Employer Value Proposition

Why an employer value proposition is important

When an employer develops a strong EVP — also known as an employment value proposition — it unlocks a world of benefits. In this article, we’ll define what an EVP is before we discuss: the components that make it successful; the benefits it provides; and the tools you need to build one. Let’s dive in. 

What is an employer value proposition (EVP)?

An EVP encompasses all that an employer offers to its employees. We’ll dig into the different components of an EVP in the next section. For now, know that it includes everything employers provide employees, from compensation to career development.

A company’s EVP is important for multiple reasons. When thoughtfully designed and masterfully executed, an EVP helps attract and retain strong talent. A successful EVP gives employers an advantage over their competitors while also reducing the cost of recruitment. It can even improve productivity, creativity and innovation.

An effective EVP can accomplish a lot. But what makes an EVP successful? We answer that question below.

Components of an effective EVP

As its name indicates, an EVP represents the value of being employed at a particular organization. This value includes monetary compensation, but an EVP is much more than someone’s salary. It encompasses concrete concepts like earnings as well as less tangible elements, like career development and workplace culture.

Below are five key elements of an effective EVP:

Compensation and benefits

Compensation and benefits make up the foundation of an effective EVP. Employers can’t recruit or retain strong talent without competitive compensation and comprehensive benefits offerings. Many companies enhance their approach to compensation and benefits by adopting transparent pay practices, which can attract more diverse applicants.

Work-life balance

There’s a growing demand for work-life balance, especially among younger workers. A company that demonstrates true respect for its employees’ personal lives will be rewarded with loyalty and productivity. Small habits make big statements when it comes to creating work-life balance. Workers will notice when managers avoid sending late-night emails or encourage team members to use their paid time off.

Career development opportunities

Job seekers and employees value opportunities for growth and advancement. Smart employers pair learning and development programs with a commitment to internal mobility. This pairing allows employers to satisfy workers’ desire to learn new skills and provide them a place to apply those newfound abilities, all while retaining motivated individuals within the organization.

Company culture and values

Employers often highlight their values during the hiring process. This strategy may attract job seekers, but it could damage retention rates if new employees are disappointed by unfulfilled promises once they’re on the job. Organizations must uphold the values they claim to espouse. If they fail to do so, they may lose precious talent and deflate worker morale.

Recognition and rewards

Employees want to know that their hard work is appreciated. While bonuses and other monetary rewards are always welcome, recognition doesn’t have to be monetary. In fact, rewards can be one-on-one acknowledgment, team shout-outs or company-wide compliments. So long as the recognition is genuine, employees will appreciate it.

Benefits of developing a strong EVP

An EVP may be designed to enhance the employee experience, but it provides plenty of benefits to employers, too. Effective EVPs provide a multi-pronged return on investment that impacts recruiting, retention, productivity, and more. Here, we provide an overview of the benefits organizations receive after developing a strong EVP.

Strong company culture

When employers strengthen their EVP, they strengthen their company culture, too. A superior workplace culture finds its purpose in robust organizational values. Companies that center the employee experience on these values find themselves with a strong EVP. These values translate to the candidate experience, as well. When expressed authentically, they motivate candidates to submit an application as soon as possible.

Attract top talent

When a company offers a compelling EVP, it will attract better talent. Job seekers will encounter employer branding that showcases the highlights of employment. They’ll see career sites that feature transparent information about their potential pay and benefits. They’ll read or watch employee testimonials featuring workers who describe a positive, collaborative environment.

Competitive advantage

A well-defined EVP gives employers a competitive advantage in the talent marketplace. When job seekers evaluate a company, they look for details that distinguish one workplace from another. An effective EVP will make a strong impression on potential candidates, pushing them to apply.

Retain employees

A strong EVP doesn’t just improve recruiting — it bolsters retention, too. Employers that craft an effective, alluring EVP will also create a positive culture and supportive workplace that gives workers room to build their careers. When paired with competitive compensation and impressive benefits, workers will want to stay for the long haul.

Improve productivity

When employers enhance their EVP, they ameliorate employee well-being and work-life balance. Additionally, they create greater access to learning and development programs. The result? Better productivity. When employees are equipped with better skills, a better work environment and a better mindset, their output improves.

Reduce recruitment costs

Recruitment is expensive. A compelling EVP can help reduce costs not only by attracting more candidates but also by attracting job seekers who are better aligned with a company’s values and goals. When recruiters have access to pipelines filled with quality candidates, they can reduce the amount of time it takes to fill an open role and increase the chances a hire will stay on board for the long term.

Strategies for crafting a compelling EVP

We’ve discussed the hallmarks of an effective EVP and the business benefits of creating such a strategy. Now, we’ll discuss how to create an employer value proposition. We’ll dive into five actionable strategies to help your organization build an EVP with undeniable value.

1. Identify employee needs

A high-quality EVP starts with high-quality information about your employees’ needs. Employers can conduct surveys, focus groups and one-on-one interviews to gather insights into what employees value most. This data will help employers craft an EVP that surpasses employee expectations and enhances engagement and satisfaction.

A survey may reveal, for instance, that employees need help with childcare. Employers use focus groups to pinpoint solutions that deliver the most value. They may find that employees respond better to tax-advantaged dollars for childcare over back-up care benefits. When employers find a solution that’s dialed in on employee needs, they show employees that they’re willing to listen and ready to find relief for common pain points.

2. Analyze competitors’ EVPs

It’s not just information about employees that you need to build an effective EVP. You also need information about what your competitors are offering. This analysis allows you to identify gaps in your EVP. You may find, for example, that your competitors cater to talent with strong fringe benefits, from fitness offerings to tuition reduction. Determine a few unique benefits you could add to your suite and advertise them on your career site — applicants will be impressed.

3. Define your brand identity

You may not think fonts and colors can improve your EVP. But a cohesive visual experience is an important part of your employer brand. This is especially true of organizations with a public presence. When consumers become applicants, they expect to experience the same brand they see in stores and online. The applicant experience should mirror the shopper experience.

When the applicant experience fails to impress, the consequences are damaging. Many consumers say a disappointing applicant journey would make them question purchasing from the brand again.

4. Ensure consistency across touchpoints

Once you’ve developed the core elements of your EVP, make sure you communicate about them with consistency. Consider the various touchpoints where EVP messaging takes place: career sites, job posts and newsletters are all possible options. Build consistent communications across these platforms by talking about your EVP with similar language, tone and expressions. Consistent messaging builds trust, reinforces your employer brand and enhances the overall candidate experience.

5. Communicate to employees

Carrying out your EVP requires hefty communication. Employees need to be reminded of the values their organization stands for, the benefits they have access to, and the opportunities in front of them. When building a communication strategy, remember that employees communicate in different ways. Communicate visually and verbally. Circulate a variety of virtual and physical materials. Most importantly, make sure your leaders uphold your organizational values.

Measure the effectiveness of your EVP

Once you’ve developed your organization’s EVP, monitor its effectiveness to spot shortcomings and successes. It’s important to gather data from candidates and workers to determine how your EVP is perceived during the applicant and employee experience.

Use multiple methods to ensure quality data:

• Employee satisfaction surveys will help employers pinpoint hot-button issues.
• Exit interviews will alert organizations to recurring reasons causing turnover.
• Employee retention data will highlight trends in certain employee populations.
• Recruitment data will reveal the success of specific hiring tactics.

Conclusion: Establish a competitive EVP in your organization

An employee value proposition is essential to attracting and retaining top talent. It provides more consistent experiences for candidates and employees and ensures these experiences are aligned with organizational values. If you’re ready to improve your organization’s EVP, schedule a demo with iCIMS.