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Employer Value Proposition

The employer value proposition (EVP) represents the culture and value of a company. It also states the benefits employees get while working at the company. Growth opportunities, chances for learning, and development are all part of the employer value proposition. The EVP is crucial to any business's brand. Studies show that organizations with a well-tailored employer value proposition are five times more successful in attracting talent. 

What are the Benefits of an EVP?

As part of the overall business strategy, the employer value proposition helps businesses define their:

  • Workplace vulture
  • Mission
  • Values
  • Rewards system

The proposition gives an edge to a company in the highly competitive talent market. It highlights the benefits potential employees get. The employer value proposition aims to convince the top talent to go with your company rather than the competition. Do you offer better healthcare benefits than other businesses in the field? Does your talent-management program strive to do what is best for your team? Are your training programs up to the highest industry standards? The people looking for a job in your field would like to know these things. 

The manager's job is to explain the goods and services on offer to clients. The employer value proposition helps them do the same with the company's values and culture. Instead of talking to potential clients, however, the managers address current and potential employees of the company. 

Who Needs An Employer Value Proposition?

The recent Universum survey of over 2500 talent acquisition managers, HR and marketing teams from 50 countries and across all industries showed that:

  • 67 % of companies with 10 000 and more employees have EVPs
  • 55% of companies with between 1000 and 9999 employees have EVPs
  • 30% of companies with fewer than 999 employees have EVPs

What all these organizations have in common is a higher success rate in attracting valuable talent and retaining those already in their workforces. 

The sectors with the highest number of companies that have created employer value propositions are technology, banking, and accounting. The polls showed professionals in these fields look for challenging, but rewarding work; a friendly work environment; diversity, and inclusion. 

The modern business environment is subject to constant change and improvement. It becomes more competitive by the day. That means even if you run a small business that is not in the top-three industries listed above, you still stand to benefit from creating an EVP. 

How to Define Your Employer Value Proposition?

The modern business landscape is riddled with market volatility, skills shortages, and new technologies. Such an environment requires businesses to become more responsible with the way they showcase their qualities. When they succeed in doing so, they can optimize their selection process. Not only are they in a position to have their pick from the job market talent pool, but they have higher chances for retaining the skillful employees who already work for them. The employer value proposition is the stepping stone to achieving these goals. 

To produce an outstanding employer value proposition, you need to address several key questions:

  • What qualities characterize your organization and make it stand ahead of the competition?
  • What is your company's mission?
  • Why is that mission important?
  • Where do you look for employees to help you achieve your goals?
  • Who is your competition?
  • Who is the top talent you hope to attract?
  • What matters to the people you need to succeed in your organization's goals?

The answers to these questions will give you the backbone of your employer value proposition. They will establish the brand strategy you wish to pursue and open doors to communication with the existing talent pool. 

Related Terms

Your EVP is part of the overall company’s brand. As such, it would be a sensible idea to know the other building blocks of your business image. The employer value proposition defines how you'd like to be perceived as an employer. Other crucial terms are:

  • Employer Brand. It describes how outside people perceive you as an employer. They can be indifferent or think of you as a good or a bad employer. 
  • Employer Branding. The term describes all actions you take to communicate your employer brand to the outside world. That may include marketing campaigns, social media presence, and media coverage. 
  • Employer Brand Management is all activities you engage in to promote your employer brand image and the real-life experience of your current employees. 

It is vital to put your employer value proposition in the broader context of your brand. In that way, you will be in a position to tailor a more efficient proposition and a powerful branding message that will resonate with potential employees and the broader public. Such an approach will benefit your overall company image, as well. Each step you take in that direction improves the public's perception of your business. That translates into a boost in sales. 

What Makes a Good Employer Value Proposition?

It is a hundred percent true that the nature of your employer value proposition depends on your company's unique characteristics. Nevertheless, what is common to all successful EVPs is they are all honest.  You should avoid trying to represent your company as something it is not. Remember that the employer is the best brand ambassador of the company. Your managers and team leaders should try to communicate your EVP in a trustworthy manner. 

The opposite has never worked. On the contrary, companies that have tried to present dishonest employer value propositions have experienced a loss of trust from employees. Such a thing inevitably translates into a decrease in productivity and the quality of goods and services. Few businesses have managed to recover from such disasters. It's best to avoid becoming a cautionary tale.

In short, your employer value proposition has to be:

  • True
  • Credible
  • Relevant
  • Distinctive
  • Aspirational

What Makes an EVP True?

A successful employer value proposition represents what your company's values are. Pay special attention to the description of things you offer to your employees, as well. One of the mistakes companies make is promising benefits they can’t deliver. An honest employer value proposition makes for a smoother and more satisfactory relationship between the organization and its employees. 

What Makes an EVP Credible?

Making your brand believable and trustworthy is the end goal of the employer value proposition. To do so, you should not make claims in the proposition you cannot back up with evidence. That is why it is best to include testimonies and personal accounts of current members of your team. Short, direct messages that include as much positive feedback as possible are crucial. The credibility of your brand is its most valuable asset. Have the top talent in your field, and the general public believe your brand messages. That goes a long way in assuring your company's overall credibility.

What Makes an EVP Relevant?

In addition to having people believe your brand message, you want them to see it is relevant to the current market situation and life in general. Do you offer the employees something to help them on their career path and personal development? Show the talent pool you care about their needs and are willing to help them utilize their full potential. Keep an eye on the changes in the market, and make sure to fine-tune the employer value proposition every time a major shift occurs. Some companies struggle to stay relevant in the modern dynamic environment. You will easily avoid that trap by doing the proper research. Listening to what your current employees have to say on the subject is probably the best strategy to keep your value proposition relevant. 

What Makes an EVP Distinctive?

To make your EVP stand out from the competition, you need to list all the unique characteristics you possess. Tailor your brand message in such a way all the strengths stand out. Focus on the unique career opportunities and the better work conditions you offer. It is crucial not to over-promise here. List what makes your organization better than the one across the street, but keep things true to the facts. 

What Makes an EVP Aspirational?

An aspirational employer value proposition allows employees to see how they can grow within the firm's structure. It offers them insight into the value a company puts on its workforce. Show how much you invest in the growth of your team. It might be a good idea to go to your longest-serving team members. Ask them for their honest opinion on why they have lasted for so long with you. That will give you an idea of how much of your opinion on the subject matches reality.

Points to Make in Your Employer Value Proposition

Tailoring the right tone for your value proposition will attract potential employees. What will make them stay with your organization is the actual things you can offer them. Each applicant for a position at your business would like to learn a few things before they accept a job offer.

Salary/Remuneration

The financial compensation you offer is crucial for the decision-making process. By providing the precise salary or a range, you will help the talent you want to hire consider their budget. What is more, you will demonstrate exactly how much you value the skills and expertise they bring to the table. Don't forget that a high salary is not enough. It may attract a lot of capable candidates at first. In the long term, though, you need to be able to offer them more to stay.

Work Environment and Corporate Culture

Employees work best when they can identify with the culture of the company. It is vital to clearly state what your company stands for in terms of values. In that way, job seekers can tell if their values align with yours. Making your corporate culture clear in the value proposition means you will attract the types of people you want to be a part of your team. Along with the culture, the work environment is a decisive factor. People want to go to work in a stress-free place that offers them everything necessary to do their job. It would be a good idea to highlight the perks of the working environment you can offer. Those include stylish furniture, benefits like free snacks and drinks, leisure rooms, and so on.

Don't forget to mention if you offer your employees work-from-home options. If we have learned something in the past couple of years, it is that this is a crucial perk for any modern business. 

Career Growth Opportunities

Your employer value proposition will not be complete without a description of the opportunities you give your team members to climb the corporate ladder. Tell them exactly how and when they can expect promotions and salary increases. Be as clear as possible about the requirements you have for your employees in terms of performance. People work best when they have a sight of a goal they need to reach. Knowing their hard work will pay off in career progression will motivate them and make them want to work for you.

Job Security

Established companies find it hard sometimes to compete with exciting start-ups for young talent. One edge they have is the job security they can offer to their employees. If your company has been around for ten or more years and the majority of your team has been with you for as long, highlight it in your EVP. It is worth it to take the time to tell the potential workforce about your long history, impeccable track record, and the further growth you expect. 

Identify Your Strengths

The best way to demonstrate you are better than the competition is to show you know them. You can tailor your employer value proposition in a way that highlights your deep understanding of your market sector. When you know that, you can easily pinpoint your strengths. The direct feedback you get from your employees and even clients will come in handy at this point as well. 

If you follow these steps, you will be able to tailor a fool-proof employer value proposition and attract the best talent. Not only that, you will build an employer brand that will stand the test of time.