An employee value proposition (EVP) is the set of attributes that employees see as the “value” they gain through employment with a company.
And it’s important to them – companies need to pay job candidates an average of an 11% premium in compensation to entice them to a new job if they feel the EVP is attractive but 21% increase in compensation to candidates who think the EVP is unattractive, according to CEB data.
A good EVP doesn’t just keep costs down, it also improves a company’s ability to attract high-quality candidates, and means employees are more committed to their jobs and more likely to stay with the company.
But the amount of change that employees are having to deal with right now – and the anticipation they have of future change – undermines companies’ ability to provide what they promise in the EVP, and this inevitably means employees are less satisfied. In fact, CEB data shows that employee satisfaction with their EVP has dipped 24% in recent years.
Creating an Authentic EVP
Despite all the bad news however, HR teams that manage to provide an authentic EVP will offer their company a new source of competitive advantage in the labor market.
Many HR teams stumble at the start of EVP (re)design efforts, either rushing to implement one or stalling as they determine what and how much EVP data to collect. Instead, they should start with a careful evaluation of what the company’s EVP is today and then methodically collect information to frame a differentiated EVP that will attract and retain the talent that will help a company achieve its longer-term strategic goals.
HR teams should hone in on the critical few criteria that will differentiate their EVP in the labor market, and appeal to prospective candidate and employee segments that matter most to their business. The best organizations couple core EVP elements with targeted components that appeal to key talent groups.
Lastly, communicate about the EVP process broadly, and include senior leaders, line managers, and employees in decision making where appropriate. An inclusive, transparent EVP process adds authenticity to the message and also engenders the employee support necessary to create an EVP that is sustainable long term.