Employer value proposition
What is an employer value proposition?
Employer Value Proposition (EVP) is everything an organization provides to its employees in exchange for their skills, efforts, capabilities, experience, and knowledge. It sets them apart from their competitors in the job market and makes their organization unique and a great workplace for employees. A strong EVP highlights what employees can expect from working with their organization and draws high-potential candidates.
Why should companies adopt EVP?
Here are the top five reasons why every organization should adopt EVP to level up their talent management strategies:
Attracts high-quality candidates:
A strong EVP highlights the organization's unique benefits, core values, growth opportunities, and commitment to employee welfare, drawing in candidates whose values are consistent with those of the organization.
Improves employee retention rate:
Since the offerings and values associated with EVP usually align with employee expectations, job satisfaction increases and turnover reduces. A strong EVP gives employees compelling reasons to stay.
Enhances employee engagement:
A well-defined EVP provides a clear idea about what employees get in exchange for their valuable effort, making them feel valued, motivated, and engaged—ultimately driving higher performance.
Boost employer brand:
An employee-centric EVP creates a positive reputation for the organization among its customers, employees, and partners, positioning your organization as an attractive place to work.
Reduces hiring costs:
By naturally attracting the right talent, a strong EVP reduces the need for excessive recruitment efforts, saving time and resources while ensuring a better cultural fit.
What are the five major components of EVP?
The five major components of EVP include the following:
Compensation:
Refers to the financial rewards that employees receive including salary, incentives, bonuses, and more.
Career development:
Refers to growth opportunities including mentoring, upskilling, reskilling, training, and more.
Work-life balance:
Refers to work stability, workload management, and other flexible working conditions
Company culture:
Refers to company values, leadership style, vision, mission, and more.
Purpose:
Refers to the broader goal and impact of the work your organization does
What is an example of an EVP?
Here's a brief example of how an EVP statement would look like to give a better idea:
"At X Company, we believe in rewarding your efforts with competitive salaries, incentives, and financial benefits. We are committed to your career development through mentoring, upskilling, and continuous learning opportunities. Our flexible work arrangements ensure a healthy work-life balance. Rooted in strong values, a clear mission, and inspiring leadership, our culture fosters collaboration and inclusivity. Above all, we take pride in the meaningful impact of our work, striving to create a better future for our employees, customers, and communities. Join us and be part of our organization."
How do you build an EVP?
Here's a five-step guide to help you draft a top-notch EVP:
Understand employee expectations:
Run surveys and interviews to understand what employees expect from your organization. Analyze why your ex-employees left and why your current employees stayed. Understand what motivates them to bring out their best selves at work. Understand what your competitors are offering to attract talent. This will give you a better idea of what to offer to your employees in exchange for their work.
Align with company values:
Make sure that whatever you offer your employees stays consistent with your organizational culture and values. For instance, if your organization upholds values such as inclusivity, purpose, work-life balance, growth, and more, ensure that you have them highlighted in your EVP statement.
Draft your EVP statement:
Based on your findings, draft a compelling EVP statement. Keep it short and simple. Make sure it highlights what truly makes your organization a great place to work and how you stand out compared to your competitors.
Communicate it effectively:
Once you have your EVP statement ready, post it on all possible platforms including intranet platforms, company handbook, career sites, social media, job platforms, and more.
Keep refining:
Conduct surveys to understand how employee perception has changed post your EVP statement. Get feedback from your new hires and employees to make positive changes to your EVP statement. See if there are any changes to your employee retention and turnover rates.
What is the difference between employer branding and employer value proposition?
While employer branding is about how your potential candidates, customers, and partners perceive your organization as a place to work, employer value proposition refers to the benefits and offerings that provide your employees specifically in exchange for their skills. The purpose of employer branding is to promote your organization as the most favorable employer among potential candidates while EVP is all about the value that employees for the work they do.
