Employee Value Proposition (EVP) is a deliberate action that an Employer creates through distinct benefits and programs for their Employees or a set of offerings and values that positively influence and attract talents. It is part of employee branding for companies to attract skills and employees. It is also a retention strategy for those who are already working with the organisation.
The more enriching an EVP is the better an organisation can recruit and retain the best talents in their industry and their operating environment. Furthermore, the rate of attrition will be minimal, as Employees have little or no reason to consider competitors when an organization meets or exceeds their expectations.
Importance of Employee Value Proposition
A company’s Employee Value Proposition is a commitment made by the employer in exchange for trust, effort, and loyalty to the employer brand.
- It assists with building the internal and external perception of a brand and is critical to the achievement of goals and objectives.
- It helps to be outstanding among competitors and appeal to candidates’ values, beliefs, needs, and wants.
- A great EVP can help you grow a business since most businesses cannot survive and thrive without a talented workforce to run the show.
- It is important to attract and retain talents that will help boost your business and ultimately your company’s bottom line.
Employee Value Proposition Strategies
In the development of an exceptional Employee Value Proposition, a company must get it right and be willing to improve on the policies, systems and programs, and strategic intents that are part of the EVP. This is because although an EVP may have served a great purpose at a time, it may become outdated for the kind of industry or talents the organisation is trying to attract and retain. Some of the following EVP strategies can be offered to employees as incentives to drive productivity and prospective talents in today’s competitive business world to be an outstanding brand:
- Great Compensation: One of the fundamentals of an attractive EVP is a good compensation strategy, the compensation should be fair, and performance-driven, this is in addition to salaries. Compensation may not be important to all employees, for instance, millennials seek benefits that help make their lives comfortable while baby boomers may be interested in benefits that help them build a legacy.
- Offer flexible work schedule: This type of setup gives employees the autonomy and freedom they want and need in their day-to-day lives, while also being able to do work that feels purposeful. This is part of the Employee Value Proposition at companies that are familiar with remote work and have the resources to thrive with it. Some can also offer a hybrid work model to reduce commute time that can lead to burnout.
- Workable Mission and Vision: A company value system that goes beyond profit-making cannot be overemphasized. Candidates today are driven toward employers who have a clearly defined vision and values that are practicable, felt, and seen. These values must impact the current team members and the operating environment of such companies.
- Improve genuine connections amongst employees: Incorporating programs like Mentoring Programs, hangouts, Team Building or Team Bonding activities, A Day with the CEO, Team Retreat, End of Year events, and Appreciation Day All of these can improve connection within the workplace and help with bonding, it makes work fun and drives engagement.
- Offer Training and seminars to improve employees' knowledge: Learning and Development help to sharpen skills and improve productivity in the organisation. A free paid seminar, workshop training, etc. makes employees feel valued in an organization and arms them with skills to improve on their jobs and even be able to take on additional responsibilities.
- Career Stability: This is an essential part of an EVP and it includes succession planning, career development, training, coaching, etc. upskilling talents based on benchmarked skills and competencies to function and advance in their careers by addressing skills gaps through performance assessment. Employees will want to know that they will not lose their jobs.
- Work-Life Balance: Research shows that more than two-thirds of workers consider work-life balance as the most important part of their job. It is about helping employees create a healthy environment, where both their personal life and work life can co-exist and not constantly compete for their attention. They can be offered vacation time and paid parental leave. Not every work-life value proposition will meet every employee’s preference, it is therefore important to customize it to suit different employees.
- Tools and Technologies: Offering tools and technologies to facilitate work is not uncommon, especially for remote employees. This increase productivity and efficiency, however, it is important that these tech tools are not contributing to burnout and should aid employees’ creativity.
Defining your Employee Value Proposition
An effective EVP strategy should boost the reputation of the company and make the employees at the heart of the business. The following are steps to define your employee value proposition:
- Understand what your company offers: Take note of the benefits, perks, compensation, work environment, and other opportunities your business offers employees. Over time, your values may change so it’s important to always review your company’s EVP to ensure it continues to accurately represent your business as your company grows.
- Make a list of qualities your ideal employees should possess: Knowing the qualities you want in candidates allows the employee value proposition to be focused around them. For example, if you seek motivated employees, offer training and career development opportunities. This attracts the most motivated candidates who want to grow and advance in their careers. Some of the qualities you could incorporate are self-discipline, passion, motivation, reliability, self-grit, etc.
- Conduct frequent surveys and feedback: Employees will feel more encouraged to stay at companies with EVPs that revolve around their needs and are focused on listening and improving employee experience. Create a list of questions to understand employee's wants and needs and the feedback must be used to innovate the process.
- Communicate your EVP: After EVP has been defined, it should be shared with potential hires during the recruitment process. It can be included in Job Descriptions, on the company’s website, during the interview process, in job Offer Letters, on social media accounts, and even during onboarding. The goal of an EVP is to support the attraction and retention of talents that are the right fit for the business.
- Improve the Employee Experience – Having an effective EVP should aim at improving the Employee experience at all touchpoints from entry to exit and even afterward. It is about persistent engagement and attraction. The culture must be great, inclusive, and people-focused.
Commence your Employee Value Proposition Journey
Wondering how to create an exceptional EVP for your current employees and potential talents, the Great Place To Work certification will provide you with the support you need and navigation towards the right direction