Acquiring and retaining the talent that you need for your organization has never been
more difficult. The good news is that there are many things you can do to stay on top
of your competition, one of which is having a great employee value proposition, or EVP.
Consider this: organizations that deliver on their EVP can decrease annual employee turnover by 69%
and increase new hire commitment by 30% (Gartner).
So how can you start building or revamping your EVP? Let’s find out.
*MUSIC*
Hey there, Neelie/Liz here. This episode of Learning Bites
is all about the employee value proposition — what it is, how it’s different from an employer brand,
and the five key elements of a great EVP.
Before we start, don’t forget to like our video,
hit the notifications bell, and subscribe to our channel!
Now let’s dive into the world of EVP.
An employee value proposition is essentially the value that a company offers to its employees
in return for the value they bring to the organization. This includes all the benefits and
rewards employees receive from their employers to achieve their highest potential at work.
At this point, you might be wondering how the EVP differs from the employer brand. Simply put,
the EVP is the internal promise showing what your employees get out of working for you,
while the employer brand is how you market your value proposition externally to your candidates.
According to Gartner, an EVP has five key elements: compensation, benefits,
stability, location, and respect.
Compensation
This attribute refers to your employees’ satisfaction
with all the financial offerings like salary, bonuses, and stock options. Fair
and performance-based compensation is one of the 7 best HR practices.
Keep in mind different employees will have different priorities when it comes to
compensation. For example, not all Millennials think of their salary as their number one
priority and might opt for a total compensation package with more opportunities for development.
Benefits
This includes everything from paid time off and holidays to flextime options and retirement plans.
The kind of benefits employees value most include flexible hours, the opportunity to work from home,
vacation time, and paid parental leave. In the post-pandemic economy, you’ll also see benefits
like home office stipends and employee wellness programs becoming more popular.
However, there’s no magic, one-size-fits-all kind of benefits recipe. For example,
new parents probably value parental leave and flextime more than fresh graduates, who would
be interested in development opportunities. The best benefits package you can offer
is one that is customized to your industry, organizational culture, and your employees.
Stability
This refers to opportunities for your employees to further their careers, develop themselves,
and participate in employee training. Here are a few options you can offer to your employees:
In-house training on hard, soft, or leadership skills
Sponsored courses and certification programs from third parties
Mentoring and career coaching programs
If your organization can’t offer a salary on par with your competitors,
stability is an attractive value that can make the difference between winning and losing talent.
Location
This component is about much more than the simple location of your office. Think of it
as a location in the broadest sense of the word: a positive work environment,
a certain level of autonomy, work-life balance, etc.
As companies move towards full-remote or hybrid working arrangements,
you’ll see more employees favoring flexible options and requesting more understanding
and support from the employers. In fact, 49% of Millenials and Gen Z’ers
globally say that they would quit their jobs if forced to return to the office full time.
Respect
Respect is about positive relationships, support, and team spirit, among other things.
More than that, it’s about having a positive company culture,
with core values and beliefs that can inspire and encourage employees to perform at their best.
You’ve probably heard of the famous Peter Drucker quote that says:
“Culture eats strategy for breakfast”. Well, it’s true: with 46% of job seekers identifying company
culture as one of their deciding factors, having a great culture is key to your EVP.
Now that we’ve established what the EVP is and examined its key components,
let’s take a look at a real-world example from Unilever.
Unilever is a global, Anglo-Dutch company that sells consumer goods and is on a mission
to make sustainable living commonplace. It’s a business that attaches great importance to making
a difference. is also the core of its EVP, which is: “When you join Unilever, it is not just a job;
you are joining a movement to create a better business, a better world, and a better you.”
Unilever’s EVP is based on four pillars: Purpose power: employees are empowered to
make a positive impact on the world and Unilever’s business by bringing their purpose into action.
Be the catalyst: employees can be catalysts for change and use their
pioneering spirit to make things happen.. Brilliantly different together: employees can
bring their real selves to work. They combine their differences to achieve greater things.
Go beyond: employees are encouraged to give more to get more and benefit from
the experiences and the quality of interactions happening at Unilever.
As you can see, Unilever’s EVP focuses a lot on making sure that their employees
feel empowered and more than just a job title. This is a good way to offer respect in the EVP
and make their employees feel valued in their position.
In a time where candidates increasingly attach value to an organization’s reputation as an
employer, having a great EVP is essential. But the importance of an Employee Value Proposition
goes beyond attracting new talent.
Your EVP is a promise to your employees and one that, if you keep it, will boost
people’s engagement and their trust in you as an employer. Living up to your EVP
can even turn your current employees into the best possible ambassadors for your Employer Brand.
Do you have tips on building a great EVP? Feel free to share them in the comments below and don’t
forget to like our video, hit the notifications button, and subscribe to our channel.
Bye!