Employee Value Proposition (EVP) – how to create it and why it matters

If a job seeker asks, “why should I work for you and not your competitor?”, what would your answer be?

To answer this question, you need to define exactly what benefits your organisation offers to its employees. The aim is to attract and retain employees whose values and goals align with your business. This is where your Employee Value Proposition (EVP) comes in.

Without an EVP, you will struggle to persuade current and potential employees as to why they should work for you and, in effect, your growth strategy will fall short.

Its important to note that there is a difference between your EVP and your Employer Brand. Your EVP makes up part of your Employer Brand. Simply put, your EVP is what you offer to your employees and your Employer Brand is how you represent yourself as an employer in the eyes of the public.

Why do you need an EVP?

Let’s go back to our initial question.

Why should someone work for you and not for your competitor?

Your EVP will answer this question by:

• Distinguishing the difference between you and your competitor as an employer
• Showing how you care about your employees
• Helping the employee to understand whether your company culture and management style is right for them.

How to create an EVP

To establish your EVP, you need to consider the key word in the abbreviation; ‘value’. To determine how you can add more value into your employees’ lives, aside from compensation, consider the following:

What do your employees value and what are their goals?

Consider what your employees need and care about

Compensation is undoubtably a strong driving factor but increasing it can be dangerous in a couple of cases:

• You might end up paying your employees more than their what skillsets deem them worthy
• You could blow your budget for your ability to bring on new employees
• Your employees might become less motivated by other benefits you provide, such as flexible working or career progression paths

Ask yourself ‘what else do my employees care about?’. Do they want more time with their families? Do they want to work in a role that really matters or where they can make a difference? Once you identify their goals and values, you can decide upon what benefits you could offer that align.

Send out surveys to your employees and invite them to provide their thoughts and ideas so that you can gain a better understanding of their drivers. Here are some deciding factors that influence candidates who are looking for a new role post COVID.

What are you currently offering to your employees?

After learning what your employees’ goals are and what they value most, it’s time to put everything on the table and see what you currently offer. You need to know where you stand before you know what steps to take next.

Evaluate your current offerings. Put them side by side with the information you’ve collected about your employees’ goals and values. You might be providing benefits that your employees don’t care about, or some employees may not be aware of your current offerings.

Make sure your employees are aware of all the benefits they are able to access. Having a robust internal communication process will help create awareness.

What benefits can you offer?

Now that you know what your employees care about and what you already offer, you can think about initiatives you could introduce. For example, if your employees want more time to spend with their families, maybe you could offer them more flexible working arrangements or an extra day off for special occasions.

Let’s say your employees want to be working in a role that matters. Firstly, you need to understand what that means. Does that mean they want to be in a role that makes an impact on the company’s profits? Or does it mean they want to be in a role where they can make a difference in the world?

Examples of what some companies currently offer:

• Reward and recognition programs
• Subsidies for learning and development
• Free gym memberships
• Paid days off for birthdays
• Paid volunteer days and fundraiser events
• An allocated number of wellness days
• Employee assistance programs
• Flexible work arrangements
• Higher super contribution
• Corporate health insurance offerings and contributions

Get creative! The list above is only handful of examples. The benefits you could offer is only limited by your imagination – and perhaps your budget… By offering unique benefits, you truly set yourself apart from competitors.

EVP pitfalls to be aware of

Two pitfalls can make your EVP ineffective; not making your employees aware of the benefits you offer and claiming to offer certain benefits that you do not. Let’s go into more detail.

Not making your employees aware of the benefits you offer

If your employees don’t know that you offer these benefits, they may as well not exist. You could be putting money into initiatives that are going down the drain.

Let all your employees know what benefits they could be making the most of by communicating through multiple channels.

Claiming to offer certain benefits that you do not

If someone has made you a promise, you’d expect them to follow through, right? An EVP is a promise to your employees and if you aren’t following through, your employee and employer relationship will be damaged. You can imagine what happens next.

Make promises that you can keep. Avoid talking about potential initiatives before you are absolutely sure that you can deliver.

In the meantime, ask your employees if they think your EVP is accurate. You could do this anonymously and inform them you are asking as so you can make improvements if necessary.

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