What is EVP?
EVP stands for Employee Value Proposition (sometimes referred to as Employer Value Proposition). Simply put, EVP is a set of both monetary and non-monetary benefits that an organization provides to its employees. A more holistic description is “an ecosystem of support, recognition, and values that an employer provides to employees to achieve their highest potential at work.” A strong employee value proposition incentivizes applicants to choose to apply with the employer and keeps them motivated throughout the process.
The prevalence of remote work during the pandemic has given candidates the opportunity to find lucrative positions that provide flexibility with their work-life balance. This makes it harder for HR professionals to differentiate their firm from competitors and attract top talent. Effective and consistent communication of the employee value proposition is critical for attraction and retention of employees. Employers should leverage their EVP to stand out amongst competitors and attract top talent. Productive, hard working people are difficult to replace; it’s a time-consuming and expensive process. Accordingly, Fortune 500 companies invest in retaining their most high-performing workers.
The relationship between employers and applicants has shifted. In a globalized economy, the most talented professionals have access to countless opportunities. As such, the onus falls on employers to implement a strategy to appeal to the best and the brightest applicants in the job market. 57% of recruiters say that their biggest challenge is differentiating their company from competitors. Developing a strong EVP is a good place to start.
Transparency and communication
- 23% of executives say that their companies excel at aligning employees’ goals with corporate purposes (Deloitte)
- Around 21% of IC experts believe that employees have a good understanding of the motivations behind senior managers’ decisions (h&h)
- Only 13% of employees strongly agree that their leaders are effective at internal communication (Gallup)
- While 60% of employers have increased employee listening efforts, few are using formal listening approaches. 31% conduct employee surveys and 13% conduct focus groups (Willis Towers Watson)
Employee engagement and performance
- 43% of employees cite limited career paths as a primary reason for leaving a job (TalentLyft)
- Businesses that effectively deliver on their EVP can decrease annual employee turnover by just under 70% and increase new hire commitment by nearly 30% (Gartner)
- 64% of employees feel they do not have a strong work culture (Sapling)
- 85% of employees say they’re most motivated when management keeps them updated on company news (Trade Press Services)
- Employees who say their manager is not good at communicating are 23% more likely to experience mental health declines (Harvard Business Review)
- Employee satisfaction at Google rose by 37% as a result of employee support initiatives (Fast Company)
Developing an employee value proposition
- Compensation: Consider compensation as a starting point. An employer’s remuneration may be below, equal to, or above the market average. While income is not the only factor in applicants’ and employees’ assessment of a company, it is a significant consideration in their decision making. As such, employers should plan their non-financial offering accordingly, keeping in mind how their wages compare to their competitors in the market.
- Work environment: Offering employees a comfortable and welcoming environment to work positively impacts productivity and morale. Attention to detail, such as providing stylish ergonomic furniture and refreshments, elevates the day-to-day working experience for employees and makes them feel valued. During the pandemic and beyond, providing the option to work from home and flexible working hours will be a common practice across industries.
- Company culture: Employees thrive when they feel that the work they do is meaningful and appreciated. Correspondingly, fostering positive relationships between workers across hierarchies and encouraging trust and collaboration helps to attract and retain talented candidates. A clearly communicated corporate mission and vision that states a company’s social values helps employers attract applicants whose values are compatible with that of the company. However, less than half of employees are aware of their organization’s mission, vision, and cultural values. Employers should be weary of this gap and ensure to communicate their values through all the channels available to them.
- Growth opportunities: Goal-oriented, ambitious workers are unlikely to stay with an organization if they feel that there is limited opportunity there for growth and development. By offering leadership training, mentorship, opportunities to change locations, autonomy over projects, sponsored courses (such as MBA) and promotional opportunities, employers are better able to retain top talent by providing them with the upward mobility that they desire in their careers.
- Employment benefits: While the following benefits are optional for employers to offer, they help firms stand out in a competitive landscape.
- Health and/or dental insurance
- Retirement benefits
- Paid leaves
- Fitness memberships
- Company-sponsored holidays and events
Communicating the employee value proposition
The key to effectively communicating EVP is to leverage the right channels. For employees, consistent internal communication is key. Newsletters, company blogs, town halls, and emails are all great channels through which to communicate EVP and build a favourable employer brand from within the organization. To further streamline their communication strategy, organizations should segment their internal audiences. Employers can segment their internal audiences by department, branch location, and management level. This ensures that all communications are relevant and engaging.
When it comes to communicating EVP in a recruitment context, employers must mobilize their external communication channels to share their EVP with candidates at every stage of the onboarding process. Clearly communicating the employee value proposition is key for providing a positive candidate experience. This also helps firms build their employer brand and stay competitive. Consistent communication with applicants throughout the recruiting journey allows
Source: Susanna Sack, Rally Recruitment Marketing
The landscape of recruitment has pivoted over time. Resultantly, employers must now implement competitive strategies to attract and retain the top talent in the market. To do this, companies must develop and communicate an attractive employee value proposition. The ever-increasing relevance of EVP illustrates that compensation is not the only factor in candidates’ and employees’ decision process when it comes to choosing their place of work. Career trajectory, flexibility, benefits, company culture, and leadership style are all important to workers. Therefore, they should be important to employers as well.