If you want to stand out in the 2020 employment market, you’ll need to offer something special to your (possible) employees. Employee value propositions (EVPs) that are compelling set you apart from the competition and can help you attract and retain top talent. Learning what your current workers like about your firm and what prospects desire in their ideal environment is the first step in creating a successful EVP. In this article, we will be guiding you on the employee value proposition meaning and provide various employee value proposition examples. We will also be describing the employee value proposition framework. So, keep reading!!
Introduction
Employee value propositions, or “EVPs,” are a sometimes ignored asset that businesses can use to save money, enhance recruiting, and minimise brain drain. “Organizations that effectively deliver on their EVP may cut yearly employee turnover by just under 70% and boost recruit commitment by over 30%,” according to Gartner research.
Various parts of an EVP are in place in many companies. An organisation may, for example, have a website dedicated to salary and perks or a few recruitment films with testimonials from current workers. An EVP may improve the work experience and attract prospective prospects when paired with a clear statement of purpose.
What Is An Employee Value Proposition?
An employee value proposition is a collection of advantages you provide to workers in exchange for their skills, experience, and traits. An EVP encompasses everything an employer does to attract and retain employees, which is critical to a company’s success. Compensation, work-life balance, stability, location, and respect, according to Gartner, are five basic factors that make up an EVP. An EVP’s objective is to make people proud to work for your firm, and it’s a great method to boost your employer brand. Employee value propositions (EVPs) are unique selling propositions (USPs) to consumers and clients.
A company’s EVP takes the form of words, concrete perks, and intangible culture. Some businesses have powerful EVP statements (see examples below for some EVP statement examples). Others use testimonials, quotations, or blog postings to present a diversified and interesting picture of life at the company. The salaries, bonuses, and benefits provided to employees are described. It brings everyone together behind a single manifesto.
Employee Value Proposition Framework
The firm’s EVP exists outside of the corporate website and the whiteboard of the Talent Acquisition team. The features, such as the culture, values, and brand and the benefits and career possibilities, exist in the real world. However, you must correctly identify and explain them. This activity must be done in a group setting.
1. Identify the informal components
Invite workers from various divisions to an informal drop to gather the many components of the company’s EVP. You can conduct surveys or examine data from exit interviews and Glassdoor. You could discover that individuals appreciate a wide range of things, such as promotion criteria, free childcare, office location, a rent subsidy in costly locations, and so on. List three or four categories for the aspects of the EVP and brainstorm each one separately to ensure you’re being thorough.
2. Identify the formal components
Employees are often unaware of efforts in existence but are not well conveyed. Inquire with department heads and recruiting managers about any incentives or benefits in place, such as team activities, internal contests, and regular recognition awards.
3. Package the EVP
The way you bundle your EVP will be determined by two factors:
- What is the demographic of your target market?
- What is the company’s preferred communication style?
The target audience will impact where the EVP appears on your career site. If you believe your present employees are unfamiliar with the firm’s EVP, it can be a good idea to communicate it in corporate internal communications. It might even appear on your Glassdoor profile or Twitter account. The company’s communication style will prepare the EVP. If your voice is generally professional and thorough, an EVP that is brief, playful, and perhaps self-deprecating is completely inappropriate.
4. Align with stakeholders
What you say in the EVP impacts the rest of the organisation, so make sure you align with the relevant stakeholder before posting anything. Make sure, for example, that your promise corresponds to workplace reality and that your message has the backing of Marketing and Leadership.
10 Employee Value Proposition Examples
Employee Value Proposition Deloitte
The employee value proposition from Deloitte is intriguing because it asks, “What effect will you make?” Deloitte’s messaging becomes much more conversational when they use this inquiry strategy. Deloitte’s employment website elevates its employee value offer with a film that focuses on inclusivity, cooperation, and performance. The film depicts what it’s like to work at the organisation, communicate with coworkers, and seek out prospects for advancement.
Google Employee Value Proposition
Google’s employee value proposition is comprised of six major components. Here’s how Google takes care of its employees:
- Benefits like parental leave, retirement savings, and more
- On-site amenities for kids and pets
- On-site physicians and fitness centres
- Employees are matched in their philanthropic donations and volunteer hours
- Flex workdays and vacation time
- Resources for financial planning and retirement savings matching
- Personal and professional development opportunities like degree programs, cooking classes, guitar lessons, and more
Employee Value Proposition LinkedIn
LinkedIn’s EVP is encapsulated in the current hashtag #LinkedInLife, which encourages workers to share everything about the workplace culture on social media. Benefits are classified into areas such as health, family, passion, must-haves, and extras by the employer. This is a complete benefit and pay package that includes everything from child care, elder care, and pet care subsidies to tuition reimbursement and life insurance. At the end of the year, employees are entitled to a “paid shutdown,” in which the firm shutters for a week to celebrate.
Unilever Employee Value Proposition
Unilever’s employee value proposition is presented in a novel way in its job advertising, drawing my attention. “What We Can Offer You,” for example, is an example of Unilever’s EVP in a recruiting lead job description. Because it’s in the form of clickable links, this is a terrific approach to show off your employee value proposition model to potential applicants, above their statement regarding diversity and inclusion in the Unilever employee value proposition.
Netflix Employee Value Proposition
Netflix’s employee value proposition may be seen on their careers page as well as in job listings. An EVP is the job description for a senior software engineer. This employee value proposition example is excellent since it not only appears in the job offer but also includes the following information:
- training opportunities
- inclusive company culture
- benefits
- salary
- impact
All of these elements are crucial to a successful employee value proposition model.
Apple Employee Value Proposition
With an effective headline, Apple’s employee value proposition lures you in: “Join us. “Be yourself.” It doesn’t hurt that Apple’s messaging is filled with eye-catching innovation (visuals). The following are the components that makeup Apple’s employee value proposition:
- employees adding value
- bringing together diverse thinkers and doers to innovate
- employees finding their calling and their place
Canva Employee Value Proposition
Canva not only has a great culture and perks, but it also allows you to contribute to something greater. Canva employees produce 229 million designs every month or more than 80 per second. This figure helps Canva express how important it is to be a part of the collaborative force that propels Canva to the top of Australia’s fastest-growing firms. Free lunch and breakfast, free subscriptions to local fitness studios, clubs, and sports, relocation advantages, and more are among Canva’s perks.
Nike Employee Value Proposition
“Win as a team” is one of Nike’s employee value proposition headlines. This feeling is reflected in the company’s benefits and representations of life at Nike. Nike’s culture stresses a team mindset when it comes to achieving innovation in sports. It takes a similar approach to perks and remuneration. Fitness discounts, relocation incentives, competitive compensation, and retirement plans, and advanced learning opportunities are just a few of the advantages offered by the organisation.
Airbnb Employee Value Proposition
Airbnb’s staff are united by the mission statement, “Create a world where anybody can belong anywhere.” This purpose is underpinned by four key principles that define what it means to work at Airbnb: inclusion, caring, support, and creativity. Their example of an EVP fits in perfectly with the platform’s travel community of guests and hosts. Similarly, Airbnb provides several travel-friendly bonuses, including a yearly travel credit and paid volunteer time.
Merck Employee Value Proposition
Merck has been recognised as one of the finest places to work globally, receiving awards such as Glassdoor’s 2021 Employee’s Choice Award and Forbes’ 2021 America’s Best Employers. Merck workers have access to various perks, including paid parental leave, year-end shut down days, a worldwide recognition programme, and flexible work arrangements such as flextime, summer hours, remote work, telework, job sharing, and part-time work. It also offers a “Returnship” programme for people who have taken time off to raise a family, return to school, or pursue a passion and are now ready to return to work.
Employee Value Proposition Components
Assessing your organization’s fundamental competencies is the first step in developing a distinctive employee value proposition. This procedure entails understanding the many components that work together to make your company a great place to work. Your EVP should comprise the following five basic components:
1. Financial Rewards
EVP’s total rewards component addresses an employee’s expectations from the complete assessment and compensation system expectations. It includes all financial benefits, such as salaries, bonuses, and stock options. On the surface, financial pay may appear to be the most important incentive for employees. However, when it comes to an employee value proposition, it is only one element of the picture.
2. Employment Benefits
This aspect of EVP is linked to a slew of other perks that come with the job. These include the following:
- Health insurance
- Retirement benefits
- Paid leaves
- Gym memberships
- Company-sponsored holidays
Benefits packages are most effective when tailored to the industry, culture, business, and people. So go ahead and get creative with it.
3. Career Development
Employees want to know how their employment may help them advance in their careers and how the company can help them do so. This component of EVP includes:
- Technical training
- Leadership training
- Sponsored courses
- Mentoring and career guidance
- Promotion opportunities
- Opportunities to work in other cities or countries
- Opportunities to change domains
- Opportunities to work in specific coveted projects
Offering clear career development and progression plan might be the difference between recruiting and losing great people for a business that can’t match its rivals’ compensation.
4. Work Environment
This EVP component is linked to variables contributing to a happy work environment. These include things like:
- Flexible working hours
- Work-life balance
- Recognition
- Team building
- Communication systems
- Workspace design
- Employee wellbeing
Organizations must understand the value of fostering a positive work environment where workers may flourish and contribute meaningfully. This contributes to a healthy work environment and employee engagement. They must make deliberate efforts to create and advertise such an environment.
5. Company Culture
Several industry executives share this opinion throughout the world. This section of the employer value proposition addresses the aspects that make a great corporate culture. These include the following:
- Trust and collaboration
- Positive relationships between team members
- Team communication and support
- Alignment of employees with company goals
Importance of Employee Value Proposition
A marketing exercise isn’t all that an employee value proposition is. These initiatives can aid in lowering staff turnover, increasing revenues, providing a positive working experience, and creating a welcoming environment. According to research, firms that execute their employee value propositions may reduce employee turnover by over 70%.
EVPs aren’t just for addressing salary. Health benefits and location are the second and third most important variables for employees contemplating new employment in the United States. Some firms provide benefits like paid family leave, stock options, and school debt reimbursements as part of their EVPs. It’s up to your company to discover the proper mix of incentives that saves money while also lowering turnover costs.
Employee value propositions that are the finest also assist in creating the inclusive work environment required to recruit and retain varied talent. We know that diverse businesses outperform their more homogeneous counterparts in various ways, including innovation, profit, and customer happiness. A company’s prospects of attracting diverse talent — and delivering great outcomes — are likely to improve with an employee value offer that combines intelligent perks with fair and equitable remuneration.
Employee Value Proposition Benefits
Creating an EVP that is unique to your company will increase your personnel acquisition and retention significantly, providing you with a competitive advantage over your competition. Even if you’re attempting to recruit passive applicants, it makes talent management simple.
1. Attracting Top Talent
There’s no doubting that the recruitment marketing industry has evolved significantly. In their job hunt, prospective employees are getting increasingly picky. For example, the expansion of remote work choices means that candidates may discover higher-paying positions that also provide them with a better work-life balance and flexibility. HR experts have found it far more difficult to attract top personnel due to this. An EVP is a vital component of talent management and recruitment. As a result, communicating an employee value proposition consistently and efficiently that boosts company branding has become critical.
2. Retaining Top Talent
It’s critical to recruit the proper people in this competitive industry. On the other hand, retaining high-performing staff is just as critical, if not more so. When you lose talented personnel, you lose productive people who are difficult to replace. It takes a long time and costs a lot of money. This is why Fortune 500 firms go to such lengths to keep their best employees.
3. Optimizing Recruiting Expenses
To begin with, if your company’s employee value proposition is attractive, you’ll receive more applications from qualified people. As a result, your human resources department will have to spend less money on recruiting agencies, job postings, social recruiting methods, and other talent acquisition costs. In other words, your cost per hire will decrease. Second, because an EVP aids in the retention of outstanding personnel, it reduces the need for further recruiting and training. As many firm resources are invested into learning and training new applicants, this corresponds to a sizable sum.
4. Building a great corporate culture
Employees are more inspired and engaged at work when they understand what their organisation stands for. This is especially true when an employee’s beliefs align with those of their employer. As a result, when companies are concerned about this match, they are more likely to create a fantastic corporate culture that their employees will like.
5. Improving the employee experience
The EVP of a company influences the entire employee experience at work. Employee-driven businesses tailor their value packages to their employees. The ability to focus on what people genuinely care about is what gives successful firms the greatest competitive edge.
What Makes A Good Employee Value Proposition?
A strong EVP sets you apart from your competition and is tailored to the interests and needs of your employees. It should reflect the principles of your firm and make your staff feel proud, engaged, and inspired to produce their best job every day. More than a paycheck is usually included in a good EVP. Here are a few crucial components that are typically seen in effective EVPs:
- Salary, stock options, and bonuses are all examples of financial incentives.
- Paid time off, health insurance, retirement money, parental leave, and company-sponsored vacations are all examples of employee perks.
- Leadership training, technical training, mentoring programmes, promotions, travel opportunities, tuition reimbursement, and paid educational courses are all examples of career development options.
- Additional monetary and non-monetary benefits and incentives, such as gym memberships, free coffee, and snacks, flexible work hours, work-from-home options, or team-building seminars
- A favourable work atmosphere allows for autonomy, recognition, and a healthy work-life balance.
- Communication, cooperation, and strong connections between team members and supervisors are examples of statements regarding corporate culture, aims, and values.
How To Create An Employee Value Proposition?
The difficult work of creating an EVP becomes a lot easier now that we’ve recognised the major components.
1. Assess your current offerings
The foundations of EVP development should be addressed first. You must determine what your firm is now and what it is not. It’s important to be clear about your branding. Make a list of all the EVP components in the section above. Examine each item on the EVP checklist to see how much of each your organisation now provides. It’s critical to maintain perfect objectivity when performing this task. That’s why getting feedback from your staff on how effectively these are being fulfilled is beneficial.
2. Interview your existing and past employees
Building a strong EVP requires knowing what your organisation can and cannot give. Employee surveys can get input from focus groups made up of current workers and any new hires. Include former workers in employee surveys and figure out what the company might have done to keep them. Finally, do some research on your potential staff. Use the comments from multiple focus groups to figure out what inspires your best performers and use that information to improve your job offer to future workers.
3. Define the key components of your EVP
It’s now time to assess your results and develop a fresh employee value proposition for your organisation. You’ll be able to recruit and retain excellent employees this way. Your EVP should also be divided into sections for various jobs and levels. Once you’ve decided what you’re going to provide, turn it into sentences that prospects can comprehend and connect to. Now you’re ready to provide a compelling employee value proposition!
4. Write your employee value proposition
The next stage is to construct a compelling employee value proposition statement once you’ve determined how your firm differentiates from the competition and what kind of employee experience you can provide. Make sure your EVP statement is concise, original, and inspiring. Only in this way will you recruit and retain great employees. Also, make sure that your EVP is in line with the expectations of your workers and the organisation.
5. Promote your EVP
So you’ve put up a great EVP, but even the finest EVP is useless unless it’s adequately articulated. So, where do we go from here? Don’t only brag about your EVP on your website’s jobs page. It should be promoted! Use the many internal and external communication channels that your company now employs to get the word out. You may market your EVP internally using corporate blogs, newsletters, email, town halls, and other internal communication platforms. Externally, you may use LinkedIn profiles, your website’s employment page, job posts, recruitment videos, and employee referral programmes to advertise your EVP.
6. Review the results
The first phase of the review is to assess how important employees react to your new EVP. Examine indicators like increased social media interaction on job-related posts, increased applications, a rise in replies from passive prospects, and decreased attrition. Review your EVP regularly, at least once a year. People’s expectations vary with time, and even if your present EVP is fantastic, it has to be updated periodically to be relevant.
How To Measure An Employee Value Proposition?
To determine the efficacy of your EVP, look at the nine KPIs given below.
1) Job offer acceptance rate
Your job offer acceptance rate should rise as a result of having a strong employer brand. If it doesn’t, it might be a sign of a bad applicant experience, recruiting bottlenecks, or, even worse, over-branding, in which your employer brand is over-hyped and doesn’t reflect who you are as an employer. Always get feedback from candidates, regardless of whether they accept or reject your employment offer. This is particularly crucial in the case of candidates who decline your employment offer. Learn why you aren’t their preferred employment and which firms they prefer instead.
2) Time-to-hire
If you have a strong employer brand, your time-to-hire should reflect that. It can help you detect bottlenecks in your employment process and the strength of your employer brand, among other things. According to LinkedIn, having a strong employer brand may reduce the time it takes to hire someone by 200 percent. This is mostly because you will spend less time marketing and more time vetting applicants. Applicants are more knowledgeable about what you do and desire to work for you.
3) Quality of hire
The quality of the hire measures the value that a new recruit contributes to your firm. Quality of hire is the single most valuable performance KPI in recruiting, according to LinkedIn’s Global Recruiting Trends 2016 study. Yet, it is notoriously difficult to assess, spanning several indicators listed above. The quality of its hires may measure a strong employer brand. Simply said, if your employer brand is on point, you will attract more quality applicants, raise your workforce’s productivity, and improve your overall retention rates.
4) Hiring Manager satisfaction
Don’t forget to include your hiring supervisors in the process. They will be able to provide first-hand information into quality-of-hire as the person who will bear ultimate accountability for your new recruit. Furthermore, they may give essential input on the process’s integrity because they are an integral part of the recruiting process but are not accountable for it. Your employer brand may need to be tweaked if your recruiting manager has doubts about the quality of selected applicants or, worse yet, learns that they don’t live up to expectations once they’ve settled into their new post.
5) Employee referrals
Employee referrals are the best sign of the strength of your employee brand. Employee recommendations are not only the most common source of high-quality, low-cost hiring, but they also indicate that your workers are eager to suggest your firm to their friends, family, and wider network. There is no better recommendation than that, believe us. Employees who are engaged are more likely to submit good evaluations on review sites such as Glassdoor, as well as actively participate in employer marketing messages such as testimonials or day-in-the-life movies. It’s a win-win situation.
6) Employee engagement rate
As your employer brand evolves, employee engagement should improve. It is impossible to create an employer’s brand. You must live and breathe your employer value proposition (EVP), which entails engaging your people to ensure it truly reflects who you are as an organisation. At the very least, do frequent surveys to obtain input on how your employees see your organisation. (This demonstrates that you take your job responsibilities seriously.) Don’t stop there, though. Encourage your staff to participate in company branding activities and to brag about their accomplishments.
7) New hire retention rate
Employees are hired and fired regularly. Fact. On the other hand, if the pace at which your employees leave is growing, but you haven’t expanded headcount, you have a problem. This might signal that your employees are disengaged or that they don’t think you’re a trustworthy employer. They’ll leave as soon as the opportunity arises, tarnishing your company’s reputation through unfavourable reviews. On the other hand, a strong employer brand will boost employee retention by making them desire to work with you. Conduct exit interviews to learn more about why your employees are leaving.
8) Win/Loss ratio
You’ll be able to attract applicants from your competition if you’re a prestigious firm with a strong employer brand. However, the opposite is also true. Your win/loss ratio may be used to evaluate your employer brand against that of rivals. It calculates the number of candidates who come from your rivals, as well as the number of talented workers you lose to them.
9) Awards won
Employment awards are a sure sign that your company’s image is in good shape. However, you do not have to win to gain directly from experience. Even the application procedure may help you benchmark your employer brand, and a nomination provides wonderful publicity as well as evidence that your employer brand is in good shape. But keep in mind that if you don’t enter, you won’t be able to win.
What Is The Difference Between EVP And Employer Brand?
Simply said, your Employer Brand is public, whereas your Employee Value Proposition is private. The face your organisation presents to the outside world as a potential employer is known as your Employer Brand. When someone asks what it’s like to work for Company X or Y, it’s the sum of all the varied things people think. Employer Brand is the creative representation of your EVP on the outside.
On the other hand, your company’s EVP is the face it presents to its employees. It’s the concrete and intangible aspects of your firm that attract job prospects and top talent and ensure that your employees stay. Employee Value Proposition should be the outcome of careful planning that includes active participation from your workers through focus groups, questionnaires, and interviews, among other methods.
The latter specifies what employees get from working for you, whilst the former informs others. As a result, the EVP is frequently referred to as an organization’s ‘Why,’ while your Employer Brand is referred to as the ‘How,’ and ‘What.’
Frequently Asked Questions
How do you access the effectiveness of your EVP?
Employee satisfaction rate, traffic to your firm’s employment website, time to hire, applicant-to-interview ratios, cost-per-hire, attrition rate, and online company ratings and reviews are a few KPIs you may use to assess your efficacy EVP.
What is the difference between EVP and employer brand?
The EVP of your firm explains why people prefer to work with you over others and the unique value you bring to present and potential workers. Employer branding is closely connected, but it also includes the “what” and “how” of your firm, as well as its external reputation and image. In general, an EVP is a component of an employer’s brand.
What question does the employment value proposition answer?
Candidates can use an EVP to assist them in answering the following questions about your company:
- Why should I choose to work for your firm over another?
- What am I getting out of it?
- What makes your firm a fantastic place to work?
- What do you have to offer me that other businesses don’t?
- What makes you think I should apply for this position?
Conclusion
An employee value proposition should include the intangible and physical benefits of working for your organisation. Intangible benefits would include things like workplace diversity, inclusion, and culture. Parental leave, pay, health benefits, and other tangible benefits are examples of tangible benefits. It takes time and effort to develop an appealing employee value proposition. You must comprehend your applicants and staff, as well as their motives. Then you must adapt your EVP to these discoveries and commit to it and keep your word.
