Everything You Need To Know About Employee Value Proposition
From hiring to retaining and including all the hassles of employee engagement has been a difficult task for managers and HRs. To tackle this, defining your employee value proposition will help your company across the board.
So what is EVP?
EVP is the balance of the rewards and benefits that an employee receives for their performance. Simply put, it is the values and benefits offered by a company to its employees to motivate them to display superior performance. It is the return for the skills of your employees. On top of that, a strong EVP can help you attract and retain employees.
Let’s take a look at why there is all the fuss about EVP!
Why is it important?
Attracting appropriate talents is very difficult in today’s generation. Compared with just a decade back, candidates have many more options at hand to consider during their job hunt.
According to a report by mrinetwork, 90% of the current job market is candidate-driven. You can no longer take your top prospects for granted. Top talents usually have more than two offers with them to consider. Top talents get hired by recruiters in less than 10 days. Times have changed.
You don’t pick the candidates. The candidate picks you.
It is very important for your business to consistently interact and deliver your EVP to your prospects. Industry leader HRs are getting onboard the EVP ride. They are properly strategizing on how to communicate their EVP and employer brand to both potential employees and existing employees.
Through the Employee Value Proposition, it is easier to communicate and engage with new prospects through various channels and improve candidate experience.
One more important benefit is the reduction in recruiting expenses.
Imagine you and your competitors want a particular candidate. On top of that, both of you are offering the same salary. With a compelling EVP, you can hire the prospect without having to increase the salary.
So we now have an idea of the importance of EVP. Let’s look at the elements of a unique, relevant and compelling EVP.
The building blocks of Employee Value Proposition (EVP)
EVP is a comprehensive package. It has 5 components that you need to look out for.
You thought you could get away from this, right! Whatever you do, you still need to maintain the industry standard of the salary offered. Offer too less salary, no amount of benefits and freebies can stop your employees from stepping out the door. Offer too much and see the hole in your company’s pockets become bigger.
Not just the initial salary we are talking about. Your company should be a great place to earn promotions and raises based on performance. Also, your evaluation of performance should be fair and transparent. Make you have a quantified approach to evaluating performance.
People trust numbers, give them that.
Having a fair, transparent and generous not only helps in attracting talent but also reducing attrition in your company.
Probably the most important part of an Employee Value Proposition. So important that there wouldn’t be any EVP without benefits and perks. Make sure you provide proper benefits and perks to your employees according to their skills, capabilities, and experiences.
A great way to shower benefits is to give you employees holidays and time offs according to their performance and flexibility. Some more formal ways to give benefits can be by providing great retirement plans, medical and life insurance.
You should make sure that your employees are getting adequate family time. Make it a mission of your company to increase the work-life balance of your employees by increasing the time they spent with their family. Having a reputation for providing a great work-life balance will boost your company’s employer brand.
3. Career and Development
Development in career and skills are one of the top priorities for employees across the globe and across all age groups. 94% of employees prefer companies that provide learning and development opportunities over companies that don’t.
You need to provide your employees with the chance to progress and develop in their careers through your company. Conduct regular and periodic sessions in your work to educate them about the latest techniques about their work. This keeps your employees satisfied in terms of their growth. Your employees in return can use the latest techniques learned in your workflow.
4. Employee Surveys and Work Environment
Your work environment is a real indicator of what your EVP stands for. Set an example of your superior work culture by providing autonomy and recognition to all the employees.
The first way to define a superior work culture is to make everyone understand and be clear of the company’s goals. Candidates being a great fit for a company is absolutely crucial. A great fit can improve the work environment and positivity in the workplace.
A great way to increase engagement in the workforce is to conduct employee surveys. Short and frequent surveys not only see better feedback but also more honest responses. Properly conducted surveys can provide you with an idea of what you need to do to provide a better working experience for your employees.
An EVP is about capturing the essence of why you want prospects to choose your company over your competitors. A strong and resounding EVP is a powerful tool hr professionals have at their disposal. A compelling EVP displays the spirit and values your company stands for.