Employees offer their skills and experiences to their organizations. Employers reciprocate by providing a unique set of benefits, rewards, opportunities, and experiences. In HR parlance, this blend of values is called the employee value proposition (EVP).
Studies have shown that job seekers consider a company’s employee value proposition (EVP) before applying for a position there. Also, a Gartner study indicates that the best organizations focus about 80% of their effort on fulfilling their EVP promises. This reveals the criticality of creating a compelling EVP to attract and retain talent.
greytHR spoke to three HR leaders to hear their thoughts on the need for an enhanced and compelling employee value proposition.
The speakers gave us insightful answers and shared actionable pointers.
Here’s a quick summary of the interactive discussion:
Key Elements in a Compelling EVP
A compelling employee value proposition is essential for retaining, engaging, and influencing top talent. It has now become a common topic of discussion even in leadership meetings. Therefore, it’s imperative to have a few key elements in mind while developing the EVP of an organization.
Positive work environment: Every organization must create a positive work environment and culture. It is important to promote the right processes and policies focused on work-life balance, flexible working hours, and remote work options, among others. Companies must also make well-informed decisions based on their people’s roles, expectations, and responsibilities.
Diversity & Inclusion: Modern organizations must take measures to create a workplace with a diverse and inclusive workforce. They should ensure that all their employees feel valued and respected throughout their tenure in the organization.
Employee appreciation: Today’s employees, especially Gen Z, expect more than monetary benefits. Hence, every organization must have a way to appreciate them for their work, time and again. This recognition matters a lot to every employee.
Leadership support: A supportive and approachable leadership can make a world of difference in a workplace. They should also invest their time in the development of their team members. The right support from the leadership will inspire employees to do more for the organization.
Transparent communication: Employers have to communicate clearly and transparently with their employees. Only then can the employees be aware of the company’s policies, financial position, and growth trajectory. This communication must also reach the external audience via social media channels, so prospective candidates know what’s happening within the company.
Employer branding: An organization must build a strong employer brand in the talent marketplace. A strong brand is an entity that reflects the company’s values, mission, and culture. Prospective employees would want to join an organization that has a positive image in the marketplace.
How Has EVP Impacted the Recruitment Strategy?
As more people from Generation Z get added to the workforce, there’s a need to introduce new thinking in the workplace. Also, prospective employees want to know why they should join a specific company, and the EVP has the answer to this question. To see the impact of EVP on recruitment, we need to look at it from five lenses:
Deeper connections: Employees spend more time at the office, so they expect opportunities to build deeper relationships at the workplace.
Flexibility: While employers consider performance metrics, employees want to know if their work is challenging enough. They also want to know if they’ll have the flexibility and autonomy to do their bit.
Personal growth: Employees are thinking beyond salaries and promotions! They want work to be intellectually stimulating, so they can add greater value to their organizations.
Holistic wellbeing: After COVID, wellbeing has become more crucial. It's not just a tick-mark exercise highlighting gyms and recreation activities. There's greater focus on mental, physical, and financial wellbeing.
Bigger purpose: The generation is thinking beyond the size of the organization. They want to contribute to the big cause. That’s why there’s greater emphasis on aspects like corporate social responsibility (CSR) and environmental, social, and governance (ESG).
How Does the EVP Help Retain Employees?
Modern employees expect much more than just monetary benefits. They want a purpose-driven job. They want to work for innovative companies that have a clear purpose. Some companies have even offered ESOPs to their blue-collar workers. Wellness programs, career development initiatives, growth opportunities, and work flexibility also contribute to higher retention.
Innovation, diversity & inclusion, and sustainability are trending terms in modern workplaces. However, it’s hard to predict what will be trending in the future. So, it is essential to revisit the EVP periodically. It’s good to remember that even small things/changes can influence the employees’ loyalty to the organization.
Can an Organization Align the EVP to Its Goals?
Leadership support: Regardless of how an EVP is developed, it is imperative to get buy-in from the top management. In fact, their involvement is required for the formulation and communication of the EVP. The opinions of various departmental stakeholders must also be considered in this initiative.
Effective communication: It is important to communicate consistently, transparently, and authentically to the internal and external audience. People must know their organization’s values and efforts to improve the work environment, ensure career development, and offer due recognition for good work.
Customized approach: Every contemporary organization must formulate relevant and helpful policies. Also, care should be taken to ensure that the EVP is customized to meet the unique needs of the employees.
Can the EVP Help Improve Employee Engagement?
The communication of the value proposition has to be appealing from a presentation point of view. Only then will it stand out and be more impactful. Secondly, it must be aligned with the organizational goals. Thirdly, the authenticity of the communication is important. Leaders have to walk the talk since action speaks louder than words! Last but not least, the quality of content differentiates the communication of the value proposition. Stated simply, a compelling EVP certainly has a positive impact on employee engagement.
EVP and D&I: Made for Each Other
When an organization employs people from diverse backgrounds, there’s a larger scope for positive change and innovation. This approach also welcomes different ideas and opinions that help create new values. When there’s transparent communication and bias-free decision-making, D&I initiatives will add greater value to the organization.
How Does the Future Look?
Organizations keep evolving. During COVID, people worked from home. Hybrid, a popular work mode, will continue to be widely adopted. Work-life balance will always be a priority, and wellness programs will evolve perennially. DEIB and sustainability initiatives will gather momentum. Organizations should also choose to invest in emerging technologies and people with new-age tech skills.
For the EVP to work in the future, employers have to see the talent landscape through three lenses ‒ work, work environment, and work culture. Going forward, people will prefer to perform work that is exciting. Secondly, they would look for a work environment that is conducive to learning. Finally, they would choose to work for an organization with a great work culture. Employers have to constantly re-engineer these aspects to keep the employee value proposition relevant to their current and future employees.
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