There are a lot of terms that employers should be aware of that play a role in attracting and retaining their best talent, including company culture and employer branding.
But another term that’s important for leaders to know is employee value proposition (EVP). This relates the rewards and benefits an employee will receive for their performance at work, but it goes beyond their basic salary. Of course, the money they’re paid every month is important, but in a world of talent shortages, employees want more value out of their jobs. A strong EVP is what will attract and retain top talent.
An EVP, or employee value proposition, is exactly that: The value of a particular workplace or role being proposed to an employee. Having a strong EVP means you are providing your employees with clear benefits and value that they will get for doing a good job in your organisation.
So, aside from financial compensation, your EVP is the unique offering you can give to your employees and can include flexible hours, remote working options, training and upskilling opportunities, KPI-related bonuses, mentorship and career progression. The best way to think about what your EVP is or what it could potentially be is to think about it from an employee’s perspective: “If I was coming to work here, what would I want from this company?”
Like we said, salary is important and paying your employees well for the work they do is the first basic key to attracting talent, but the best employees can most likely command that salary anywhere. Or worse still, they may be willing to take a drop for an EVP that is more valuable to them than what you’re offering.
While a decent offer is vital for getting top talent, a strong EVP is the main driver of talent attraction, engagement and retention. In fact, research from Gartner states that organisations that effectively deliver on their EVP can decrease annual employee turnover by almost 70%.
Employees want to be well looked after in return for the skills they’re bringing, and not just financially speaking. They want to see the potential career development, they want to see that if they bring a little extra to the job, come up with a new idea or work on a side project that will benefit the organisation, they will be rewarded.
With the latest figures from a recent Adare Human Resource Management report showing the cost or replacing an employee is now at €14,000, tools such as a good EVP are vital to retain the talent you have.
Your employee value proposition and what your employer brand says can seem very similar, but there is a vital difference.
Your employer brand is what your company is known for. It’s your company’s USP, it’s the message you use to appeal to both candidates and customers and sets you apart from your competitors as the best in the business.
Your EVP relates directly to the benefits you offer. So, while your employer brand might attract potential employees, it’s your strong employee value proposition which is going to make them realise that they want to work there.
However, while your brand and EVP are separate, they should also complement one another. For example, a major element of your culture and branding could be around fostering creativity, and this can absolutely come into the EVP. Think about how you encourage creativity and how you can offer it as a benefit your employees can enjoy.
You want a candidate to think “Not only are they clearly true to their brand of making a difference in the world, but they’re going to offer me a great benefits package, flexibility and work-life balance, and I’ll really get to progress my career. I really want to work there.”
When planning strategies around building, fixing or strengthening your EVP, you need to think about what your current employees need from you. Not sure? Ask them. The data you can gather from your employees is vital because no matter how much you think you know what they want, only they can really tell you. A good way to do this is to meet with your staff at all levels or survey them as part of a company culture audit, find out what works, what doesn’t and what could be improved.
Every company’s EVP is different because it is unique, relevant and compelling to its specific group of employees as well as their values. Think about what you want out of your employees. Your demanding a certain amount of skills, capabilities, so think about what you’re giving back to them in return? This is the question you need to ask to develop a powerful EVP and increase employee engagement.
Find out more about building an effective employer branding strategy here.
Want to learn more about how RECRUITERS can help your business? Check out our hiring solutions here.
Written with contributions from the RECRUITERS team
