Everything about Employee Value Proposition

Employee Value Proposition or EVP as its popularly known is a term used to describe the characteristics and appeal of working for an organisation. An EVP describes the culture, benefits, and uniqueness of working in an organisation. In other words, an EVP characterises a company's ‘employer brand’ and differentiates it from its competition.

All you need to know about EVP

Building a solid Employee Value Proposition is a business imperative

An effective EVP can bring an organisation significant benefits. According to the Corporate Leadership Council’s research, a well-thought through and executed EVP can:

  • Improve    the    commitment    of    new    hires    by    up    to    29%
  • Reduce    new    hire    compensation    premiums    by    up    to    50%
  • Increase    the    likelihood    of    employees    acting    as    advocates    from    an    average    of                 24%    to    47%
  • Increase access to passive candidates. This is important for organisations who want to secure the      best talent in an increasingly difficult talent market. 
  • Re-inspire your workforce:  Building and sharing your EVP involves listening to your existing                employees, so you can understand what’s important to to them. This practice helps to build trust        and strengthen commitment by including employees in the process.
  • Refine your recruiting objectives. The process of building an EVP forces you to drill down on                what’s important to your employees and potential new hires. Having this information will help            guide your recruiting efforts to better share a compelling offer.

COMPONENTS OF A COMPELLING EVP

 

STEPS TO CREATE THAT PERFECT EVP

Creating a superior EVP involves the following stages:

  1. Insight gathering
  2. EVP Strategy development
  3. Communication
  4. Management and metrics

EFFECTIVE EVP: SUCCESS FACTORS

To be effective, your EVP should meet the following criteria:

  • Alignment with vision, mission and values to enhance organisational culture 
  • Honesty – a statement of what’s offered to employees while setting clear expectations; not a “false      advertising” exercise 
  • Linkage to your workforce planning strategy so it’s relevant to the type of employees you want to        attract and/or retain 
  • Uniqueness to drive competitive  advantage/differentiation 
  • Effective wording and use of your organisation’s communication style 
  • Alignment with your external branding    
  • Understanding among your key target audience; the EVP is not an essay, it should contain                      concise statements supported by appropriate imagery

In today's context, the EVP has become fluid, responsive and an ever changing conversation between organizations, employees, candidates and the media.  This has created additional challenges and opportunities for HR and leadership teams that want and need the best talent for their businesses. By understanding the current environment and continuously following trends in the EVP space, companies have to  learn to adapt their strategies to influence rather than control, and to guide rather than dictate to be effective talent advocates.