By Elizabeth Berg, eLearning Program Administrator
An Employee Value Proposition (EVP) is a vital component of an employer’s brand, recruiting efforts, and maintaining an engaged workforce. At its most basic level, an EVP is what an employer provides in return for employees’ performance and discretionary effort. Despite its importance, many employers don’t take the time to define their EVP, but even then, it is established organically, whether they realize it or not. An EVP is not static, and it can change over time due to the shifting economic and labor markets, cultural changes, or rebranding.
Setting clear and consistent expectations for what an individual can expect while working for your company is a powerful tool for attracting and retaining the right people and helping your company thrive.
Let’s explore five reasons why defining an Employee Value Proposition is worth your time.
1. An EVP is the foundation for an employer brand.
Think of an EVP as a guide for the employer brand. It communicates the benefits and opportunities a company offers its employees, which becomes the basis for the reputation and messaging to promote your company externally. For example, if your company’s EVP encompasses a flexible workplace that offers telecommuting and remote work, the employer brand would likely promote working from home on your job postings and company page. The alignment of an EVP and employer brand is essential to a consistent message of who you are as an employer.
2. An EVP allows an opportunity to highlight strengths.
It’s your chance to show off whatever your company does well! It is crucial to recognize and accept areas of weakness and put the company’s strengths on a pedestal. Maybe you’re a smaller business that doesn’t offer the highest wages. Consider highlighting the great things you provide, such as career development, total rewards, work environment, and flexible work schedules. These are all aspects of your organization that can be emphasized and communicated to current and potential employees to show that you care about what they value.
3. An EVP creates transparency that improves recruitment efforts.
With the current state of the job market, applicants have more choices than ever. More options mean more selective job seekers. Because of this, recruiting efforts are becoming marketing-focused, and employers are promoting themselves with transparency to show how they are unique. A well-defined and promoted EVP differentiates an organization from others because it shows who you are, what you value, and what you offer to your employees, making it easier for applicants to assess alignment when they are job seeking.
4. An EVP shows value, improving employee retention.
Defining an EVP not only attracts talent to your company but also gives them a reason to stay. You are building a platform that aligns your offering as an employer with what employees value. It provides an opportunity to gather input from leadership and employees to understand your team’s wants and needs. In return, you can invest more in the offerings that are important to your employees. A clearly defined EVP better equips employees to take advantage of what you offer. Ultimately, by showing you value your employee’s needs and wants and communicating what you can give them, you are improving employee engagement, reducing turnover.
5. An EVP saves money.
According to a recent study by the Corporate Executive Board, an organization with a well-defined EVP will, on average, reduce compensation premiums required to attract employees by 50% and experience an 11% decrease in turnover. If you don’t have the resources to offer above-market wages, it is a big deal to showcase that a position with your company is much more than just a salary range. Simply put, if you show value, you will receive value in return. By promoting your overall offering, you emphasize non-monetary perks. As you improve retention, you are also reducing the costs associated with recruiting, onboarding, and training.
Not sure where to start the process of defining your company’s Employee Value Proposition? Trüpp’s affordable online training course, HIRE: Attracting talent, provides step-by-step instructions for defining your EVP, factors to consider during the development stage, and possible elements to include.
HIRE: Attracting Talent >>