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Organizations are starting to realize the importance of employee value proposition (EVP) to attract and retain talent.
Therefore, enterprises must focus on EVP, including better packages, culture, and rewards, to compensate for the value employees deliver.
The employee value proposition is an employer’s promise to employees. It is the perceived value that employees gain through their employment, including the following:
Most potential candidates evaluate a company’s EVP to determine whether they want to join the organization. Existing employees also decide their stay with the company based on its EVP.
Hence, companies with appealing EVPs attract frontline talent, increasing their access to a larger talent pool.
EVP and employer brand are different concepts. EVP is internal, focusing on motivating employees, increasing engagement, and improving retention. Employer brand is an external factor that potential employees evaluate. EVP is a promise, while employer brand is the organization’s reputation in the job market.
Globally, enterprises are dealing with the Great Attrition.
According to iHire Annual Retention Report in 2022, 41.2% of workers admitted to leaving their jobs voluntarily last year.
Employers need to hire replacements and look for ways to retain existing employees. Employee-centric culture is critical for businesses to reinforce deeper connections, enable radical flexibility, and offer personal growth opportunities.
Companies must create unique, compelling, and relevant EVPs based on the needs and expectations of their existing and potential employees. Leaders must continuously ask what makes their company an attractive workplace.
According to Gartner research, radical flexibility boosts employee performance by 18% when the work conditions support employee productivity. Hence, organizations must include flexibility choices in their employee value proposition, as discussed:
When the EVP resonates with employee expectations, it drives business success. Many successful enterprises have designed the ideal EVP to motivate their employees. Below are some of the employee value proposition examples that have helped top brands succeed:
NVIDIA attracts purpose-driven candidates with its EVP. The company encourages innovation in gaming, AI, and quantum computing, inspiring candidates to work in a highly technical environment and sharing and connecting with peers in creating cutting-edge solutions.
“Follow Your Passion. Lead a Movement. You’ll solve some of the world’s hardest problems and discover never-before-seen ways to improve the quality of life for people everywhere. From healthcare to robots. Self-driving cars to blockbuster movies. And a growing list of new opportunities every single day.”
Unilever emphasizes employees working together to make a difference. The company encourages its employees to create a better world.
“At Unilever, you’re much more than your job title. Here, you can uncover the work you’re most passionate about. And you can put your fresh thinking into action to create a real impact across the world. Whether that’s by making our business more sustainable, by working on one of our world-famous brands – like Ben & Jerry’s or Dove – or by helping to drive our social commitments, you can build a better world with us. Bring your purpose to life.”
Delta Air Lines shifts the focus to flexibility and work benefits. They offer updated high-priority offerings, especially after Covid-19.
Delta Air Lines EVP
“There are 90,000+ reasons to join Delta—every one of our employees has their own. Some of us want to explore new places. Some are here to explore our own career potential. Some are curious about other cultures, while others want to make a difference where they are. There’s a whole world out there—and another one right here within Delta. Which means that whatever keeps you climbing, you’ll discover it with us.”
Designing a robust EVP that aligns with evolving business priorities is crucial to continued success. The EVP must differentiate the company and align with the enterprise-wide strategy. It must be authentic and appeal to the labor market and existing workforce. Employees look beyond paychecks to determine whether they want to work for a company. Thus, leaders must choose employee value proposition elements that work best for the organization based on its purpose, objectives, and employee expectations.
Developing a great employee value proposition begins with research, analysis, implementation, and optimization.
Employers must first understand the audience and their expectations before drafting EVP. Getting feedback from existing and past employees about what they love about the company will help design a good EVP.
Surveys, one-on-one meetings, focus groups, and exit interviews are some ways feedback can be collected with simple questionnaires. Transparent communication, including all the stakeholders, such as current, former, and prospective employees, is also essential.
Information collected in the previous stage will give detailed insight into employee expectations. Employers must utilize quantitative and qualitative analysis to determine metrics and analytics that help identify key elements in the EVP. This will help develop benefits and perks programs that the employees value.
The employee value proposition must be presented crisply and attractively, detailing the company offerings for a potential employee. These frameworks and templates are useful to structure the EVP to drive recruitment messages. They can be posted on the careers page to assist the hiring team. However, organizations should draft EVP to reflect employee and candidate expectations rather than considering it as a tagline.
Implementing EVP with an action plan is much more important than drafting EVP to attract talent. The EVP should be actionable with a human-first approach. Use multiple channels to deliver EVP meaning and gather feedback. The first draft can be improved based on the feedback obtained by testing the message with a small group.
Leaders should continuously optimize their employee value proposition to maximize return on investment (ROI). Employee expectations and business objectives change as the business grows and expands to new markets. Creating EVP tracking KPIs will help enterprises optimize the EVP based on the impact and expectations in the future.
Employers’ first step in attracting and retaining talent is designing the perfect employee value proposition. Leaders must monitor and track EVP to continuously optimize it. It is a key communication tool highlighting that the company values employees’ contributions and cares for their needs. Developing and monitoring key EVP metrics helps leaders align the company EVP with the latest trends in the labor market.
Using Mercer | Mettl’s suite of assessments helps build an employee value proposition. Our reskilling tests like Skills Gap Analysis, Learning Agility & Proximity, and Training Effectiveness allow for understanding the learning and development needs of the workforce. Similarly, pre-employment assessments help improve candidate experience during recruitment by enhancing candidate selection and ensuring hiring accuracy and transparency.
The common pitfalls of an EVP are the need for differentiation, lack of research, alignment with company objectives, communication, and evaluation. HR leaders must customize and optimize EVP based on the talents and values they seek. Gathering insights from all stakeholders before crafting EVP can help avoid these common pitfalls.
EVP can be evaluated by developing key metrics that are useful in tracking the performance of the EVP. These metrics help leaders identify the impact of their EVP. Some examples of EVP metrics are the time taken to fill positions, employee turnover rates, employee satisfaction scores, hiring costs, etc.
Originally published May 5 2023, Updated May 11 2023
Vaishali has been working as a content creator at Mercer | Mettl since 2022. Her deep understanding and hands-on experience in curating content for education and B2B companies help her find innovative solutions for key business content requirements. She uses her expertise, creative writing style, and industry knowledge to improve brand communications.
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