The Benefits of Creating an Employee Value Proposition (EVP)

You may have worked hard to create your Unique Value Proposition (UVP) for your customers or clients, but now you're looking at expanding your team, have you thought about your Employee Value Proposition (EVP)? In this article we'll outline what exactly it is, the importance of having one, the differences between an EVP and employer brand and how to create a great employee value proposition.

What is an Employee Value Proposition (EVP)?

An employee value proposition (EVP) is a collection of benefits that an organisation provides to employees in exchange for their skills, experience, and contributions. The EVP encompasses both tangible and intangible rewards, such as salary, health insurance, and paid time off as well as job satisfaction, professional development opportunities, and a positive work-life balance. The purpose of an EVP is to attract, retain, and motivate employees by offering them a package of benefits that meets their needs and aligns with their values. By doing so, businesses can create a workforce that is engaged, productive, and committed to the company's success.

An effective EVP will be tailored to the specific needs of the business and its workforce. That's why it can be useful to align the EVP to the company's mission, and allow it to reflect its core values.

The importance of creating an Employee Value Proposition (EVP)

Bottom line: An employee value proposition is important because it can help a business attract and retain the best talent.

By offering a compelling EVP, businesses can set themselves apart from their competitors and make themselves more attractive to top candidates. Additionally, an EVP can improve employee engagement, satisfaction and retention by making sure that employees feel valued and appreciated.

In today's competitive marketplace, workers have more choices than ever before when it comes to where they want to work. An EVP can be a really useful tool for businesses who are taking a close look at their company culture, and want to focus on their employee experience to set themselves apart in the market.

What's the difference between an EVP and your employer brand?

Your employer brand is the overall impression that your company makes on potential and current employees. It's the promise you make to employees about what they can expect from working for your organisation. Your EVP expresses the specific benefits and perks that your company offers to its employees.

For example, your employer brand will display your company's mission, work culture and work environment to the world, whereas your EVP will compliment your employer brand by offering different benefits that will compensate your employees.

Why are some employers struggling with their EVPs?

Some employers struggle with their employee value proposition because they don't have a clear understanding of what an employee value proposition is or how it differs from other HR initiatives such as employer branding. Additionally, some companies fail to review their EVP on a regular basis, which can cause it to become outdated and no longer relevant to employees.

How can you create a strong EVP for your organisation?

There are many factors that go into creating a strong EVP, but some of the most important things to keep in mind include understanding your target audience, being clear about the benefits you offer, and making sure that your employer value proposition is regularly reviewed and updated.

Below are the five pillars that make an EVP:

Compensation

This is where employers need to think about the monetary compensation employees receive for working in the business. Key things to think about are:

• How salaries match market rates
• Process for employees to access a raise or promotion
• Transparency with staff about how they are evaluated to receive compensation
• Financial rewards for good performance

Benefits

There are a host of benefits employers can offer to employees. Some of the common benefits include:

• Time off
• Vacation time
• Insurance
• Retirement plans
• Wellness offers
• Heathcare
• Parental leave

Career

Employers need to ensure that employees have ample opportunities for career development and growth within their business. This could include:

• Offering mentorship programs
• Training sessions
• Professional development courses
• Flexible hours for employees who wish to pursue further education.

Work environment

What is the business doing to create a positive work environment? This section of the EVP encompasses the culture within the business such as:

• Celebrating team members personal achievements
• Giving autonomy to employees
• Flexibility with work such as remote working
• Work-life balance
• Making sure employees have purpose: They understand their role and responsibilities

Culture

This is about creating a culture within the organisation that encourages collaboration and innovation. This could include employee engagement, team building exercises, and inclusion initiatives. Key elements of culture in an EVP include:

• Leadership and management structure and training
• Collaboration and team spirit
• Environmental and social responsibilities
• Trust
• Understanding the company's mission and goals

What has an EVP got to do with marketing?

Having a strong employee value proposition can firstly help promote positive brand messaging, as potential employees will have a more positive perception of the brand. Having a workforce that support the company values and feel that they are compensated to do their best work means that they are more likely to be vocal about the business online such as on LinkedIn.

Brand ambassadors can also help with recruitment and drive employer branding by sharing positive messages about the employer brand value proposition as well as providing employee reviews to other potential employees on recruitment sites such as Glassdoor.

In addition, a marketing team may wish to incorporate a company's EVP on the careers page of the website so that prospective employees are attracted to apply for a job (goodbye recruitment costs!).

Finally, an employee value proposition gives marketing teams great blog content to encourage top talent. For example, shouting about the businesses corporate social responsibility (CSR), hammering home the company's mission and showcasing staff achievements.

Part of the employer brand package

Are you looking for support with your employer branding to attract new hires and keep your talented people engaged? Check out how The Marketing Plot can help HR professionals and leadership teams with employer branding and EVP.

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