There is no disputing that communicating is essential for any business. That includes communicating with staff – both existing and prospective.

Everyone should be on the same page. That’s where having an Employee Value Proposition, or EVP is pivotal. An EVP is a strategic tool that connects to a business strategy. It summarises the benefits and opportunities that a business offers its employees in exchange for their work and commitment.

An EVP is a way of communicating what makes your business a unique and attractive place to work, and how it stands out from its competitors. It goes hand-in-hand with setting and managing expectations and measuring performance.

Delivering an EVP can reduce annual employee turnover by just under 69% and increase hire commitment by nearly 29%, according to US technology, research and consulting firm, Gartner.

An EVP is critical for talent management strategy. A well-defined and executed EVP can significantly enhance ability to attract, engage and retain talent. It can also lead to substantial cost savings by reducing turnover and enabling a more competitive remuneration strategy.

The cost of replacing an employee has been estimated at 1.5 to 2x an employee’s annual salary, according to analyst Josh Bersin from Deloitte.

An EVP typically covers five main areas: compensation, benefits, work environment, career development, and your business culture. It should align with your vision, mission, values, and goals, and reflect the needs and preferences of current and potential employees.

While one of the primary purposes of having a clear and compelling EVP is to attract and retain talent, an EVP can also help a business showcase their employer brand and differentiate themselves from other employers in the market. It can help businesses appeal to the specific segments of talent that they want to target, for example graduates, through development pathways or parents, through flexibility options.

An EVP can also underpin employee engagement and loyalty, helping a business to foster a sense of belonging and pride among employees and motivate them to perform at their best. It can help businesses create a positive and supportive work culture, where employees feel valued, respected, and appreciated. By aligning the EVP with the employees’ aspirations and expectations, businesses can increase their employee engagement and loyalty, and reduce turnover and absenteeism.

Likewise, an EVP can help businesses build a strong and positive reputation in the eyes of their clients and other stakeholders. It can also help businesses demonstrate their social responsibility and commitment to diversity, equity, and inclusion.

By communicating their EVP effectively, businesses can enhance their credibility and trustworthiness, and increase their market share and profitability.

So, where do you begin to create an EVP? Ideally, it’s a strategic and collaborative process that involves the following steps:

  • Research: Gather data and insights from various sources, such as employee surveys, focus groups, exit interviews, online reviews, and competitor analysis. The goal is to understand the current and desired state of the business, the employee value proposition, and the employer brand, and identify the gaps and opportunities for improvement.
  • Plan: Remember the 20/80 rule – 20% is deciding ‘what’ and 80% should be spent on the ‘do’. Formulate a working group or hire a consultant to help – remember brand alignment is key.
  • Be realistic: Don’t over-promise and under-deliver. Be realistic in what you can achieve and by when. Document and reinforce the key timeframes and who is responsible and accountable for these.
  • Define the EVP: The next step is to craft a concise and compelling statement that summarises the key benefits and opportunities that the business offers to its employees. The statement should be specific, relevant, and authentic, and reflect the business’s identity and values. It should also be aligned with the business vision, mission, goals, and strategy, and address the needs and preferences of its target talent segments.
  • Communicate the EVP: Inform internal and external audiences using available channels such as the website, social media, job boards, career fairs, and employee referrals. This is a brand builder and an opportunity to gain your competitive advantage. The communication should be consistent, clear, and engaging, and showcase your employer brand and culture.
  • Evaluate & adjust: Revisit the EVP often to seek feedback, measure your results and refresh. It isn’t a set-and-forget document and should be tailored to the changing needs of your workforce.

If you’d like to know how to compile an EVP and how it can help your business, please reach out for a coffee and a chat with the Blue Jam People & Culture team.