Crafting an irresistible Employee Value Proposition: A comprehensive guide for organisations
An Employee Value Proposition (EVP) is a pivotal differentiator for organisations aiming to attract and retain the best-fit talent to deliver their strategy and contribute to their culture. But why is an EVP so crucial, and how can it transform the dynamics of your workplace? Learn how to improve the lives of your people at the same time as business performance and reputation.
EVP extends beyond employee benefits; it is a strategic framework that encapsulates the essence of working at a specific organisation. It's unique to each organisation and brings to life the culture in real ways including pay and benefits, ways of working and behaviours, social / community-building events and networks, professional development, technology, giving back to society and the planet.
Understanding Employee Value Proposition (EVP)
A great EVP is the promise of mutual growth and fulfilment. It represents a balance of rewards and opportunities offered by an employer as a social contract between employer and employee. In this symbiotic relationship, employees contribute their skills and experiences while the organisation provides a nurturing environment conducive to professional and personal development.
The strategic importance of EVP
EVP is the keystone in an organisation's architecture that:
Distinguishes the company in a saturated talent market to attract the right talent.
Bolsters employee engagement and deepens their commitment to the company's mission.
Amplifies appeal to discerning investors who value a strong organisational culture.
Why every organisation needs a strong EVP
A well-conceived EVP gives your people a profound sense of purpose, aligning personal aspirations with corporate objectives. It's a catalyst for enhanced performance, productivity, and loyalty, which collectively reduce turnover rates and build a resilient organisational fabric.
The magnetism of a strong EVP
By positioning your organisation as an employer of choice, an EVP creates a magnetic pull that attracts candidates whose values are in harmony with your company's ethos. It communicates a narrative of what life is like within the company walls, shaping expectations and fostering a connection even before the first interview.
EVP vs. brand identity
EVP and external brand identity, while intertwined, serve distinct audiences. The EVP focuses on the internal stakeholders—employees—and their experiences, whereas the external brand is tailored to customers and investors. Aligning the two creates a harmonious brand perception that attracts individuals who not only want to buy from you but are also eager to be part of your story.
EVP and talent attraction and retention
A compelling EVP transcends the recruitment phase and becomes a cornerstone of employee retention. It treats employees as people not workers. By delivering on its promises throughout a person’s employee lifecycle, an organisation can significantly lower turnover (by nearly 70%) and significantly increase employee advocacy (Gartner).
Spotlight on successful EVP examples
Innovative companies across different sectors like Kier in construction and EY in professional services have harnessed the power of their EVP to create campaigns that resonate deeply with both current and prospective employees. Kier's 'This is Kier' campaign which focussed on humanising employees by showcasing their passions outside work and EY's integrated 'That's Why, EY' campaign are prime examples of how authentically reflecting company culture can attract and retain the right talent.
Essential components of a robust EVP
An effective EVP is multi-faceted, encompassing:
Competitive compensation and transparent benefits.
A vibrant and inclusive company culture with regular activation events.
Comprehensive and inclusive career development opportunities.
A commitment to social and environmental responsibility.
Flexibility and a conducive work environment that promotes work-life harmony.
Aligning EVP with organisational culture
To ensure your EVP and company culture are in sync, it is critical to engage with employees at every level, leveraging their insights to craft an EVP that is genuinely reflective of the lived experience. Empower your people to own the EVP and build it bottom up, put some parameters around it first if you feel you need to.
The risks of a disconnected EVP
A disjointed EVP, or a company that doesn't walk the walk of their EVP, can lead to a trust deficit and increased turnover. In an age where information is readily accessible on what it's really like to work somewhere, potential and existing employees can easily spot discrepancies between what is promised and what is practiced.
Involving employees in EVP development
Involving employees in shaping the EVP ensures it resonates authentically. This participatory approach leads to an EVP that is embraced and celebrated within the organisation. You can hear how Interaction and Mr B & Friends did this in practice in this webinar.
Evaluating the Impact of Your EVP
Progress in any area of the human deal at work can provide a 28% increase in employees who are likely to recommend the organisation by delivering deeper connections. An effective employee value proposition can help organisations reach 50% deeper into the labour market, decrease employee turnover by nearly 70% and increase new hire commitment by nearly 30% (Gartner, 2021).
Regularly revisiting and refining your EVP ensures it remains relevant and continues to serve as a powerful tool for business success.
Conclusion
An EVP is more than just a facet of your employer branding—it's a tangible reflection of your company's soul. By articulating an EVP that aligns with your values and culture, you create an environment where employees don't just work—they thrive. And when employees thrive, they become the best ambassadors for your brand, leading to a cycle of success that benefits everyone.
