There has been a lot of hype lately about the notion of employers’ value proposition (EVP), but what exactly is it?
Well, a great EVP is a simple phrase that captures all the benefits and values employees receive from your organization. It’s not just an employee benefit or financial compensation.
Furthermore, employers, today must play an important role in educating their customers about the value of benefits to their careers and employees.
If a company has a compelling value proposition, it will attract quality employees. Creating such a value proposition can be difficult – but it’s less complicated than you think.
In this article, I will talk about the employer value proposition (EVP), how to develop one, and how it can benefit you as an employer to put one in place.
Having a positive employer value proposition will help you attract, retain, and engage good people.
What is an Employer Value Proposition?
The US Department of Labor defines employers’ value proposition as including the employer’s compensation and benefits, the relationship between the employee and the employer, and other factors that affect the decision to hire.
Employers’ value proposition is an integral part of the job seeker’s attachment to the firm. A job offer encompasses both the job-related and non-job-related aspects that satisfy the personal needs of the worker.
The employer value proposition (EVP) is a marketing strategy that explains to employees the benefits of working for your company.
In short, it explains why employees should work for your company over the competition and should make you stand out from the crowd.
Why Is An Employer Value Proposition Important?
1. EVP builds trust with candidates
A key goal of your recruitment strategy should be to build trust with candidates. That’s why it’s so important to have a strong employer value proposition in place.
By communicating important information about your company, your EVP strengthens the bond between your brand and your target talent.
The candidate’s main concern is: “what’s in it for me?” EVP reflects the company culture and its values so that when it becomes successful, only those who know they fit your brand will apply.
This improves trust with candidates, as any candidates applying will share similar values to your company.
2. EVP helps potential hires and employees understand the value of the organization
Your employer value proposition, or EVP, is an important part of your recruitment campaign.
Your EVP will help potential hires and employees understand why they should choose your company over others. It should communicate the value that someone receives beyond a paycheck for working at your company
3. Employer value proposition can improve employer brand image
Firstly, EVP can help you stand out from the competition. Formulaic job ads and uninspiring company overviews will no longer cut it in a candidate-driven market.
If you want to attract top talent, you’ll need to show how your company stands out from the crowd.
Secondly, EVP acts as an internal tool, helping ensure staff is engaged and productive. And lastly, an EVP that’s communicated properly can improve your employer’s brand image.
4. It is easier to get key messages across if they are presented in a succinct format
An EVP is a company’s promise to its employees. Put simply, it clearly and concisely sets out what you, as an employer, can offer them in return for their valued contribution.
It will include everything from the salary and benefits package you offer to other intrinsic factors such as flexibility and career development.
Above all, it aims to communicate what makes your organization different.
5. An employer value proposition is a way to attract talent
If you want to make your company more appealing to potential employees, you need to show them what your company has to offer. This is called an “employer value proposition,” which is also called a “unique selling point.”
Employer branding is more than just having a good reputation as an employer in your industry. It’s about attracting and retaining talent and protecting yourself from competitors.
What Are The Components of An Employer Value Proposition?
Employers have taken a lot of time and effort to design the best value proposition for employees. But at the end of the day, many employees look at the value proposition and judge it by one thing: compensation.
Compensation is one of the most important parts of any job package. It includes all forms of financial payment to employees for their work, but also things like healthcare, retirement, and bonuses.
Remember also that non-financial incentives such as flexible working might be even more important. A competitive benefits package is no good if they are not communicated effectively.
2. Work-life balance
A lot of companies talk about their amazing work-life balance, but most fail to create the infrastructure that supports it. The work-life balance is no longer just a slogan.
According to CNBC, working mothers are 32% more likely to stay with an employer who provides them with a good work-life balance, especially if they have the remote option.
Remember that the most sought-after employee perks, according to employees and employers alike, are those designed to improve work-life balance.
3. Stability and job satisfaction
When an employer promotes job stability and satisfaction, it becomes a valuable benefit to the potential employee.
Organizations with strong employer value propositions can build great cultures because their people are happier and more stable at work.
Remember, it’s not just about the benefits package you offer. It’s also about how you express them in your EVP.
For the best candidates and employees, the EVP is a compelling reason to choose — or stay with — your organization.
4. Working environment
It is not just about what you are offering in terms of financial benefits and a sense of achievement; it is also about the environment.
An excellent working environment is one where employees feel valued, fulfilled, engaged, and comfortable. Companies that have a healthy workplace culture are known for their equality and diversity, and flexible working opportunities.
It is a place where people would like to be and enjoy each day. The working environment should be one that does not cause them undue stress or anxiety but supports them to do their jobs well.
How to Develop An Employer Value Proposition
1. Identify and understand your business goals
Employer value propositions lie at the heart of a business’s objectives and corporate culture. Your employer’s value proposition needs to be honest, credible, and true to the organization.
Be clear about what you want to achieve so that you can use your value proposition to help get you there. If you can get this right, you will have a really solid foundation from which you can start building an effective EVP.
2. Emphasize your company culture
Company culture often remains an abstract concept, even though it’s the first thing a prospective employee wants to know about.
What is my potential employer like? Who am I talking to when I meet a recruiter? What are they thinking when they talk to me?
A company culture that attracts great people is the ultimate competitive advantage. Winning cultures can be grown, which means you can actively shape your culture to one that attracts top talent and helps you keep them.
3. Create a value proposition that is relevant to the employee
Instead of talking about how awesome you are as an employer, focus on how you can improve your employees’ lives with the help of your employer’s value proposition.
Naturally, you want to highlight the benefits of working for your business and demonstrate how those benefits distinguish your brand from your competitors.
But make sure it’s relevant to the employee. Employees don’t care about all the accolades and awards your company has received. They care about their career growth and how that relates to your company.
4. Point out the benefits to the employee
How often do you think about your staff? If you’re like most employers, you probably haven’t considered how your benefits package can improve employee satisfaction and boost productivity.
We think it’s time to give it some serious thought. Your employees need to know what’s in it for them to work for you.
5. Be clear about what you are offering
To satisfy the needs of employees, an employer’s value proposition must be clear, accurate, and truthful.
A clear EVP about your offers helps a company attract top talent and retain existing employees while reducing HR costs and lost productivity.
In turn, this can improve an organization’s brand image and boost recruiting efforts.
Additionally, an employer’s value proposition is only helpful if it can be communicated clearly and effectively. This is especially true concerning the Millennial generation who have made their presence known in the workforce.
6. Be transparent about your strengths and weaknesses
Your EVP should reflect reality, so be honest about both your strengths and weaknesses. If you don’t have great employee benefits, don’t pretend you do.
But be upfront about the fun office environment that does exist at your company instead of focusing on what’s not there.
Be realistic about factors like salary and hours worked. You can also talk about the strengths that do exist, like a family-friendly office environment or opportunities to travel and learn new skills.
7. Track your progress
It can be difficult to get a grip on what your EVP is, once you’ve begun the process of forming it.
This is why it’s important to always return to your core values. Your employer value proposition will be better if you keep track of how far you’ve come.
You can then make changes to it based on feedback from your employees and other stakeholders, such as suppliers and clients.
How Do You Know If You’re Providing Your Employees with the Proper Employers’ Value Proposition?
It’s simple really. When you provide open communication about the expectations of their jobs, a flexible and supportive work environment, and solid financial benefits, you are offering a desirable value proposition.
It’s important now more than ever to understand your employees’ expectations and behaviors.
When those change, your entire organization can suffer. You’ll gain a happy employee if you convey the employers’ value proposition to them, as well as pay, benefits, and overall professional development.
Is Employer Value Proposition a Must for Employers?
A company’s employer value proposition (EVP) outlines what a company can offer its employees in exchange for their talents.
Therefore, an EVP is a necessary tool that can help employers attract top talent to the organization and retain existing employees.
No one wants to work at a company where it’s all about the numbers and no one cares about the people.
Employers who take the time to clearly articulate their EVP should be able to attract candidates with similar values.
How does an employer value proposition help employers?
An employer value proposition (EVP) is an expression of what you have to offer to employees.
In the tussle for the best talent, an EVP can help you stand out from your competitors – and attract and retain the best people.
How do you explain your value proposition to employees in a simple way?
When communicating with your employees about your employer’s value proposition, make sure to be clear and succinct.
Avoid using complex jargon and focus on explaining the key benefits of working at your company. Define your EVP in a way that all employees can understand and hopefully spend their days trying to support it.
What can employees do to make their employers more valuable?
Part of increasing your employer’s value is showing that you are a top performer. This means hitting your goals, showing up at work on time and ready to go, and meeting deadlines.
But being a top performer also involves being an engaged employee. As you progress in your career, you will also learn how to let your manager know that you add value to their organization.
In the world of recruitment and talent acquisition, your value proposition matters. You can do everything right to make sure your company is the employer of choice, but if you aren’t landing the top candidates in your industry, it won’t matter.
Having a clear employer value proposition (EVP) can be the difference between success and failure in the battle to attract and retain talent.
So, it makes good business sense to get it right. Use this article as a guide to ensure your hiring strategy is aligned with your value proposition.
Engaging employees shouldn’t be a joke for an employer whose value proposition is strong. The two go together in many ways.
For more information, read the article that highlights some of the reasons why employee engagement is important.
Thanks for reading.