:
What about the businesses who need to recruit in order to survive, but simply can’t afford to do so?
With so many businesses still recovering from the financial impact of the Pandemic, how sustainable are these inflated salaries?
How long will it be before everything dramatically implodes in on itself?
And yet, the question which perhaps concerns me most…
What of those employees who achieve a vastly inflated salary and simply don’t live up to those vastly inflated expectations?
There’s no such thing as a free meal!
Though employers are reacting to the current climate, increasing salaries in line with the cost of living and the need to attract and retain talent, can we really expect to receive more without giving more in return?
In a post-Pandemic era where there is already a rapid decline in mental wellness, accepting a new job purely for financial gain, will not end well.
Most businesses do not have the reserves to increase salaries for their entire workforce. An inflated salary will almost certainly be attached to greater responsibility, an expectation to ‘work the hours required for the fulfilment of the role’ and a need to give more of ourselves than we are perhaps willing, or able, to give.
So how do we negate this? When increasing salaries is neither tenable nor without great expectation, how do we attract and retain great talent?
Employee Value Proposition (EVP); the reciprocity between employer and employee, adding mutual benefit and value to one another’s employment opportunity.
Not to be confused with the company mission statement or core values, the EVP is a unique interpretation as to how both entities can benefit one another.
It’s not a one size fits all offering. It’s not a bowl of fruit or a Friday drinks trolley. Your EVP is how you attract and retain the best talent, without offering unsustainable salaries and asking for an employee’s soul in return. It’s a promise to internal colleagues and future team members alike, to provide compensation for work rendered, extending beyond monetary gain.
Examples of EVP:
Flexibility relating to hours and location of work; an agile business model which empowers the individual, promotes autonomy and inspires commitment.
Annual Leave which is fair, recognising and rewarding loyalty and commitment.
A Healthcare Package which endears itself to physical and mental wellness.
An appreciation of Family which is respectful, all-encompassing and inclusive, recognising the responsibilities of parents and caregivers.
Defined and achievable Career Progression to empower personal and professional growth.
Financial Support & Guidance in respect to family and retirement planning, student loans and further education.
Lifestyle Benefits which enhance access to and enjoyment of social and leisure pursuits.
An appreciation of the Environment, Sustainability, and our Corporate & Social responsibilities.
In an evolving society where our economic, corporate, social and familial responsibilities are each competing for priority, remuneration should never be our only motivating factor. There’s no doubt that inflation has increased our cost of living and salaries should certainly rise as a reflection of this. But for employees looking for a reason to move (or a reason to stay) and employers seeking to attract and retain talent, it's as easy as EVP.