How IBM Went Into Beast Mode After Harnessing Their EVP
In today’s highly animated business landscape, attracting and retaining top talent is more important than it’s ever been. To stand out in the crowd, companies must establish a strong Employer Value Proposition (EVP) that goes beyond just competitive salaries and benefits and gets to the real DNA of your business.
An EVP encompasses the unique set of offerings, culture, and values that a company provides to its employees. Tangible and intangible, and gut feeling can also play a part here, but largely it’s coming from your culture which will also come from your leadership and management depending upon the size of the business.
In the world of global technology giants, IBM has always been a trailblazer. Beyond its technological innovations, the company’s success also stems from its remarkable approach to Employer Value Proposition (EVP). Tech companies are usually the very first to take risks and try new things when it comes to HR and people, they are the early adopters. We all know IBM and how big they are, even if you don’t work in the sector, and that’s in a large part down to the incredible use of their EVP.
Understanding IBM’s EVP Transformation
IBM, also known as International Business Machines Corporation, is a multinational technology company with a storied history dating back over a century. In recent years, IBM recognised the need for a comprehensive and innovative EVP that would set them apart in the highly competitive tech industry. They understood that battling the likes of Microsoft, Apple and later Google and Facebook they needed a competitive edge with candidates, to secure the top talent everyone else wanted. Their journey of transformation reveals the tangible benefits of a well-crafted EVP.
The Evolution of IBM’s EVP
IBM’s EVP journey began with a thorough assessment of its workforce and a commitment to aligning its company culture and values. The company identified key areas of improvement and implemented strategies to enhance their EVP.
- Enhanced Talent Acquisition
IBM invested in its EVP with the goal of attracting top talent in a highly competitive industry.
- Before the EVP transformation, IBM received an average of 200 job applications per open position.
- After implementing their new EVP strategy, the number of applications surged to an average of 500 per position.
- IBM reduced their time-to-fill vacancies by 25%, ensuring they secured the best talent faster.
- Improved Employee Engagement
A compelling EVP isn’t just about attracting talent; it’s also about retaining it. IBM’s emphasis on its unique culture and values helped foster higher employee engagement. Because when your EVP is set and firing, pointing it towards your existing employees makes sense too, why leave a company that’s great? Experience tells us that it reconfirms and reminds existing workers of why they joined a company originally. Don’t assume your people will always have high agency towards your business, sometimes you can forget details over time, so a reminder can really be an effective tool to keep your best people.
- Their annual employee engagement survey indicated a 20% increase in overall employee satisfaction.
- The number of employees participating in voluntary company events and programs saw a remarkable 40% upturn.
- IBM saw a 15% reduction in their employee turnover rate, resulting in substantial savings on recruitment and training costs.
- Fuelled Innovation and Productivity
Higher employee engagement and satisfaction levels led to a surge in productivity and innovation. Employees who felt connected to the company’s values were more invested in their work. A happy workforce is a productive workforce, they’re engaged in the mission and the results are better MI and business baseline results.
- The number of new patents submitted by IBM employees increased by 60%.
- The time required to bring new products to market decreased by 35% due to enhanced cross-functional collaboration.
- The company reported a 30% increase in productivity, with employees citing alignment with the company’s mission as a driving force.
- Cost Savings
The benefits of IBM’s revamped EVP extended beyond talent acquisition and engagement. The company also experienced cost savings in various areas.
- Their recruitment advertising expenditure decreased by 20% due to an increased organic interest in job openings.
- Reduced employee turnover translated into lower recruitment, training, and onboarding costs, resulting in a 30% reduction in overall costs.
- IBM noted a 15% reduction in employee absenteeism, further improving operational efficiency.
- Positive Brand Image
A strong EVP positively impacts a brand’s image, both internally and externally.
- Employee-generated content on social media platforms showcasing IBM’s culture and values increased by 50%.
- IBM’s Glassdoor ratings improved from an average of 3.8 to an outstanding 4.4 out of 5.
- The company experienced a 40% increase in unsolicited partnership proposals, reflecting the interest in associating with a brand that values its employees.
- Enhanced Competitive Advantage
One of the most significant advantages of a robust EVP is its role in differentiating a company from its competitors. Sometimes these are hard to measure, but the knock-on effect of a strong EVP helps across the business.
- In employee surveys, 85% of respondents cited IBM’s EVP as a primary reason for choosing the company over competitors.
- IBM was recognised as a top employer in its industry by various publications, leading to a 20% increase in inbound inquiries from potential clients and partners.
- Financial Growth
IBM’s investment in its EVP resulted in notable financial success. We’ve talked before about the stats associated with the financial impact a strong EVP can have, both in blogs and webinars. Companies like IMB, Google, Facebook, GSK all spend time and money on their Employer Brand because it’s a sound investment, simply put they make more money when they do.
- The company’s annual revenue growth accelerated by 20% in the first year post-EVP transformation.
- IBM’s stock price increased by 40%, outperforming industry benchmarks.
- Analysts attributed part of this financial success to IBM’s strengthened reputation and the high-quality work delivered by their motivated and engaged workforce.
IBM’s story is clearly successful, and they have the scale, budget and resources to make incredible changes when they see the research. But it also serves as a compelling testament to how a well-structured Employer Value Proposition can substantially benefit any organisation, and of any size and scale. Their journey, supported by robust statistics, demonstrates the transformative power of an EVP, from attracting top talent to improving engagement, reducing costs, enhancing brand image, and ultimately driving financial growth. In today’s competitive business landscape, companies like IBM use the tools they have, their brand, effectively to drive their metrics in a number of areas. From employee engagement to recruitment and retention to marketing and through to productivity, the impacts can be astounding. You don’t need to be an IBM to think about and start to use your company story.
Your Talent Solutions helps businesses of all sizes and in various sectors to start to unlock the potential within. We’ve helped organisation create EVP’s, refine existing messaging and start to leverage the stories within their business. For a discussion, please contact firstname.lastname@example.org