An effective Employee Value Proposition (EVP) will enable your organisation to stand out amongst the crowd as something different, something special, as an organisation that cares deeply about its employees. It ensures that your organisation’s processes and procedures are aligned in such a way that employees walk their talk and that everyone’s experience of your organisation (employees, customers, suppliers) matches what you say your organisation is about.
It is a common experience for people to join an organisation tempted by the branding and the ‘story’ told during the recruitment process, only to be extremely disappointed when they discover that the reality does not in any way match the story that’s been told.
What is an Employee Value Proposition and Why is it Important?
An Employee Value Proposition (EVP) is the commonly used statement that describes and outlines the characteristics, values, benefits and ways of working that an organisation offers or stands for.
The EVP is also an agreement made between an organisation and its employees in return for their contribution and performance. This agreement characterises an employer’s willingness and ability to create a workplace that provides an experience that sets it above and differentiates it from, its competition.
There are generally two main issues when it comes to an EVP
- Many organisations struggle to adequately differentiate themselves from their competition, especially during the recruitment process. Differentiation is crucial if an organisation is to stand out from the throng of homogeneity that is the norm in the marketplace.
- Many organisations have created branding that is appealing, but it does not accurately reflect the reality.
Benefits of Creating and Implementing an EVP
An effective EVP can bring an organisation significant benefits when it has been well developed and is impeccably executed:
- Increased retention of employees, particularly those considered to be top tier talent
- Increased likelihood of employees becoming advocates for your organisation
- Improved likelihood of your organisation attracting passive candidates
- Improved commitment from new hires
It is becoming increasingly important for organisations who want to secure the best talent in a challenging talent market, to ensure that they are able to clearly define and illustrate their EVP to potential employees.
You will know your EVP is on the mark when you have engaged and motivated employees who enjoy coming to work and feel that their values are aligned with the EVP of their workplace, and you have also become a magnet for talent.
Additional Benefits of creating an EVP
Enables you to attract and retain top tier talent
A clearly defined, executed and differentiated EVP ensures that you attract and retain people that you would inevitably lose to other organisations with more attractive EVPs.
Enables you to appeal to a broad range of market segments and difficult to hire talent pools
For organisations operating in a number of countries, or across multiple sectors, an EVP will need to be versatile and flexible. A good EVP contains elements that appeal to different groups of employees from different cultures, age groups and functions. The most successful EVPs are derived from combining the needs of key segments of the workforce to form a universally recognised brand which is then communicated through the most approrpriate channel/s.
Enables you to re-engage a disillusioned workforce
The process of creating an EVP requires taking the pulse of the organisation with existing employees. This is a very powerful engagement tool in and of itself. Employees will be grateful for the opportunity to participate and offer valued feedback. Being included in the process in an ongoing manner builds cohesion. This process can also help to re-build/enhance trust and increase motivation.
Enables you to prioritise your HR strategy and refocus attention on what really matters
The process of creating an EVP will make it very clear what your HR strategies need to be. The process will help you understand what is important to your employees and potential hires. Having this insight will mean that you understand the specifics of what is needed to attract, engage, retain and develop top tier talent. This is a fantastic process for assessing and finding out where the gaps are and what’s missing.
Ensures a strong ‘Human Era’ oriented brand
Organisations with EVPs that are lived in actions and words become more famous for the way they treat other humans and the quality of their people, than they are for their products and services. The Human Era report is filled with brands that are at the top of their game in living their EVP - Apple and Virgin are the most well known examples.
Stay tuned for Part two of this Blog, which will outline the key ingredients for creating a successful Employee Value Proposition.
If you missed the last couple of posts about the importance of values in The Human Era, you can read them here:
You can also download our free Values Based Recruitment White Paper below.