What is Employee Value Proposition?
Employee Value Proposition, also known as EVP, is the value a company offers to its employees in return for the value they add to the company. It can also be explained as the set of reasons why candidates would join and stay in the company for longer.
EVP includes many factors, including employee perks, benefits, your mission, values, purpose, and leadership principles. The employee value proposition is a strategy that helps you attract, retain candidates, and stand out from the competition.
According to a survey, organizations with an excellent EVP strategy are likely to experience a decrease in turnover rates by 70%.
How Does Employee Value Proposition (EVP) Matter to your Company?
Employee value proposition exists within your business even if you intentionally maintain it or don’t pay attention to it at all. However, creating an EVP strategy offers you endless advantages. The four factors that are majorly impacted by your employee value proposition are Attraction, Retention, Employer Brand, and Competition. All of these factors contribute to productivity in the bottom line.
How to Improve Employee Value Proposition of your Organization?
There is no one perfect plan to improve your organization’s EVP. However, understanding how your company does what it does about its employees will help you craft a compelling company value proposition. Let’s see some incredible ways to enhance your business’s EVP.
Ask Yourself & Your Employees
The perfect way to create or improve an EVP is to develop goals that align with both company’s and employees’ goals. So, ask yourself and your employees what they want without just assuming. A simple survey could reveal your employee’s needs and complaints. Additionally, you should also research and analyze what attracts and benefits your employees, such as recognition, on-site perks, company culture, etc.
Focus on Career Development
Nobody wants to get stuck somewhere; this includes your employees. They expect you to offer them career development opportunities. Fortunately, this is also how you can improve your business’s EVP. Young generation employees, today, don’t wait until retirement (or at least for 2 or 3 years) to leave you; they’re just a better opportunity away from your exit door. So, ensure your company’s proposition plans focus on your workers’ career development, such as internal training, promotion, and recognition.
Elevate Employee Engagement
Employee engagement and experience play a key role in boosting the employer’s brand and delivering higher business productivity. So, keep employee engagement at the core of your EVP goal. You can create some value for your employees by using strategies that keep employees engaged during the training, meetings, and even regular days. Most importantly, provide them with an engaging work culture.
Pay More Attention to Payments & Be Transparent
Employees expect to be treated well for the efforts they put into your business. Make them feel valued by paying well on time. Give them enough information and be transparent about salary, benefits, and when they can expect hikes.
Ensure you research the job market and salary trends well. Create a fair payment policy that includes a flexible plan for raises that benefits both you and your employees.
Conduct Stay & Exit Interviews
Exit interviews are quite common in companies. But did you know that stay interviews are effective in lowering your turnover rates? Exit interviews help you learn about why the employees are leaving only after they decide to leave. While these are also helpful, stay interviews help you understand what made employees stick and what would make them leave. Conducting stay and exit interviews will help you learn areas to focus on to improve the employee value proposition.
Boost your Organizational Culture
Your business proposition should align with your organization’s vision, values, and mission. These factors enhance your company brand and EVP. According to a Columbia University study, the employee turnover rate at companies with good culture is 13.9 percent, and the turnover rate at companies with low culture is 48.4 percent.
Bottom Line
Organizations need an effective business value proposition for many good reasons, as we discussed above. A strong EVP will give you an edge over your competitors who don’t have an EVP strategy. Creating an EVP for your organization will help you boost employee engagement, productivity, and profitability.
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