In the competitive landscape of Global Capability Centers (GCCs), attracting and retaining top talent is paramount. Jyothi Muthappa, a seasoned HR leader with over two decades of experience and currently the Human Resource Leader at Gloplax, shares her insights on the significance of a compelling Employee Value Proposition (EVP) in differentiating GCCs in the talent market.

What is an Employee Value Proposition?

Jyothi begins by defining an EVP. An Employee Value Proposition is the company’s offering to its employees in return for their skills, time, and experience. It represents the company’s culture, values, and mission, building a psychological contract between employer and employee. To encompass a more holistic approach to total rewards, including people policies, work flexibility, learning and development opportunities, and career growth. It also involves the organization’s purpose around wellness, corporate social responsibility, and DEI (diversity, equity, and inclusion). Essentially, an EVP defines the organization’s essence and differentiates it from competitors.

Components of an Employee Value Proposition

When asked about the key components of an EVP, Jyothi emphasizes that it extends far beyond mere compensation. “Employers need to offer genuine consideration to employees for the time and effort they devote to the company’s cause. So yes, compensation is important, but that’s hygiene and at the base level,” she explains.

“A conducive and healthy working environment that supplies motivation, recognition, and encouragement is essential,” Jyothi continues. “An organizational structure that aligns work with capabilities and interests, a work culture promoting employee well-being, flexible working hours, continuous learning, and career development opportunities are crucial. A purpose-led organization that prioritizes giving back to the community and creates a diverse and inclusive environment is ranked high in considerations by potential employees.”

Breaking Down the EVP

Jyothi categorizes the components of an EVP as follows:

1. Compensation and Benefits
2. Company Culture and Values
3. Learning and Development
4. Career Development
5. Job Security
6. DEI, Employee Wellness, and Corporate Social Responsibility

She also highlights the importance of job scope, stating, “The nature and scope of tasks and responsibilities, and whether they align with employees’ skills, interests, and career aspirations, are critical.”

The Importance of Work Culture

Work culture, Jyothi explains, has become a top priority for today’s workforce. “Culture now ranks above pay and titles. The modern workforce is multi-generational, valuing the workplace environment, building relationships, and the flexibility offered by employers. A work culture that actively promotes work-life balance through a hybrid model, wellness facilities, and diverse responsibilities is highly attractive.”

Learning and Development Opportunities

Learning and development opportunities are a core component of a compelling EVP. Jyothi notes, “These opportunities demonstrate a company’s commitment to investing in its workforce. Organizing training, workshops, and career advancement programs empowers employees to enhance their skills and competencies, driving job satisfaction and retention.”

Career Advancement and Social Responsibility

Jyothi underscores the importance of career advancement in maintaining employee motivation and loyalty. “Providing clear pathways for career progression, including promotions, leadership development programs, and internal mobility, fosters a culture of ambition and achievement. Social responsibility and corporate governance reflect an organization’s ethical standards and commitment to societal and environmental goals, these resonate deeply with today’s workforce.”

Is an EVP Even Necessary?

Addressing the necessity of an EVP, Jyothi emphasizes its critical role in the job market. “Finding talented candidates and retaining talent is equally arduous for companies. A robust EVP attracts talent and retains it. Research indicates that nearly one-third of senior leaders consider talent scarcity as their greatest challenge. A well-crafted EVP fosters a sense of belonging and purpose among employees, enhancing job satisfaction and loyalty.”

For Global Capability Centers

Jyothi sheds light on the specific challenges and opportunities for GCCs. “Global Capability Centers often prefer regions like India due to the availability of talent. However, they face stiff competition from local organizations and other multinational corporations for the same pool of skilled professionals. An EVP enables them to stand out and attract top talent. GCCs should earmark resources to build, test, and promote their EVP, focusing on both tangible rewards and a culture-centric approach.”

She adds, “GCCs hire for a variety of roles, from data analysts to software developers, necessitating the creation of tailored EVPs relevant to the target audience. These centers should adopt a dual approach, providing tangible total rewards and benefits, followed by a culture-centric strategy. For GCCs, this might involve highlighting the organization’s infrastructure, flexible working options, the wealth of intellectual property and technical expertise, and attractive compensation packages.”

In today’s competitive talent market, Global Capability Centers cannot afford a weak Employee Value Proposition. A strong EVP that combines value-based branding with a culture-centric approach is key to attracting and retaining top talent. By investing in a robust EVP, GCCs can position themselves as employers of choice and lay the foundation for long-term success. “GCCs should move beyond generic branding and showcase not only the attractive benefits they offer but also the company culture and values that resonate with today’s workforce, especially Gen Z who prioritize working for a company whose values align with their own,” concludes Jyothi.

This conversation with Jyothi reiterates the critical role of a compelling EVP in attracting and retaining talent, particularly for GCCs. By understanding and implementing the components of a strong EVP, organizations can enhance their appeal and ensure sustained growth and success.