November 07, 2022
Employee Value Proposition- What is it and why is it important
Become the most attractive employer by offering the most compelling EVP, and stick to your word. Business will bloom, and employees happy- it's a win-win!
Do you have an Employee Value Proposition? If not, what are you waiting for? It can help you a lot along with the Employer Brand in attracting and retaining talent. But let’s see what each represents and how they complement each other. There are a bunch of various definitions of what an EVP is but it all comes to this: combination of financial and non-financial rewards and benefits that you as an employer give your employees for their commitment and hard work. It’s more of an internal promise, while the Employer Brand is an external image of it. The EB is the face you show to attract potential employees. One does not go without the other, and of course, one must reflect the other.
Why is the EVP so important?
Attracting and attaining talent has become a scavenger hunt. The environment has become overly turbulent and sometimes hostile that you want to do everything that is in your power to set yourself apart from your competition. This means providing different compensation packages, perks and benefits for your employees. Giving them an extra reason to stay and at the same time motivating them to do a good job. Top reasons for creating an EVP are: • Better employer brand • Attracting and retaining talent • Building a stronger culture • Improving employee experience • Improving your overall business When you put it like that- it is obvious why any business should have an EVP. It doesn’t take much time nor effort, and can make a big difference for your business. For starters, you need to figure out where you are standing now. What are you offering to your employees as your gratitude for their job well done? Then do a survey with your existing and past employees to figure out which key elements they value most. Everyone is different, so it will give you a lot of valuable insight into all the different possibilities of your EVP. After defining your key elements, all you need to do is write the EVP and promote it. It has to be in line with your company’s goals, values, mission and vision. Or in other words, you should be able to reflect your values through the EVP. After some time see the results you’ve accomplished, and see if you need to improve it. The EVP is something that should reflect your company’s culture and as the culture changes so should the EVP.
These are the 5 key points you should focus on when creating your EVP:
In terms of financial offering, how do you distinguish yourself? What are the salaries you offer, bonuses, stock options? Do you have compensation packages? To most people money is the #1 factor when considering a job, so besides basic salary information, other financial reward could also be include.
Benefits are all the perks that come with a job. And there are plenty of examples: gym memberships, company-sponsored holidays, more holiday days, flexible hours, paid leave, parental leave, medical leave, remote working, health insurance, pension plans and so on. Sometimes if you cannot match your competitor’s salary, you can offer some of these benefits and end up the better employer. So it’s not all about money.
3. Career development and stability
Job seekers want to know that they won’t be stuck in one position with no other opportunity for advancement or development and growth. Including various in-house training as well as sponsored courses and certification programs will only add value. Opportunity for promotions and working with mentors and coaches are all options you have that you can incorporate in your EVP.
4. Work environment
A positive work environment with a positive culture works wonders for any organization. This key aspect of the EVP refers to the well-being of your employees, the work-life balance, their autonomy and flexibility a job can offer. If you look at the stats, 49% of employees would quit their job if they had to go back working from the office full-time. This says a lot about non-monetary factors that employees value a lot in a job.
5. Culture and respect
We are social beings that operate and live within certain communities and form bonds. Besides having a loving and supporting family, a positive work environment with a positive culture to back it up plays a big role in an employee’s well-being. This key should reflect all the positive relations, support and team spirit. Culture plays a huge role in a company’s image and a deciding factor for 46% of job seekers when considering a job. EVP is employee-centered approach. Rewarding and acknowledging your employees for all the good work they’ve done, and providing them with the right environment which will support their growth and wellbeing is something that will certainly make your organization stand out amongst job seekers. Having fair and equal compensation and rewarding systems boost inclusion, and that in return attracts diverse talent to your organization. The benefits of an Employee Value Proposition are obvious. You just have to make sure that you are true to your word, but the retention rate will say that for you. If your employees are happy, they will stay. Giving back to your employees and community will benefit your business, not only boost its image as the good guy. Without the people, no strategy nor technology is enough to accomplish something. There are plenty of HR strategies and different aspects to attracting and retaining talent as well as managing an employees’ lifecycle. Your business is facing daily obstacles and challenges, and VanillaHR is here to provide you with all helpful tips and advice as well as provide you with the tools you need in your hiring process. Partner up with us and shortly you will see all the benefits we have in store for you!