Employee Value Proposition: What it Means and Why it Matters
Effective leaders in any organization know that taking care of their employees should be one of their top priorities. If employees don’t feel as though the benefits they receive from their employer adequately compensate for the skills they bring to the table, it may be time for that company to take a look at its Employee Value Proposition.
Employee Value Proposition
An Employee Value Proposition (EVP) is a unique set of rewards and benefits that employees receive in return for their performance at work. It is an internal evaluation that seeks to analyze the employees’ view of the company, what they view as unique benefits to working there, and specific reasons that they are proud to work for the company.
In a way, an EVP is similar to a company’s branding, however, the key difference is that while branding is external, an EVP is internal. It is still important though, that the internal and external messaging is consistent with one another to retain top employees and to be attractive to possible job candidates. If the branding of an organization does not match the reality of its EVP, this may point to internal issues and a need for organizational leadership to evaluate the benefits offered by the company.
Why an Employee Value Proposition Matters
In today’s job market, attracting and retaining top talent is more difficult than ever before. If employees don’t feel like the benefits they receive from an organization are worth the work that they contribute day in and day out, they can fairly easily find several other companies that might be willing to hire them. This is why having a thorough, up-to-date employee value proposition is hugely important to an organization.
An EVP can be conducted by having one-on-one conversations and sending surveys out to employees to see what benefits they appreciate, and which they feel might be missing. It is crucial to take this feedback seriously to know what you may already be doing well and to discover areas of possible improvement. Knowing existing internal perceptions of the company can tell you why employees are attracted to the business, how the organization is unique from others, and why employees may choose to stay in or leave their role in the company.
Elements of an Employee Value Proposition
In order to create an effective EVP for your company, it is important to know what elements need to be included!
Compensation and Salary
This element is fairly obvious but is essential information nonetheless. It is important to know if your employees feel as though their salary is fair for the amount of work that they do each day.
Benefits include a variety of elements such as retirement plans, health insurance, dental and vision insurance, and PTO. Take some time to review the benefits that you offer your employees to see if they stack up to plans being offered by other companies, as this can be a major selling point in attracting new talent.
Do your employees feel as though their career has stability? Do they have the chance to grow and develop in their role? All of these are factors that play into the career element of an EVP. Employees are more likely to feel positive about their careers when they know they can develop their skills and that their job within the company is stable.
The company work environment is more than just its physical aspects, although that certainly helps. The work environment element has more to do with work/life balance, the recognition of employees’ accomplishments, a healthy mix of challenge and rest, and the ability for everyone to know their role and complete their given projects in the company.
When all other elements of the EVP are working together, that’s when company culture really starts to flourish. Culture first comes from leadership and management. They have to effectively communicate with their employees, make good hiring decisions, and foster an open environment within the workplace. Culture includes the feeling of camaraderie and trust among coworkers. Culture doesn’t happen overnight, but it can be an invaluable element that keeps your top employees and attracts talent to your company.
How to Evaluate Your Employee Value Proposition
After combing through the feedback and creating a perfect EVP for your company, you’re likely going to be excited to start implementing some positive changes and fostering the elements that you’re already doing well. We don’t blame you! But, don’t get too comfortable just yet. EVPs are not a one-and-done process. Rather, this is something that you’re going to want to revisit every year to make sure that your company’s value to your employees doesn’t stagnate. Take some time at the beginning of each fiscal year to review your EVP and make sure it stays up-to-date.
Employee Value Propositions are becoming an increasingly important component of employee recruitment and retention in the modern workplace. By taking your EVP seriously and incorporating feedback from your employees, you can increase your organization’s internal value to keep your top-performing employees and make it a more attractive place to work for other talents on the market.