As more organisations hire contract staff to keep their workforce agile, the demand for short-term skills sets will increase. This would result in greater levels of competition for contracting talent.
A great employee value proposition (EVP) can be a game-changer. Job seekers now emphasise a company’s culture before joining. That means that employers need to do more than present a job advertisement to attract quality candidates.
For a company to position itself as a desirable employer, it needs to present its brand values, benefits package, career opportunities, and company culture and environment in ways that resonate with the contractors it seeks to attract.
As some contractors do not get fringe benefits like dental coverage or paid maternity leave, the salary is usually a bit higher than perm staff to attract quality contract hires
It is often easier for a third-party recruiter to identify these concerns and present these nuances in the EVP to potential contract hires. Clear, consistent communication during the hiring process will help nip potential problems in the bud and ensure contractors are fully invested in the process – leading to better outcomes and a win-win outcome for both employer and employee.
Related: Contracting on the rise in Malaysia as a flexible staffing solution: survey report
The interesting point about having an EVP is, every organisation already has one arising from its culture, leadership, processes and way of working – whether or not it has been formalised.
Many organisations we surveyed stated that they do not differentiate their Employee Value Proposition (EVP) between permanent and contract hires. While the company culture and values should not differ, it’s crucial to communicate unique aspects of the EVP that apply specifically to a contractor.
6 essential components for a successful Employee Value Proposition (EVP)
1) Onboarding Process and Candidate Experience
First impressions count a lot, and it starts from the candidate’s very first interaction. It is how candidates feel about any company after undergoing the hiring process and affects how they perceive a company’s job culture, work ethics, and eventually, whether or not they accept the job offer. Candidates who have a terrible experience during the interview process may share their experiences online, affecting employer branding.
Onboarding is crucial. A smooth and effective transition can be critical in instilling a positive impression. This engages and motivates the new contract hire right from the beginning, and the enthusiasm this generates will likely carry on to the rest of the contractor’s career.
Related: How to get the most out of contract employees
2) Employer Branding
The biggest obstacle contracting candidates face when applying for a job is not knowing the work culture at an organisation. This is where employer branding can help to gain the trust of potential applicants from the start.
Ensuring the workplace is an environment that encourages personal and professional growth is also paramount to retaining current talent and attracting new ones. According to LinkedIn’s Talent Solutions report, a good employer brand can reduce turnover rates by 28% and cut costs per hire by half.
Companies will also find themselves with 50% more qualified applicants, cutting down the time needed for recruiting. To create a strong employer brand, companies should focus on their mission statement, values, and culture. By identifying companies’ needs, employers can gain better insight into the talent they seek and then target them accordingly.
3) Competitive Salary
A key driver of job attraction for contractors is the salary. In a competitive market, contract professionals can be paid higher than permanent staff. While factors like employer branding are essential, the remuneration must match the role and skills required. A reasonable salary shows candidates that the organisation supports, recognises and values their contribution.
“As some contractors do not get fringe benefits like dental coverage or paid maternity leave, the salary is usually a bit higher than perm staff to attract quality contract hires,” explains Marlinda Zulkifli, Head of Page Contracting Malaysia in the Talent On-demand: The Rise of Contracting in Malaysia report by Page Contracting Malaysia.
4) Team Culture and Work Environment
The next step is to communicate that culture to the outside world. Building a great looking website that showcases the company’s image, what it’s like to work there, and what potential employees can expect will be highly beneficial. This goes beyond the About Us section. The journey of communicating one’s employer brand typically starts from the home page.
Social media has also become an increasingly popular way for candidates to determine whether their potential employers have values aligned to their own. Professional social networks are an effective tool for spreading awareness about the employer brand. It is, however, essential to understanding which platforms are better suited for a company’s audience and industry.
Sharing pictures of a company’s workspaces and group gatherings on social media gives a voice to their employees through videos, posts, and testimonials. This can be helpful for job seekers deciding if they believe they are the right fit for that business.
Related: The benefits of hiring contract workers
5) Benefits Package
Depending on the tenure of the contract role, some organisations offer temporary workers benefits like annual leave, medical leave, transport allowance, overtime pay and completion bonus. In most cases, the longer the contract period, the more benefits the position would come with to keep the contract hire engaged, supported and valued.
6) Opportunity to Learn and Develop New Skills
Keeping contract workers well-engaged will establish a rewarding relationship between a company and contractors, especially if organisations plan to engage the same contingent workforce in the future.
According to Margaret Graziano, an organisational culture architect, 80% of the working population does not see money as a lever that leads to engagement or incentivisation. Instead, 40% of these people want other kinds of workplace recompense such as educational opportunities, rewarding and challenging projects, or a feeling of advancement.
Career growth opportunities can come in the form of mentorship or training and are an important factor in a talent attraction program. It is not just employees who benefit from these initiatives, too. Organisations can enjoy higher levels of engagement, retention and knowledge-sharing, which boosts employer branding to attract top contract talent.
Learn more about the landscape of contracting in Malaysia by downloading this report, with results collated as a result of a survey conducted with leaders and executives in 205 companies across Malaysia.
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