For companies to attract and retain top talent in a competitive market, they must offer a persuasive Employee Value Proposition (EVP). This will assist them in distinguishing themselves as an excellent place to work. EVP is a balance between financial and non-financial benefits that companies offer their employees.
A more modern employee value proposition definition is an ecosystem of recognition, support, and values that employers provide to employees. This environment enables employees to achieve their highest potential.
To be effective, an EVP must have something attractive to offer employees at every level of an organization, not just entry-level. It must also be tailored to the employee's needs and expectations, rather than just promising a generic "work/life balance."
A strong employee value proposition helps employees feel that they are valued and appreciated by the organization. If you want your staff to stay for years, it's important to create a positive working environment where people can thrive in their careers with support from management as well as other coworkers.
EVP as Part of Employee Experience
The most effective employee value propositions are backed by performance-based culture, leadership, communication practices, recognition programs, learning opportunities and benefits packages. By focusing on these elements when developing your company's employee value proposition, you will be able to create the employee experience you need to attract and retain top talent.
A 2019 Edelman Trust Barometer shows that trust is the cement that seals the employee-employer relationship. It is crucial that the common thread of your company's EVP is evident and constantly comes to life authentically.
Employer Value Proposition vs. Employer Branding
An employer value proposition is the benefits you offer to an employee. A strong EVP means that you provide employees with clear benefits and values, compelling enough to attract and retain them. Overall, your EVP should explicitly convey the value employees gain by working in your company.
EVP can be very similar to employer branding, but the two are not the same thing. Employer branding refers to what your company is known for in the public eye. It is the Unique Selling Proposition or the message your organization uses to appeal to both customers and job candidates.
Employer branding represents your company as a desirable place for candidates. In addition, it's the message that makes you stand out from other businesses in your industry.
What is the interrelationship between EVP and employer branding? While your employer brand might attract the right talent, only a strong EVP will help you retain them.
The Employee Value Proposition Framework
Creating an Employee Value Proposition calls for consideration of several factors. Statistics show that a well-crafted EVP can increase the commitment of newly hired employees by approximately 50%.
It also goes a long way in reducing your company's compensation premium for new hires by 50%, and it decreases annual employee turnover by approximately 70%.
With these factors in mind, what framework should you use in designing your unique Employee Value proposition?
Take note of the following important steps:
1. Assess Your Current Offerings
The first step in creating a compelling EVP is to assess the basics. This entails looking at what your company currently offers and what it does not. Make a checklist of all the EVP components outlined later in this section. Next, determine the extent to which your company provides each of the elements, being as objective as possible.
2. Get Insights from Existing and Past Employees
Knowing what your company can or cannot offer is crucial when you want to build a strong EVP. Employee surveys help you collect feedback that provides a clearer picture of what you can improve to retain employees. Some questions to ask employees in the survey include:
- Why do they like working for the company?
- What motivates them to become more engaged?
- What improvements would they want to see?
- What is their single most important need in relation to the company?
- What kind of support would they like to receive from the company to help them achieve their professional development goals?
The response you get will form the basis of creating a better job offer for potential employees.
3. Outline the Key Components of Your EVP
This step is crucial in helping you arrive at your new employee value proposition for new hires. In addition, it determines how easy it will be to attract and retain top talent. Components of a good EVP include:
- Financial rewards: This component of EVP addresses the expectations employees have about the compensation system. It covers salaries, stock options, and bonuses.
- Employee benefits: Employees expect a range of additional rewards associated with the work they do. It entails health insurance, company-sponsored holidays, paid gym memberships, paid leaves, retirement benefits, and other non-monetary rewards.
- Career development: Employees want to work in places with growth potential and companies that support this quest. This EVP component includes sponsored courses, technical training, promotion opportunities, mentoring and career guidance, and opportunities to work in other cities or countries. As such, if your organization cannot provide salaries at par with competitors, a clear career development plan can make a difference.
- Work environment: Employees want a positive working environment characterized by work-life balance, flexible working hours, team building, workspace design, recognition, and reliable communication systems.
- Company culture: A great company culture includes positive relationships between employees and the employer. It creates an environment for trust and collaboration and team support and collaboration. When all these factors align, there is an alignment of employees with the overall company goals.
Based on these components of an compelling EVP, you should proceed to tackle issues like:
- The most appropriate salary range and employment benefits that will attract the target candidates
- The career growth opportunities that the target candidate would want to have
- The kind of company culture that will help the target candidate succeed in the workplace.
- The ideal work environment for the target candidate.
In designing your EVP, remember to segment it for different roles and levels. For example, the EVP for recent graduates will not be the same as that for professionals.
4. Write Your Employee Value Proposition and Promote It
You should identify how your company stands out from the competition and the employee experience you can deliver. You are in a position to write a strong employee value proposition statement. Ensure the EVP is clear, inspirational, and unique to attract and retain the top talent.
Finally, promote your EVP through various channels and not just on your website. Make use of different internal and external communication channels in your company to spread the word.
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Employee Value Proposition Examples
Here are some excellent examples of employee value propositions to inspire you when creating your own:
Yelp is a crowd-sourced review forum and business directory service. From its career pages, the company's EVP states that it believes in giving its employees the resources and tools to keep them wise, wealthy, and wise. Whether it's unlimited snacks, gym subsidies, or healthcare benefits, Yelp believes that happy employees are successful employees.
Canva is a simplified tool for graphic design and is accessible to users the world over. The company breaks down its EVP as the company that makes design amazingly simple for everyone. The platform gives users the chance to be part of something extraordinary, with limitless potential. The company's mission is to empower people to design anything and publish anywhere.
&pizza is an American pizza restaurant chain. The restaurant specializes in unique oblong-shaped pizzas and has a distinctive "No Ceiling" policy. The company explains that there is no limit to how high their employees can go. In the company, employees are not treated as job holders, but as people on a career path. Employees are not mechanized robots with a set of limitations, but they are individuals on a journey to who they want to be. The company encourages employees to start their journey with it and see how far they can go.
Designing a Strong Employee Value Proposition to Attract the Best Employees
As you compete with other brands to attract top talent, one way you can set your company apart is to create a strong EVP. Then, incorporate it into your recruitment strategy to position your company as an attractive employer for top talent.
A great way to showcase your organization is by creating videos that bring your company to life. Lumina.co specializes in working with employers to help them stand out by transforming boring job posting text into brilliant and engaging videos. With a lightning fast turnaround time (within 24 hrs), you can quickly generate high quality content that helps you stand out. Share your company's work environment, tell stories about what makes you unique, and share your Employee Value Proposition. Sign up on our website today to learn more.