Employee value proposition
To be seen as a good employer, you’ll need to create a well-thought-out package of employment conditions. Whether it includes professional development opportunities or how your company spends its volunteer hours, everything you offer contributes to an employee’s perception of your company, otherwise known as the employee value proposition (EVP).
Émilie Poirier, Senior Business Advisor, Human Resources for BDC Advisory Services, calls the EVP your company’s “secret sauce.” But she suggests you not be too secret about it and promote it instead.
“If you want to compete for talent effectively, it’s important that your customers, employees and business partners all understand what you do, the value you create and how you stand out from your competitors,” she says.
Employer value proposition vs. employee value proposition
While often used interchangeably, employer value proposition and employee value proposition have distinct focuses.
| Employer value proposition | Centres on what the organization promises to deliver to its employees and helps contribute to the employer brand. |
|
Employee value proposition |
Focuses on what the employees perceive as valuable in their employment experience, shaping their engagement and satisfaction. |
An employer value proposition is essentially the value an organization provides to its employees in return for their contributions. It’s how the employer defines it, not how the employee perceives it. For the employer, it helps convey the brand they are trying to put across and can yield tangible benefits in a competitive labour market.
Employer value proposition is a core component of an organization’s branding and is crucial for attracting, retaining and motivating talent. Poirier sees a connection between it and a clear and consistent company vision and positioning.
“This will become the strategic foundation of your employer value proposition and guide your workforce attraction and retention activities,” she says, referring to the employer end of the EVP, which is what a company offers as opposed to how it’s perceived.
Companies put a lot of effort in promoting the value they provide to their customers; they should put as much effort in promoting what future candidates and employees can expect.
Émilie Poirier
Senior Business Advisor, BDC Advisory Services
What is an employee value proposition?
EVP refers to how employees view a comprehensive set of offerings and benefits that a company provides them in exchange for their skills, capabilities and experience.
It usually includes the following elements:
- compensation
- benefits
- career development opportunities
- company culture
- work-life balance
Employee experience makes up an important part of the employee value proposition and is vital both at an individual and organizational level.
When employees have good experiences, they are more engaged and productive, which brings about strong workplace relationships and collaboration. They are also likely to stay with the company longer. Good employee experiences can also enhance the organization’s reputation and attractiveness to potential recruits.
Why is an employee value proposition important?
As an entrepreneur, there are many reasons for you to take EVP seriously. Attracting and retaining qualified, engaged employees helps recognize your company as employee-friendly and can help you foster a strong brand for your business.
Craft your messages with the same level of attention and care you would for a new line of products.
“Companies put a lot of effort in promoting the value they provide to their customers; they should put as much effort in promoting what future candidates and employees can expect,” Poirier says.
It would be helpful for you, as an employer, to look at that more closely. Think about how you would go out of your way to land a new customer, and compare it with what you would do to land the best recruit. A competitive market for products or services is similar to a competitive market for talent.
As for existing employees, some of these offerings can be taken for granted after a while, says Poirier, who suggests reminding them about the benefits of what they’re recveiving the same way you would with a customer.
“Be bold about it, but make sure you keep it authentic and do not oversell it.”
| Key reasons for developing a good EVP | |
|---|---|
| Talent attraction | In a competitive labour market, a compelling EVP differentiates an organization from its competitors, making it easier to attract top talent. |
| Retention | A robust EVP fosters employee satisfaction and loyalty, reducing turnover rates and associated costs. |
| Engagement | Employees who perceive high value in their employment tend to be more engaged, productive and committed to organizational goals. |
| Brand strengthening | An effective EVP enhances the employer brand, promoting a positive image both internally and externally. |
How to create an employee value proposition
Poirier says you can start the EVP process by listening and being open to feedback.
“Try to focus on the things you do well but listen to what needs to be improved. And make sure they are connected to what your employees really need. You also need to be realistic about how much you can afford to spend.”
Creating an EVP involves several strategic steps:
- Analyze current offerings: Evaluate existing compensation, benefits and career development opportunities, as well as your workplace conditions. See what the standards are in your industry and your financial ability to fulfill them.
- Collect employee feedback: Conduct surveys and focus groups to understand employee perceptions and expectations.
- Identify gaps and opportunities: Compare current offerings with employee feedback to identify areas for improvement and innovation.
- Define core components: Articulate how key elements of your EVP stand out from the competition and align with organizational values and goals.
- Communicate effectively: Develop a communication plan to consistently promote your EVP to current and prospective employees, including how you differ from your competitors HR-wise. Include your social media and career web pages in that communication plan.
How to measure an employee value proposition
Measuring the effectiveness of an EVP requires tracking several key performance indicators (KPIs).
| Employee turnover rates | Lower turnover rates may indicate a strong EVP. |
| Employee engagement scores | Regular engagement surveys can provide insight into how employees perceive the EVP. |
| Recruitment metrics | The time it takes to hire, the quality of hire and the acceptance rates of recruits are all good metrics to track and to help assess how well your EVP attracts talent. |
| Employee feedback | Continuous feedback mechanisms, such as pulse surveys, can help gauge ongoing satisfaction with the EVP. |
What makes a good employee value proposition?
Poirier emphasizes authenticity in your efforts to gain a healthy EVP.
“Don’t promote something that feels like it’s coming from some other company. It has to resonate with your team and should be unique to your business.”
She also adds that what you’re offering need not cost much and can be something as simple as a summer barbeque or giving employees half-days off to disconnect or pursue a creative activity.
| A well-appreciated EVP embodies these characteristics | |
|---|---|
| Alignment with core values | It resonates with the organization’s mission, vision and values |
| Clarity and consistency | It is clearly defined and consistently communicated across all platforms. |
| Differentiation | It offers unique benefits that set the organization apart from its competitors. |
| Relevance | It addresses the actual needs and expectations of the employees. |
| Sustainability | It is not only attractive but also feasible and sustainable in the long term. |
How to improve your employee value proposition
Regularly update offerings
Stay current with industry standards and employee needs to ensure continuous relevance.
Enhance communications
Use diverse channels to communicate the EVP effectively to both current and potential employees.
Personalize benefits
Offer customizable benefits packages to cater to the diverse needs of your workforce. For example, younger employees may be looking for flexibility and career development, while your older workers may prioritize social events and opportunities for learning and mentorship.
Invest in development
Provide ample opportunities for career advancement and skill development.
Foster a positive culture
Cultivate a work environment that promotes inclusivity, respect and work-life balance. Poirier brings up an example of a company trying to improve its EVP by offering iPads to its employees. When the company surveyed staff, they discovered that showing appreciation for your employees was more than just buying cool new devices.
“People wanted to be recognized for their contribution to the company—things like shout-outs that underline their hard work and how they add value. When recognizing your staff, an authentic gesture can sometimes go further than a gift.”
Understanding and implementing a strong employee value proposition is essential for entrepreneurs looking to build a motivated, loyal and high-performing workforce. By addressing the core components of an EVP and continually striving for improvement, organizations can create an environment that attracts top talent and fosters long-term growth and success.
Next step
Discover what you need to build strong HR policies by downloading BDC’s free guide, Hire and Retain the Best Employees