The employer value proposition (EVP) is a unique set of offerings, associations and values to positively influence target candidates and employees.
A company needs a unique employer offer. The EVP gives current and future employees a reason to work for an employer and reflects the company’s competitive advantage. Employers that manage their EVP effectively benefit from an increase in their talent pool and employee engagement. Typically, less attractive employers need to pay a wage premium to get top talent whereas attractive employers do not.
By analyzing the factors influencing the employer brand, and by defining a strong and true EVP, the employer will be able to deliver sound and consistent communications during the communication phase and develop an attractive, as well as unique, employer brand.
A strong employer brand that helps you create competitive advantage in the talent market begins with a well defined Employee Value Proposition (EVP). The two terms are often confused so let’s begin with a simple explanation for each:
- Employer brand is the impression candidates have of a company and what it would be like to work for that company.
- The employee value proposition defines the full array of elements a company delivers to employees in return for the contribution they make to the organization. It’s a deliberate construct of the underlying “offer” on which the organization’s employer brand is based.
According to research by the Corporate Leadership Council, a well thought through and executed EVP can:
- Improve the commitment of new hires by up to 29%.
- Reduce new hire compensation premiums by up to 50%.
- Increase the likelihood of employees acting as advocates from an average of 24% to 47%.
However, the value of an EVP goes way beyond cost and time savings, it also:
- Helps you attract and retain talent you might otherwise lose to organisations with more attractive EVPs;
- Helps you appeal to people in different markets and tough-to-hire talent groups;
- Helps you re-engage a disenchanted workforce;
- Helps you understand what your HR priorities should be; and
- Helps you gain a reputation as a great place to work.
The EVP encompasses both reward elements and intangible benefits, such as:
- Various forms of pay and benefits;
- Learning and development programmes ;
- Flexible work arrangements;
- Wellness programmes;
- The offer of challenging and meaningful work;
- The opportunity for personal achievement;
- An appealing organizational culture;
- A sense of purpose; and
- A pride-inducing set of workplace values.
What are the benefits of having an Employer Value Proposition?
The EVP provides attributes and themes to be used as a long-term foundation for your branding and creative work. It ensures that the communication and branding done by a company is consistent, unique, true and relevant to important target groups. Employers that develop their EVP successfully benefit from an increase in their talent pool and employee engagement.
The solution that the Bridging GAPS Employer Value Proposition delivers?
Our consulting team will guide you through a simple three phase process to understand your employer brand,decide your brand positioning and plan your communication.
We analyze market data to provide insights on how the employer value proposition should be developed. The diagram below illustrates the process and different steps needed to successfully position an employer brand.
The main strategic objective of any employer value proposition should be to create a consistent look and feel across channels and markets. In other words, it should encompass all communication and branding despite adaptations to global, regional, national, divisional or experience-based audiences. The employer value proposition should be distinctive, authentic, relevant and consistent.
Your EVP will help you retain your employees and you’ll spend less. Yes, being a great employer brand actually reduces your compensation expenses. Real Madrid (worth US$3.44 billion/squad value $820.57 million) has the best players on the planet, yet their wage bill is $290.4 million compared with the $300.4 million of Manchester United (worth $2.81 billion/squad value $484.5 million), based on Forbes’ list of the world’s most valuable soccer teams in 2014, Transfermarkt.com and TSMplug.com. Players are willing to accept lower pay in order to be part of a great team (EVP).
Process Adopted by Bridging GAPS to help you build your EVP
Step 1. Review and dissect your data. This might include employee engagement, onboarding or exit surveys and recruitment and retention metrics. Analyze all data by key employee populations to identify trends and key themes. Remember to look beyond the top line numbers; the real insights come from the verbatim comments of employees that provide context to the numbers.
Step 2. Discover and dive deeper. This step should include interviews with key stakeholders including senior management, HR, marketing and most importantly existing and target employees. External customer value propositions are often based on a “tell” approach, where a brand will define what it wants to stand for and then use marketing channels to deliver this brand promise. However, an EVP is an employee-centric approach informed by existing employees.
Step 3. Develop your EVP. Based on the research and insights from steps one and two; craft your value proposition as a simple overarching statement. This will become the essence of your employee experience and employer brand commitment. Clarify key areas of focus to support your EVP, such as career development, work-life balance or CSR. Remember to keep these areas focused and don’t try to be all things to all people. Test your EVP against your HR strategy. If your EVP does not support your HR strategy you need to revise it.
Step 4. Deliver your message. Implement your EVP across the employee experience from your recruitment processes, through to on-boarding, career development and even through the exit stage. Build in methods to measure the EVP, this will help you demonstrate the value of the EVP, return on investment and financial benefits to the organization.