In an increasingly competitive talent market, businesses must reevaluate their talent acquisition strategies to secure the best talent. And defining a good employer value proposition (EVP) is a crucial step to attracting your ideal talent persona (ITP) and increasing offer acceptances.
In this article, we’ll explore the fundamentals of an effective, candidate-first EVP. We’ll also cover how you can construct your own employer value proposition to attract top talent.
What is an employer value proposition (EVP)?
An employer value proposition (EVP) refers to the pitch a business makes to its ideal talent persona, incentivizing them to join the company. In other words, it’s an exchange between a company and an employee; the company is providing the employee with something of value in return for the employee’s talents and expertise.
An EVP includes tangible benefits, such as healthcare and salary, and intangible incentives, such as an ideal work culture.
EVP and employer branding
Your EVP is a part of your company’s overall employer branding. While your employer branding is the impression you project to potential talent, an EVP is a proposition that appeals to your ideal talent’s ambitions and preferences.
Employer branding can help you attract the best talent, while an EVP helps you seal the deal.
Who takes ownership over defining a company’s EVP?
The primary responsibility for defining a company’s EVP resides with HR. However, defining a competitive value proposition may require buy-ins at the executive level.
Senior executives possess the authority to make structural changes – those which influence culture, working conditions, and even compensation ranges. Moreover, after a company’s leadership team takes initiative, the effects resonate throughout the company. Leaders set the tone for culture and progress.
HR teams can also interview existing employees to identify possible focal points for your value proposition – your team members can share why they chose to join the company.
The need for a competitive EVP
The fight for top talent has become increasingly competitive. A survey found that 74% of companies in the U.S – a record high – are struggling to acquire the talent they need.
More than ever, companies are in need of an EVP that, in the struggle for talent acquisition, helps them stand out against the competition.
How to Create A Good Employer Value Proposition
These 6 factors help employers design an effective employer value proposition.
1. Meeting the benchmarks
Research has found that, with an attractive EVP, companies can reduce the compensation premium by 50% and reach 50% deeper into the labor market. The first step toward constructing an EVP that appeals to potential candidates is benchmarking. That is, seeing what the industry standards are and meeting them/exceeding them. This includes key features of every EVP such as financial rewards (salary, bonuses, etc.) and employment benefits (such as health insurance or paid-time-off).
70% of candidates are passive job-seekers – that is, they’re already employed but are willing to leave their jobs for a better opportunity. If your EVP is compelling enough to attract such talent, you can gain expand your talent pool by creating demand.
However, it’s important to realize that an EVP is only effective if your company can deliver on its promises. Otherwise, failure to follow through can result in employee turnover and damage your employer brand overall.
2. Working conditions
Employees seek positive working conditions, and where these conditions used to be restricted to in-house considerations – like cozy workspaces, recreational rooms, and an office gym – employees have now come to expect more flexibility beyond the workspace.
Yes, we’re talking about hybrid and remote work models. During COVID, 47% of employees stated that they’d leave their job if their company didn’t provide a hybrid work model.
To accommodate this expectation, companies began to shift from the traditional working model to hybrid. One survey found that 77% of companies are now providing employees with hybrid work models.
Flexible work models are a crucial example of how employee expectations change over time, and your company must adapt its EVP, in turn, to stay competitive.
3. Uniqueness
The table stakes for a unique employer value proposition is that it should differentiate your brand from the competition. However, more ambitiously, an EVP should also:
- Define which talent your company is for
- Define which talent your company is not for
An EVP should give your ideal talent a compelling reason to apply. Business leaders cannot afford to waste resources on unfit applicants. This includes candidates that either lack the necessary skills and experience, or ones that are not culturally fit.
Unfortunately, many recruiters struggle with the table stakes – differentiating their company from competitors is the number one challenge for 57% of surveyed recruiters.
Thus, we again stress the need for executive buy-in and involvement; company leadership is best suited to help differentiate your employer brand.
We encourage authenticity – polish your messaging and project it, but keep it sincere. Make it resonant with your company’s mission and core values. This way, your message will resonate with talent that shares your vision.
4. Work culture
There are many factors that define your company’s work culture, including how:
- Your employees correspond across the company heirarchy
- Inclusive and welcoming your company environment is – diversity is a crucial part of a positive work culture.
- Supportive your teams are, and how well they communicate Team support and communication
- Engaged your company’s management is with employees
According to one study, workplace culture is amongst the top factors that correlate to employee happiness. However, the same study found that two-thirds of employees report that their company lacks a strong workplace culture.
Building an attractive work culture can thus help differentiate your employer brand and strengthen your employer value proposition.
5. Upskilling opportunities and L&D
Top talent is not simply looking for jobs – job seekers are also looking for opportunities to develop their skills and advance in their careers. According to one source, 93% of millennials prioritise skill development.
Thus, upskilling opportunities and learning and development (L&D) initiatives are vital components of competitive value propositions.
L&D programs not only help with talent acquisition, but also in employee retention. 43% of employees who leave their jobs cite limited career opportunities as the primary reason for doing so. Additionally, another survey found that 45% of employees leave their jobs over concerns regarding advancement options.
Thus, an EVP that includes advancement opportunities gives your ideal talent a reason to join, and to stay.
6. Matching competitors
Talent market conditions change. In response to changing conditions, such as rising inflation or industry developments, many companies adjust salaries and their general offerings. For example, many U.S. employers raised pay and employee benefits in response to the Great Resignation.
Thus, to keep your employer value proposition relevant and competitive, it’s crucial to monitor changing conditions. Moreover, it’s important to observe how your competitors respond to these conditions.
Are they raising salaries and offering more benefits? If so, you’ll need to raise your own offerings. Meeting table stakes is a consistent need that employers must fulfill.
Effective Employer Value Propositions Examples
Let’s take a look at some excellent employer value propositions from leading global brands.
1. Nike
There is a reason Nike has appeared so many times on Glassdoor’s annual list of Best Places to Work.
One of the slogans presented with Nike’s EVP is “Win as a team” and the brand has committed to fostering a winning team spirit across its company. Nike’s employee-first proposition is also reflected in their perks – some of the benefits that Nike offers include fitness discounts, relocation benefits, learning opportunities, great pay, and retirement plans. Additionally, the brand provides a fitness center for their employees, consolidating the idea of working together and winning together.
In Nike’s own words:
“When you join NIKE, Inc., you’re part of the family. To inspire greatness inside and outside work, we invest in our culture and offer employees competitive health, financial, security and work-life benefits. From opportunities for career development to personalized benefit options, we want all who join our team to realize their full potential.”
2. Google
Google has done a great deal in building its reputation as one of the world’s leading companies for innovation – making it an attractive option for top talent.
However, Google doesn’t rely solely on its image as a tech leader for attracting great talent. The megacorp also boasts one of the most impressive work cultures.
At Google, the top management provides employees with significant creative freedom. General mandates are handed out, but the main work is driven on the ground by the employees themselves.
Employees are given room to identify problems themselves and decide how best to apply their skills towards fixing them.
This desire for innovation and willingness to allow employees to drive its enterprise makes Google an attractive workplace for talent looking to enhance their skills and advance in their careers. The company also offers some of the best compensation packages in the industry.
3. Netflix
Netflix’s core philosophy is “people over process”. In explaining to candidates just how much it values individuals, Netflix provides 5 key ways in which it is special:
“What makes Netflix special is how we:
- Encourage decision-making by employees
- Share information openly, broadly and deliberately
- Communicate candidly and directly
- Keep only our highly effective people
- Avoid rules”
Netflix strengthens its employer value proposition through its blog, in which company employees share their experiences working at the tech giant.
The importance of clarity
While many factors contribute to a successful employer value proposition, the most effective EVPs are focused.
As an employer, it’s crucial to know where your company stands and what you have to offer your ideal talent. Moreover, it’s important to know who your company is for, and who is not an ideal fit.
Cover all fronts, but be clear in your messaging.
