Employee Value Proposition (EVP) refers to a unique combination of benefits and rewards which a Company offers employees in return for their skills, capabilities and experience. Competitive salary and benefits package, are no longer enough to attract, retain, motivate and engage top talent. Therefore the most sought-after global employers, are adopting EVP, to characterize the Company, and differentiate it from its competition.
It’s key to create an EVP that reflects Company values as well as encompass a spectrum of needs, for example younger employees, older employees, working parents etc. This does not mean that each individual will value every single element, however there should be enough substance within EVP to cater for different groups.
EVP encompasses the following:
Mission and Values: Clearly defined Company purpose, objectives and way in which it operates, and how they conduct themselves. It is a guiding, principle to motivate employees (relate/live up to). These are sometimes even greater motivators than salary, for exceptional performance, accepting offer of employment, or continuing to work for the Company.
- The nature of the job.
- How the job is designed.
- How and where it takes place.
- How much ownership and autonomy the employee has to complete role responsibilities.
Employee: Keeping employees at the heart of the EVP, rather than the Company..
- Career Development
- Succession Planning
- Learning and Development
- Employee Recognition
Culture: A Company can start of the culture, however it is essentially the people who bring it to life. Good, talented people want to work with other good talented people. It’s down to Recruitment/HR to ensure that candidates are the right culture fit, and are continually motivated and challenged in order to continue to deliver.
Total Rewards: Includes everything of value resulting from the relationship with employer; financial and non-financial considerations.
- Compensation (performance related pay/incentive (monetary/non-monetary)
- Benefits (medical/health)
- Work experience (gaining knowledge, experience and expertise)
- Performance (priorities, attitude, skills, knowledge, personality)
- Recognition (celebrating success, recognising performance, appreciating colleagues)
Due to COVID19, how Companies approach their EVP, will evolve. Although all of the key components will still remain, HR and senior leaders need to review what their employees now value. Since the outbreak, employees/candidates have different priorities, and have started to care about things such as ‘employee well-being’, ‘Corporate Social Responsibility’ (CSR) and Philanthropy.
Employee Well-Being: How Companies support their employees in both their physical, mental and financial well-being.
- Gym membership
- Preventative health screenings
- Stress management workshops
- Education on financial well-being
- Health Insurance
- Raising awareness around mental health (counselling/support services)
Corporate Social Responsibility and Philanthropy: This has become important to employees globally. People are increasingly engaged in Political and Humanitarian issues. So Companies will not only be thinking about what they are doing for their customers, and employees, but also the contributions which they are making to the world.
- Improve labour policies and fair trade
- Reduce carbon footprint to mitigate climate change
- Engage in charitable giving and volunteer efforts within the community.
- Change corporate policies to benefit the environment
- Make socially and environmentally conscious investments
Once the EVP has been defined, it is important to communicate this both internally and externally. Also to keep reviewing this; to ensure that it is robust and delivering on its promises.