The employee value proposition (EVP) is growing even more popular in this new world of work. The difficulties of the current talent landscape have increased the need for a differentiator among organizations hunting for new talent and fighting to maintain current talent, regardless of how that talent comes into the organization—full-time, contract, freelance, SOW-based project, independent consultant, and more.
Developing an employee-centered approach—or worker-centered approach for all non-employee labor—to recruiting and candidate sourcing can help organizations to stand out from the competition and attract more talent, filling more positions.
What is Employee Value Proposition (EVP)?
An employee value proposition, or EVP, is a unique and compelling proposition that attracts talent, encourages them to engage with your brand, and impacts employee retention. It is a promise from employer to employee (or contractor), an offering of sorts.
Your EVP is an internal statement of the rewards and benefits a worker receives in return for their performance and loyalty. This of it almost like an ROI for the employee where their investment is time. The employee value proposition delivers a return on their investment of time beyond the salary and benefits they expect to receive.
A strong EVP can also help to retain current talent, something many organizations still struggle with as the Great Resignation continues. In fact, 69% of U.S. corporations are struggling to find top talent, an increase from just 14% in 2010, according to a Manpower Survey.
Value Proposition vs Employee Value Proposition
Every organization should have a unique value prop as well as an employee value proposition. Though there are similarities between these two statements, there should be no confusion between a value proposition, sometimes referred to as a customer value proposition, and an employee value proposition.
What is a Value Proposition or Customer Value Proposition
Your business’s customer value proposition is an external message expressing the value your organization and offerings you can provide to your customers.
What is Employee Value Proposition
Your EVP will be internal messaging expressing the value of your organization to potential and current talent.
The Importance of an EVP
Just as your customer value proposition can be the differentiator, the competitive advantage, your employee value proposition can attract potential candidates and increase the loyalty of existing employees. With the increasingly difficult-to-navigate talent landscape, the EVP can act as a unique differentiator for your brand.
It is more important than ever to attract top talent and retain the incredible talent you already have with an EVP that compels candidates to take action. A strong, unique employee value proposition will entice candidates to engage with your brand.
Brand engagement is more than simply interacting with a potential candidate, it is developing a relationship with them as they move through the candidate journey. No matter how they choose to interact with your brand—through social media, emails, apps, phone calls—each interaction deepens the connection between candidate and brand.
The EVP may be the bait that brings in the big fish, but it is up to you to keep them on the line throughout their candidate journey. You need to consistently engage with your talent once they enter your talent ecosystem. Providing a positive candidate experience can elevate your brand and put you top of mind for offers as well as referrals. According to LinkedIn Recruitment statistics, prospective talent uses their professional networks 56% of the time to find new roles and 50% by word of mouth. If you don’t deliver a stellar experience, you may be locking yourself out of future talent networks.
Candidates will not hesitate to turn down an offer or share their experience if they have a poor one with your brand. On the other hand, those who have a positive experience with your brand and feel that your EVP suits their needs are more likely to refer others to you.
The EVP may seem like a simple statement, a bit of enticement to encourage candidates to apply, but it is just the beginning. A strong contingent worker or employee value proposition can fill your pipeline with highly qualified talent in your target market.
The Anatomy of an Employee Value Proposition (EVP)
Similar to your customer value proposition, you should think of your employee value proposition as the “what’s in it for me” statement. Where the customer value proposition shows potential buyers what they will get from your product or company if they purchase, the EVP does the same for current and potential employees and contingent workers.
It conveys the benefits your organization will provide its workers, essentially laying out what’s in it for them. In the post-pandemic world of work, the EVP is changing. It is no longer simply about compensation and employer benefits for full-time employees. With the increase in non-employee interaction through contingent workers and contractors, the EVP is expanding beyond simply an employee value proposition to more of a worker value proposition.
Gartner believes there is a human element to your EVP that must be included in order to stand out and attract top talent. They call it ‘the human deal,’ and found that it can increase employee satisfaction with the employee value proposition by 15%. What is ‘the human deal’ they want to include? It is an emotional value on top of the more traditional value that is typically associated with an EVP.
Components of an EVP
- Compensation. Though it is no longer the main deciding factor for many, compensation is still an important piece of any decision regarding a job offer.
- Benefits. From health insurance to work perks, potential candidates want to know what your company offers.
- Culture. Culture matters to candidates. A 2019 Glassdoor survey found that 77% of respondents across four countries consider a company’s culture before even applying.
- Work-Life Balance. The number one reason people want to change careers? They seek a better work-life balance.
- Flexibility. Location and schedule flexibility are becoming increasingly important to today’s in-demand talent. It coincides with the Great Resignation and the increase in contingent workers, and can include flexible work hours, schedules, and remote work opportunities.
- DE&I Initiatives. Like flexibility and work-life balance, this has become a critical factor for candidates—and current workers. 76% of candidates cite diversity or DE&I as an important factor when evaluating positions and offers.
- ESG Factors. ESG (Environmental, social, and governance) factors are growing in popularity among many populations. Sustainability has been a buzzword the last few years and many candidates are taking a company’s investments, policies, and procedures regarding ESG into consideration when applying and accepting offers.
How to Write Your Employee Value Proposition (EVP)
Now that you understand the importance of having an employee value proposition, it’s time to actually write one. The EVP is more than simply listing out the items you should include in your statement. There is a process you should follow before finalizing your EVP.
- Identify your current offerings. Take a look at what you currently offer your employees and non-employees from the above list. What is your benefit plan? Your pay scale? Your infrastructure to allow remote work?
- Identify your ideal candidate/employee. Just as you would identify an ideal customer profile (ICP) when formulating your customer value prop, you should identify your ideal candidate or worker before you craft your EVP. Remember that soft skills can help you to determine what makes the most sense for the people you’re trying to attract.
- Involve your current workers. No one will know what resonates more than your current workers. You can conduct interviews, surveys, or focus groups to identify what matters to those already working for your brand. This can help you identify what current offerings provide value and identify gaps.
Share Your EVP
An employee value proposition is meant for your current workers. But, it is an excellent resource for attracting candidates for open positions within your organization. Once you’ve identified all the components and fully crafted your EVP, it’s time to share it with your target market.
Thankfully, WorkLLama makes this simple. Through recruitment marketing, integrated communications, and a robust referral platform, we make it easy for you to share your employee value prop with potential candidates globally.
Not only can you share this with incoming candidates, but existing candidates looking for their next opportunity. Sharing your EVP will increase your chances of engagement and improve the overall candidate experience as they will know exactly what to expect from you and your brand.