Employee Value Proposition (EVP)?

If you seek to hire top talents that deliver work of high quality and distinctive value, you should ask yourself first what distinctive value would you deliver them in return. Answering this question will encourage you to outline your employee value proposition EVP. What is Employee Value Proposition (EVP)? And what important things should you consider in developing it?

 

What Is an Employee Value Proposition (EVP)?

An Employee Value Proposition (EVP) is a component of distinctive employer branding strategies that draw candidates and talents based on the value package of benefits and rewards that employees receive in exchange for their qualifications, abilities, and performance in carrying out their job functions. 

 

The employee value proposition (EVP) is also designed based on the current workforce that exists in the organisation to be an employee-centered approach. It cares about meeting the value that current employees deliver and attracts new employees with new added values, in the form of monetary and non-monetary benefits, to get hired. It develops a value exchange process between the organisation and employees.

 

This concept was inspired by the unique value proposition in marketing, which characterizes each business unit with unique values to its customers. In the EVP case, the customer is the employee.

 

Importance of Employee Value Proposition (EVP)

As part of the recruitment marketing processes, you should talk frankly about the values the candidates will find if they get hired. This helps your business to attract suitable candidates who care about these values. It also adds another filter that helps active candidates make a decision about whether to apply for the job or not.

 

Attracting the Top Talents and Retaining Them

The creation of a solid EVP that satisfies the requirements of all positions and employees will draw top candidates whose values and principles align with those of the organisation, leading them to want to stay on and be an essential part of the system. They’ll see in your company a way to advance their professional aspirations while also contributing to its expansion.

 

In addition to offering opportunities for career growth through promotions and career transitions, a reward and recognition policy will be a great choice for enhancing the employee value proposition. The value you can add to the employee’s career could be knowledge and experience gained through a training program and internship.

 

Optimizing Recruiting Expenses

One of the benefits of the employee value proposition is a reduction in the cost per hire. When you have an interesting EVP, top talents will apply to the available vacancies. The pool of candidates has been marked by your employer brand, making it obvious which ones are best suited to work for your company. Your brand becomes your most effective recruitment marketing tool and strongest magnet.

 

Establishing a Distinctive Organisational Culture

A culture can’t reach greatness without believers. An employee value proposition gives you the opportunity to build a distinctive organisational culture that top talents believe in as it meets their values and needs. Employees will turn principles into applied practices.

 

Improving Employee Experience

Creating a corporate value that cares about employees makes a distinctive difference in the employee value proposition. The business appreciates employees in their best forms, which develops a special employee experience. The employee as an element turns into a competitive advantage that makes the business stand out from the crowd.

 

Improving the Company’s Reputation

Your brand’s reputation and image will be determined by creating the ideal employee value proposition. Candidates hear about a company’s shortcomings before its positive aspects. Consequently, a strong EVP protects your reputation. Along with the targeted customers, the right candidates should also hear about you from positive word-of-mouth and advertising.

 

Reducing Employee Turnover Rates

86% of employees won’t work at a place that has a bad reputation with employees. On the contrary, employees will look for employers who care about nurturing a healthy and positive employee value proposition. This eliminates turnover rates and makes employees more committed at a high fixed level from day 1.

 

5 Key Steps to Build an Employee Value Proposition

In order to reap the full benefits of implementing an employee value proposition, a number of crucial steps that lead to successful corporate outcomes must be completed.   

 

  • Evaluate

Verify the values that your company instills in its current workforce. Do they fit the bill and appeal to the desired talents you are looking for in staff members? Check to see if your company embodies the mix of tangible and intangible values that every corporation should offer. You should be aware of the gaps that should be filled to direct talents toward your company. Is it the equipment and tools? Work method? The dominant traits of people? 

 

  • Investigate

Exploring the value that your business needs to be added starts from inside. The best way to know what should be done to develop an excellent employee value proposition is to ask your current employees. The survey you establish has to be simple as you can to dig deep into certain elements that are the most important to help your business grow. Categorise employees’ suggestions and recommendations to be easily analysed. 

 

An investigation is not only internal, but also external, where you look at the competitors of the same industry, size, and market, and know what values they deliver to employees.

 

  • Communicate

Gather managers from different departments and ask them to design and develop the employee value proposition with you. Each manager should determine specific values that a department needs according to its functions and contribution to the business. They should help you define a realistic EVP that attracts the right talents. In that stage, transparency, trust, and honesty are the major elements that you need to start building the EVP.

 

  • Build

Conclude the facts from all information you gathered and build your employee value proposition based on creativity and reality to deliver distinctive values that competitors might not have and guide new ideal talents you need for your business.

 

  • Measure

Check to see if the recruited talents are of the caliber and value the company requires after implementing the employee value proposition strategy and informing the appropriate audience of the delivered values.  

 

Things to consider when developing an EVP

The employee value proposition deals with different topics that the employees care about. It is a combination of compensation, benefits, career development, work environment, and culture.

 

Compensation

Compensation is an important component of an employee value proposition. It is direct payment, which includes wages such as salaries, bonuses, and allowances. You should be concerned about it as an employer and steer clear of offering pay that is below average. To keep top talent from joining rival companies, you should compete with them. 

 

However, you should balance it. Even though your pay may not be the highest on the market, you offer other qualities that make you the best company to work for.

 

Benefits

Indirect work payment benefits are as crucial as compensation for employee value proposition. When they get more tailored for the staff members, the outcomes become better. They include many aspects, like 

 

  • Health insurance
  • Employee share scheme (ESS)
  • Employee clubs, activities & gifts
  • Retirement plans
  • Gym memberships
  • Mobility
  • Paid leaves
  • Food, beverage, & free coffee
  • Company-sponsored holidays

Career Development

One of the most alluring features in EVP that draws top talent is the career development plans that include training programs, workshops, and opportunities for promotional growth. As well, mentorship programs and coaching initiatives should be available.

 

Work Environment

A healthy work environment builds a cooperative team that helps them manage their tasks and work efficiently in a way that grows your business. It keeps employees engaged and committed. The healthy work environment factors cover

 

  • Flexible working hours
  • Communication systems
  • Office location and commuting
  • Work-life balance
  • Workspace design
  • Well-being
  • Recognition
  • Employee well-being
  • Management interaction 
  • Team building
  • Office design
  • Autonomy

Organisational Culture

As part of the employee value proposition, a positive organisational culture supports the management approach you use to guide your business toward expansion and prosperity. It includes characteristics you should consider:

 

  • Company values
  • Existing staff
  • Positive relationships between team members across hierarchies
  • Diversity
  • Collaboration & team spirit
  • Team communication and support
  • Support
  • Trust and collaboration
  • Alignment of employees with company goals

 

Avoiding the Common Pitfalls of an EVP

Developing an employee value proposition is a great step, but you could get more benefits by eliminating its mistakes and errors. Here are most of the errors that employers may accidentally fall into

 

Ignoring Market research

Know your employee before outlining the employee value proposition. Applying and delivering the same values to all employees is not the best decision. Employees in each department have their special needs, remote employees differ from on-site employees,  and the needs from one generation to another also vary. Consider every single variable in the equation to develop a balanced EVP.

 

Simulating Competitors’ EVP

Trying to follow your competitors’ steps is not a good idea; it makes your business deliver the same values that competitors deliver, why would a top talent candidate apply to a position at your company, not at your competitors? This eliminates the opportunity of having a top-qualified candidate. Developing authentic values and embedding new characteristics in your work system will form your remarkable employer reputation.

 

Being Generic

Develop clear statements that help recipients understand what they refer to. Explain what an “Open Culture” means, is it a transparent culture? Does it have limits for criticism?  If it’s a fast-paced environment, doesn’t it consider work-life balance? Does overtime count or not? 

 

A key component of any company that ensures the hiring and retention of the best candidates with the necessary skills, qualifications, and values is the employee value proposition. Whitecollars can take care of this for you rather than creating your company’s EVP. We are a top recruitment firm and HR consulting firm that manages human resources in any organisation while providing the most practical solution in the shortest amount of time and within any given budget. Check our HR services now!

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