Understanding and implementing employee value propositions

27 Apr

Employee value propositions help candidates decide where they want to work and why.

Human resources professionals must develop strong employee value propositions to attract and retain the best candidates. This employee-centric theory influences where people desire to work most, how badly they want to be part of a particular company and why.

According to a white paper by Recruiting.com, EVP is the collection of all appealing features that make candidates want to work for a business. These include, but aren't limited to:

  • Benefits: Healthcare, vision, dental, life insurance, 401​(k)
  • Rewards: Public recognition, internal contests, challenging assignments
  • Salary: Starting salary, growth potential, bonuses
  • Culture: Engaging teams, company outings, growth potential
  • Programs: Wellness, vacation time, training, development   

The key to understanding EVP is recognizing it comes from the perspective of the employees and potential recruits. It has little to do with the way HR values the offers available to workers. Even if HR finds programs suitable, it's the employees who are involved in and directly affected by these programs. When in doubt, define EVP by listing all the characteristics an employee would brag about to his or her friends when asked, "Where do you work?"

Why should employers care about EVP?
Without a compelling and positive EVP, it's incredibly difficult to recruit and retain employees.

When it comes to recruitment, finding the best talent means offering the top industry performers job positions they cannot refuse. A company that appeals to candidates on multiple levels will fare better in their job searches than one meeting only a few criteria.

In terms of retention, the Corporate Leadership Council found new hire commitment increased up to 29 percent for those companies with strong EVPs. A positive EVP also saved corporations money by cutting newly hired employees' compensation premiums in half. Plus, a positive impression of benefits and company culture may reduce the number of candidates who lose interest in an organization based solely on the salary offered. 

Examining EVP helps HR professionals revamp their recruitment and retention practices. It's often difficult to know why certain tactics work for recruitment and others fall short. By developing a strong EVP and analyzing employee feedback on the company culture and benefits, HR professionals can better manage their departments and hire top talent.

A good EVP standing can also reinvigorate current employees. If cohesive and in-depth training and development programs exist, employees are much more inclined to not only enjoy their work but also enhance their performances and grow confident in their roles at a company. This concept builds trust among employees and helps facilitate a healthy work culture. 

How to improve EVP?
Any HR professional looking for a way to enhance the EVP of an organization needs only to begin with current data. Edelman, a public relations firm, encouraged businesses to survey employees to find out what drew them to the business and why they've stayed. Ask them where the company can improve and what benefits may be lacking. It's crucial to involve everyone from senior management down through entry-level positions, as all input is incredibly valuable. After dissecting this data, identify the key areas in need of improvement and implement programs to boost those departments. 

Investing in employee management systems can help HR professionals track their progress working with EVP and improving the employee experience for current and prospective workers. 

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