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:
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Employer brand is the impression candidates have of a company and what it would be like to work for that company.
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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:
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Improve the commitment of new hires by up to 29%.
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Reduce new hire compensation premiums by up to 50%.
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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:
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Helps you attract and retain talent you might otherwise lose to organisations with more attractive EVPs;
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Helps you appeal to people in different markets and tough-to-hire talent groups;
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Helps you re-engage a disenchanted workforce;
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Helps you understand what your HR priorities should be; and
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Helps you gain a reputation as a great place to work.
The EVP encompasses both reward elements and intangible benefits, such as:
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Various forms of pay and benefits;
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Learning and development programmes ;
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Flexible work arrangements;
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Wellness programmes;
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The offer of challenging and meaningful work;
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The opportunity for personal achievement;
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An appealing organizational culture;
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A sense of purpose; and
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A pride-inducing set of workplace values.