Do you know what makes your company special? Can you figure out exactly what it stands for? What has inspired you to join it and why do you stay?
Whatever your response is, I’m pretty sure it has to do with your company’s Employee Value Proposition or EVP for short.
EVP refers to the rewards and benefits that employees receive in return for their work performance, as well as the skills and capabilities they bring to the organization. It encompasses the main reasons why you are proud and motivated to work in your company, such as inspiring vision, unique culture, nice pay, and other perks or incentives. It is closely related to the concept of Employer Branding. When integrated to all aspects of your business, a strong EVP will help your company attract, motivate and retain top talents that include your high performers and high potential employees.
EVP is a broad concept but it can be broken down into five main components.
1. Financial Compensation that includes the basic salaries/wages of employees and other monetary rewards such as bonuses and commissions.
2. Company-initiated and Government-mandated Benefits such as vacation/sick leaves, holiday pays, health and retirement plans, etc.
3. Career Planning and Development that includes training, coaching, mentoring, job rotation, promotion, etc.
4. Company Culture that promotes wholesome interpersonal relationships, a sense of trust, teamwork, collaboration and support among employees, supervisors and managers.
5. Work Environment that includes a customized workspace design, adequate facilities, tools and equipment. It must be conducive to learning and optimum job performance of all employees.
Have you established your company’s EVP? In today’s highly competitive jobseeker market, it makes real sense for your company to create and invest in a strong EVP. Although this concept has been around for decades, many companies still need to realize its essence in keeping their most valuable asset—their employees.
So how will you be able to create a realistic and compelling EVP? Here are some easy to follow steps.
1. Understand what perceptions your existing and potential employees have on your company brand through employee surveys and interviews. You may ask questions like:
- Why do you stay long or leave our company?
- What do you value most or like least about working here?
- Why are job applicants attracted to our company?
- In what ways could we motivate you?
2. Define, draft, test and review your EVP. Check if it articulates clearly why people would want to work for your company.
3. Communicate your EVP using creative ways to job candidates and employees in all your hiring channels, company websites, advertisements, public relations and interviews.
4. Ensure that people see consistency and alignment in the image you want to project externally and in the daily work realities within your company. Be a model. Live by your words.
5. Customize your EVP for your target audience. Clearly identify your employees’ needs, goals, values, preferences, and competencies. Ensure they are in sync with your EVP.
Your EVP speaks volumes about your company. It reflects your integrity, culture and philosophy as an organization. It is, indeed, one of the most effective management tools that HR and your company can use to magnetize and glue your talents.