Why your company needs a compelling Employee Value Proposition
The new normal is afflicted by a worldwide talent shortage. As a result of the COVID-19 pandemic, a record number of employees have voluntarily resigned from their jobs, a phenomenon known as “The Great Resignation” has emerged. Companies are competing more than ever to attract top talent and a compelling and authentic Employee Value Proposition (EVP) is a great way to present company values, culture and missions. It’s a way to distinguish your organisation from the competition, encourage new employees to join your team and clearly communicate your promises to them. The best employee value propositions also help build inclusive work environments to attract and foster diverse talent. It’s all about helping build upon your employee relationships, from the moment they engage with you and making the answer to their burning “Why should I work for you?” question abundantly clear.
What is Employee Value Proposition (EVP)?
An employee value proposition (EVP) details what an employer promises to its employees. It combines inclusive company culture, professional opportunities, benefits, compensation, and rewards an employer provides to its employees in exchange for their talents, commitment, and experience. The Employee Value Proposition (EVP) is an employee-centred method to define the company’s essence, what it offers distinctively, and what it stands for.
A strong EVP will help retain top performers and recruit the best external talent when it is integrated into the heart and soul of a business. It acts as a beacon for you and your brand to become an employer of choice in an extremely busy marketplace.
Benefits of an Employee Value Proposition (EVP)
An effective Employee Value Proposition attracts the greatest personnel and motivates top achievers to stay with the company. If you think of your employees as you would your clients or customers, your EVP is a key element of the employee experience and journey. Staff turnover has a significant impact on employee morale, it can upset customer relationships, and make it more difficult to fill roles with the right type of talent. Your EVP helps attract people who are more closely aligned with the company’s values and culture, increasing the likelihood of commitment and ultimately, retention.
Successful businesses understand how important this is and strive to ensure their EVP is experienced by the team across the entire business and its touchpoints. And, not only does it benefit employees but it contributes to the company’s overall success by ensuring customers and clients are happy. Developing workplace pride cultivates genuine brand ambassadors who will actively seek out ways to add value to your brand, customers and stakeholders and be part of your business as if it’s their own.
How to Get Started in Developing an EVP?
Developing an authentic and compelling employee Value Proposition starts with listening to your present and potential employees and taking on board their insight and feedback. The cornerstone for developing an EVP that attracts potential candidates and keeps existing employees happy and engaged is a thorough understanding of what employees value most at work, their motivations and their pain points.
Five key components of an EVP:
- The Perks: salary, stock options, benefits, soft perks, or time off
- Work: job-interest alignment and work-life balance
- Company: the company’s mission statement, product or service, and social responsibility
- Growth: career growth, education, and personal development
- People & Culture: the employees, from executives down, and the company culture
Employee Value Proposition should be the outcome of careful planning that involves your employees actively through focus groups, surveys, interviews, and human resource analytics. Resulting in a realistic and comprehensive EVP that is aligned with the company’s brand and culture.
Questions to ask employees to help develop your EVP:
- What first attracted you to this company?
- Have your expectations lived up to the reality of working here?
- What tangible benefits do we offer that you most value?
- What intangible benefits do we propose that you most value?
- What do you find fulfilling (and challenging) about working here?
- What do you appreciate most (and least) about working here?
Three categories of motivators must be captured in a compelling EVP: Contractual, experiential, and emotional. Traditional pay and benefit structures contribute to the contractual elements. The experiential elements relate to a person’s career path and work environment. More autonomy and flexibility are becoming increasingly important in the global work market. Employers must evolve and establish systems that promote employee development and overall workplace happiness. The emotional elements, on the other hand, capture the intrinsic human motivators like love and purpose. To truly generate loyalty and engagement, businesses must instill a sense of purpose and wholeheartedness. And, they must ‘walk the walk’, not just ‘talk the talk.
Determining the fundamentals of your EVP must be rooted in authenticity. It should come from a clear corporate purpose and set of values that effectively define the role of employees in achieving goals – professionally and from a business perspective. Employers who deliver the experience they promise will recruit the best people, benefit from employee engagement and of course, loyalty.
Prospective employees are becoming increasingly discerning in their job searches, and an EVP can help recruiters successfully communicate what the company is all about simply and effectively. Recruitment Studio offers a range of services keeping your business’s strategic goals in mind, and you reach these goals through your biggest asset – your people. Get in touch if you want to discuss how we can help you craft your EVP or other HR practices or policies.
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