Creating a compelling employee value proposition
A golden opportunity to increase employee engagement, attract and retain top talent and even improve financial performance—could there be such a thing? Formalising an organisation’s EVP can do all of the above, and lead to productivity breakthroughs.
According to recent research by Willis Towers Watson in Change and Communications Global ROI, a significant number of companies do not have a long-term plan for allowing their Employee Value Proposition (EVP) to reach its full potential. This means missing out on defining the unique set of benefits which an employee receives in return for the skills, capabilities and experience they bring to the organisation.
Richard Veal, Line of Business Leader, Willis Towers Watson commented on the findings, “The employee value proposition is one of the best tools available for companies to engage employees, as well as attract and retain top talent.” Yet in many organisations, EVP remains something that is unrefined and underutilised. Companies do not always know what they are missing out on.
Veal noted, “The EVP defines the employment deal. It’s a promise to help employees meet their needs in exchange for their daily efforts to help the business succeed.” The research laid bare the characteristics of low and high EVP effectiveness. It revealed companies with strong EVPs go further by discussing how they meet their employees’ expectations and, in return, what behaviours they expect from staff in order to help the business succeed.
Importantly, the survey noted that an effective EVP successfully highlights culture, mission, values, rewards and people. Employers looking to polish their EVP should develop a clear road map that targets these areas and lay down some milestones to get the ball rolling. Senior leadership should be encouraged to lead the charge, and effort should be made to invigorate the culture of the organisation. Care must be taken when considering how to actually measure the success of any EVP project—different sections of an organisation will have different markers of success, particularly when measuring different employee groups. One size does not fit all.
Ask the right questions
To develop a strong, realistic EVP, employers must understand what perceptions existing staff and potential employees have about their company brand and culture. To do this, information can be gathered through employee surveys, focus groups and exit interviews, as well as through feedback from former employees and job applicants.
This is a valuable exercise, but organisations must remember to try and actively comprehend the data generated. Only by understanding the perceptions of your organisation from all angles can a quality EVP be created.
Questions that HR professionals should ask themselves:
- Why are potential employees attracted to our company?
- Why do existing employees think our company is unique?
- What do people value most about working here?
- Why do they stay?
- Why do they leave?
Willis Towers Watson advised that HR Departments create cross-functional taskforces when developing new EVPs. While HR is the driving force behind such change, drawing from marketing, corporate communications, as well as line executives and managers brings a broad spectrum of experience that will firmly set the EVP in the context of an overall organisation-level business strategy.
Through embracing all important factors—such as mission and purpose, the competitive environment and the grand plan for human capital—the taskforce can define the organisation’s EVP.
Communicate the message
Even though it may not be formalised, all companies have some form of EVP. Turning the EVP into an official mandate that is deliberate and aligned with the business reaffirms the company’s brand and how the employer wants to be identified. Once your EVP has been defined, HR must then find creative and relevant ways to communicate it to the people you are trying to attract.
Conveying the message through all hiring channels, such as company websites, advertising and the interview process, makes for a good start. Prospective talent can quickly determine early on in the hiring process if they would make a good fit for your business. Consistently communicating a compelling EVP through branding, public relations and marketing will also help the passive labour market form a positive perception about the value of working for your company—widening the pool of talent from which an organisation can draw.
Creating an EVP is an ongoing process, and developing one that is well-aligned with the company takes time. Acknowledging that it is a journey and that the right route may not necessarily be immediately visible is a big step. If there is a setback, it is not a failure, but rather a sign to try a new, stronger approach. Frequent dialogue between stakeholders to get feedback and gauge opinion, as well as clear milestones for checking progress, are necessary.
| Ways in which EVP can be monitored: |
| · Conducting regular engagement surveys |
| · Gathering feedback from recently recruited employees |
| · Analysing employee productivity |
| · Tracking the financial performance of the company as a whole |
| · Using new measures, such as an Employee Net Promotor Score |
Having a compelling employee value proposition is crucial in the war for the best talent, especially as the job market becomes increasingly globalised. A strong value proposition is beneficial for employer and employee alike. It forms a critical part of the workplace and as such, companies that embrace a holistic approach to reward strategy that includes a well-planned EVP can realise significantly stronger results in terms of talent management and financial performance.
Paul Arkwright
Publisher
