Employee Value Proposition (EVP)
Employee Value Proposition (EVP) is a crucial part of the wider “employer branding” and “recruitment marketing” strategies of a business. It is a composition of the rewards, benefits, and compensation that an employee receives in return for the skills, experience, and work performance that they bring to the workplace. The central feature of a compelling EVP is its authenticity and uniqueness - it must be based on what is unique about your company and its culture, what separates you from the competition and should consist of reasons as to why your current employees like to work there and what motivates them.
In an increasingly candidate-driven market, it is crucial to remain competitive by strengthening your EVP. Based on the research done by Gartner, organisations can reduce their compensation premium by 50% and dive 50% deeper into the labour market when candidates find their EVP attractive. They also found that when businesses deliver on their EVP goals successfully, they can reduce annual employee turnover by 69%.
The Gartner report also suggests that the top 3 drivers for employee attraction and retention for the past 5 quarters have been - compensation, work-life balance and stability in the workplace. Amongst other factors, future career opportunities and development opportunities are also gaining importance for employees globally. These features are important aspects that businesses should remain aware of when defining their EVP propositions.
The key to creating the perfect EVP is to define the essence of your company in a way that is compelling to external candidates and the internal workforce. The first step towards creating a compelling EVP is - to understand the existing perceptions of your employees. The idea behind a company’s culture doesn’t come from the leadership alone but from the employees who live and breathe it everyday. To develop a strong EVP, you must understand why potential candidates want to work here, what do existing employees like about the workplace culture, what do they value most about their workplace, what makes them stay and what makes them leave. This information can be gained through employee surveys and feedback mechanisms, focus groups and exit interviews.
This information should be used to draw a realistic picture of your company culture and its strengths and weaknesses. While defining your EVP, you should try to include certain aspects - its uniqueness to your company, its inspirational and motivational value, its alignment with your strategic objectives and its ability to appeal to the target candidate groups.
Once your EVP is clearly mapped out, it's time to roll it out and test it. Your EVP should be communicated consistently through all the job postings, social media accounts, advertising and candidate interviews so that prospective talent can clearly understand if they would be a good fit within your company culture. It is also at this stage that EVP branding, public relations and recruitment marketing will become important. The way your EVP is marketed will also determine its reach into the “passive candidate pool”, how they view your company’s image and if they have a positive perception of the value in working for your company.
Source : Business 2 Community
Lastly, it is worth noting that several progressive organisations are shifting from an employee-centred value proposition to a human-centred value proposition which treats employees as people and not simply workers. Based on Gartner’s article, progress in the area of the human aspect of your EVP can provide benefits that include a 28% increase in employees recommending the organisation through their own personal connections and channels. After all, a company’s employees are its biggest source of advertising and for employees to act as your “brand ambassadors”, they need to see that the image the company is trying to sell externally is in fact a reality in the day-to-day activities they experience.
Savant has decades of experience and knowledge in the recruitment market, backed by market research and a strong pipeline of talent across a wide domain of industries. We instil our research and knowledge into our everyday lives and through our own EVP branding, diverse communication channels and long-term relationships, we attract some of the best talent in the market. Reach out to us at - technology@savantrecruitment.com for a free consultation.
