Developing a great EVP is essential to attracting the right people to the company and in building brand awareness.
An Employee Value Proposition (EVP) is the set of associations and offerings provided by an organization in return for the skills, capabilities, and experiences an employee brings in return. It is an unwritten contract between the employer and employee, which outlines what the business is going to do to not only attract the best talent but also keep them and turn them into brand ambassadors. Developing a great EVP is essential to attracting the right people to the company and in building brand awareness. It is more than just financial remuneration; it is about the benefits offered, such as work-life balance, career development opportunities, positive work environment, and corporate culture.
Use It, or Lose It: The Critical Need for an EVP
Developing and nurturing an EVP is essential to both retaining your existing employees and attracting potential new hires. A recent Gallup poll found that only 12% of employees leave their jobs because of higher wages, while employers believed that it was 82%. This indicates that a company's ability to offer more than financial rewards is essential in an EVP. Without a well-defined Proposition, you risk losing top talent to competitors who have a better-defined system.
We know how challenging it is to attract the right employees who fit your culture and values. The situation is compounded by the scarcity of talent in the job market, making it crucial to retain existing employees, in addition to recruiting new ones. A clear and consistent communication of your EVP is crucial in enhancing your brand and employment opportunities. The absence of it can lead to employee disengagement, high turnover rates, and low productivity, resulting in a significant impact on your capital.
Considering the core elements of your EVP is paramount to create a robust plan that resonates with top prospects. A well-defined Proposition helps in building a positive work environment, promotes employee engagement and motivation, and enhances employee retention. The following case study by Linda Le Phan illustrates how the failure to implement an EVP has resulted in a surge of resignations among employees, adding to the already difficult post-pandemic season, and making it almost impossible for HR to manage.
“To EVP or Not to EVP?" It Shouldn’t Be a Question!
In today's challenging job market, effective EVP strategies have become increasingly crucial for businesses struggling to recruit the right candidates. A clear and consistent program can communicate the benefits of working for your company, making it easier to attract top talent and ensuring a good fit. Furthermore, a robust EVP can enhance your brand and make it more attractive to potential employees, without any active recruitment.
Significance on Work Environment and Company Culture
A well-designed Proposition creates myriad impacts on your ability to attract and retain blue-chippers, and the following elements are crucial:
Compensation: While not everyone is motivated by dollars and cents, a structured compensation system that reflects the role and financial compensation offered is essential. This can include types of recognition like bonuses, share option schemes, raises, promotions, fairness, and evaluation systems.
Benefits: A customized benefits package that aligns with the industry can be an effective way to compete with other companies and demonstrate flexibility. Among the options are a pension plan, health insurance, paid leave, and company-sponsored holidays.
Career Development Opportunities: Providing opportunities for career growth and development can be a key reason why employees stay with your organization. A few examples are training programs, promotion paths, opportunities to work in other locations or departments, and possibilities to learn new qualifications.
Work Environment: Creating a positive work environment that makes it easier for employees to perform and gives them a sense of purpose can improve engagement and motivation. There are many components to consider, such as office design, location and commuting, work-life balance, well-being, management interaction, autonomy, personal achievements, and recognition for their work.
Company Culture: Your environment can be a significant factor in attracting and retaining employees. Listed among these are company values, diversity, support for existing staff, socializing opportunities, collaboration and team spirit, and trust.
Unlock Your Full Potential: Let’s Create Your EVP
Scope out what your company currently offers
Collate feedback from employees (past and present)
Identify and define the key points to include in the EVP
Compare and evaluate it
Communicate it via relevant channels
Assess responses to your plan
To effectively implement the above steps, make sure to tailor your Proposition to target candidates and align with what the company can offer vs. what the ideal candidate wants. To stay current and fluid, you should also assess the quality of applications, candidate fit, engagement on social media channels, employee churn, and applications from prospects to determine the success of your plan.
The competition for finding top talent is growing increasingly difficult, and having a strong Employee Value Proposition can help you stand out from the rest. An EVP helps develop a business brand and addresses the question of what makes you attractive to work for, making it easier to fulfill the needs of ideal candidates.
Want to learn more on the EVP process? Make sure to check out next week’s podcast that will go more in-depth on this topic, and where we discuss the latest recruitment, development, and employee retention tips.