An Employee Value Proposition (EVP) is the promise an employer makes to their employees in return for their commitment to the organization and the skills and contributions they bring to the table.
This promise consists of all the key components — such as benefits, perks and rewards — that each employee will receive from their employer in return for their dedicated service.
An EVP is a special arrangement between the employer and their employees and it sits at the core of every organization’s employer branding strategy. It clearly defines what a company stands for, and why it’s a unique and desirable place to work.
The Importance of an Employee Value Proposition (EVP)
In today’s challenging talent market, most employers have come to realize that the quality of their employees is their biggest competitive advantage. Employees are no longer seen as task doers or positions to be filled, but key stakeholders in the overall business strategy.
Keeping employees happy is just as important as keeping clients happy. Acquiring top talent depends on an employer’s ability to uphold a positive company culture.
Many employers are taking a strategic approach to defining and designing their EVP, understanding the essential role it plays in everything from recruiting to acquiring to attaining high-quality talent.
A solid EVP strategy requires a focused approach to creating competitive and engaging HR policies, benefits portfolios, talent development opportunities, employee engagement, company culture and more.
So, how do you go about strategizing and rolling out a winning EVP? Read on.
The Key Components of an Employee Value Proposition
The key components of an EVP can (and likely will) vary from organization to organization, but the ones listed below are among the most commonly used:
Compensation refers to the combination of an employee’s salary, bonuses, rewards and promotions. It represents their satisfaction with the overall evaluation and compensation process in the organization, including competitiveness, timeliness and fairness.
Benefits consist of the offerings and perks an employer provides and typically includes health insurance, paid time off (vacation, sick days, holidays, flex days, etc.), life insurance, dental and vision insurance, retirement planning, tuition and fitness reimbursement, disability benefits, student loan repayment plans and more.
This EVP component encompasses the wide range of factors that impact an employee’s career stability and enables professional development through training opportunities, education, networking, evaluation and feedback.
An employee’s work environment consists of several factors, from a healthy work-life balance to a clear understanding of their role in the organization, flexibility, positivity and productivity. Positive work environments also strive to provide employees with a sense of autonomy and have established methods of employee recognition and appreciation.
A winning company culture incorporates everything from positive relationships with coworkers to trust in managers and senior leaders, opportunities for collaboration, creativity and social engagement, team spirit, a sense of social responsibility and an overall feeling of support.
Defining Your Employee Value Proposition
Before your organization can roll out its one-of-a-kind EVP, it’s essential for it to be clearly defined. Here are a few steps you can take to nail things down:
1. Define Your Candidate PersonaA candidate persona is the identity or representation of your dream candidate. This is the talent you are trying to attract, hire and retain at your organization. To define this candidate persona, you need to sit down and list out what makes up your ideal hire:
- What skills do they possess?
- What characteristics and traits do they hold?
- What’s their work and education experience?
- What’s their geographic location?
- What’s their communication style?
- What’s their preferred work environment?
- What motivates them?
- What are their professional goals?
Successfully defining your candidate persona isn’t just about imagining who the perfect fit is for your job opening – it’s about who can add value to your company culture and team dynamics.
2. Take Inventory of Your Current Offerings
Circle back to the five key components of your EVP.
What are you currently offering employees in each bucket? Take inventory by asking for feedback from your existing workforce:
- What parts of your existing EVP do they appreciate the most?
- What motivates them on a daily basis?
- Which benefits and growth opportunities are the most helpful?
- What do they like about the company culture?
By knowing the aspects of your EVP that are retaining your current employees, you can better determine what will attract that “ideal talent” and how to tweak your EVP to do just that.
3. Segment Your EVP For Your Target Audience
Customizing your EVP is the key to using it successfully. In order to attract the candidate personas you already defined, you need to segment and personalize your EVP based on your target audience and the five components outlined above.
For example, if you’re trying to fill an entry-level position and want to attract recent college graduates, it might make sense to spotlight the career growth opportunities and student loan repayment benefits at your company.
Whereas, if you’re recruiting for mid-career positions, it could be wise to communicate parental leave benefits, life insurance policies or your company’s commitment to work-life balance.
Promoting Your Employee Value Proposition
Once you’ve clearly defined your Employee Value Proposition, the next step is promoting it to help attract your ideal candidates and boost your employer brand.
There are several different types of content you can deploy and communication channels you can use to help roll out your new EVP.
- Videos of your team/about your company (including video in a landing page can increase conversion by 80%)
- A relatable, authentic, engaging Careers page
- Employee testimonials
- Company blogs
- Social media spotlights (especially on LinkedIn and Facebook)
- Social media pages
- Career or recruiting sites
- Email campaigns
- Networking events
- Employee referrals
Your EVP is Essential to Your Brand
In an era where employees and candidates attach tremendous value to your organization’s reputation as an employer, it’s crucial to have an EVP and employer brand that resonates with the people you hope will join your team and stay.
An EVP is about more than just attracting new talent — it’s about that all-important promise you make to your employees. If you keep that promise, you’ll boost employee morale and engagement, enhance your company culture and turn your current employees into ambassadors for your brand.
And how you communicate your “why,” “what” and “how” is what keeps people knocking on your door… and staying awhile.