What makes an Organization as “Employer of Choice”?

It’s a normal practice that organizations are in look out for good employees. Organizations look for qualifications, skills, experience, expertise, attitude and fitment of prospective employee to the job position and culture of the organization. Likewise employees are also on look out for great organizations. What does employees look in organizations? Or simply, what makes an Organization as “Employer of Choice”?

Organizations adopt several practices to help attract and retain employees. By adopting practices on higher compensation than market standards, more & unique benefits, perks will make an Organization as Employer of Choice? No, it’s not true. It is lot more than compensation, benefits and perks. It is an employer who offers a work culture and work environment that attract and retain employees. An employer of choice favors the well-being of employees. 

Not every employer of choice fits every employee.  Your employer of choice may not be the same as another employee’s employer of choice. 

Below are some of the characteristics which make an organization as “Employer of Choice”. These may differ from organization to organization and can be varied in different industries. The below list is only a few factors, but it also incomplete.

• Compensation: Compensation may include a salary and benefits that are equal to or above market standards. A comprehensive employee benefits package may include but not limited to paid time off, paid holidays, paid vacation, health insurance, accident insurance, life insurance, medical check-up(health, dental, eye), allowances for gym, periodicals and many more. Compensation and benefits should be benchmarked at regular intervals (like half-yearly or annually).
• Incentives: Incentives may include bonuses, profit sharing schemes, restricted stock units and restricted stock options.
• Opportunity to career advancement: Professional development opportunities should be given via internal recruitment program or internal job postings. Allowing employees to demonstrate the new skills through learning and promotion shows dedication.
• Training and Development: Employee boredom when there is no learning. Learning can be for acquiring new skills or sharpening their existing skills. For new hires, learning can be about making them understand about organization’s policies, culture, vision, mission, values and etc. This can be done through a new hire orientation or new hire training. For employees, learning can be for acquiring new skills or sharpening their existing skills. This can be done through arranging training sessions or sending employees/managers to seminars or conferences.
• Rewards & Recognition: Rewards and recognition go hand-in-hand.  Employees want to be rewarded in recognition for the contribution of the work done. These rewards should be equal to or above the market level. These rewards and recognition should also be bench-marked at regular intervals for maintaining a competitive edge.
• Fairness: Employees wanted to be treated fairly. Key factors that demand fairness are workload, promotions, salary, incentive, rewards and recognition.
• Freedom and respect: Employees should be given freedom to express ideas. Not all ideas will be benefitted by the organizations. But employees feel respected when they are allowed to express their ideas.
• Access to Information and employee communication: Employees need to know what’s really going on like any organization restructuring, merger, de-merger or acquisition, financial progress like year on year company revenues, expenditure and etc.  Communication plays a vital role in any organization. Organizations often practice to maintain a good communication through various programs like skip-levels, town halls, focus groups and etc.
• Commitment: Employers of choice are committed to employees. This is reflected in everything right from policies to business strategies. Employees are more committed when they agree with the organization’s goals, values and ethics.
• Involvement: Involvement is identification with one’s job. Employees who are involved with their jobs are proud of what they do and feel responsible for their quality of work.
• Positive relationships with coworkers: Successful organizations motivate people to accept each other and to work as a team(s) to achieve common goal(s). Organizations encourage building personal relationships. Employees who have coworkers they respect are less likely to quit due to single negative event. This is not just limited with coworkers in the same department or coworkers in other department but also extends to bosses from the same or other department (wherever matrix reporting is applicable).
• Work/life balance programs: Most employees want a reasonable balance between work and personal life. Increasingly, organizations are attempting to become more sensitive to the personal or family needs of the employees. Some of the practices may include flexible work hours, work from home, paid vacation and or additional paid leave.
• Job security: Employees are attracted to stay with organizations where they feel that they will have a job if they do a good work. Employees with job security are more willing to take risks for the organization and will be able more focused on their core functions without any worry.