6 Steps To Become an Employer of Choice in 2024 (2024)

Ask any CEO or HR professional why it’s important to position a company as the ‘employer of choice’, and they’ll tell you that acquiring and retaining top-level talent provides an undeniable competitive edge.

But just how much of an edge?

Analysis of more than 600,000 researchers, entertainers, politicians, and athletes found that high performers are 400% more productive than average ones. Studies of businesses not only confirmed similar results but also revealed that in highly complex occupations (such as the work of managers and software developers), high performers are an astounding 800% more productive.

Apple’s founder, Steve Jobs, emphasized the importance of finding top talent with this advice: “Go after the cream of the cream. A small team of A+ players can run circles around a giant team of B and C players.”

Contents
What is an employer of choice?
Characteristics of an employer of choice
Key stats at a glance: Priorities for candidates and employees6 steps to become an employer of choice for today’s employee

What is an employer of choice?

The term ‘employer of choice’ describes an organization that is highly sought after by job seekers due to its positive work environment, culture, values and benefits.

HR professionals are key in helping their companies achieve ideal employer status to attract and keep top talent and help the business reach its company goals..

How? By helping to shape company policies that align with candidates’ top priorities, developing effective hiring strategies, and deploying impactful employer branding campaigns.

Characteristics of an employer of choice

Ideal employers work hard to attract and retain top talent by embracing these factors:

1. Attractive compensation and benefits: With the rising cost of living, it’s no surprise that compensation remains the number one priority for candidates worldwide, with 20,000 respondents to LinkedIn’s recent Future of Recruiting survey indicating this as the most important factor when considering a new job. Ideal employers frequently benchmark their compensation plans and adopt progressive benefits strategies to remain competitive.
2. Work-life balance: The pandemic accelerated trends in remote working and caused employees to take a step back to prioritize balancing corporate demands with a rewarding life. Good employers have responded by adopting flexible working arrangements, generous vacation plans, and various wellness perks.
3. Skills development: Candidates gravitate to organizations that are invested in their development. Top employers deliberately offer frequent opportunities for employees to gain new skills and enhance their growth while providing a supportive management environment with guidance and mentorship.
4. Career advancement: Capped career growth remains a key factor for staff churn. Ideal employers are proactive in mapping out career advancement plans that move employees up through the organization, providing transparent and measurable criteria for promotion and promoting internal talent.
5. Empowerment: Empowerment is vital to motivating and inspiring employees. Top employers avoid micromanagement. Instead, they empower staff by providing clarity on the organization’s strategic goals, mission, and vision and then allow staff degrees of autonomy to work efficiently towards those objectives. Good employers also identify and reward committed employees by assigning them important projects to demonstrate trust and motivate them to improve their skills.
6. Social and environmental impact: Ideal employers embrace their role as responsible corporate citizens and embed social impact and sustainability practices into their daily practices. They inspire and engage employees by taking a proactive stance on addressing climate change that goes far beyond ticking checkboxes. They also commit to social projects that make a meaningful difference in supporting and improving communities.
7. Inclusivity: Pursuing diversity and inclusion is not simply a compliance exercise – but rather an essential factor in building a workplace where all employees have equal opportunities and feel valued. Top employers implement diversity hiring policies that enable them to benefit from harnessing divergent perspectives that drive innovation, productivity, and employee engagement.
8. Mental health: Employers of choice recognize that positive mental health is essential to employee wellness and productivity. These employers offer benefits such as access to counseling, financial and stress management training, wellbeing apps, mental health days off, free yoga classes, and meditation spaces.

Key stats at a glance: Priorities for candidates and employees

It’s estimated that millennials, a.k.a. Gen Y, will account for 75% of the global workforce by 2025, and with Baby Boomers reaching retirement age fast, it’s expected that Gen Z will constitute 30% of the US workforce by 2030.

These two generations are characterized by their distinctive value sets and their ambition to reshape the workplace.

Deloitte’s extensive Global Gen Z and Millennial Survey, featuring over 22,000 respondents from 44 countries, spotlights the key concerns of these changemakers.

Social issues

• These generations have high expectations for companies around social impact
• 44% of Gen Zs and 37% of millennials have turned down assignments due to ethical concerns, and 39% and 34%, respectively, have declined employers that do not align with their values.

Climate change concerns

• Climate change remains one of the top three concerns for both generations, with over half of Gen Zs (55%) and millennials (54%) saying they research a brand’s environmental impact and policies before accepting a job offer
• One in six Gen Zs (17%) and millennials (16%) also report having switched jobs or sectors due to climate concerns. A further 25% of Gen Zs and 23% of millennials intend to do so in the future.

Work-life balance

• Gen Z and millennials crave work-life balance, prioritizing flexible schedules or reduced hours despite their concerns about career progression
• Collectively, roughly 75% of respondents reported wanting fewer hours, favoring options like part-time work, job-sharing, and condensed four-day work weeks.

A Gen Z at Work study conducted by EmploymentHero confirmed the importance of work-life balance, with 40% of respondents naming this as the most critical workplace value.

Other factors that ranked top on the list for Gen Z workers included:

• 24 % of respondents named employers rewarding loyalty as their highest value
• 21% valued inclusion most-highly
• Collectively, 56% of respondents noted the value and protection of the rights and wellbeing of workers as being critical.

6 steps to become an employer of choice for today’s employee

If your company hasn’t earned its ‘Employer of Choice’ bragging rights yet, then it’s your role as an HR professional to work with internal stakeholders to shape progressive corporate policies and launch initiatives that attract top candidates and employees.

Here are some thought starters and examples of employer-of-choice strategies to get you going:

1. Upskill your staff and promote career development

No one wants to stagnate in a job with limited growth opportunities. That’s why career advancement and skills development should form a key part of your employer of choice strategies.

Example: How P&G develops its team and breeds leaders

P&G (Procter & Gamble) is a trailblazer when it comes to upskilling and career development. Foundered in 1837 and headquartered in the US, this multinational proudly claims to create more future senior corporate leaders than any other entity worldwide.

At P&G, an average new hire holds five different roles within their first 10 years. At the same time, 99% of its senior leaders are promoted from within the company.

P&G provides potential candidates with detailed information on how they support their employees’ development on their dedicated careers portal, which includes:

• Individual career development and highly personalized career path plans with access to P&G’s Talent Councils for guidance on career and role development
• The option to be assigned a mentor
• Leadership training and development programs that follow a unique 70/20/10 approach. 70% of skills development is experienced through on-the-job training, 20% through colleagues, mentors, and peers, and 10% through structured courses and learning materials.

HR tips

• Establish opportunities for ongoing formal and informal on-the-job-training
• Consider psychometric testing to scientifically assess workers’ developmental areas
• Equip managers with the skills and frameworks they need to conduct effective one-on-one coaching
• Build a culture of meritocracy by being transparent about criteria for job advancement and ensure internal promotions are based on merit
• Map out clear career advancement pathways for employees
• Establish a system to identify and nurture future leaders.

2. Champion diversity and inclusion

Embracing diversity is crucial in sparking creativity and supporting social justice – it’s also good for your bottom line. Research shows that companies with a diverse workforce are 35% more likely to enjoy greater financial returns than non-diverse counterparts. Diversity and inclusion begin with hiring, so this is an area HR has a direct influence on.

Example: How Accenture is building diversity and inclusion

The global management consultancy firm Accenture has been ranked number #1 on numerous occasions on Refinitiv’s Diversity and Inclusion Index in recognition of its commitment to building a culture of belonging and equity.

• Nearly 50% of Accenture’s 700,000+ employees are female, and its Board of Directors is gender-balanced and led by a female Chair
• It supports the LGBTQ+ community and has 120,000 Pride allies located in the 120 countries in which it operates
• It’s focused on accessibility, having established 32 global centers where disabled talent can access tools, technology, and support to be successful in their roles
• It’s also working towards goals to increase ethnic and racial diversity in hiring to build workforces that represent the communities they work in by 2025, including South Africa, the UK, and the US.

Accenture amplifies its employer branding by publishing this information on its website and social media platforms, in job ads, on recruitment platforms, and via press releases.

HR tips

• Establish non-negotiable diversity and inclusion policies at your company
• Use anonymous hiring tactics to counteract bias
• Celebrate diverse holidays and cultural events together as a team
• Establish peer-to-peer buddy-up systems that pair employees from different backgrounds to foster closer connections and greater understanding
• Encourage a culture where managers seek out diverse perspectives to spark creativity and innovation
• Seek feedback and recommendations for change from diverse employees.

3. Embrace mental and physical wellbeing

Why is it so important your organization creates a culture that supports employees’ mental health? According to a study from the Mental Health in the Workplace Summit, more workdays are lost to mental health-related absenteeism than any other injury or illness.

Example: How Bounteous is supporting its employees’ mental health

Earlier this year, Bounteous, a digital experience consultancy that employs over 5,000 staff worldwide, earned recognition in the Built In 2024 Best Places To Work Awards.

In addition to offering health, dental, vision, life, and pet insurance, the company has adopted numerous programs to support the mental wellbeing of its team:

• b: mindful is an employee resource group to destigmatize mental health in the workplace
• A ‘take-what-you-need’ parental time-off (PTO) policy
• Addressing Zoom fatigue and burnout with a ‘Quiet Hours’ pilot program – a four-hour block of time for uninterrupted focus
• Plus, a free employee assistance program that provides mental health counseling, help with financial planning, and other services.

The company boosts its employer branding by publishing this info on its digital platforms, job ads, recruitment platforms, and press releases.

HR tips

• Focus on building a positive and supportive company culture
• Asses your health and wellness benefits to ensure they’re holistic
• Address workplace stress
• Provide employees with access to free mental health counseling services
• Equip managers with mental health training
• Offer employee training to destigmatize mental health and open channels of communication on the topic.

4. Provide real work-life balance

Yes, careers are important, but it shouldn’t consume employees’ lives. That’s why ideal employers that actively support work-life balance and wellbeing outside of office hours are more attractive to candidates.

Example: How Patagonia inspires loyalty through work-life balance

The outdoor and sports apparel retailer Patagonia is no stranger to Employer of Choice awards. The company’s work-life balance perks greatly influence culture. Its 1,800 employees are their biggest fans, with 91% of workers reporting Patagonia is a great place to work, compared to 57% of employees in the average US-based company, and the company has an annual turnover rate of just 4% per year compared to the US average of 27%.

Having first established ‘family services’ (including a dedicated space for breastfeeding moms and babysitting services) in 1984, the company is a pioneer in providing workplace flexibility and care services. Today, the business offers:

• Three onsite childcare centers
• Paid parental leave (16 weeks maternity leave, 12 weeks paternity leave)
• Innovative leave opportunities whereby employees can apply to temporarily fill positions of their co-workers who are on leave, providing them with opportunities to build new skills
• Primary caregiver support (paid nannies) when employees who are mothers or fathers of dependent children are required to travel for the business
• The company’s famous ‘Let my people go surfing’ policy provides a high degree of flexibility, enabling its staff to literally go surfing when the waves are up and its staff enjoy a three-day weekend every other week.

HR tips

• Establish policies that embrace flexibility, such as part-time positions, flexible working hours, remote and/or hybrid positions
• Improve your paid leave benefits to offer generous parental, incentive, and vacation leave
• Counteract burnout by creating boundaries that allow your employees to disconnect outside of hours
• Incentivize employees with a three-day weekends
• Introduce family-care services.

5. Demonstrate what social responsibility means to your organization

The ability to drive change on issues of concern can be decisive in the recruitment and retention efforts of values generation, such as Gen Z and millennials.

Edelman’s Trust in the Workplace special report found that 70% of employees want their job to deliver social impact, viewing it as a strong expectation or dealbreaker when deciding on a position.

Example: Here’s how Ben & Jerry’s makes a social impact

For ice cream giant Ben & Jerry’s, protecting human rights and dignity, social and economic justice for historically marginalized communities, and restoring the Earth’s natural systems are core to its values.

The company created a Values page on its website to showcase these ideals and demonstrate how they translate their values into action and impact. For example, Ben & Jerry’s highlights:

• The movements and organizations they back
• The ethos that steers how they conduct business
• Who benefits from the support of its foundation.

HR tips

• Establish partnerships with social impact organizations or charities that align with your company’s brand, values, and products
• Seek out initiatives that benefit the communities involved in your value chain
• Sponsor or support employee-led social initiatives
• Encourage and facilitate employee involvement in volunteer programs
• Monitor and report on your company’s social activities and impact.

6. Show commitment to climate change

Your company’s response to climate concerns plays a crucial role in attracting and retaining Gen Z and millennial employees. While your organization may not be able to match the environmental, social, and governance (ESG) initiatives of Fortune 500 companies, you can implement policies that demonstrate environmental leadership.

Example: How Disney is making real climate change impact

Disney has become a leader in environmental responsibility by making it its mission to take meaningful, measurable action in support of a healthier planet.

This includes zero net direct greenhouse gas emission policies within all its facilities, a zero-waste policy, water conservation, reduction in its product manufacturing and distribution footprint, and greening its production across hundreds of film and TV projects.

Disney has created a dedicated website to showcase the environmental initiatives it’s implemented to achieve a net positive environmental impact.

HR tips

• Educate employees on issues concerning climate change and sustainability
• Opt for local suppliers to reduce your carbon footprint
• Incentivize workers to use ride-sharing or public transport to commute
• Establish meat-free Mondays in your canteen
• Minimize waste by banning takeaway coffee cups and single-use plastics
• Shift from paper to digital
• Encourage online meetings and remote or hybrid working to cut down on unnecessary travel
• Monitor and report on your company’s environmental activities and progress.

To sum up

When it comes to positioning your company as an employer of choice, it’s important to evaluate your company culture and its policies, together with your total compensation and incentives packages. This will ensure that your total offering aligns with the priorities of top-level talent.

While HR professionals may not have the authority to enact progressive policies that appeal to today’s candidates, they can champion initiatives and help company leaders prioritize key issues that matter to candidates.

And finally, it’s critical to build your employer brand to attract A-grade talent by communicating how your company lives out its values and culture in ways that enrich the lives of its employees.

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