Any business’s most valuable asset isn’t its unique products or excellent services, expensive equipment, fantastic office space or mind-blowing concept behind the company. No, it’s its people. Your employees are far and away your business’s most valuable asset. But finding good employees isn’t easy. Attracting and retaining top talent means you need a stellar employee value proposition.
Unlike many HR and management buzzwords, the employee value proposition (EVP) is important. Creating a strong employee value proposition benefits businesses of all sizes. You can pick the best potential employees and ensure your existing employees stay happy and productive. An EVP helps define your business’s internal culture, goals and values.
Employees are the backbone of any business. Getting the right team depends on your employee value proposition. Let’s look at what goes into creating one that stands out.
What Is the Employee Value Proposition?
The employee value proposition makes people want to work for your company.
The term ‘employee value proposition’, known by the acronym EVP, was first coined in 2002 by Joseph A. DiVanna, the CEO of Maris Strategies and a management and technology expert, in his book ‘Thinking Beyond Technology’. We’ll spare you the dense HR language of Mr DiVanna and go with a more straightforward definition:
An EVP encompasses everything from how you communicate with your employees to your company identity, the rewards and perks you offer your employees, their work schedules, the tasks assigned, possible career opportunities, pay rate and even the furniture your employees sit on. And what types of snacks are in the break room. What makes up your employee value proposition can be financial, non-financial or even just conceptual. As long as it helps to prove to your employees that your business is a great place to work.
Why Having a Strong Employee Value Proposition Matters
The main benefit is that it enhances a business’s ability to attract and retain skilled, dedicated employees who add value. You won’t catch a fish without good bait, you can’t attract bees without honey and you won’t get the top employees your business needs without a good EVP.
According to US tech and research experts Gartner, potential employees are 65% more likely to decide not to work for a business without a strong employee value proposition. They say an EVP makes it 50% more likely that a company will find the people it needs. An EVP also increases the commitment levels of new hires by 29%. A good EVP can give you an edge in today’s highly competitive employee market.
And the employee value proposition doesn’t just bring benefits to potential employees. Creating a positive employee experience helps you to keep the big fish once you’ve landed them. Your existing employees will feel more engaged with your company, valued and rewarded for their work. They’ll be much more likely to be loyal and hard-working.
Attracting and retaining dedicated and skilled employees allows a business to save on recruitment and retention costs. Employees more satisfied with their work are more productive, so your business will expand and your profits will increase. The employee value proposition also helps to create a culture of respect and trust, bolstering your business’s reputation as an enterprise with integrity.
The Difference Between Your Brand and Your EVP
It’s easy to get the concept of the employee value proposition mixed up with other corporate-speak concepts like brand identity. The purpose of the brand identity of a business is to showcase your vision, message and products or services to the world. It’s designed for external consumption.
The employee value proposition is internal. It only impacts those who work for or are considering working for your business.
There are some overlaps between the two concepts, however. Your brand is the external projection of why your business is great, and your EVP is the internal projection of why your business is great. The important thing is to be great for your customers and employees.
The Key Factors in an Employee Value Proposition
Many different factors contribute to creating a strong EVP. Anything enhancing the employee experience can be part of your value proposition. But because corporate management types are sticklers for detail, they’ve come up with five key areas that an employee value proposition should cover:
- Compensation: Your people need to be paid fairly for their work
- Work-life balance: Employees need to have a good balance between their professional and private lives
- Stability: Your employees should feel that their jobs are stable and they’re not in danger of losing their positions
- Location: The workplace should be easily accessible and, if possible, remote working or hybrid working arrangements offered
- Respect: Employees should always be treated with dignity and respect
Creating and Developing a Robust EVP
Now we have a definition and know the benefits of a good EVP. The next step is to figure out how to create a strong employee value proposition for your business. It doesn’t matter what type of business you’re in or how big your enterprise is; anyone can develop a strategy to build a good EVP. Start with thinking about why someone would want to work for your company. Then consider the following questions carefully:
- What makes your business special and unique?
- What are the central values of your business?
- What is the core mission of your business?
- What can you offer potential employees?
- What do you do for your existing employees?
Finding out your existing employees’ opinions can help you identify your business’s strengths and weaknesses. Send out employee surveys to gauge how satisfied your teams are. Ensure your employees can complete the forms anonymously, or you won’t get truthful answers! This data can be invaluable in creating a compelling EVP.
Real-World Examples of a Good Employee Value Proposition
Some of the world’s biggest companies focus on creating super-strong EVPs. One of the major hotel chains, for example, goes out of its way to give its employees fair pay, great benefits and lots of perks, such as discounts on room rates and lots of leave time. This well-known chain also sponsors charities and social programs. It goes to great lengths to showcase its diversity as an employer.
Other companies, like a particular aeroplane manufacturer or some top tech companies, create comfortable, flexible working environments for their staff. They give their teams access to nap rooms and gaming rooms, provide free healthy food and arrange for mental health, wellness and exercise programs.
Other organisations focus on their mission as a crucial part of their employee value proposition. Employees feel a sense of pride and responsibility in being able to build essential products or provide much-needed services.
How to Enhance Your HR and Management Skills
Suppose you manage or run a large business – you must work closely with your Human Resources team to develop a good employee value proposition. Owners of smaller enterprises may need to brush up on their HR skills.
You can learn more about HR issues and management techniques with our HR Compliance Courses.
These courses cover many topics and can be taken online whenever you like. Much more affordable than traditional classroom training, our courses are ideal for businesses of any size.
