What is an Employee Value Proposition and why is it important?

An Employee Value Proposition is the unique set of benefits and the experience that an employee receives from a business in return for their skills and experience. An EVP defines the essence of your company - your values, culture, uniqueness and what you stand for. It sets expectations of what your employees and customers can expect from you and what you expect from them.  A powerful EVP is woven into the entire lifecycle of a business. From the very first interaction, a potential employee has with your business to the end of their first day working for you to the day they leave, your EVP shapes all your internal communication with them.

What Is An Employee Value Proposition?

Put very simply, an EVP is a brand contract between employees and the business. It is the ecosystem of managing and developing workers, the support, recognition, and values that an employer gives employees, empowering them in their development and to reach their highest potential at work. 

It defines what the employer is looking for in potential talent and individual performance and what the employee can expect in return.

Why Is An Employee Value Proposition Important?

There are several symbiotic reasons why having a robust EVP adds value to a business:

• Attracting the right talent
• Employee retention
• Delivering business performance

EVPs Attract The Right Talent

To attract the right talent, you need an employer brand that stands out from the crowd - you need to establish your business as a desirable workplace - and without an EVP - there is no company brand.  

Seenit recently reported in their State of Employer Brand 2023 that 96% of employees stated they would be more likely to apply to a company with a good employer brand. Accurate and meaningful representation of your brand values, how they relate to an employee’s bigger picture role within your business and the value that employees can get from working for you, serves as a beacon attracting like-minded candidates and dissuading those with different values and work ethics. 

EVPs Ensure You Retain Your Best Talent

Consistent and continued articulation of your business values throughout all external and internal communications has a direct link to your retention strategy and the success of your business.

By offering employees a working environment and recognition and rewards that resonate with them, you provide your team with a workplace that fits them personally and professionally. A robust and meaningful EVP transforms the employee and employer relationship into a partnership, which encourages engagement and loyalty. 

Indeed, a 2023 study from Gallup and Workhuman found that Among employees who strongly agree that recognition is an important part of their culture, seven in 10 strongly agree that they feel connected to their organization’s culture. Additionally, employees who say their recognition program is aligned with the values of their organization are 4.9 times as likely to strongly agree that they know what is expected of them at work compared with employees who indicate their recognition program is not aligned with the values of their organisation.

Strong EVPs Deliver Business Performance

Strong EVPs not only attract and retain the right talent for your business, but also empower that talent to perform to the best of their ability.

According to Gallup's State of the Global Workplace: 2023 Report, employees who are not engaged or who are actively disengaged cost the world $8.8 trillion in lost productivity, which is equal to 9% of global GDP. However, engaged employees deliver a 21% higher profitability rate. This personal investment and daily engagement from employees drives the business forward and directly impacts positive performance.  

In summary

In answer to the age-old HR question: “How can we attract and retain the best possible talent to our business?” a strong EVP, which is communicated effectively, is a compelling answer.

Looking for support with articulating and creating your employee value proposition?  That’s what we’re here for.

Get in touch and let's have a conversation.