As talent acquisition is getting increasingly competitive, recruiters are looking for new and effective ways to attract and retain the finest talent.
Times have changed, and companies need to portray themselves as capable employers to appeal to the best-skilled professionals, similar to how they approach customers.
That’s where creating an employee value proposition can profusely help you.
Travis Lindemoen, the Managing Director of Nexus IT Group, states, “the significance of EVP lies in the fact that it provides a full look into each position, ensuring that the post is appealing to the top talent.”
In this blog, we will discuss what EVP is, its key elements, and how to craft a compelling employee value proposition framework for your company.
What is an employee value proposition?
Employee value proposition (EVP) is defined as the way of employer branding where an organization markets itself to prospective talent by showing how the company will benefit them as an employer.
It is a promise you make to your employees in exchange for their commitment. EVP includes everything an employer does to attract the desired talents.
In simple words, EVP is the set of benefits you offer employees in return for the skills, experience, and qualities they bring to the position.
Examples of an employee value proposition
Creating a great employee value proposition is about examining your organization’s key strengths and what makes it an extraordinary workplace. Let us look at some employee value proposition examples from companies that are doing it the right way:
1. LinkedIn
LinkedIn’s slogan is #LinkedInLife, which sums up its EVP framework and employer brand tone.
It portrays that the company values a shared sense of belonging and focuses on maintaining a welcoming and inclusive environment for all its employees.
The benefits are diverse and include health, family, passion, must-haves, and extras. The company also offers paid shutdown at the end of each year, which is a week off for all workers.
2. Canva
As an online design and publishing tool, Canva’s mission is “empowering people to design anything and publish anywhere,” — which is an appealing aspect of their employee value proposition framework and calls in applicants with similar values.
They also narrate a gripping story of why it is so great to work for them on their ‘Why Canva?’ page.
Further, besides free lunch and breakfast prepared by in-house chefs, they offer free memberships to local fitness studios, clubs, sports, relocation benefits, etc.
3. Made Tech
Another notable employee value proposition is Made Tech, a UK-based digital, data, and technology services provider.
Their career page highlights a catchy header: “Use your skills to transform our society. Join a team with a purpose,” which reflects their mission and vision.
They also include testimonials representing an inclusive, supportive, and welcoming team culture. Moreover, their open source handbook stands to show their commitment to transparency.
Why is employee value proposition important?
Developing a compelling employee value proposition is critical to achieving corporate success. Here are a few instances of how a great EVP may help your organization.
Helps in reducing turnover
Organizations that offer genuine value to their employees are more likely to recruit and retain top talent. According to a recent Gartner analysis, companies that deliver on their EVP may reduce employee turnover by over 70% while increasing recruit commitment by nearly 30%.
Creates a welcoming workplace atmosphere
According to research, diverse businesses beat various competitors in various important indicators, including overall performance, share price, profit, and innovation. An EVP that combines enticing perks with fair and equitable pay and an inclusive work environment increases a company’s chances of recruiting diverse talent.
Utilizes employee advocacy
Employees that are engaged and understand and respect their company’s EVP might be your finest brand advocates. Employee advocacy can be even more effective than traditional marketing efforts. Employee support may significantly influence business performance, from increased social media messaging reach to excellent conversion rates.
Employee value proposition vs. employer brand: Know the difference
The main difference between employee value proposition and employer brand is that the former is an internal element while the latter is external.
The employer brand is how the company appears to the outside world as a potential employer. It includes several factors that affect a person’s perception while considering a company as a prospective employer.
On the other hand, EVP is what the company shows to its employees as an employer portrayal.
Employer brand is the creative and outward expression of a company’s EVP, whereas your EVP is more of a result of thorough preparation actively involving your employees via focus groups, surveys, interviews, etc.
Simply put, your EVP is the ‘why’ of your company, and your employer brand represents the ‘how’ and ‘what.’ However, while EVP and employer brands are not the same, there has to be a smooth alignment between them to build a successful business.
The components of employee value proposition:
A value proposition for employees is more than simply a marketing exercise. These campaigns look beyond salary to determine what employees require to be successful at work every day.
- Deeper connections: Organizations should help employees feel understood by developing ties to their families and communities, not simply their job relationships. Employees want to feel independent in their job; firms must give freedom in areas other than the “when” and “where” of employment.
- Personal development: Employees want to feel appreciated; they expect their employers to help them grow as individuals, not simply as professionals.
- Holistic well-being: Organizations should find ways to reassure employees that they are cared for by providing holistic well-being services such as mental health counseling.
- Shared purpose: Organizations with effective EVPs guarantee that individuals are invested in the organization, supporting significant action on societal and cultural concerns.
How do you create employee value proposition framework?
EVP can be the core of employer branding if done correctly. You need a framework built on employee feedback and actionable insights to build a compelling EVP. Apart from revealing the essence of the company’s mission and vision, EVP also incorporates many elements, and you do not want to miss them.
Follow the below steps to write a gripping EVP to attract the best candidates:
1. Set goals
Before creating your employee value proposition framework, determine what you want to achieve through it.
Be it better employee engagement, filling the pipeline with the most acceptable candidates, retaining them, or encouraging employee advocacy, you should clearly perceive what you are looking to accomplish through an EVP.
2. Understand what to include
Creating a compelling EVP framework depends on how well you understand what you must discuss in detail and where you need to be brief. Let’s start with what are the must-haves in an ideal EVP.
A great employee value proposition should reflect your organization’s unique culture and goals. But it must also incorporate the programs and practices that are most important to today’s employees. However, the practices and benefits you detail should align with what your company does.
For example, if you have a chain of pharmacies, focusing on health benefits and fitness opportunities will appeal to candidates with a genuine interest in the sector. If you run a tech company, offering candidates opportunities to innovate can make your EVP framework very effective.
As transparency is a must in an EVP, ensure that it is an extension of your business strategy and corporate brand and paints a clear picture for the prospects. Your employer value proposition strategy must include a clear narrative describing the organization’s employee recognition plan, career growth and innovation opportunities, employee wellness, benefits, etc.
Your employee value proposition framework needs to be holistic, but going overboard with it will hinder its effectiveness. One EVP describing everything to every candidate will not work. Focus on what job role you want to fill and only include what appeals to that audience. It also must be flexible enough to be validated with changing standards.
The employee value proposition framework should also be less aspirational and more factual. Exaggerated benefits and sugar-coated policies will not work for the long haul. Your company must be capable of backing up what you put in the EVP.
While salary and benefits are essential to incorporate, avoid focusing only on tangible benefits. Try to strike a balance by describing non-financial and cultural advantages, which will help your company to stand out among its competitors.
3. Understand your reputation
The best way to understand your reputation is to talk to your existing employees and ask for their opinions. Ask the important questions, such as:
- How do they feel about working with their coworkers in your company? What is the management like?
- What are their suggestions regarding the management practices in the company?
- What is their perception of senior leadership?
You need to employ surveys to take feedback from them before deciding on an employee value proposition framework. Analyzing the collected data would allow you to understand the existing perception and identify areas needing improvement. You may have to listen to some uncomfortable opinions, but it is the most effective way to gauge your reputation in the workforce.
4. Financial compensation
Salary and benefits are no longer the sole motivators for employee engagement, but they play a big part in crafting an employee value proposition framework. The financial element of EVP deals with every financial benefit of the employees.
Employee surveys help you with it. Try to know how satisfied employees are with their compensation, where your employee salary stands in your industry, whether it is fair, etc.
5. Additional benefits
Additional benefits in EVP show the other perks an organization offers employees besides the salary. These include healthcare, paid leave, work-from-home options, retirement planning, etc. You can provide health insurance, contribute towards retirement savings, offer additional paid leave, and gift coupons as an employer.
According to Peter Beeda, COO of FHA Lend, there is no strict constraint on designing an additional benefits package. So don’t be afraid to get creative with it. Focus on benefits that fit your culture.
You can also ask your existing employees about their preferences. It can give you a better perspective on how to create a one-of-a-kind EVP that shows you care about them and are willing to go the additional mile for them.
6. Career development
Reflecting on your company’s career development programs in your EVP is crucial, even if you are looking to fill entry-level job positions and hire freshers. A person looking for an entry-level job does not intend to run behind growth. They want stability and financial security (think Maslow’s hierarchy of needs).
Give them more than they expect to show your potency as an employer. Offer them learning and development initiatives relevant to their interests and fields. This gives them a chance to learn and progress within your organization. It can include training courses, leadership training, further education, internal mobility programs, job shadowing, etc.
Outline career paths that cover the freshers, the experienced employees, the management, and beyond.
7. Work environment
To attract the best talent, the importance of the work environment is not to be underestimated. Companies must enable a work environment that encourages employees to do their best.
The work environment as a part of your employer value proposition strategy includes work-life balance, company culture, flexibility, etc. Your EVP must detail how your company fosters a healthy work environment.
Mention initiatives that make you unique. It should depict what it is like to work in your office on average. A positive work environment contributes to employee experience, increases employee engagement and satisfaction, and reduces employee attrition rates.
8. Determine the key elements of your EVP
You will need to create many employee value proposition frameworks for different segments of jobs at your company. There will be one for entry-level positions, one for managers, a few for other professionals, etc.
Each EVP will have certain elements essential to its targeted audience. After thorough research, you will better understand each key element and can highlight them in your EVP as necessary.
9. Create your compelling EVP
After thoroughly researching what makes your organization unique from the competition, what different employee experiences you offer, etc., you can begin to design a strong employee value proposition.
Your employee value proposition framework needs to be clear, tailored, and appealing. The language should be easy and must not seem overwhelming.
The EVP framework needs to accommodate both leadership and employees’ expectations. That way, you will attract the finest talent to your organization and ultimately retain them.
10. Ensure alignment across all levels
Once you take care of all the key aspects, ensure a proper alignment across every element. No part should seem out of place or detached from the rest of the EVP, and all elements should have a united tone.
11. Highlight your EVP in employer brand videos
EVP is about creating a candidate experience that resonates with its core audience.
According to statistics, 70% of consumers prefer to learn about a new brand through watching videos over any other medium.
So instead of drafting EVPs, you can incorporate them in the employer brand video. It will give the audience an overview of the organization’s mission and vision, your company’s work culture, and your EVP. This can be done as part of the application process.
12. Monitor and optimize
To keep your employer value proposition strategy relevant, you must calculate evolving requirements and make changes accordingly. After constructing a well-planned EVP, take some time to test it among a small group of people and see if it works.
Share your first draft with your existing employees and ask for their opinions. Apply the feedback you gather from the test group as you work toward a final draft. After making the changes, you can move in to test the EVP with a small group of actual candidates.
Analyzing the feedback from the test run would show you how to optimize the EVP and ensure you can attract and retain the talent you need.
However, that requires you to keep an eye on your KPI to examine how your recruiting and retention efforts are working out. Focus on changes occurring right after implementing the new employee value proposition framework. Be it positive or negative; any significant change can provide insight into the impact of your EVP. Conduct regular research and frequently ask for feedback. That way, you will always have an updated EVP ready for use.
Asking for feedback should be at regular intervals, and the analyzed results should be accurate. There is no better way to collect employee opinions and maintain precision than running frequent pulse surveys and diving deep through sentiment analysis.
Leena AI’s automated employee surveys will ask your employees the right question at regular intervals, ensure maximum participation, and generate accurate reports via its sentiment analysis feature.
Employee value proposition template
While there is no one size fits all approach to creating an employee value proposition, you can use the following set of steps as a framework or template to get started with yours:
- At the top, write your company’s name and the date.
- The next step is to create a roadmap that details your target labor market, talent competitors, and HR and business strategies.
- Your ‘target labor market’ section should mention segment-specific variations. You can try using a chart.
- The talent competitors section should have a chart to examine the potential attributes of your core EVP for competitive differentiation.
- The business strategy section should include your company’s values, mission and vision, strategic business objectives, and business unit objectives.
- The HR strategy section should mention the focal points of your HR department, the challenges they face, and their solution-oriented approach.
Conclusion
According to Alex Mastin, CEO & founder of Home Grounds, “EVP is an excellent way of attracting the best talent to your company. It is a way of clearly communicating the values, principles, and ethos your company has”.
But to have long-lasting and positive results, you must keep your employees engaged, listen to them, and incorporate their needs.
Here accuracy is everything, be it a quantifiable or a qualifiable measure.
To assist you in this endeavor, Leena AI’s innovative HR solutions will provide you with comprehensive, quick, and efficient surveys and present you with best-in-class sentiment analysis of the collected data.
With its advanced system, you will have every data you need to create a compelling EVP and establish a positive employee brand. Moreover, the system goes beyond mere words and understands what your employees mean through their answers, enables constant optimization, and increases the odds of landing the best candidates.
