How to Build a Strong Employee Value Proposition (EVP) in a Competitive Job Market?
In today’s competitive job market, building a strong Employee Value Proposition (EVP) is crucial for companies for their progress. This people-driven concept helps attract top talent and retains and values it. Therefore, it is no secret that a highly functioning, motivated employee will likely prefer a workplace with a defined EVP.
Statistics show that a well-executed EVP is responsible for boosting the commitment of new hires by up to 29%. So, the success of your organization is incomplete without an attractive EVP.
On that note, let’s discuss how you can mold and use employee value propositions to reach ultimate success.
Understanding The Basic Components of an EVP
First things first, to create a well-versed EVP, it is vital that one has a strong understanding of what constitutes the concept. Employee Value Proposition is the benefits an employee gets in exchange for bringing his skills, services, and experiences to the table.
The primary elements that make up a relevant and compelling employee value proposition are mentioned as follows.
- Compensation: This envelops the basic salary, health incentives, paid vacations, and other such financially securing factors.
- Work-life stability: Includes incorporating policies and programs that don’t neglect the employee’s social life.
- Room for growth: As human beings, constant development is necessary for us and, if compromised, may be responsible for killing creativity.
- Work environment: A healthy work environment allows flexible or remote working and provides comfortable spaces for individuals. Other physical conditions, such as the cost of commuting, etc. fall under this category too.
If the EVP of an organization is in line with the company’s culture, employees are highly likely to adapt and embrace the culture as something beneficial to them. Not too surprisingly, a well-incorporated EVP is known to decrease employee turnover by at least 69%.
Conducting Research For Employee Value Proposition Building
Similar to how a tale can be best told by who went through it, an efficient EVP can only be built by consulting those whom it directly influences. By conducting target-based adequate research, you are sure to come across values that align with your company’s culture and will be assisted in employee hiring.
Some tried and tested ways that you can carry out EVP research are;
- Interview employees and enquire for suggestions
- Conduct detailed open-ended surveys (online survey conduction is generally preferred for gathering more feedback).
- Analyze your competitor’s EVPs and compare progress.
- Stay in the loop with the updated employee value proposition trends.
Defining the Company’s Employee Value Proposition
Now, let’s get down to the most critical step; defining your company’s EVP.
1. Analyzing What You Already Offer
To further build upon it, you must look into your inventory and list everything you already offer your employees. Once you have this list, you will better identify and work on the shortcomings accordingly.
2. Interview The Employees And Carry Out Enough Research
Either with the help of a focus group, surveys, or interviews, collecting employee feedback can facilitate the entire process largely. You may ask open-ended questions such as, what convinces you to continue working with us? Would you suggest your friend work with us? If so, why? And what are some of the benefits that would add to the working culture?
To ensure valid answers, ensure demographic data such as their name, etc., is not required. You can also conduct anonymous surveys to collect feedback from your employees.
3. Draft a Final EVP
Now is the time to step right in and give it your best shot! In light of the responses you received and the prior EVP, add what more the company can offer. A few questions you might want to go over as you lay the base of a new foundation are;
- Does the organization offer work-life stability?
- Are the employees satisfied with their current compensation?
- What is the ultimate goal of my organization, and what kind of employees do I need for it?
- Are the employees granted enough margin to showcase creativity?
Communicating The Final Employee Value Proposition?
Proper and clear communication of the EVP is just as crucial as formulation and application. Your current and potential employees should feel like the job offer has something to offer them that your competitors do not. You want to stand out from the 57% of recruiters who are unfamiliar with what makes them stand out from their competitors.
To reach potential employees, ensure that HR is getting the message across as clearly as possible. In addition, the update could be posted on the company’s social media accounts, emailing current employees, and updated on job hiring. Besides, once the company’s inner circle is well aware, spreading the word shouldn’t be a problem.
Why Is It Important To Measure The Effectiveness Of The Employee Value Proposition?
If your EVP is value bounding, the results will surely be louder than the hard work! You can monitor the organization’s growth, identify any further loopholes, and measure the company’s overall return on investment (ROI). As per the feedback, additional modifications may be necessary.
Some key factors that will help confirm and check that your investment was a success include;
- Decreased employee turnover
- Positive employee response through surveys.
- Enhanced rate of productivity
- A competitive analysis that demonstrates growth.
Staying Competitive In A Changing Job Market
In today’s ambitious world, there is no such thing as staying on top of the charts without continuously hustling. Similarly, keeping abreast of the latest developments is crucial to remain relevant and maintaining a strong EVP.
Some effective strategies that may help are:
- Gathering feedback from employees monthly
- Stay aware of the market trends
- Keep an eye on your annual turnover data
- Be vigilant about any changes brought forth by the competitors.
The employee value proposition can give you a decent ROI. EVP improves worker satisfaction, resulting in increased efficiency and improved productivity. Conduct research to develop an EVP and implement it appropriately, following the aforementioned strategies. Always ensure to communicate it to your employees to reap the benefits.