The organizational Employee Value Proposition comprises the remuneration, rewards, and benefits paid to an employee, for work or service; compensation for the skills, experience, and productivity that serve the organization’s strategic goals and mission. It is one of the determining elements in the recruitment and retention of talent for the organization, so it is vital to ensure that EVP is aligned with organizational objectives and is communicated effectively.
Defining and articulating EVP effectively is critical in the current hiring environment. EVP is a key component for the organization with regard to current employees and potential new hires. It represents the value offered to employees, so ensure that you articulate EVP in terms of what is valued by employees and focus on an employee-centric approach. Don’t focus only on financial measures but include training and development opportunities and culture-specific elements.
This is more than a statement of intent, input from employees, applicants and HR will be instrumental in compiling an EVP statement that affords clarity and transparency to employees and other stakeholders. The SHRM suggests that EVP is regularly reviewed, to ensure that it remains relevant, by maintaining contact with employees to ensure the EVP continues to reflect the lived experience of staff.
Share and inform
It is critically important that hiring managers are well informed about a newly defined EVP as it informs how the organization deals with:
- Onboarding and induction
- Performance management and review
- Internal communication
- Promoting effective behaviors at all levels
- Those leaving and retiring from the organization.
In essence, you need to build a convincing narrative with the EVP that brings it to life with effective communication that resonates with target audiences. Ensure that the EVP is clearly communicated with job descriptions and is prominent in messaging on career websites and other internal documents.
Hiring managers need to familiar with the EVP statement and how it aligns with HR and wider objectives. Work with managers to ensure that EVP is understood when communicating contract terms and compensation packages effectively.
To provide real and lasting benefit the EVP must represent the organization’s values and reflect the actual working experience of employees because those who like the job they do and their workplace become advocates for the organization. Employee advocates are the brand’s secret weapon in building trust with the public.
Research and review
Encourage hiring managers to conduct regular research with candidates and employees, perhaps by using a staff attitude survey, to understand their opinions, attitudes, and behaviors. Real-time employee insight allows the collation of meaningful metrics around applications, hiring rates and costs, engagement and productivity.
Investment in training around EVP will pay dividends as it is about what’s important to employees and allows the organization to create opportunities and a culture that benefits employees and potential employees. Failure to maximize value from your work on EVP may mean the loss of opportunity to attract top talent. According to McKinsey research, missing out on top performers has a big impact, as top-performers are up to eight times as productive as traditional employees, with the rate of increased productivity rising alongside a rise in complexity of job role.