The Employee Value Proposition, commonly referred to as EVP, has been a topic of much discussion lately. However, what I've noticed is that while many people talk about it, some struggle to grasp its true meaning and significance.
Essentially, EVP encapsulates the unique employee experience within your organisation, built upon the pillars of total reward, career growth, culture and values, purpose, and ways of working. It represents the amalgamation of these elements with your organisation's unique selling point, setting you apart from competitors and defining your uniqueness. It permeates through your company's policies and language, comprising both tangible and intangible benefits that elucidate why someone would choose to work for you over another organisation.
According to KPMG, only 18% of organisations distinguish their EVP from their talent competitors. However, employee experience is a crucial business imperative. Research from Gartner indicates that those who deliver on their EVP witness a 30% improvement in loyalty and commitment. With platforms like Glassdoor enabling employees to share their work experiences, failure to act on EVP risks losing out on top talent.
Are you getting feedback?
When contemplating your EVP, it's essential to consider various inputs:
Soliciting feedback from current, former, and prospective employees to discern what attracts or retains them and sets your organisation apart. What is the experience like for new hires and departures?
Brand alignment
Assessing alignment with your external brand positioning in the market and ensuring consistency between your messaging to customers and the internal delivery of the employee experience.
Getting a more personalised EVP
Identifying demographic segments within your organisation that necessitate differentiation. For instance, some organisations tailor their EVP based on employee roles, such as a sporting client segmenting their EVP based on whether the role involves ball-centric activities. Are there diverse populations requiring distinct messaging and approaches? One size may not fit all. How does personalisation and autonomy over work align with your EVP?
Once you have a clearer understanding of your uniqueness, you can evaluate your reward, benefits, and work practices to ensure alignment with your EVP. For example, a well-known client with a quirky consumer brand reflects their brand identity in their total reward proposition, both in its composition and how it's communicated to staff. However, many organisations struggle to connect these dots. For instance, a client specialising in supporting a specific demographic offers comprehensive reward and benefits but lacks coherence in presenting their EVP. Simplistic reward structures lead to employee confusion, despite having unique benefits tailored to their customer demographic. Consequently, their EVP isn't distinct, hindering their competitiveness in the market.
As organisations grapple with skill shortages, clarifying and defining EVP becomes pivotal in winning the talent war. Your EVP is crucial as it dictates why employees will join, stay, and thrive in your organisation. If you wish to explore how we can assist you further please contact us here.
