In today’s competitive job market, attracting and retaining top talent is more challenging than ever. But how can organisations stand out and appeal to the best candidates? Enter the concept of the Employee Value Proposition (EVP)—a powerful tool that shapes not only how employees perceive their company but also how potential candidates view your brand.
A strong EVP can make your company more attractive, improve employee engagement, and significantly reduce turnover. In this blog, we’ll explore what makes up an effective EVP, why it’s crucial for both recruitment and retention, and how you can develop one that resonates with your workforce.
If you’re not familiar with EVP, or want to learn more about how it can benefit your business, keep reading!
What is an employee value proposition (EVP)?
An EVP is defined as a statement of the values, rewards, recognition, support and company culture that an employer gives employees, which enables them to achieve their highest potential. In simple terms, it’s the benefits and perks offered to employees.
Interestingly, the employee value proposition concept as we know it today was formed from the marketing idea known as ‘Unique Value Proposition’; the value the company provides to customers that makes it stand out from competitors.
Essentially, the goal is to attract and retain top talent, and improve employee happiness.
Employee value proposition examples
There are a variety of things employers can do in regards to EVP, and it can be unique to your business and culture. Some good examples of EVP include:
- Competitive salaries
- Bonuses
- Benefits/ perks
- Continuous professional development
- Career progression
- Strong work/ life balance
- Team building events/ team socials
Why is a strong employee value proposition important?
Wondering why EVP is important for your business? We’ve got you covered.
Helps attract talent
For any business to thrive, it needs to have skilled, enthusiastic and driven employees. Whilst this is an essential, it’s not always easy to find top talent! Having a solid EVP puts your business in a strong position to attract, hire and retain the right people.
Attracting and hiring employees who have goals and values that align with your business and company culture is a game changer, and an EVP can help to achieve this.
When done well, a compelling EVP offers a comprehensive look into each job role, making sure the role is attractive to candidates and shows them more about the company culture to ensure they will be a good fit from the offset.
Improves company reputation
Company reputation is important; for potential employees, customers and clients alike. The reality is, companies may miss out on business opportunities if clients or customers hear negative things.
A strong employee value proposition will help to elevate your brand. Not only does this make your business a more desirable place to work, but it also entices customers and clients!
Happy employees and more business opportunities… What’s not to like?
Reduces employee turnover
As Hubspot reports, a whopping 86% of workers would not want to work for a company that has a bad reputation with former employees. By contrast, 75% of active job seekers are likely to apply for a job if the employer actively manages their company’s EVP.
With such a large percentage of job seekers actively looking for positive employer branding, this is definitely something to pay attention to.
According to Gartner, companies with a strong EVP reduce annual employee turnover by over two-thirds (69%) and increase new hire commitments by nearly 30%.
If you’re having trouble recruiting talent, maybe it’s time to do things differently. That could very well include overhauling your EVP.
Tips for creating a successful EVP
It’s clear that having an employee value proposition in place is beneficial for any business. And we recommend you continuously rework, redefine and articulate your EVP to new and existing employees.
But knowing how to create an effective EVP is easier said than done. So to help you out, here are our top tips!
Clearly define your employee personas
Employee personas can help you understand what your people value and the type of employee experience you should be creating for them.
This is the first step in truly understanding the various personalities, skills, experiences, knowledge, behaviours and attitudes that drive productivity and performance.
With today’s increasingly diverse workforce, every company has more than one type of employee. In fact, your business relies on different backgrounds and perspectives to understand customer profiles and facilitate innovation.
Just like you would a customer, starting by empathising with each employee’s target segment that is key to the EVP development process.
Listen to what your existing employees have to say
Once you have identified and examined the diverse needs within your company, start to engage with them to further your understanding.
You want to hear what employees seek in their workplace and what makes them feel happy, engaged and motivated to perform. These answers can be found in your past, current and prospective employees.
Leverage exit interviews to understand why it is that past employees have chosen to leave your company and what you could do differently in the future.
Use focus groups, 1:1 meetings and surveys for current employees to see what they enjoy about the existing employee experience and ideas for how it can be improved.
Interviews with prospective candidates can also provide a unique insight into what makes your company culture attractive and why that’s important.
Rolling out your employee value proposition
Before diving into rolling out your EVP, it’s essential that it is clearly defined. This makes it easy to communicate it to employees and candidates.
Start to get your EVP down on paper, even if it has already been defined by your company in the past. Work closely with your marketing team as well to ensure your EVP ties nicely in with your company’s mission and overall brand.
Once it’s reworked and defined, make sure you communicate your new employee value proposition with the entire company.Even current employees should be reminded about why it’s so awesome to work at your company!
The wrap up
It’s clear that implementing an EVP will have a positive impact on your business, and although it seems daunting to start with, we are here to help. Managing your EVP is easy with tools like our smart applicant tracking system (ATS), paperless onboarding and performance reviews within Employment Hero’s HR software.
But Employment Hero’s Employment OS (operating system) can do so much more than just manage your EVP. Our all-in-one HR, hiring, and payroll solution is built to flex with your business. Offering everything you need, from finding and hiring top talent to onboarding new hires, automating complex payroll and driving employee engagement, all backed by UK-based support. Spend less time on admin, and more time on what matters – your people.
To learn more about how Employment Hero can benefit your business, talk to one of our specialists today.
