Employee Value Proposition (EVP) is used to describe the attraction of working for an organisation. It is the employment deal that establishes an employer’s expectations of its employees and the benefits it offers in return.
An EVP is what distinguishes an employer from its competition and is used as a key tool for engaging, attracting and retaining top talent. Candidates are often attracted to an organisation based on its branding but can be left disappointed when their experience of that organisation is different to their expectations.
An organisation will know when it’s mastered its EVP because it will have a fantastic reputation and a high level of employee attraction.
1. Why is EVP important?
Studies show that organisations that use their EVP to its advantage (compared to those that do not) are five times more likely to report having engaged employees, and twice as likely to report high financial performance.
EVP is fundamental, especially in a competitive market where organisations invest heavily into resources for sourcing the best talent. After all, EVP helps in attracting, retaining and engaging employees to drive business success. For employees, an EVP ensures they belong to an organisation with strong brand values and a great culture.
2. Why have a strong EVP?
Having a strong EVP is crucial in the “war for talent” particularly as the talent market becomes more global. Demographic statistics indicate that there will be a vast contrast in population growth and many countries will show a decline in population, making it harder to source talent.
To create a strong EVP an organisation should aim to survey and communicate with employees on what really works for them. It can be an influential tool for re-engaging a fragmented workforce by rebuilding trust and increasing motivation.
A good EVP will appeal to a variety of employees from different cultures, age groups and functions. Therefore, it must align with strategic objectives and represent the organisations brand to drive engagement, communicate the right message and help inform HR priorities. This is important for driving change and ensuring employees feel the organisation is responding to the changes they want to see.
Companies with low EVP effectiveness discuss the arrangement based on the programmes provided and how valuable they are. However, the best companies go much further and identify how they can align with employees to meet expectations.
3. How do you create an EVP?
The best way to understand the areas your employees want to be improved is to analyse all available data. This could include information on employee engagement, on-boarding/ exit surveys, or recruitment and retention metrics. These factors are key for an attractive EVP and demonstrating understanding of what is important to a diverse organisation.
An EVP is a powerful management tool when used and communicated in the right way. For organisations that offer competitive rewards, enhancing the communication of those rewards can have a greater impact on employee satisfaction, and at a far lower cost than additional investments in making the rewards richer.
4. Who should be engaged?
Having the right team in place is crucial for developing a successful EVP.
A cross functional team will design the most successful outcome, whereas most employers will have a HR in a lead role. However, HR are not the only team who should be involved in implementing an EVP and the process should involve line executives/ managers that can offer a depth of experience.
An EVP should be implemented across the following areas:
• The recruitment process
• Candidate on-boarding
• Career development
• Exit stage
The EVP should be communicated at each of these stages, specifically through materials such as: recruitment adverts, performance development materials and remuneration discussions.
By implementing methods to measure the EVP through employee surveys and people metrics, you will be able to demonstrate its value, return on investment and financial benefits to the organisation.
Finally, if an EVP is to act as a key driver for talent attraction, engagement and retention, it must be unique, relevant and compelling.
Has your organisation nailed its EVP?
If you’d like to discuss EVP in more detail, please feel free to get in contact at: email@example.com or alternatively comment below.