Employee Value Proposition (EVP)
What it is and why it is important
Employee Value Proposition (EVP) is the commonly used jargon to describe the characteristics and appeal of working for an organisation. An EVP describes the mix of characteristics, benefits, and ways of working in an organisation. It is the deal struck between an organisation and employee in return for their contribution and performance. This “deal” characterises an employer and differentiates it from its competition. Most organisations encounter two main problems when it comes to their EVP: They struggle to differentiate themselves from their competition. Differentiation is crucial if an organisation is to stand out from the “sea of sameness” that characterises some sectors. Their branding is appealing but it does not accurately reflect the reality An effective EVP enables an organisation to stand out as different but also it ensures that the „packaging‟ reflects the „contents. All too often people join organisations tempted by the „branding‟ and are disappointed when they experience the reality. You know when you‟ve got it right – you become a magnet for talent, and have engaged and motivated employees.
Why is an EVP important?
An effective EVP can bring an organisation significant benefits. According to the Corporate Leadership Council‟s research a well thought through and executed EVP can: Improve the commitment of new hires by up to 29% Reduce new hire compensation premiums by up to 50% Increase the likelihood of employees acting as advocates from an average of 24% to 47% In addition an effective EVP allows organisations to source more deeply within the labour market, increasing its access to passive candidates. This is important for organisations who want to secure the best talent in an increasingly difficult talent market. Demographic predictions show that there will be a stark contrast in population growth in certain areas of the world. Many countries will show a decline in population making it harder to source talent, whereas in countries such as India there will be large increases making it more difficult to attract the right talent from a potentially large pool. This will cause challenges for organisations in the future and builds an even stronger case for the importance of having an effective EVP.
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What can an EVP do for you?
Helps you to attract and retain talent
A clear and differentiated EVP ensures that you attract and retain people that you would inevitably lose to other organisations with more attractive EVPs.
Helps you to prioritise your HR agenda
The process of eliciting your EVP will help you to understand what your HR priorities should be. To create an EVP you need to understand what is important to your employees and potential hires. Having this insight will mean that you understand what specifically you need to do to attract, engage, retain and develop people that you want, where improvements need to be made and what will most likely make people leave if they are not addressed.
Helps you to appeal to different markets and tough to hire talent groups For organisations operating in a number of countries the EVP will need to move beyond a one size fits all. A good EVP contains elements that appeal to different groups of employees from different cultures, age groups and functions. The most successful EVPs are derived from combining needs of key segments of the workforce to form a universal brand which is then communicated through the best channel for each segment.
Creates a strong „people‟ brand
Organisations with strong and credible EVPs become as famous for the way they treat people and the quality of their people as they are for their products and services. A great example of this is Apple. Apple do not have to enter into a war for talent. They have great people queuing up to join them.
Helps you to re-engage a...
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