Employee Value Proposition
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
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