A company's Employee Value Proposition (EVP) is a tool to attract the skills and talent it needs and to retain them. Crucial to retaining talent in a competitive labour market is the way a company markets itself to potential talent. A company's values and culture are promoted through its corporate values, and compensation as the sole motive for working for the company takes a back seat. When done right, employee-focused strategies lead to a more engaged, satisfied and productive workforce - and at a lower cost. In addition to improving the company's reputation, it can also improve consumers' perception of the company.
In short, EVP is a powerful magnet that attracts candidates and creates a win-win situation for all. In this article, we show what matters, how others do it and why EVP is so important as well as sustainable.
What are the elements of a great Employee Value Proposition?
So let's not waste time and get right down to the nitty-gritty. There are certainly other aspects, but from our point of view, these are the five most relevant elements of an EPP.
Material benefits: Even though EVP looks beyond salary, this and other material benefits are a fundamental building block. This includes traditional benefits such as salary, health insurance, pension and other financial incentives. These benefits are important to workers because they provide security and stability. This is because security is low on the pyramid of needs.
Intangible benefits: The non-financial benefits that workers receive. These include, for example, flexible working hours, work-life balance, career advancement and development opportunities, a positive and inclusive work environment, and recognition and rewards for good performance. For employees, these benefits are important as they help them achieve a sense of fulfilment and personal development.
Emotional benefits: These are intangible benefits that appeal to employees' feelings and values. They include a sense of purpose, alignment with the company's values and a sense of belonging to a community. Especially in the post-covid world, the sense of community has been greatly lost. As emotional beings, employees feel valued and engaged in their work.
Alignment with the company culture: Furthermore, a good EVP should be aligned with the company's mission, vision and values. This ensures that the EVP is authentic and credible and that it reflects the company's culture and priorities. A strong corporate culture is the quintessence of any successful organisation.
Continuous Improvement: A great EVP should be regularly evaluated and improved to ensure that it remains relevant and effective. This requires ongoing research and feedback from employees and candidates (in their Candidate Journey), as well as a commitment to staying up-to-date with trends and changes in the job market.
By incorporating these elements into their EVP, companies can attract top talent, retain current employees, and build a strong employer brand that reflects their values and culture.
Inspiring examples of Employee Value Propositions
Let's now take a look at some successful examples of the Employee Value Proposition that you can use as inspiration for your own interpretation.
HubSpot – “Your best work starts here”
The inbound marketing platform Hubspot pays a variety of benefits, including unlimited holiday, remote work, a five-year sabbatical, parental leave and more, which can be found on the benefits page. The underlying promise of HubSpot's EVP is a work/life balance that helps employees be the best version of themselves.
Gartner – "live well - in all aspects of your life”
Gartner is a global corporation and market research firm committed to diversity and building the skills of its professionals. EVP means five things to them: challenging work, talented people, unlimited growth, community impact and high rewards. Benefits offered by Gartner include share purchase plans, advice for professionals, telemedicine and family leave.
Airbnb – “Create a world where anyone can belong anywhere”
The mission of creating a world where anyone can belong anywhere is supported by four core values that determine what it's like to work at Airbnb. These values champion inclusivity, caring, support, and innovation. Their EVP example fits in with the travel community of guests and hosts that the platform helps to build. As well, Airbnb offers a variety of travel-friendly perks, such as an annual travel credit and paid volunteer time.
Shopify – "Strong values and purpose, empathetic leadership, and a place where all people feel they belong"
A diverse and inclusive culture where team members can make a real impact is what the platform Shopify believes in. It is a very people-first culture that allows employees to work virtually anywhere, focusing on core hours rather than commuting hours. When employees are at their best, they can work in an environment that inspires motivation. It provides employees with an internet allowance to work remotely and numerous learning opportunities both within and outside the company.
Nike – "Win as a team"
Nike's "Win as a team" attitude is shown in the company's benefits and life at Nike. Nike’s culture encourages innovation in the field of sports with a team mentality. It looks at benefits and compensation the same way. There are fitness discounts, relocation benefits, competitive pay and retirement plans and advanced learning opportunities offered by the company.
What are some ways to create a strong Employee Value Proposition?
Developing a strong Employee Value Proposition (EVP) requires strategic planning, an understanding of current market trends as well as about oneself as an organisation. Therefore, companies should assess the competition to understand what they are doing right and where there is room for improvement. They should then also analyse their own strengths and weaknesses to identify areas where EVP can be improved.
Once an organisation has a better understanding of the competitive situation, it should use this information to develop an effective EPP. They need to clearly promote their mission, values and goals to potential candidates. They should also offer competitive salaries, benefits and other perks that make them an attractive employer. This is certainly not easy for any organisation. But it pays off in the long run to pass on a little more of the profits.
Training opportunities encourage employees to stay with the company for a long time. And usually creates the feeling of giving something (more) back. Creating a pleasant and positive working environment encourages cooperation and innovation and strengthens the most important link: the corporate culture.
Last but not least, companies should market their EVPs effectively. This can be done through job postings, social media campaigns, recruitment videos or other creative methods. Every company should strive to send a convincing and attractive message to the right candidates.
Benefits of a strong Employee Value Proposition
Needless to say that a powerful Employee Value Proposition promises a variety of positive impacts for an organisation:
- Attracts top talent to the company
- Helps to retain current employees and reduce turnover rates
- Enhances employee engagement and job satisfaction
- Increases productivity and performance among employees
- Supports the company's brand reputation and image
- Provides a competitive advantage in the job market
- Improves the company's ability to achieve business goals and objectives
- Reduces recruitment and training costs for new employees
- Promotes a positive and inclusive workplace culture
- Increases the likelihood of employees recommending the company to others
Conclusion
Ultimately, it is essential for companies to have a strong EVP if they want to attract and retain top talent. A strong EVP can help drive employee engagement, job satisfaction, productivity and performance while reducing recruitment costs. Organisations should therefore strive to create an environment that encourages collaboration and innovation through competitive salaries, benefits and training opportunities to create a positive culture that resonates with employees and potential candidates. By taking these steps into account when creating your own Employee Value Proposition (EVP), your employees can increase your chances of success in today's competitive market.
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