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What is Employee Value Proposition (EVP)?

Employee value proposition (EVP) is a critical part of an employer’s overall branding, and is one of the key ways through which organizations can attract and retain skilled employees while also keeping them engaged.  

In highly competitive job markets, employee value proposition serves as a key a differentiator, allowing companies to stand out and also move a bit of the focus away from remuneration being the sole motivator for an employee joining the organization.  


The Importance of Employee Value Proposition 

Every organization has its unique selling point that differentiates it from competitors and attracts customers.  

Similarly, every employee has their unique set of expectations and preferences regarding what they seek in their employer-employee relationship.  

EVP is the comprehensive value that an organization offers to its employees to fulfill these expectations, meet their needs, and give them a compelling reason for their continued attachment to the organization.  

EVP includes both tangible and intangible benefits such as compensation and benefits, job security, work-life balance, career development opportunities, organizational culture, and employee recognition. 

Building a strong EVP is becoming increasingly important for growing organizations for several reasons.  

Firstly, it helps organizations stand out in the crowded job market, especially when recruiting top talent.  

Secondly, it fosters employee engagement and loyalty by aligning employee expectations with organizational goals, values, and culture.  

Thirdly, it reduces employee turnover and associated costs by ensuring employees feel satisfied, motivated, and valued.  

More importantly, EVP can enhance overall organizational performance by attracting and retaining high-performance employees who are more likely to deliver results. 


How to Build a Robust Employee Value Proposition

Building a strong EVP requires a thorough understanding of employee expectations, preferences, and motivators.  

HR managers can use various methods to gather such information from surveys, focus groups, and interviews. Once this information is collected, it’s crucial to align it with the organization's goals and values to determine what the organization can offer to fulfill employee needs.  

HR managers can prioritize the top-ranking factors that influence employee engagement and retention and integrate them into the overall HR strategy, policies, and practices. 

Some actionable steps that companies can take include: 

  1. Assess Your Organization’s Current Situation

Conduct an internal audit to evaluate your organization's current strengths and weaknesses in terms of culture, benefits, and opportunities for growth. Gather feedback from employees through surveys, focus groups, or interviews. 

  1. Research and Benchmark

Research competitors and industry standards to identify what other organizations are offering their employees.  

This will help you understand the market trends and make informed decisions about what to include in your EVP. 

  1. Create a Compelling Message

Develop a clear and consistent message that communicates your organization's unique offerings and values. Focus on the aspects that differentiate you from your competitors and resonate with your target audience. 

  1. Develop a Comprehensive Package

Design a well-rounded package that covers various aspects of the employee experience, such as competitive compensation, benefits, flexible work arrangements, professional development opportunities, and a positive work environment. 

  1. Measure and Refine

Continuously monitor the effectiveness of your EVP by tracking relevant metrics, such as employee engagement, retention rates, and recruitment success. Gather feedback from employees and adjust your EVP accordingly to ensure it remains relevant and compelling. 

Building a strong EVP is not a one-time event; it requires continuous evaluation, monitoring, and updating.  

HR managers can use various tools to evaluate employee satisfaction, engagement, and retention such as surveys, exit interviews, and turnover rates.  

With this feedback, HR managers can identify gaps and areas for improvement and make necessary adjustments to the EVP to maintain its relevance and effectiveness. 


Examples of Strong EVPs 

Some companies have established strong EVPs that have earned them global recognition as employer brands.  

For instance, Google is known for offering employee perks such as free meals, on-site massages, and game rooms. Netflix, on the other hand, offers unlimited paid time off, flexible work schedules, and hands-off management style.  

Patagonia, a retail company, has a strong EVP that aligns with its corporate sustainability and social responsibility values. It offers employees paid time off to volunteer for environmental causes, onsite childcare, and access to on-site yoga classes. 


Use inclusio to Create and Refine Your EVP 

The best companies realize just how important it is to understand the work culture and then develop a strong EVP around it.  

Using a platform like inclusio can help organisations better understand their diversity and inclusion (D&I) ambitions, and give them access to comprehensive reports and diagnostics.  

This information can prove to be vital for companies that are championing diversity initiatives and for creating a safer employment for employees, all of which can help improve the company’s EVP.