What is an EVP?
An employee value proposition (EVP) can be defined as all of the rewards and benefits that an organisation offers its employees in return for their skills, experience and the contributions they make to the organisation. Think of the ‘Why work for us’ sections in job descriptions or on a company’s website.
An EVP can take many forms, but it is usually a statement that describes how an employer creates value for their current and future employees and why jobseekers should choose their organisation over the competition. It encompasses any form of value that an organisation offers its employees. This includes both tangible value, such as remuneration and monetary benefits, as well as intangible value, such as company values and culture.
An employee value proposition is not the same as an employer brand, but the two are closely linked. An organisation’s employer brand is the creative expression – the branding and marketing – of their EVP and all aspects of the employee experience.
Why do you need an EVP?
In a tough job market, you need to stand out against the competition to convince the best talent that they should work for your business. That’s where an EVP comes in. Having a compelling EVP is crucial for attracting and retaining quality people. Here is a summary of the two main benefits of having an EVP:
Attract talent: Changes due to the pandemic have made it particularly challenging for employers to find the right people for their business. Many people have realised the importance of work-life balance and are rethinking where they work, how and who they work for. Employees are increasingly expecting hybrid work options as the norm, which is a disadvantage for businesses that can’t offer these. The explosion in remote work has also opened up a range of previously untapped and potentially more lucrative options for employees, making it even harder for employers to compete for talent.
This is why having a strong EVP is crucial. To stand out from the competition, you need to sell your business to prospective employees. An EVP helps jobseekers understand what working in your business will be like and can increase the number of job applications you receive for advertised positions.
Retain talent: Organisations that have an effective EVP, which they deliver on, can decrease employee turnover by almost 70 percent. In a tough market, holding onto your high-performing employees is just as important as attracting talent. Finding replacements is time-consuming and expensive. An EVP encourages employees to stay with your business because it gives them a sense of purpose, meaning and a feeling of belonging to a workplace. Keeping your current employees happy will also help you attract new talent because they will spread the word about how much they enjoy working for your business.
Factors to consider when building your EVP
There’s no one-size-fits-all employee value proposition. Your EVP should highlight what is unique about your organisation. However, it’s important to be aware of what attracts jobseekers to a business. In a global study, Gartner found that Australian jobseekers rated the following five attributes as the most important when choosing a future employer. Here they are in order of importance:
1. Work-life balance
Work-life balance encompasses all efforts to help employees find harmony between their work life and personal life. This can include everything from flexible working arrangements to family-friendly policies and employee wellness initiatives. Flexible working arrangements, particularly the ability to work from home, are high on the wish lists of many Australian employees. And it’s no surprise, given how common it is for people to face long commutes to the office. This is a factor that you should definitely take into consideration. However, parents are probably looking for different work-life balance benefits than graduates, for example, so make sure you tailor your offerings to the type of employee you want to attract.
2. Location
This is about the physical location of your office, but also more broadly about having a positive work environment, allowing a certain level of autonomy and providing work-life balance opportunities. Location is about the employee experience as it relates to three environments: technology, physical space and culture.
3. Stability
Stability means career stability here. Employees are seeking jobs that will allow them to progress in their careers. They want to know what training opportunities an employer will provide and how an employer will help them to develop new skills. This can include, for example, learning development and mentoring or coaching initiatives.
4. Respect
This is about how organisations foster positive relationships, harmonious teams and a positive workplace culture. Employees are looking for organisations whose company culture and core values and beliefs reflect the importance they place on respect.
5. Compensation
This attribute relates to your employees’ satisfaction with their salaries, but also to other rewards, such as bonuses and your evaluation system. Bear in mind that compensation might not be equally important to everyone.
How to develop your EVP
Here are six steps you can follow to develop an effective EVP that will help you attract and retain the best talent:
1. Identify current perceptions
For your EVP to be effective, it’s important that it reflects the reality of working in your business. So, the first step is to understand your current employees’ perceptions of your company brand and culture. Consider conducting surveys and holding focus groups to get their input. You could also get feedback from former employees and job applicants. Ask them questions such as:
- What attracted you to the company?
- What do you think makes the company unique?
- What do you value most about working here?
2. Determine your key selling points
Now that you’ve collected your data, review it and identify the elements of your business that people value the most – your key selling points. These might include, for example, your business’s location, work environment, perks, culture, as well as the compensation, rewards and opportunities for development that you offer.
3. Draft your EVP
Take your key selling points and start writing your EVP. Make sure that it aligns with your strategic objectives, differentiates your business from competitors, is inspirational and realistically reflects what it’s like to work in your organisation.
4. Test your EVP
Get feedback on your EVP from your current employees and a group of people from outside your business to find out whether it persuasively and accurately describes why people would want to work for your company. Based on their input, adjust and adapt your EVP if necessary. This will help to ensure that you attract the right people who will be committed to your business.
5. Communicate the message
Now that you have a well-developed employee value proposition, there are multiple ways you can communicate it to the people who you want to attract. You can promote your EVP through hiring channels – such as your company website, social media and online job advertisements – to help jobseekers decide whether they would be a good fit for your business. You can also convey it through branding, public relations and marketing to reach the passive labour market.
6. Continually refine your EVP
It’s important to continually update and adapt your EVP so that it remains relevant and continues to accurately reflect your company’s employee experience. Aim to review it annually and conduct regular employee surveys to identify what’s important to your employees. Use metrics, such as the number of candidate applications and employee retention rates, to measure the success of your EVP.
When competing for the best talent, having a well-defined and compelling employee value proposition is essential. Each workplace is different, and your EVP should show prospective employees what makes your business unique and a great place to work. But it’s much more than a mere marketing exercise. It’s important that you deliver on the promises in your EVP to engage your current employees and turn them into your best brand ambassadors.
