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

Caroline Russell
By Caroline Russell
Account Director

An Employee Value Proposition is the unique set of benefits that an employee receives from a business in return for their skills and experience.

An EVP defines the essence of your company - your values, your culture, your 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.

Stages of employee life cycle

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 employee 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 destination workplace - and without an EVP - there is no company brand.  

LinkedIn recently reported that 72% of recruiters agreed a company's brand had a significant impact on their hiring. 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 2017 survey found that 90% of employees with a recognition programme tied to their core values were more engaged with their role and employee turnover rates can be reduced by 28% if employers invest in their brand and how it communicates to their employees. 

Strong EVPs Deliver Business Performance

Strong EVPs attract and retain the right talent for your business and empower that talent to perform to the best of their ability.

The 2018 report from Gallup found that engaged employees delivered 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.

Caroline Russell

Contact us to discuss how our specialists can support you with your next project

Caroline Russell

EMPLOYEE COMMUNCIATION SPECIALIST