Employee engagement ·
The Complete Guide to Improving Your Employee Value Proposition
Job searchers devote a significant chunk of their time perfecting their resumes, building portfolios, and practicing interview questions—but let’s be realistic, the job market isn’t a one-way street. Companies also need solid employees to grow and flourish, just as much as candidates need jobs.
Yes, that’s right.
And this is where employee value proposition (EVP) comes into play. After all, a strong EVP can completely transform your company culture, employee growth, and the amount of top talent you attract. So, let's dive into everything important you need to know about EVP, starting with what it really is.
What Is Employee Value Proposition (EVP)
Employee Value Proposition is essentially the combination of rewards and perks that a firm can provide its employees. To put it simply, think of it as a contract between an employer and potential employees. What can your company and culture offer workers in exchange for their ability, skills, and experience?
It encompasses everything an employer should do to recruit and retain talent, which is pivotal to the success of any business, especially in today’s digitally connected world.
Example Of Employee Value Proposition
A great employee proposition includes programs and practices that today's workforce values the most. It should reflect your organization's culture and goals while also appealing to the candidates you wish to attract.
Now that you know EVP meaning, let’s look at some employee value proposition examples that are common in companies today.
This is the most common (and important) example of an employee value proposition. After all, money is the primary reason we go to work.
Transparency about salary, including bonuses and raises, can speed up the hiring process and ensure that your company is full of fairly compensated and hence, motivated employees.
Employee Recognition And Rewards
This is another type of EVP that some companies neglect but definitely shouldn't. Companies that prioritize employee recognition and employee rewards in return for their contributions can boost employee engagement and happiness. This type of EVP might include bonus plans, employee-of-the-month awards, and other recognition programs.
Employers who encourage work-life balance can help their staff feel more satisfied and engaged in their work. This EVP can include flexible work arrangements such as telecommuting or flexible schedules, as well as programs designed to help balance work and personal lives.
Investing in your team's career development benefits both them and your company. This is because if your team stays with your organization, the skills they develop will benefit you in the long run as they’ll be much more groomed to take on new challenges.
So, whether you provide education reimbursements or conduct in-house leadership development sessions, you should invest in such programs and make them known to prospective and current employees.
Companies that provide workers access to the latest technology and tools can also help them perform their jobs more effectively and stay competitive in the job market.
This type of employee value proposition might include providing the latest hardware and software, along with access to cutting-edge technologies.
Positive Work Environment
A pleasant work atmosphere is another example of EVP that goes beyond just a paycheck and is just as crucial to job seekers as monetary compensation. It involves creating a culture of open communication, encouraging collaboration, and promoting work-life balance.
Places that foster a positive, supportive, and inclusive workplace culture can improve employee engagement and retention. So, we’ve looked at what your EVP can include; let’s now delve into why it is so crucial.
Why Is A Strong Employee Value Proposition Important?
Developing a strong employee value proposition is essential for any business to succeed. Here are just a few reasons why:
To Reduce Employee Turnover
The best talent is much more likely to be attracted to and retained by companies that offer genuine value to their workforce.
Hard to believe?
Well, a 2018 Gartner report claims that companies that live up to their EVP may reduce annual employee turnover by almost 70% and boost new hire commitment by nearly 30%!
To Create A Diverse Work Environment
Diverse businesses can beat their less diverse counterparts in various key indicators, including overall performance, share price, profit, and innovation.
Needless to say, an effective employee value proposition that combines enticing perks with an inclusive work environment increases a company's chances of attracting diverse talent.
This will bring in more out-of-the-box ideas and lead to the long-term growth of your company.
To Enhance Your Company’s Reputation
A persuasive employee value proposition will improve your employer branding, enhancing the appeal of your workplace. Because, let’s be honest: everyone has, at some point, heard rumors about a company that may have a glitzy exterior but hides a terrible environment.
Consequently, you’d want everyone to have a fantastic experience at your company because employees (and customers) talk. Employees who are engaged, understand and value their company's EVP might be your finest brand ambassadors.
In fact, employee advocacy can be even more powerful than typical marketing efforts because most consumers trust referrals from friends and family more than formal advertising! Now that you know how crucial a good employee value proposition is, let's start talking about how you can create it.
How To Create A Strong EVP
To create a strong Employee Value Proposition (EVP), you can follow these steps:
1. Research Extensively
When it comes to establishing your company's EVP, your staff is the most useful resource. Nobody understands working for you better than they do.
You can start by obtaining data and insights on what employees appreciate and what they seek in an employer. Ask them their opinion on your company's unique selling qualities, and while you're at it, why not mention some areas for improvement?
You can do so using employee surveys, focus groups, and interviews with current employees, as well as market research in the following areas:
Compensation and benefits
2. Define Your Company Culture Clearly
Based on employee feedback, your next step should be clearly defining your company's mission, culture, and beliefs. If it isn't a true and accurate expression of your corporate culture, it won't be appealing to either prospective or existing employees.
So, carefully examine your company's core values and determine their overall alignment with the EVP characteristics you've established. This will help you develop a great employee value proposition that is consistent with your company's goals and wins over personnel who share those values.
3. Identify Your Unique Selling Points (USPs)
At the end of the day, your EVP is what distinguishes your firm from the competitors.
Ask yourself questions like what aspects of your business make it particularly likable to current and prospective employees? Is it because of the culture, the financial rewards, the prospects for promotion, or the excellent teamwork?
Dig deeper into your findings and objectively examine your company to determine which factors genuinely enhance the work experience. This could include competitive compensation and benefits, unique work-life balance programs, or innovative technology.
Look into new market trends and immediately try to fulfill any shortcomings that may deter any prospective talent from joining or already existing ones from leaving.
4. Develop Your EVP Strategy
After figuring out how your company differentiates itself from the competition, the next step is to craft a compelling employee value proposition statement. Make sure your EVP statement is clear, distinct, and inspiring. That is the only way top candidates will thoroughly grasp it and be attracted to your company.
Also, don’t forget to double-check that it is in line with everyone's expectations; connect the two important areas: what your company can offer and what your ideal applicant desires. Your golden spot—aka EVP—is where these two areas overlap.
To ensure harmony with your employer brand, don't hesitate to get creative and reach out to your marketing team.
5. Get Buy-In From Stakeholders
Your next step after developing your employee value proposition statement should be to engage with key stakeholders, such as HR professionals and top leadership, to get support for your EVP.
By doing so, you can ensure that it is aligned with your company's goals and values and is embraced by all employees.
6. Promote Your Employee Value Proposition Effectively
Once you've created a strong EVP, don't just mention it on your website's careers page. Push it! Make sure to communicate it successfully to current and potential employees. This could include employee onboarding, company websites, and social media.
Remember to be precise and straightforward while presenting your EVP and flaunting the perks current and potential talent can expect from your company.
7. Boost Your EVP With Recognition And Rewards
Even if you’ve followed all the above steps, don’t become complacent.
Instead, you should continuously evaluate and measure the impact of your employee value proposition regularly and make modifications as needed. This will help you stay ahead of the competition as well as hold on to great employees.
Among other things mentioned earlier, keep updating your recognition program in a way that acknowledges and rewards staff for their hard work and contributions to your company. Moreover, ask for feedback and tailor it to their specific needs and preferences, including lucrative opportunities for skill development and training.
With available positions outnumbering candidates in today’s remote-first world, it is more crucial than ever for businesses to draw in and retain the right people.
And for that, they need compelling Employee Value Propositions (EVPs). They must then communicate and validate the EVP both internally and externally to guarantee harmony with the overall brand direction and the company's business plan.
It's a tall order, but technology can help.
Visit Piggy today to enhance your employee value proposition!