The Employee Value Proposition, also known as the EVP, is a term that refers to the unique set of benefits and experiences that an organisation offers to its employees. This is a crucial aspect of the talent lifecycle, helping organisations to attract and retain top talent.
Attracting top talent to your organisation is crucial for success. A McKinsey study found that superior talent is up to 8 times more effective, and the more complex a role the wider the gap.
In today’s competitive job market, simply offering a competitive salary and benefits package isn’t enough to attract the best and brightest. This is where the development of your Employee Value Proposition (EVP) comes in.
The Employee Value Proposition is a statement that outlines the specific value that an employee can expect to receive by working for your organisation. The EVP is much more than a competitive salary and benefits package – it is a holistic view of what it’s like to work for your organisation, outlining what employees can expect to gain from the experience.
Traditionally candidates have focused on the transactional elements of job security and salary when making a move, but there is now a trend towards a more holistic offer that addresses the relational elements of work that are key to job satisfaction, alongside other non-financial incentives such as flexible working. Studies have shown that employers tend to undervalue these less tangible benefits, but they are often incredibly important to employees.
A compelling EVP communicates how what you offer coincides with what prospective employees are looking for. The EVP also highlights why you differ from the competition, this can be critical in a competitive talent market.
Creating an effective EVP will not only help you to attract more talent, it will also ensure you attract the right talent for your business. A key part of any EVP is a clear outline of the business purpose and values, as sharing this allows you to attract candidates who share your organisation’s ideals.
Many different models can be used to create an EVP. We have identified six key areas which reflect the holistic package candidates are now looking for when evaluating a potential role.
We outline each of these in greater detail in our guide, Attracting Talent in a Competitive Market.
Each business will find its strength lies in a particular segment. When evaluating your EVP it’s important to bear in mind that the aim isn’t necessarily to stand-out across all elements of the model, but to identify where your strengths lie and where this overlaps with what prospective employees are looking for.
The Employee Value Proposition is a way to differentiate your organisation from the competition and show potential hires why they should choose to work for you. By highlighting your company's unique benefits and opportunities, you can attract top talent and stand out from the competition.
The EVP has a huge impact across the full talent lifecycle, helping to reduce attrition as well as attract new talent. An effective EVP also has the benefit of driving down the costs associated with recruitment and retention.
It’s also worth considering that low attraction has a detrimental impact on your organisation, putting more stress on internal teams as the recruitment timelines stretch out.
A compelling EVP can give your organisation a competitive advantage in both recruitment and retention of current talent, but it is likely your competitors are also doing this work, so if you don’t have this in place you’re at risk of falling behind.
To learn more about building a strong EVP for your organisation download our guide, or contact our team today to find out how we’re helping clients in this area.
Only 29% of functional leaders report they have all the talent they need to meet current performance requirements. How can you ensure you are attracting the right talent to your organisation?
Our full guide to the Employee Value Proposition is available today.
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