7 Proven Steps to Build an Employer of Choice Culture

An employer of choice, sometimes known as a destination employer, is a company that is highly sought after by job seekers. These companies offer many perks, such as excellent working conditions and competitive compensation.  

When it comes to attracting the best talent, building a strong employer brand is crucial. Creating a positive work environment and investing in an employee's growth helps build a strong company culture. This, in turn, can lead to increased productivity, innovation, and overall business success.

One way organisations are improving their employee experience is by using integrated HR software platforms like Access PeopleXD Evo. These tools help streamline processes, support wellbeing initiatives, and provide insights that drive better engagement.

There are many advantages of being an employer of choice for your organisation. In large businesses, even a small improvement in retention or engagement can translate into significant cost savings and productivity gains across hundreds or thousands of employees. These include:  

1. Attracting top talent

A strong employer brand attracts top talent, giving you access to a pool of highly skilled and motivated individuals. This can be beneficial in competitive job markets, particularly sectors like manufacturing. Consider the following stats:

• 75% of manufacturers identify skills shortages as their biggest barrier to growth, with 91% agreeing their business is taking on more responsibility to train its workforce due to this scarcity (Barclays/The Manufacturer 2024 survey).
• 77% of manufacturing companies report staff shortages in low-skill operational roles, with 45% deeming the situation chronic.

For a detailed look at the problems facing the manufacturing sector and what large manufacturing businesses can do to combat them, check out our blog on the 5 HR challenges in manufacturing.
 
Ready to attract the best talent? Our free Employer Branding Strategy template will guide you through building a compelling strategy that sets you apart.

2. Increased employee retention 

When employees feel valued and appreciated, they are more likely to stay with your company. This reduces turnover costs and improves organisational stability. 

Retention challenges vary by industry, and tailored strategies are essential:

• In manufacturing, high turnover can disrupt production and increase training costs. Learn how to stabilise your workforce with practical strategies in our blog: How to reduce turnover in manufacturing.
• In large retail businesses, turnover is often driven by seasonal demand and limited career progression. Discover how to build loyalty and reduce churn in this sector: Reducing turnover in large retail businesses.

By addressing the root causes of turnover and investing in employee experience, you can build a more stable, committed workforce.

3. Enhanced employee engagement 

Engaged employees are more productive, innovative, and committed to their work. Pure Resourcing Solutions found that highly engaged employees are 21% more profitable and 17% more productive than less engaged ones.

Employee engagement improves when people feel heard, supported and connected to their work. Technology can play a key role in enabling this. Employee engagement software can help organisations track engagement levels, gather feedback, and act on insights in real time. It can also help provide accessible and instant benefits. For example, the Acacium Group implemented employee engagement software and in December, over 300 festive Ecards were sent by Acacium Group employees, an increase of over 300%.

4. Improved company culture 

A positive company culture fosters teamwork, collaboration, and a sense of belonging. Pure Resourcing Solutions found that 67% of C-suite/board members believe culture is more important to performance than strategy or operating model.

5. Boosted employer brand 

A strong employer brand can attract investors, customers, and partners. Market researchers Gitnux found that 70% of employees indicate that they would leave their current employer for a company with a better reputation, even if the pay was similar.

6. Increased productivity 

Engaged and satisfied employees are more productive. This leads to higher output and better business outcomes.

By investing in your employees and creating a positive work environment, you can position your organisation as a destination employer and reap the rewards.

The Higgs employer of choice model is a comprehensive framework that helps companies understand what makes them attractive to top employees. It shows how companies can create a workplace where people feel valued and motivated. The model divides companies into four types based on how they treat their workers.

These include: 

There is no one-size-fits-all approach to becoming an employer of choice. However, there are several key steps you can take to get started. Let's take a closer look at each of the steps... 

1. Define your EVP

A strong Employee Value Proposition (EVP) is the foundation of your employer brand. It clearly communicates what makes your company a unique and desirable place to work. A well-crafted EVP highlights the unique benefits, opportunities, and culture that your company offers. It should resonate with your target audience and differentiate you from competitors. 

According to Gartner, a well-crafted EVP also helps reduce the compensation premium needed to attract talent and increases reach into passive candidate pools.

2. Foster an intentional and strong company culture 

A positive and supportive company culture is essential for employee engagement, satisfaction, and productivity. It shapes employee behaviour, attitudes, and values. By creating a strong culture, you can create a sense of belonging, purpose, and camaraderie among your employees. 

The Harvard Business Review found that companies with a strong corporate culture see a 4x increase in revenue growth compared to companies with a weak culture.

3. Prioritise employee experience 

A great employee experience encompasses all aspects of an employee's journey with your company. This means from recruitment to retirement. It involves creating a positive work environment, providing opportunities for growth and development, recognising and rewarding employee contributions, and promoting work-life balance.

For enterprise-scale organisations, delivering a consistent employee experience across multiple locations and teams is a major challenge. Technology like Access PeopleXD Evo enables large businesses to personalise experiences at scale.

Great Place to Work found that employees are:

• 2.7x more likely to stay when their work feels meaningful
• 2.2x more likely when they’re proud of their company
• 1.7x more likely when the workplace is fun

“There's more challenge in retaining people. That piece around attraction initially, you need to go a lot further. But actually it is making people feel that they belong and everybody is so individual and unique. That's a real challenge. And I think it's something that's quite exciting about technology because you can start to personalise things... we can work a lot smarter and utilise some of this technology to really engage and make people feel.”

Zoe Wilson in Episode 1: Mastering your employee lifecycle of our Do the Best Work of Your Life series

4. Invest in development and training  

Investing in employee development and training demonstrates your commitment to your employees' growth and success. By offering opportunities for learning and development, you can empower your employees to reach their full potential. This, in turn, can lead to increased job satisfaction, productivity, and innovation.

ThinkImpact research found that 94% of employees say they would stay longer if their employer invested in their development.

5. Offer competitive benefits and compensation 

A comprehensive employee benefits package is essential for attracting and retaining top talent. Competitive compensation and benefits, such as health insurance, retirement plans, and flexible work arrangements, can significantly impact employee satisfaction and loyalty. Consider using employee benefits software to streamline the administration of your benefits program.

An SHRM Workplace Learning and Development Trends report shows that 76% of employees are more likely to stay with a company that offers continuous training and strong benefits

6. Build your employer brand 

Your employer brand is how your company is perceived by potential employees, current employees, and other stakeholders. A strong employer brand can attract top talent, improve employee retention, and enhance your company's reputation. To build a strong employer brand, focus on consistent messaging, positive employee experiences, and effective communication.

“If you have a good tech solution that is end-to-end, that is that unified view, the things that you're doing internally that are working to retain your talent—the engagement platforms, your benefits, your learning—all of those... you can easily use that at the front end of the process to attract. If everyone’s already using your internal engagement, talking about the charity walks, talking about diversity, inclusion, and then posting that out externally to other social media sites, you’ve got an army of people who are creating those bite-sized bits of content that can really help you control your brand.”

Oli Quayle in Episode 2: Become a Talent Magnet of our Do the Best Work of Your Life series

7. Measure performance and make adjustments

Regularly measure your progress toward becoming a destination employer. Use key performance indicators (KPIs) to track metrics. Metrics should include employee satisfaction, turnover rates, and time-to-hire. By analysing data and gathering feedback, you can identify areas for improvement and make necessary adjustments to your HR strategies. 

Large businesses benefit most from robust KPI tracking. With hundreds of employees, even marginal improvements in engagement or time-to-hire can yield measurable ROI.

Becoming an employer of choice takes consistent effort. It involves listening to your people, acting on feedback, and creating a culture where individuals feel valued and supported. The large organisations that succeed are those that invest in their people strategy and align it with long-term business goals.

These seven steps are a strong starting point. They can help you build a workplace that attracts the right talent and encourages them to stay.

Explore how Access PeopleXD Evo can support your journey.

Our HR software gives you the tools to improve employee engagement, streamline processes, and create a culture that people want to be part of.

Book a personalised demo or speak to one of our experts.