What is Employee Value Proposition or EVP Meaning?
What is Employee Value Proposition or EVP Meaning?
What is Employee Value Proposition or EVP Meaning? The EVP is an employee-centered approach that is aligned to existing, integrated workforce planning strategies because it has been informed by existing employees and the external target audience.
An EVP must be unique, relevant and compelling if it is to act as a key driver of talent attraction, engagement and retention. Organizations generally develop an EVP to provide a consistent platform for employer branding and experience management. The goal of an EVP is to make employees excited to work for your company and it can help build your employer brand.
EVP meaning
Strong employee value propositions (EVPs) set you apart from the competition and can help you attract quality candidates and retain impressive employees. An EVP seeks to identify and communicate these unique benefits. Covering both tangible and intangible factors, from your company values and culture to rewards and opportunities, it introduces the unique benefits and experience an employee receives in exchange for their skills and experience.
Employee value proposition examples
Workable’s mission and vision are a great example of an employee value proposition. Your employee value proposition covers all the incentives, perks, benefits and support systems that as an employer you put in place or facilitate that make working for you attractive, especially in relation to your competitors.
- Got a global gathering or extra snazzy team-building events on the regular? Yes, that’s your EVP too.
- Nice looking offices? Bike to work scheme? Generous leave allowances? This is part of your EVP.
- Strong diversity, equity and inclusion culture? Definitely part of your EVP.
- Proud of the work-life balance in your team? That’s also part of your EVP.
What is EVP?
An employee value proposition is the set of benefits you offer employees in return for the skills, experience and qualities they bring to the position. EVP includes the benefits, career development opportunities, financial rewards and additional perks employees receive.
EVP can also be defined as: Employee Value Proposition is the balance of rewards and benefits that a company can offer its employees in return for their amazing performance within the workplace.
What is an employer brand?
An employer value proposition is also known as your employer brand. An employer brand is intangible – it is how potential candidates perceive working at the company based on your company’s EVP.
What is the difference between EVP and employer brand?
Your company’s EVP is why people want to work for you instead of anyone else, including the specific value you provide to current and future employees. Employer brand is closely related, but also involves the “what” and the “how” behind your business, including a company’s external reputation and image. Overall, an EVP is a building block of an employer’s brand. An employee value proposition is tangible – it attracts job candidates and top talent to business and ensures that your people stay.
An EVP helps candidates answer the following questions about your company:
- What makes your company a great place to work?
- Why should I apply for this job?
- What can you offer me that other companies won’t?
- Why should I work for your company instead of a different company?
- What’s in it for me?
What are the 5 Key elements of an Employee Value Proposition?
A strong Employee Value Proposition consists of various elements such as:
1. Stability
Stability as in career stability, opportunities for your employees to further their career, develop themselves and employee training.
2. Respect
Respect is about positive relationships, support, and team spirit, among other things. More than just respect, it’s about your company culture, what are your organization’s core values and beliefs.
3. Work-life balance
This is about benefits. Think about everything from paid time off and holidays to flextime options and retirement plans. When it comes to the kind of benefits employees value most, flexible hours, the opportunity to work from home, vacation time and paid parental leave all rank highly.
4. Compensation
This element, also referred to as compensation and benefits, includes your employees’ satisfaction with their salary, but also additional rewards such as bonuses and aspects such as your evaluation system.
5. Location
This component is about much more than the simple location of your office. You could think of it as location in the broadest sense of the word: a positive work environment, a certain level of autonomy, work-life balance, etc.
Why is an EVP important?
An EVP is important because it tells a candidate what they’ll get in return for working with you. By communicating the experience of working at your organisation, you’ll attract candidates who are a natural fit and value the benefits they’ll receive for their skills and experience.
Many recruiters and other HR Professionals now have planned strategies for communicating their EVP and Employer Brand with current and potential future candidates. Relatively new method for easier and more efficient delivery of these employer messages is called Inbound Recruiting, and the whole concept of using marketing methodologies to recruit and hire is called Recruitment Marketing.
What is a common mistake that employers make when creating an EVP?
The most common mistake employers unintentionally make when creating an EVP is putting perks before value. When employers focus only on perks such as free lunches and extra vacation time, this can take away from the overall values that employees get from working at their company.
While perks are definitely an essential part of an EVP, it’s important to focus on the overall objectives of both the employer and potential employee.
How to define an employee value proposition
- Assess what your business currently offers.
- Make a list of qualities your ideal employees should possess. Sit down with your leadership team and list the qualities of top candidates you’d like to recruit
- Conduct surveys with current employees to learn their wants and needs. It’s important to attract new candidates while also retaining current talent to reduce employee turnover.
- Cater your EVPs toward each candidate. To ensure you’re attracting your ideal candidates, target your messaging toward the specific audience you want to hire.
- Communicate your EVP. After you’ve defined your EVP, it’s time to share it with the candidates you want to attract. Consider including it in your job descriptions.
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