How to create an attractive employee value proposition
In today's competitive job market, a compelling employee value proposition (EVP) can set your organisation apart, attracting top-tier candidates and helping you meet long-term goals and objectives in the process. This article explores the process of creating an EVP that resonates with talent and helps secure the right individuals for your team.
A compelling EVP is a valuable asset in a crowded recruitment landscape. It enables you to tap into a strong candidate pool, boost talent acquisition, and enhance your employer brand.
What is an Employee Value Proposition?
An EVP is the unique set of benefits an employee receives in return for the skills, capabilities and experience they bring to a company. While this might include the contents of an employee benefits package, it also encompasses the company values, culture, and purpose, which despite not being direct perks, still benefit employees.
A strong EVP is the reason a candidate with more than one job offer might choose to join your organisation. It’s also a major reason why people stay, with a comprehensive EVP helping to decrease employee turnover by just under 70%.
An EVP identifies what makes your organisation an attractive place to work. That could be support for remote working, on-site childcare, enhanced pension plans, or generous staff discounts.
Additionally, an EVP recognises employees as individuals with personal lives and feelings. When effectively developed, it defines the essence of your company and communicates the importance of culture, personal growth, and career progression.
Why is a compelling EVP important?
Research indicates that 68% of jobseekers now pay closer attention to the benefits listed in job adverts, shifting away from purely salary-based considerations. Consequently, 60% of talent professionals say differentiating their brand and EVP from competitors is a key objective – 25% higher than three years ago.
Given this shift, a compelling EVP can re-energise talent acquisition and play a crucial part in your recruitment efforts, with as many as 65% of candidates admitting to discontinuing a hiring process due to an unattractive EVP.
A strong EVP can also increase new hire commitment by up to 29%, fostering deeper connections between employers and employees. Moreover, it encourages employees to recommend your organisation to others, leading to an increase in referrals as high as 28% according to Gartner.
Key features of an Employee Value Proposition
The key components of an employee value proposition include financial compensation, and non-financial benefits such as upskilling, flexible working, workplace culture and social events.
Increasingly, organisations are also revamping their EVP to focus on the experience of employees at work. Company culture, ways of working, values, and a shared purpose now form an essential part of the employee value proposition.
Let’s delve into some of the specific features of a great employee value proposition in more detail.
Compensation
Over a third of people looking to switch jobs have pay at the front of mind, and on average expect a salary rise of 14.8%. While offering a high salary pulls in candidates and retains staff, increasingly employers don’t compete on money alone, and that’s when other benefits come in.
Benefits
Offering excellent reward and benefits packages can differentiate your company from competitors. Rewards and benefits can include childcare vouchers, salary loan schemes, flexible working, health insurance, eye care vouchers, giving people extra annual leave or retail vouchers.
Benefits also form an essential part of an EVP and can make a real difference to people’s lives. Our analysis shows two-fifths of workers would happily skip a pay rise in return for benefits which enhance their work-life balance.
Development opportunities
The demand for training and development is high, with our research highlighting that 9 in 10 employees want their employer to offer more training courses to develop new skills. Investing in training shows your company values its employees and wants to support them as people not just professionals.
It’s also a savvy business move as it’s a way to keep staff and ensure they are ready for promotions. When it comes to the employee value proposition, giving opportunities for personal development – such as supporting time off for volunteering – is a way to communicate the values of the company too.
Culture
An EVP is increasingly about shared values, culture and the experience of working for an employer, not just clocking on and collecting a paycheck. Supporting the local, and wider community and holding events that reinforce the company’s values, can all promote a positive culture at work.
When employers get this right – and drive a culture of belonging and connection – it can result in cost savings as staff are more likely to stay and be productive. It can also play a critical role in attracting talent. When people hear your company has a great culture or comprehensive benefits package, they’re more likely to want to work for you.
Values
An employee value proposition is more than just an outline of rewards, benefits and social events. Having shared values and understanding the emotional value in being a team and working together can drive a shared sense of purpose and help employees feel invested in the organisation.
It’s not about making statements (though it can help to outline what the company stands for) but it’s about having integrity and putting that into action.
Championing social change to reduce inequality, for example, or putting a climate care policy at the heart of your offering can attract candidates who are a great fit for the company and can boost your reputation as a well-rounded employer.
Work-life balance
Promoting a healthy work-life balance is key to an effective EVP.
Research shows employees value both flexibility and a positive work environment, which is why an EVP needs to be about creating well- supported employees. This also makes commercial sense, as not only are engaged employees happier in the workplace, but happier employees are up to 20% more productive.
Creating an Employee Value Proposition
Now we know why an EVP is important and the features you need to include, let’s look at the steps involved in creating a strong employee value proposition.
Define your culture and values
You should pinpoint exactly what the company culture needs to be and what the values it reflects. When you’re defining your values, think about the real heart of the company. Your EVP should align with your mission, vision and values. It’s what the organisation is about. So, make sure the vision is workable and inclusive – considering all employee’s different needs and challenges.
Assess employees needs and perceptions
Honest feedback from employees can revitalise your EVP. When you actively collect and action feedback from employee surveys and interviews, you can shape your employee value proposition around exactly what your employees really want.
The exercise of collecting feedback can itself be worthwhile. Employees that are part of shaping the EVP around the values and goals they want to work towards are more likely to buy into the vision and emotionally invest in their workplace.
It’s crucial to ensure buy-in across the company, so make sure managers and leaders are happy to be embody the company values and culture. For your brand recognition to be about trust and integrity this needs leadership from the top. This avoids a reputation of a ‘do as I say not as I do’ culture.
Scope out the competition and job market
Once you’ve identified what your employees want, assess your target talent pool and their preferences. It’s worth conducting market research on trends and your competitors’ EVPs. For yours to stand out, you need to exceed industry benchmarks.
Draft a compelling EVP
Once you understand what’s out there, what the perception is and what you can offer, it’s time to develop your EVP.
The first step is to create an impactful statement that represents the value employees will receive. For example, the EVP statement needs to align with the organisation’s mission and aims while also highlighting key benefits and differentiators.
Compare and assess
Take a step back and evaluate the EVP before you launch it. This involves analysing what’s been created so you can compare it with the wider market. The EVP has to be relevant, so knowing what your competitors offer helps and if possible, yours should be unique and different. With an EVP, you want to have a positive influence in the marketplace, not just broad appeal.
Effectively communicate your EVP
There’s no point in having an outstanding proposition if no one knows about it. Once you’re happy with the plan, you need a strategy to communicate the EVP to existing employees. This includes engaging employees and fostering buy-in through regular internal comms (including for remote workers). You should also be sure to leverage the appropriate marketing channels to promote your EVP to potential employees and showcase it wherever possible.
Evaluate and evolve
The best EVPs are ones which evolve with the needs of the workforce and the shifting landscape. Once your new EVP is in place, establish metrics to track its impact on employee satisfaction and retention. This can include collecting feedback in focus groups and exit interviews, for example, and refining your EVP over time. Adapting to changing conditions and expectations is key to improving the employee experience and the way your brand is perceived by external candidates.