Importance of Employee Value Proposition (EVP)
The way we recruit has changed. Compared to just a few years ago, candidates now have far more power during the job search.
According to research as well as HR professionals’ everyday experience, the current job market is 90% candidate driven. That means you don’t pick talent anymore.
Talent picks you.
In order to make yourself their employer of choice, you have to be able to trigger your perfect candidates’ interest by differentiating your company from your competitors.
You can do that by presenting your unique Employee Value Proposition (EVP). However, Employee Value Proposition (EVP) benefits are not limited only to attracting talent. Employee Value Proposition (EVP) is also crucial for hiring the best talent that is a perfect fit for your company.
Another important benefit of Employee Value Proposition (EVP) is a significant reduction in recruiting expenses.
Imagine a situation where your competitors in the war for talent offer the same salary as your company. What can you do to attract talent over to your company?
You can either offer them a higher compensation or you can focus on other values you offer as an employer. You can win talent over by emphasizing other relevant components of your Employee Value Proposition (EVP), besides a bigger paycheck.
According to LinkedIn research, when candidates have to give their final answer on a job offer, the deciding factor for them is how your company would impact their career advancement and how stimulating the job will be (both financially and intellectually).
It turns out it’s not all about the money after all. Career advancement opportunities and challenging work are just as important reasons for accepting a job offer as compensation and benefits.
Finally, delivering a promised Employee Value Proposition (EVP) will also help you engage and retain your employees in a highly competitive job market.
What is Employee Value Proposition (EVP)?
Employee Value Proposition (EVP) is the total value an employer offers to their employees in return for their work.
Employee Value Proposition encompasses everything that employees get in return for their time and effort invested in their performance in the workplace.
It is important to stress out that Employee Value Proposition is more than just a combination of compensations and benefits.
A great Employee Value Proposition (EVP) strikes a fine balance between tangible rewards received by employees (such as compensation and benefits), but also intangible rewards (such as interesting and meaningful projects to work on, great company culture, flexible working hours etc.).
Defining your Employee Value Proposition (EVP) is crucial for your Employer Branding and Recruitment Marketing strategy. In order to personalize your talent acquisition strategy and attract the best talent, you have to be able to clearly define all the values you provide as an employer.
Simply put, Employee Value Proposition (EVP) is a compelling answer to the following candidate’s questions:
“Why should I work for your company instead of somewhere else? What’s in it for me? Why is your company a great place to work at? What can you offer me that other companies can’t?”
Main Components of Employee Value Proposition (EVP)
Contrary to popular opinion, an Employee Value Proposition (EVP) is much more than a big paycheck and a list of great benefits.
Employee Value Proposition (EVP) is a comprehensive offering that companies provide to their employees, which has 5 main components:
This component encompasses employee’s satisfaction with salary and additional rewards such as bonuses and promotions. In a broad sense, it is an employee’s satisfaction with a whole evaluation and compensation system, including its timeliness and fairness.
This component encompasses a wide range of benefits such as paid time off (holidays, vacation and sick days), life and accident insurance and health, dental, retirement, tuition and disability benefits. In a broad sense, it’s an employee’s satisfaction with a whole benefits system.
This component encompasses different factors that affect employee’s career stability and a chance for its development and progress, such as opportunities for training and education, professional consultations, evaluation and feedback etc.
4. Work environment
This component encompasses different factors that constitute a positive work environment, from a clear understanding of employee’s role and responsibilities to a healthy work-life balance. Important factors are also a sense of autonomy and personal achievement and following recognition.
5. Company culture
This component encompasses different factors that constitute a great company culture, which is made up of positive relationships with colleagues, managers and company’s leaders, and characterized by trust, collaboration, team spirit and support. In a broad sense, this component also includes an alignment with company's goals and plans with special emphasis on social responsibility.
How to define your company's Employee Value Proposition (EVP)?
If you’ve ever tried to define your company's Employee Value Proposition (EVP). you know it is a very a complex task.
That is why we designed a 4 step guide for defining your company's Employee Value Proposition (EVP).
It will guide you through the whole process of defining your company's Employee Value Proposition (EVP) and provide useful tips from recruiting professionals.
Step #1: Define your candidate persona
The first step in defining your company's Employee Value Proposition (EVP) is defining your candidate persona. 👩
A candidate persona is the representation of your ideal candidate, the one you are trying to attract, hire and retain. This persona is formed by defining the characteristics, skills, and traits that make up your perfect hire.
In order to successfully define your candidate persona, it is not enough to simply imagine a person that would be a perfect fit for your job. It is crucial to imagine a person who would also be the best fit for your company culture.
Step 2#: Define each main component of your Employee Value Proposition (EVP)
The second step in defining your company's Employee Value Proposition (EVP) is specifying each of its main components with your candidate persona in your mind.
To define each main component of your Employee Value Proposition (EVP), follow this Employee Value Proposition (EVP) questions cheat sheet:
- What is the salary range and type of benefits that would attract this candidate persona?
- What kind of career development opportunities is this candidate persona looking for?
- What is the great company culture for this candidate persona?
- What kind of work environment would this candidate persona thrive in?
Step 3#: Do your research
The third step in defining your company's Employee Value Proposition (EVP) is providing convincing answers to the questions from the previous step.
In order to do that, you will have to do a little research. Start by conducting your current employees' research and follow by researching your best job candidates - passive job seekers.
Current employees’ research
What do you currently offer to your employees in exchange for their time and effort invested in their job? What do they appreciate the most? What else could you do to motivate them?
Use these Employee Value Proposition survey questions to find out!
You can get especially valuable information from your top performers. Try to find out what motivates them to give their best each day at work.
Passive job seekers research
Passive job seekers are your ideal candidates who are not actively looking for a new job, but would be willing to accept a better offer. Your goal is to find what would constitute a better job offer for them.
Remember, a better offer doesn't necessarily mean more money. It can be flexible working time, education, opportunities to grow, benefits, cool projects, and many other.
Step 4#: Segmentation is the key
By completing previous 4 steps, you should have enough information to specify your company's Employee Value Proposition (EVP).
Most employees stop here, which is a huge mistake.
In order to use your Employee Value Proposition successfully, customization is the key. If you want to attract the right talent for your company and open positions, you need to segment and personalize your EVP for your target audience.
If you want to fill some entry-level positions with recent graduates, highlight your career advancement opportunities and fun work environment.
If you’re looking to hire young professionals who are parents, emphasize your child care services and work-life balance.
How to promote your Employee Value Proposition (EVP)?
Defining your Employee Value Proposition (EVP) unfortunately won’t mean a thing for attracting candidates if you don’t put it out there for them to see it.
There are many different types of content and communication channels which can be used for promoting your Employee Value Proposition (EVP) at various touchpoints of your candidate journey.
Employee Value Proposition (EVP) promotional content includes:
- Employee testimonials
- Company & team blogs
- Company videos
Employee Value Proposition (EVP) promotional channels include:
- Career site
- Social networks
- Employee referrals
- Talent networking email campaigns
- Talent networking events
There is no magic formula for choosing the right type of content and communication channel that is guaranteed to work for every position and every company.
What will work best for you depends on your candidate persona. If you followed our 4 step guide for defining your company’s Employee Value Proposition (EVP), you already have a clear understanding of the type of content and promotional channels which are most appealing to your candidate persona. So go on and utilize it! 🙂
If you want to save time and make the promotion of Employee Value Proposition (EVP) more efficient, you should check out our TalentLyft recruiting software and its following features:
- Creating a beautiful branded career site in just a few minutes (no coding knowledge needed!)
- Setting up a structured employee referral program
- Promoting your Employee Value Proposition (EVP) on social networks
- Creating, sending and measuring your talent networking email campaigns
- ...many more! 🎁
Sounds interesting? 🤔
Try our services for free (for 14 days, no credit card required to sign up, cancel anytime)! Once you are in the free trial, you can let our team know about your needs in the live chat. We will be happy to demonstrate how TalentLyft recruiting software can help you create and promote your Employee Value Proposition (EVP)! 🙂