No matter the size of your organization or the type of work you do, employee experience is more important than ever in today’s business landscape. According to Joblist’s most recent U.S. Job Market Trends Report, approximately two-thirds (67%) of employees plan to leave their current position within 12 months — with reasons such as flexibility, growth opportunities, and poor management driving the change.
If you’re seeking new strategies to retain your current employee base, attract top talent, and foster a culture of loyalty and dedication, an Employee Value Proposition, or EVP, could help. Let’s review what an EVP is, why they matter, and the essential components needed for an effective EVP.
An EVP, which stands for Employee Value Proposition, outlines the benefits, growth opportunities, and other offerings that contribute to employee experience. Your EVP also contextualizes your mission, vision, purpose, values, and culture and clarifies what this means to and for employees.
An Employee Value Proposition is not a marketing campaign. It is a promise to employees encompassing all aspects of the employee experience – and when done successfully, it delivers on that promise to employees. Essentially, your EVP exemplifies the compelling attributes of your employee experience and why someone would want to work for you, differentiates you from your competitors, and targets the talent needed to help you achieve your goals.
Although the concept can sometimes feel ambiguous and be hard for companies to pin down, EVPs can drive real, tangible results for organizations. Research from CEB and Towers Watson shows that organizations that effectively deliver on their EVPs:
Though you may hear the terms “Employee Value Proposition” and “Employer Brand” used interchangeably, these two pieces of your organizational strategy play different roles in your overall employee experience.
Think of your EVP as the “why” behind your organization that articulates the intangible attributes of an employee experience, or those elements that attract and retain best-in-class talent. In other words, why should employees choose to work — and continue to work — for your organization? What are the key differentiators that make you a better fit for potential candidates than your competitors?
Your Employer Brand, on the other hand, is the creative expression of your EVP and more broadly captures your organization’s identity, specifically as it relates to the employee experience.
If you focus on Employer Brand alone, it may struggle to have the impact desired until you focus on developing an effective Employee Value Proposition and deliver on that EVP through your employee experience. Next, we’ll look at the specific elements of an Employee Value Proposition that will make yours a success.
As you rethink your Employee Value Proposition, remember that — first and foremost — your EVP should present a compelling case for people to choose to work for your organization. Make sure your EVP is informed by and answers the following questions:
Once you’ve found the right answers, you can start thinking about the more tangible elements of your EVP, which should include:
Once you’ve clearly defined the elements of your EVP, it’s time to bring it to life in your organization. Here are a few tips on how to create an EVP that resonates with your people:
Still not sure how an Employee Value Proposition would work for your organization? Our infographic below breaks it down.
An Employee Value Proposition is a vital piece of your organizational strategy and an essential building block in your Employer Brand. Organizations that are prepared to build, live, and sustain a value proposition for employees position themselves to create environments that motivate their people, maximize productivity, and attract (and retain) the best talent.
Seeking more help with revitalizing your EVP approach? Our EVP eBook has the answers.