EVP – Employee Value Proposition
What is an Employee Value Proposition (EVP)?
An Employee Value Proposition (EVP), is the sum of all the things an employer offers to attract or retain talent. It’s more than just the ‘typical’ benefits of an opportunity such as salary, bonus, perks etc. It encompasses the culture, the work environment and what it’s like to work for your company.
What makes a great EVP?
Whatever you decide to offer, your EVP must deliver value to the employee – it’s in the name; Employee Value Proposition. It helps to attract new talent and retain existing talent.
A great Employee Value Proposition must reflect what it’s like to work for you. It has to be authentic – employees will quickly figure out if you don’t practice what you preach. They now expect real flexibility – putting the onus on businesses to offer solutions like remote or hybrid-working for their staff. Hours, holidays and healthcare also contribute to a great EVP. Hours are a hot topic currently – in the UK and a number of other countries, one of the biggest ever trials of a 4-day working week is currently taking place. The reasons for doing so have been listed as a potential increase in productivity, more free time for employees and improved quality of life.
Since the beginning of the pandemic, companies have started to recognise that workers now value the quality of life more. They will no longer tolerate long hours or inflexible work patterns. Employees want more free time and the flexibility to perform normal daily tasks that might fall within typical ‘work hours’. This affords people the time to do the school run, attend health appointments and many other necessary tasks.
A lack of flexibility and free time contributed to ‘The Great Resignation‘. Employees left their positions in significant numbers, leading to a record number of vacancies and businesses scrambling to find new ways of attracting talent. Companies that offered a better quality of life – more flexibility, hybrid/remote work options, shorter hours etc. found that people were happy to switch jobs and work for them. Companies that didn’t make changes, lost staff and are now having to change things to adapt to this new age of working.
How often does an EVP need refreshing?
There are no ‘set rules’ when it comes to how often you refresh your Employee Value Proposition. EVP is a human thing and therefore, needs to be monitored constantly. If staff are leaving, or you’re finding it difficult to make new hires, rejuvenating your EVP may help. Following ‘The Great Resignation’, people are more open to career moves, so it’s more important than ever to ensure you have an offering that helps retain staff.
What do I need in my Employee Value Proposition?
Your EVP, as previously mentioned, needs to be authentic – it must show what is attractive about working for your company. What can you offer outside of the salary, bonus and perks? What type of work arrangement do you offer? Remote, office-based or hybrid? Can people choose from all three? Are there set hours, or is this also flexible? How do you ensure that staff want to stay with the business? These are the types of question you need to ask when crafting your Employee Value Proposition.
How your company is currently perceived? What do people value about working for you? Why are people attracted to your business? Knowing these things can provide a solid ground on which to build your EVP.
Ideally speaking, you should include as much information as you can, as a result, candidates will have a more thorough understanding of what it’s like to work for you. Don’t think you have to be the same as other companies though, your individuality could be something that attracts employees. Everyone is different, and some will fit better into your business than others. This is why adding as much detail as possible can help you. It acts as a sort of filtering device – for example, some people may prefer a more office-based setup, in which case, a primarily remote-working team is unlikely to be suitable for them. Being aware of the main work policies prior to applying or having interviews, can save time, effort and resource from both sides.
How will having a great EVP improve talent attraction and retention?
A great working environment, a supportive team and career progression can be as important as a handsome remuneration package to many people. By ensuring your EVP is attractive in many ways, employees are more likely to want to stay and you’ll be desirable to those seeking employment.
A knock-on effect of having a great Employee Value Proposition is that it feeds into your Employer Brand. If you have a happy and engaged team, they will advocate your company to others. They may share social or web content which highlights the positives of working for the business and subsequently, your following could grow, you could have a more engaged audience and more applications for vacancies.
Something to note with any EVP, is that it’s imperative to communicate it well to your team. The offering is one thing, but ensuring employees understand and make the most of everything on offer can make or break the proposition. If employees don’t fully understand it, they may not be enjoying the benefits and therefore, are unlikely to be getting the same value as those that do.