If you’ve never heard the term “Employee Value Proposition,” chances are your company doesn’t have one. This might not seem like a big deal – after all, you aren’t missing what you don’t know about, right?
An Employee Value Proposition (EVP) is extremely important. Defined as the unique statement of the benefits which a company offers their employees in return for their skills and experience, an EVP might mean the difference between candidates choosing your company over your competitor’s, staying engaged and productive or losing interest, or even looking for another job after spending only a few weeks at your company.
A good EVP lists any factors that make an employee happy and willing to contribute to the best of their ability. It usually describes the company’s values and culture, its dedication to clients and community, and employees’ opportunities for progression. Not only can your EVP entice new hires to accept job offers and help ensure they stay, it is also an important means of keeping employees engaged and motivated to perform to their full potential.
Let’s dive deeper into the three major areas in which having an EVP can make a world of difference.
- Talent Acquisition
Anyone who is serious about making a career out of a job opportunity (and anyone an employer will want to hire) will perform research on a company. Those highly qualified and sought-after employees will likely get more than one offer. So, other than compensation and benefits, what will tip the odds in your favor?
A good EVP will differentiate your offer from that of other employers, making your company the more desirable option. If you develop a value proposition that is unique and demonstrates exactly how your company values its employees and encourages long-term commitment, the candidate will be more likely to relate to what your company is trying to accomplish and gain a sense of importance and belonging before ever walking through the door. Then, your offer will far outweigh that of your competitor’s.
- Employee Engagement
The EVP does not stop at the door when the candidate accepts your job offer and enters the building on their first day of employment. Your EVP is also very important when it comes to employee engagement. Famous for being one of the major challenges of any business, employee engagement is pivotal in a business’ success. And, according to this article in Forbes Magazine, a good EVP very well may be the fix that employee engagement needs.
Let’s think about this for a moment. What drives employee engagement? Sure, the employee should be partially responsible for remaining interested and productive in their daily responsibilities, but the burden ultimately lies on the employer to ensure the employee has a positive, healthy, and beneficial working environment. Therefore, when developing an EVP, the company must research topics related to employee engagement. These may include: communication and transparency, work environment, management style, flexibility, work-life balance, employee satisfaction, overall happiness, etc. If these are all considered and the company follows through in developing a solid EVP, that organization will become a noticeably better place to work; therefore driving engagement.
- Retention Policy
In addition to recruitment and engagement, retention is the final area in which the EVP is monumentally important. For this area; however, it is not so much what the EVP says that is important; rather it is how the EVP comes to reality. As the old saying goes, “actions speak louder than words” and having empty words that do not hold true in the workplace is useless.
For example, if a company’s EVP reads, “We strive to be the company our employees love. We invest in our people and provide continuous training and development opportunities to ensure long-term happiness,” but the company does not, in fact, offer any training and its most senior employee has only been there for a few months, obviously new employees will quickly catch on that the EVP is simply malarkey. Then, the likelihood of an employee sticking around once discovering that the very thing that drew them to the company in the first place is not reality is slim to none.
Identifying the unique ideas that demonstrate the organization’s commitment to employee growth, training and development, ongoing employee recognition, work-life balance, etc., your EVP should list the main reasons why your employees will choose to commit themselves to your organization… for a substantial amount of time.
Now, you might be saying, “Let’s hurry up and create an EVP!” That’s great! But keep in mind that a true EVP must be relevant, compelling, and consistent in order to be successful. You can’t just put words on a piece of paper for the sake of saying you have an EVP. Your EVP is a living statement that must be acted out in the everyday occurrences of your business. Your employees should be able to confirm the statement is true and validate it to others.
Creating and maintaining a successful EVP will take time, research, and testing, but ultimately, it is more than worth the effort in order to attract, engage, and retain top talent.