Employee Value Proposition or EVP refers to the set of values and benefits employees receive in exchange for working for the company. Developing an excellent EVP is necessary for a business as it may help attract potential candidates and help with overall brand reputation. Let us learn more about EVP, why it is essential, and how to build one.
What is an Employee Value Proposition?
The term ‘Employee value proposition’ or EVP has been derived from the marketing term Unique Value Proposition. The term UVP is the value that suppliers provide to the customers. Similarly, EVP is the value that employers offer to their employees. One should note that EVP is not limited to financial value. The values that employers provide to employees should be unique.
Attracting the right talent is one of the biggest challenges that most organizations face. With excellent EVP value, you can exhibit to potential candidates the benefits they would get after joining the organization. Here are some of the other benefits associated with an excellent Employee Value Proposition.
- Enhances employment opportunities for a brand.
- Allows candidates to determine whether they are the right fit.
- Helps attract the right talent for the role.
- Presents a clear vision to the potential candidates.
Components of Employee Value Proposition
Gartner identified the five key components that form the basic foundation of the employee value proposition.
- Rewards – These may comprise perks such as time off, salary, and monetary benefits.
- Work – It may be related to helping employees maintain a healthy work-life balance.
- Organization: It is related to the company’s social mission and responsibility towards society.
- Opportunity: This may include career, personal development, and educational opportunities for the employees.
- People: It may refer to the company culture and fitness.
Read Also: 5 Key Insights on How to Treat Employees with Love
How to Create an Effective Employee Value Proposition?
There are multiple ways to understand and identify the expectations of the employees. Provide employees with a great organization to work in and see the difference it creates. You may conduct surveys to determine the behavior of the employees and make decisions accordingly.
Understand Your Reputation
The first step you should take toward determining your EVP is to analyze the current situation. Talk to the current employees about their existing perceptions and the things they do not like. You may consider asking the following questions and consider focus groups or conducting surveys to gather this information.
- What attracted you to join the organization?
- What makes our company system unique?
- What are the factors that will impact your stay in the organization?
- If you had to leave, what would be the reason?
- Are you satisfied with the current company culture?
- What are the changes you would like to implement?
Provide Financial + Additional Benefits
Employers need to understand that financial compensation is not the only benefit the employees expect. There are various other perks such as healthcare, medical, work-from-home facilities, flexible working, retirement plans, or other benefits such as paid leave or gym membership. Besides, companies can even plan special policies for maternal and paternal leaves. Every employee may have different perspectives, and you may even consider customizing the benefits. Be creative with the offerings and make sure the employees are satisfied. Keep evaluating and offering more performance-based compensation benefits to keep the employees motivated.
Training and Promotion Opportunities
Technical advancements and digital transformation are bringing new concepts every day. Companies have started designing opportunities that may help employees in progressing their careers. Take different learning and development initiatives so that the employees can utilize progressive learning within the organization. Check the new technologies and subjects that are trending. Encourage employees to take the course and enhance their learning. Provide the employees with the resources and materials they would require to complete the training.
Interview Your Past Employees
One of the effective ways to develop an Employee Value Proposition could be by interviewing past employees. You may take this as an opportunity to understand the challenges they were facing and what were the reasons they switched. Use the responses to understand the steps you can take to improve the employee experience in the organization further.
Read Also: What is Workplace Wellness?
Write Your Employee Proposition
You should determine the benefits and opportunities you would like to provide the employees. After that, you should start listing it down and writing the employee value proposition on a piece of paper. Make sure that your EVP is clear, unique, and in alignment with the needs of your employees. Having an EVP should not be your ultimate goal. Take further steps to improve employee value proposition using the right channels. Create pages and communities or make your existing employees the brand ambassadors to enhance the experience of the employees.
Review the EVP
Learning how to create an EVP is incomplete until you know how to review the results. Evaluation is one of the most critical tasks that may help determine how the talent is responding to the initiatives. Make sure you check all the metrics to better understand the approach taken by the employees. You may check the following metrics:
- The number increase in the applications
- The increase in response from the passive candidates
- Engagement in job-related posts or opportunities on social media handles
Keep reviewing the results and find out how to create a compelling employee value proposition for your organization.
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