What is an Employer Value Proposition (EVP)?
Do you know how it can benefit your organization and bring more value to the company in 2023?
This post will outline EVP, speak to its importance, how to develop a strategy around it, and how it will benefit both employers and employees.
Have a gander at what we’ll cover in the blog:
What is an Employer Value Proposition (EVP)?
Benefits of an EVP
Whoop Sleep Bonus
Breaking down an EVP
EVP Framework
Developing an EVP Strategy
EVP Examples
Crafting an EVP Brand
Benefits for Employees
Benefits for Employers
Recap
An employer value proposition (EVP) is a set of benefits and services that a company offers to its employees to attract and retain top talent. It’s essentially a promise to employees to be valued and appreciated and that the company will do its best to meet their expectations.
> An effective EVP helps companies differentiate themselves from their competition.
At its core, an EVP is a strategic tool that helps employers to communicate their value to potential and existing employees. It should be designed to communicate the values, benefits, and opportunities that the company offers to its employees. It should also be tailored to the company’s needs and culture and regularly updated to reflect any changes or improvements.
At Upflowy, our About page speaks to these company values and the elements of the company that make it more appealing for potential employees to discover and benefit from.
An effective EVP can help employers to attract and retain top talent by showcasing the benefits of working for the company. It also helps to increase employee engagement, loyalty, and productivity.
> A strong EVP can also help to reduce employee turnover and absenteeism, as well as to increase employee satisfaction.
Moreover, an EVP can help to improve brand recognition and reputation, as well as to boost employee morale and motivation. Finally, an EVP can help employers to attract and retain the best talent, as well as to create a more efficient and productive workplace.
A great example of a compelling EVP is the ‘Sleep Bonus’ from WHOOP, a performance-tracking wearable.
In the words of Whoop’s CEO, Will Ahmed, “in the spirit of making our team healthier with WHOOP, we are rewarding our employees $100 per month when they average 85% of their personal sleep need or more”.
This aligns with Whoop’s product direction as they’re trying to help people better improve their sleep, recovery and overall training. The EVP promotes a fantastic culture, as the employees are looking after themselves, as someone sleeping well is far better off as a person, let alone an employee. When an potential employee is sizing up potential companies, this could be a serious factor that could drive their decision.
An EVP is typically composed of three main components:
1. The company’s core values
2. The benefits and services offered to employees
3. The opportunities available to them.
These three components should be tailored to the company’s specific needs and culture, and should be regularly updated to reflect any changes or improvements. Given the WHOOP example above, the Sleep Bonus perfectly reflects the company’s core values, and seeks to improve the quality of life for those who work at WHOOP.
When developing an effective EVP, employers should consider the following framework:
This framework will help employers to create an effective EVP. An effective EVP for one company could be detrimental to another. Having a personalized EVP will ensure that you’re hiring the type of talent that will flourish in your business, as well as adopt the culture you’re looking to promote.
Once employers have identified their core values, objectives, and culture, they can develop an effective EVP strategy. This strategy should focus on best communicating their values and benefits to potential and existing employees. It should also be tailored to the company’s specific needs and culture.
When developing an EVP strategy, employers should consider the following:
There are many examples of successful EVPs. For example, Google is renowned for its innovative and attractive EVP. It focuses on offering employees a stimulating and rewarding work environment with opportunities for growth and development.
Another great EVP is from Microsoft, which focuses on offering employees a friendly and collaborative work environment, and Amazon, which focuses on providing employees a range of benefits and rewards.
These companies have all developed successful EVPs that focus on offering employees an experience that will drive the results they are after.
The inclusion of 24/7 kitchens at some Google offices allows highly focused employees to forget about meal prepping or cooking, which can take a lot of focus and energy from one’s mind. Instead, they are unencumbered from cooking and can better focus on their work.
Once employers have identified their core values, objectives, and culture, they can develop an effective EVP brand. This brand should focus on best communicating their values and benefits to potential and existing employees. It should also be tailored to the company’s specific needs and culture.
When crafting an EVP brand, employers should consider the following:
An effective EVP can provide numerous benefits for employees. It can help them to feel valued and appreciated by the company, as well as to understand the company’s values and objectives. It can also help them to feel more motivated and engaged in their work, as well as to understand the opportunities available to them.
> An EVP can also help to reduce employee turnover and absenteeism, as well as to increase employee satisfaction.
Finally, it can help to create a more efficient and productive workplace, as well as to improve communication between employers and employees.
For example, suppose a company offers a yearly allowance for employees to purchase health-related items like their gym membership or yoga classes. In that case, they will benefit from employees engaging in better lifestyle choices.
An employer can benefit from an effective EVP in the retention of their top talent. Companies can rest easier, knowing that their employees aren’t going to be lured away by their competitors. The EVP could also sway a competitor to join your company over where they are currently.
The EVP can also help from a branding or marketing sense, as the benefits provided are often shared by the employees, whether through word of mouth or online. Concerning the WHOOP example above, there have been countless new WHOOP employees who post about the benefit soon after their employment.
Finally, and most importantly, the benefit to the Employer is better quality employees. Through the offering of a quality EVP, employees will want to work harder. The employees will feel valued and trusted, inspiring their work ethic and commitment to be higher. The overall work environment and culture will be improved, and employee satisfaction will skyrocket.
An employer value proposition (EVP) is a set of benefits and services employers offer to their employees to attract and retain top talent.
It’s an effective strategic tool that can help employers to communicate their value to potential and existing employees. It can also help to reduce employee turnover and absenteeism, as well as to increase employee satisfaction.
An EVP should be tailored to the company’s specific needs and culture and should be regularly updated to reflect any changes or improvements.
Now that you know the importance of an EVP and how to develop an effective strategy, you can start to create an EVP that meets the needs of your company and its employees.
> So, start creating an EVP today, and start reaping the rewards!