Employee value propositions (EVPs) seem to have leaders either celebrating them or questioning the cost. Their reaction depends on an EVPs impact on the organisation. So how do you create an EVP that works?
Success is dependent on design and execution. We look at the key elements of an EVP, and how you can optimise outcomes.
Why does an EVP matter? It’s simple - an employee value proposition sets the foundation for the employee experience. With employees more focused now on their individual experiences in the workplace than ever before, an EVP is critical to success.
Employee experiences really do matter, and it’s not just younger generations who think so. More and more Gen X employees are also making career decisions based on what an organisation offers, a shift that’s become especially clear among top talent over the past few years.
EVPs are increasingly essential to attracting, engaging and retaining top talent.
What is an EVP?
An employee value proposition is at its core an elevator pitch to potential and existing employees. It should answer the question, ‘why work here?’ by highlighting intangible and tangible attributes and benefits that describe the experience of working in an organisation.
However, an EVPs real value shouldn’t be misunderstood simply because it’s produced as a succinct communication tool. To be effective, an EVP must resonate with employees and be embedded throughout the organisation like a company’s vision and values. While it may shift and evolve more, it should be understood, relevant and authentic.
An EVP shouldn’t be confused with your employer brand, the external perception of your organisation, although it may influence it positively or negatively. An organisation’s EVP is internal focused, which means there is nowhere to hide!
Gartner research cites key components of an EVP as competitive compensation, benefits, growth opportunities, a positive work culture, work-life balance, alignment with company values and a clear career path.
An EVP may include objective elements, such as:
- Parental leave policies
- Remuneration or bonuses
- Flexible work arrangements
- Training, development and promotion
However, it can also include subjective elements, such as leadership style, an organisational culture of collaboration, inclusion or safety, or general day to day experiences at work.
Your EVP needs to make sense for your organisation, your current employees and those you wish to attract in the future. Communication of the EVP is also crucial to showcase the organisation’s value and how it differs from competitors.
Four principles for effective EVP design are:
- Appeal – aligns with local employee and labour market preferences
- Authenticity – fits with true organisational strengths
- Relevance – to both the organisation’s strategy and employees
- Differentiated – it is unique and sets you apart from competitors
Who is your EVP for?
The best place to start is with your target audience. Who is your EVP actually for? Attracting and keeping talent requires understanding that everyone’s needs at work differ, shaped by their age, life stage, and goals. However, there are some commonalities.
The Department of Employment and Workplace Relations (DEWR) has put together a useful EVP Toolkit to help companies develop or improve their EVP. Women, frontline workers, and knowledge workers are highlighted as three specific audiences. Their research shows specific patters for different groups.
For example, women are most likely to respond to:
- Control of the workday – women are 10% more likely to accept flexible roles
- Career progression in flexible work – not working full time shouldn’t stall careers
- Compassionate managers – who understand the need for flexibility, wellbeing supports, and take action to help manage burnout
- Culture – toxic cultures are the main reason women leave
Knowledge workers on the other hand value supportive co-workers, work/life integration and balance, flexibility including when and how the work is completed and remuneration, which is significantly different to the priorities of women. While frontline workers first and foremost value remuneration, often because their jobs are lower paid, with health, safety and hygiene their second highest priority, followed by culture and diversity and inclusion.
Knowing your audience is essential to understanding what current and future employees may need. From a research perspective, Seek’s Laws of Attraction can provide some initial information, which can be used to help you clarify needs.
Start by reviewing staff surveys, exit interview data and ask leaders for feedback based on their conversations. To gather or clarify information, you may want to undertake:
- A specific staff survey with questions relating to EVP.
- Focus groups to explore what attracted your employees in the first place, why they remain and how their values, or that of the organisation have changes.
- One on one interviews for clarification
To enhance your EVP, being able to list and adopt a mindset focused on curiosity, not defensiveness, is key.
What should you include in your EVP?
If your audience is diverse, you may need to identify key segments to ensure you have their needs covered and you can engage with them to clarify their specific needs.
Visualising your EVP based on these segments to help leaders understand, asking specific questions of each segment:
- Reputation: What do employees in this segment believe is true about working in your organisation?
- Remuneration: Is it market competitive for the type of person we wish to attract?
- Experience of work: Is your work environment safe? Does it match your organisational culture? What is unique or compelling about it?
- Growth: Do your systems for feedback and performance help people grow? Do you offer tailored training and development options?
- Values and Culture: Do your people feel valued and understood?
- Wellbeing: What role do leaders play in making staff feel supported, valued and included?
The EVP Toolkit recommends undertaking a gap analysis using your answers to these questions to identify insights, strengths and areas for investment.
As previously mentioned, you will often have different segments within your organisation, so undertaking a gap analysis using these segments can be useful.
It is fine for an organisation to start small, expanding and evolving over time. Discuss with your recruitment team what stops candidates from accepting a position, or why they’re interested, can be useful in testing the relevance of your EVP.
It’s important to measure the success of your EVP, and continue to get feedback from prospective and existing employees to ensure it is aligned with your strategy and delivering for your business.
A strong EVP can help attract and retain high performers, engage the workforce, deliver cost savings, improve business performance and facilitate growth. It may also help you reduce costs long term, so it is worth investing in.
If you would like to discuss market insights relating to attracting and retention of staff,
contact Bayside Group today.
