What is Employee Value Proposition?
In simple terms, Employee Value Proposition (EVP) is your brand as the employer. It refers to anything the employer offers to their employees to recognize their continued contributions to the organization.
An EVP includes salary, benefits, learning, and career growth opportunities; however, competitive compensation and comprehensive benefits are considered basic necessities rather than distinguishing factors in an EVP.
How to Develop a Distinct and Effective Employee Value Proposition?
An effective EVP is competitive, aligns with the rapid changes in the workforce, and reflects the needs and values relevant to a company’s employees (both current and prospective). Direct engagement is the best way to identify what drives your workforce. Employer-employee engagement can take various forms, such as performance reviews, stay or exit interviews, and employee surveys. Each method allows employers to gain direct insight into what will create the most compelling package for their workers.
Finding Value in What Matters Most
Not all employees share the same priorities. Some may appreciate flexibility, while some value training and development. Employers can take their EVPs a step further by tailoring them to a smaller, more specific group of employees, such as employees in positions requiring specialized skills and in supportive roles. By determining the interests of these employees specifically through separate, targeted engagement, an employer can better anticipate what will retain its best performers and attract new high-level talent.
Things to Avoid
Not connecting and listening to employees directly (or too infrequently) can lead to assumptions, a lack of perspective, or what SHRM refers to as a “perception gap” between employer and employee. When the particulars of an EVP are off-base or irrelevant to the workforce, it adds little value to recruiting and retention efforts, possibly even hindering them. Beyond that, employees can feel overlooked, unheard, and undervalued, especially if they see other employers offering more relevant packages.
Start by listening and asking questions from your employees.
Identity and Consistency
Once you’ve established the most effective and relevant EVP for your workforce, it’s important to consider outward perception and consistency. A diligently maintained EVP can make a company more attractive to potential talent than its competitors and help represent its overall culture and unique values. Authenticity can go a long way in distinguishing an organization’s identity from the rest. For example, an employer that drastically changes its EVP every year, risks looking inconsistent and unpredictable to the broader workforce. The most effective EVPs are long-lasting and well-integrated into their organization.
Conclusion
Employers’ brand is not just about what the public sees but also how their employees perceive the organization.
By actively engaging in conversations and attentively listening to the needs and perspectives of employees, employers can establish stronger connections within the workplace. This approach not only fosters a sense of inclusivity but also allows employers to gain insight into the needs and values of their workforce, enabling them to better cater to their target audience.
Creating a unique Employee Value Proposition (EVP) is vital for employers to differentiate themselves from the competition, draw in exceptional candidates, and keep high-performing employees satisfied- and it starts by focusing on what makes employees feel valued.
Sources:
https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/employee-value-proposition.aspx
https://www.aihr.com/blog/employee-value-proposition-evp/
