If your firm wants to stand out in the talent market in 2022, it must offer something different—and do so in a way that is understandable to your (possible) applicants. When it comes to vying for top talent in the coming year, creating a fantastic employee value proposition is critical to gaining a competitive advantage and standing out from the crowd. This article will provide you with all of the information you need to create a good employee value proposition and why it is vital.
You may not even know what an employee value proposition” is, or you may believe it is not a priority for your organization. However, it is critical to comprehend this notion and its significance.
Definition of Employee Value Proposition (EVP)
A company often creates an EVP to give a uniform platform for employer branding and experience management. EVP draws job hopefuls like a magnet.
Employee Value Proposition (EVP) is defined by Minchington (2005) as a collection of associations and offerings supplied by a company in exchange for the skills, competencies, and experiences that employee provides to the business.
Because it was informed by current workers and the external target audience, the EVP is an employee-centered strategy consistent with existing, integrated workforce planning techniques. If an EVP is a primary driver of talent acquisition, engagement, and retention, it must be original, relevant, and engaging.
What is the purpose of an employee value proposition?
Your employee value proposition serves as the foundation for your employer’s brand. It assists you in developing internal and external perceptions of your brand and attracting and retaining talent for your firm.
Your EVP is also a means to distinguish yourself from the competition by appealing to your applicants’ values, beliefs, needs, and desires.
Creating and adhering to a great EVP may help you expand your organization and build the perception and recruit talent, companies cannot develop unless they have capable personnel to operate them.
When you can recruit and keep the correct personnel, you will be able to enhance your business and, as a result, your Company’s bottom line.
Employee Value Proposition is Critical (EVP)
Because acquiring top personnel is more complex than ever, consistent and effective communication of the Employee Value Proposition (EVP) has become critical.
Many recruiters and other HR professionals have developed ways of promoting their EVP and Employer Brand to existing and prospective applicants.
Inbound Recruiting is a relatively new way for quicker and more effective distribution of these employer communications. Recruitment Marketing encompasses the entire notion of employing marketing methodologies to attract and hire.
Recruitment Marketing procedures are often carried out using Recruitment Marketing tools and software, making the entire process simpler and more productive.
These technologies simplify communicating the Employee Value Proposition to prospects via engaging career sites, automated email campaigns, social recruitment, and various other channels. Recruiters may boost Candidate Engagement and improve the overall Candidate Experience in this manner.
The image above is an excellent illustration of how one of the world’s most well-known game developers, Nanobit, one of our clients, conveys their Employer Brand and Employee Value Proposition.
Related: Top 15 Employee Communication Apps That Will Help You
What exactly is the distinction between your EVP and your Employer Brand?
Simply put, your Employee Value Proposition is internally focused, whereas your Employer Brand is externally focused. Your Employer Brand is the public face of your organization as a potential employer. It’s the total of all the various things people imagine when asked what it’s like to work for Company X or Y. Your EVP, on the other hand, is the public face of your organization.
The 5 Most Important Elements of an Employee Value Proposition
An excellent Employee Value Proposition is made up of several components. These characteristics, when combined, affect how your workers and recruits perceive your firm as an employer. According to Gartner, the five essential parts of an Employee Value Proposition are as follows:
- Compensation
- Work-life integration
- Stability
- Location
- Respect
1. Compensation
This feature, often known as compensation and benefits, comprises your employees’ wage satisfaction and extra rewards like bonuses and factors such as your assessment system. One of the seven HR best practices is fair and performance-based remuneration.
Naturally, this is where your learning and development efforts come into play, as well as possible mentoring/coaching initiatives you’ve developed within the organization.
Surprisingly, remuneration may not be equally valuable to everybody. There are generational disparities in the workforce, with younger generations, for example, placing a higher value on growth than older generations.
- Work-life integration
This is all about the advantages. Consider everything from paid time off and vacations to flextime and retirement plans.
Flexible hours, the ability to work from home, vacation time, and paid parental leave are among the advantages employees cherish the most. However, there is no such thing as a one-size-fits-all benefit formula. New parents are likely to value different gifts than graduates, so attempt to tailor your offer whenever feasible.
- Stability
Stability in the sense of professional strength, the opportunity for your staff to advance their careers, develop themselves, and employee training.
- Location
This component entails far more than just the location of your office. Consider its place in the broadest sense: a favorable work environment, a certain degree of autonomy, work-life balance, and so on.
In reality, the location factor significantly impacts the employee experience, related to three environments: technology, physical space, and culture.
- Respect
Respect entails, among other things, healthy connections, support, and team spirit. It’s about your corporate culture, what your organization’s underlying values and beliefs are, rather than merely respect.
Examples of Employee Value Proposition
- &pizza
&pizza is a fast-casual pizza restaurant brand in the United States with outlets around the Northeast. Customers are sold distinctive oblong-shaped pizzas at the restaurant, while the staff is given a unique “No Ceiling” policy.
&pizza has a unique EVP since it is so distinctive and helps the firm stand out from the crowd. Career advancement is typically limited in the food sector, which is undoubtedly contributing to the high turnover rates that many restaurant companies endure.
- Yelp
Yelp is a business directory and review site that is crowd-sourced. Using their evaluation system, the organization takes a unique approach by emphasizing “five-star” career options, benefits, and offices for staff.
Yelp’s EVP is excellent since the firm has a culture that fosters a strong feeling of community. Employees are adequately cared for and supplied with the resources they require to succeed.
- Canva
Canva is an Australian-based website that provides a more straightforward graphic creation tool. Employees receive many unique advantages, such as breakfast and lunch made by in-house chefs, free gym memberships, and a relocation fund.
- Bain & Company
Bain & Company is one of the most prominent management consulting firms globally. The firm is ranked first on Glassdoor’s Best Places to Work list and is a recognized leader in cooperation.
Bain & Company’s double-digit growth over the last 26 years has not interfered with its commitment to being a great workplace. The company knows that employee engagement and commitment are essential for productivity, which positively impacts financial performance. It also works with top talent in the market so creating an attractive culture is key to attracting and retaining some of the brightest minds in the business world.
Conclusion
Your employee value proposition is a valuable tool that may assist you in attracting and retaining top employees. You can enhance your workforce and raise your chances of success if you understand what it is and how to build a great one.
