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What is an Employee Value Proposition (EVP)? An Overview for Employers

Retaining key employees is as important as recruiting them. In a competitive hiring market, determining what you can offer candidates may give your business an edge. This is where an employee value proposition, or EVP, comes in.

EVPs tell employees what kind of values, support and culture they can expect from a company.Creating an effective EVP involves learning what your current employees enjoy about your company and what candidates want in their ideal workplace.Done right, it can help attract top talent. Here’s what to know about EVPs, including how to craft your own.

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What is an EVP?

An employee value proposition is a statement of benefits you offer candidates in exchange for the skills, experience and qualities they bring to the role. To a potential employee, proposition value is an incentive to choose your company over a competitor. In other words, what’s in it for them?

An EVP lays out the rewards your employees can expect from their continued contributions toward company goals. This can includefinancial rewards like salary and bonuses, career development opportunities and a healthy work-life balance. It also clarifies your company’score values and outlines your expectations for company culture.

Benefits of an EVP

The overall goal of anEVP is to make employees excited to work for your company. Many job seekers search for companies with values they can share. When they find avalue proposition that aligns with their goals and passions, they may be inclined to bring their skills to your company over another.

A compelling EVP can even attractpassive job seekers.While these candidates aren’t actively searching for a new role, the right opportunity can prompt them to make a shift. Often, highly motivated, passive job seekers are desirable to many companies in need of dedicated, driven team members.

An employer value proposition is also a useful way to establish positive branding. Employer brands influence how existing and potential candidates perceive a company. A good reputation can set your business above the competition. This is useful in attracting talent and retaining current team members. With a brand identity they can believe in, you’re less likely to encounter disengaged employees.

What makes a good employee value proposition?

A strong EVPaccurately reflects company values and employee wants and needs. When well-crafted, it can make your employees feel proud, motivated and capable of doing their best work each day.By blending company goals with employee ideals, an EVP should help your team see what defines their roles in the industry.

At the same time, an EVP should also set you apart from your competitors. This can mean incorporating a mission statement to unify employee desires and the goals your company aligns with.

An effective employee value proposition is more than just the promise of a paycheck.Here are some key elementsof compelling EVPs:

  • Financial rewards like salary, stock options and bonuses
  • Employment benefits like paid time off, health insurance, retirement funds, parental leave and company-sponsored holidays
  • Career development opportunities like leadership training, technical training, mentorship programs, promotions, travel opportunities, tuition reimbursement and paid educational courses
  • Additional monetary and non-monetary perks and incentive programs like gym memberships, free coffee and snacks, flexible work hours, work-from-home opportunities and team-building workshops
  • A positive work environment that provides autonomy, recognition and a healthy work-life balance
  • Statements about company cultureand goals, such as communication, collaboration and positive relationships between team members and supervisors

How to define your own employee value proposition

Your EVP must appeal to potential job candidates and encourage employee loyalty.Here are five steps to help you create a strong EVP you can include in your talent acquisition process.

1. Assess what your business currently offers

What are your company’s key selling points? These can include the current benefits, perks, compensation, work environment and other opportunities your business offers employees. As time passes, these values may change. It’s good practice to regularly review your EVP and ensure it continues to represent your businessaccurately.

2. Make a list of qualities your ideal employees should possess

When crafting an EVP, it helps to know what kind of team you want to build. Consider sittingdown with your leadership team to outline the qualities you’re seeking in new hires—also known as your ideal candidate persona.It can also help to identify positive traits in your current team that you’d like to encourage and further develop.These qualities may include:

  • Creativity
  • Reliability
  • Motivation
  • Experience
  • Passion
  • Self-discipline

When you know whichqualities you wantto bring out in your team, you cancenter your employee value proposition around them. For example, if you seek employees who are continuously striving for growth, consider mentioningcareer development opportunities in your statement. This can help you stand out to candidates with similar ideals and may increase satisfaction in current employees looking for a chance to build new skills.

3. Conduct surveys with current employees to learn their wants and needs

Employees are more likely to stay with a company when it meets their professional needs. With shared values and fair compensation, it’s easier to keep a team engaged in daily tasks. Besides attracting new candidates, an effective EVP can keep current staff satisfied with their work. In turn, this can cultivatea positive atmosphere thatprofessionals will want tobe a part of.

In this way, EVPscanreduce employee turnover. To boost team satisfaction, consider collaborating with current employees as you develop your proposition. Surveys are an easy way to get everyone involved.

Craft a list of questions asking your employees what they like about your company and what needs improvement. The responses to this list can help you identify which opportunities your team will benefit from the most. Possible questions to ask include:

  • What do you enjoy the most about working here?
  • What are some of your favorite benefits or perks we currently provide?
  • Which opportunities do you wish we provided?
  • Are the career paths at your company clear?
  • Do you feel like you’re doing meaningful work?
  • What support would you like our company to provide that contributes to your career development?
  • What do you think makes this company unique?

If an employee does choose to leave, you can still gather useful feedback by conducting exit interviews.This is a good time to look for areas of opportunity that may prevent more turnover in the future. If you find your EVP lacking, you can update it accordingly.

4. Cater your EVPs toward each employee

To maximize the effect of an employee value proposition, target your messaging to each individual. For instance, if you want to fill a position with someone who can lead a team, your EVP may be more powerful if it includes a mention of leadership training or mentorship programs. This can emphasize a candidate’s professional needs while still upholding company goals.

This method can also inspire existing employees. To a team member with unmet aspirations, an EVP that highlights career development opportunities can be a powerful motivator.

5. Communicate your EVP

After you’ve defined your EVP, it’s time to share it. Consider incorporating itinto job descriptions, company web pages, interviews, offer lettersand social media accounts. Ensuring candidates areaware of your company’s unique values can make it easier for them to identify a mission they believe in. Additionally, circulating yourEVP around internal channels gives it a chance to motivate existing team members.

Employee value proposition samples

EVPs are best understood in practice. Here are four examples to considerwhen crafting your own:

  1. At Fathom Digital, we’re dedicated to the success of our employees and helping them achieve their goals. Our leadership team is constantly encouraging employees to advance in their careers by offering leadership training, team-building workshops and free college courses to those who stay on our team for at least a year. We’re committed to enhancing the lives of those on our team and helping them grow as people and as professionals.
  2. Powercon Solutions is looking for team members who are passionate about helping others. Our goal is to work side-by-side with clients to promote their small businesses. We do this by thinking outside the box to craft creative content and marketing campaigns that drive consumers to these companies. To help ourteam members provide a one-of-a-kind client-employee relationship, we offer benefits like paid travel, customer service training retreats and career advancement opportunities.
  3. Our team at Creighton Logistics values the importance of collaboration and engagement. That’s why we’re dedicated to making the office your favorite place to be. We want work to feel fun instead of like a chore. To support this, we offer perks like a fully stocked kitchen, flexible hours, potential bonus opportunities, employee retreats and unlimited vacation time. Come have fun with us and love where you work.
  4. At Nucleus Electronics, we want our employees to grow with us. We value the contributions of every employee, and we believe our success is your success, which is why we’re starting an employee stock option program. For a set amount of time, we’re providing our employees with the option of purchasing shares of company stock at a lower price. Our hope is that this helps our valued employees increase their earningsas they help our business grow to new heights.

FAQs about employee value propositions

How do you evaluate the effectiveness of your EVP?

Regularly reviewing your EVP can help you make adjustments that will strengthen its effects. There are severalkey performance indicators,or KPIs, that can measure the effectiveness of a value proposition. These include:

  • Employee satisfaction rate
  • Traffic to company career page
  • Time to hire
  • Applicant-to-interview ratios
  • Cost-per-hire
  • Turnover rate
  • Online company ratings and reviews

What is the difference between an EVP and an employer brand?

Your company’s EVPillustrates why a professional should work for you over your competitors. The statement highlights thevalue you offercurrent and future employees, as well as your company’s goals.An employer brand, on the other hand, is essentially your company’s reputation among industry professionals. It’s a combined assessment of the culture, procedures and priorities that make up your leadership style. Overall, an EVP is one building block in the larger structure that is your employer brand.

What questions does the employment value proposition answer?

Potential candidates must ask themselves several questions before they apply to your company. The same goesfor current employees contemplating a change. Their answers help them determine how your company compares to the competition. An EVP can shed light on the following questions:

  • Why should I choose thiscompany over another?
  • What will I get out of this role?
  • What makes this company a great place to work?
  • What can this company offer me that other companies won’t?
  • Why should I apply for this job?

What is a common mistake that employers make when creating an EVP?

Putting perks before value is likely the most common mistake employers make when creating anEVP, and they often do it unintentionally. When employers focus only on perks, such as free lunches and extra vacation time, this can diminish the greater values that drive an employee’s work at the company. There’s no doubt thatperks are an essential part of anEVP—and powerful motivators. However, it’s important to focus on the higher objectives of both the employer and potential employee.Only then are you likely to find candidates with compatible ideals.

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