What is an employee value proposition (EVP)?
Employee value proposition (EVP)
An employee value proposition (EVP) is the unique combination of benefits that an employer offers to its employees in exchange for their talent, skills, and work. The employee value proposition answers the question, “Why should someone choose to work for this employer?” A strong employee value proposition will entice top talent to apply for jobs at the company and help boost employee retention.
Components of an employee value proposition
Employers are free to create employee value propositions that fit their company’s culture and goals. Even so, several components appear in all or most employee value propositions. Consider these key components:
- Financial compensation: The salaries and/or wages employers pay their employees are the most visible component of the employee value proposition. While offering strong financial compensation alone is not enough to create a standout EVP, getting this component right is vital. Otherwise, your company is unlikely to attract top candidates.
- Work environment: A positive work environment is important to today’s employees. Factors like work-life balance, flexibility, and office location play into your company’s work environment. The more appealing your work environment, the stronger your overall employee value proposition.
- Benefits: The benefits offered to employees also play a key role in your employee value proposition. Consider the strength of your benefits package, including health insurance, parental leave, pension plans, and company-sponsored holidays.
- Company culture: Your company culture can greatly enhance your employee value proposition. Ensure that your company culture addresses diversity, strong values, collaboration, and opportunities to socialize.
Benefits of a strong employee value proposition
Crafting and presenting a great employee value proposition helps an employer in several ways, including the following:
- Making job openings at your company attractive to top candidates
- Encouraging workers who would be a good fit to apply for roles
- Improving employee retention and ensuring that new hires feel committed
- Fostering greater employee engagement
- Providing a competitive advantage as an employer
- Increasing the likelihood that employees will act as brand ambassadors
A strong employer value proposition is incredibly useful to any employer. In this competitive market for employees, employers must attract and retain the right talent. It’s worth thinking about how to craft a unique, competitive employee value proposition to help your company stand out.
How to create a compelling employee value proposition
Consider your existing EVP
Even if you have never explicitly set out to create an employee value proposition, you probably have something like an EVP in place. Consider objectively what makes your company stand out to potential applicants. Do you offer great benefits? Do you have a noteworthy company culture? Answering these employee value proposition questions will help you create a better EVP going forward.
Identify the key components of your new EVP
After analyzing your current EVP, you can then begin to craft a new one. What will attract and retain star employees? What is important to them? And how can the company best communicate those features to them?
Start with a clear understanding of what you can offer potential employees by drafting a list of what you think these candidates want and a list of what your company can offer, and then look for overlap.
Write and communicate your EVP
Your employee value proposition is about more than just what you’re offering to employees—it’s also how you communicate that value. Be clear, concise, and unique. Use language that connects with your target job applicants.
Then promote it through channels like your website, job listing pages, and social media. Ensure that the candidates you want can see and become familiar with the value you’re offering them. Don’t forget to share the EVP both internally and externally so that your existing team understands it, too.
How employer brand and employee value proposition differ
It’s easy to confuse a company’s employer brand with its employee value proposition. While interrelated, these are two distinct concepts. A company puts forward its own employee value proposition while its employer brand is external.
As an employer, you decide what makes up the value you provide to employees. You can’t, however, completely control your employer brand—the way others view your company specifically as an employer. A strong employee value proposition should improve your employer brand, but many other factors also contribute to the public perception of your company as an employer.
Best employee value proposition examples
While developing your employee value proposition, you can take inspiration from strong EVP examples like the following:
Trader Joe’s, an American grocery store chain, focuses its employee value proposition on offering great benefits to employees who they call “crew members.” For example, the company conducts employee reviews twice yearly, and employees who perform well in these reviews can earn significant pay increases.
This Canadian e-commerce giant emphasizes personal growth in its EVP, offering employees benefits like budgets for personal growth activities and self-directed learning opportunities.
Yelp’s unique EVP focuses on community and emphasizes the company’s strong culture. In a nod to the company’s review system, Yelp highlights “five-star” employee opportunities, including perks and career opportunities.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
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