Insights from our Talent Acquisition Experts: Employee Value Proposition

The importance of EVP

What is EVP? 

The Employee Value Proposition (EVP) encapsulates what sets an employer apart from competitors and highlights the value proposition offered to employees in terms of opportunities, culture, benefits, and overall work experience.

“All companies have an EVP, but it’s not always formally documented,” says Eva Pelacuer. Charlotte Steel suggests that whether or not a company has a clearly defined EVP is often linked to the size of the company. “Small & mid-sized companies are often not focusing on this.”

However, Jonas Muylaert states that having a well-defined EVP has great benefit, especially in the current war for talent. “A clearly stated EVP helps attract talent and it also has a positive effect on retention.”

Why worry about your EVP? 

If you get it right, you can achieve great things: lower turnover rates and more commitment. Let’s state this with some numbers. According to AIHR, a good EVP can reduce your turnover by up to 70% because it suits your audience, attracts the right talent and keeps them engaged in your organization. Your EVP gives candidates a first impression of what it would be like to work with you. 

After hiring, it is key to retain your employees by delivering what you promise. Only then, they will feel connected to your organization. Therefore, a well-set EVP can increase the engagement of new joiners by 30%. In that case, your employees will be more likely to recommend your organization to others. 

Applying your EVP

A strong EVP provides a competitive edge in the current candidate's market, distinguishing an employer from its competitors. However, our Talent Acquisition experts emphasize that the EVP must authentically reflect a company’s DNA. In reality, we notice that in certain companies employees don’t perceive the communicated EVP manifested in their roles.

Eva notes: “In some companies, the EVP is formulated at the top and communicated downward. It doesn’t resonate with the workforce, or differently team by team.” This discrepancy can lead new employees to feel misled and impact their loyalty in a negative sense. Such pitfalls should be avoided as short-term gains will eventually not compensate for potential long-term harm to reputation and turnover.

Actually, the EVP is not a one-way street. It’s based on a two-sided exchange between the employer and the employee. An employee invests his time, knowledge & expertise, as an employer you offer competitive and fair tangible and intangible rewards.

A strong EVP

• Crafting your EVP isn’t just an HR topic: it’s a collaborative effort between HR and management.
• Ensure that both leaders and employees actively contribute to shaping your organization's EVP.
• Take existing feedback into account such as applicant surveys, onboarding feedback, 360-degree reviews, and annual evaluations while crafting your EVP.
• Once defined, check with your employees to make sure they perceive it the same way as it’s stated.
• Utilize your EVP as the cornerstone for all communication, both internally and externally, with candidates, clients, and employees

Conclusion

The Employee Value Proposition (EVP) serves as a critical tool for organizations to define and communicate what makes them unique to potential employees. While many companies may have an EVP, its effectiveness can vary, with smaller companies often overlooking its importance. 

Nonetheless, ensuring that the EVP aligns with the company's culture and practices is essential, as discrepancies can lead to employee dissatisfaction and turnover, ultimately undermining the organization's long-term success and reputation.

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