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17 May 2016
by Tony Nevin

Employee value propositions: 4 key questions answered

Are you missing a huge opportunity to recruit and retain the best talent in your industry?

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Employee value propositions (EVPs) have been emerging in the UK, and could be key to your chances of success. Here are four key answers as to what they are and why they could be so vital:

1) What is an EVP?
An ‘employee value proposition’ (EVP) is a two-way agreement between an employer and employee. 

Most often it details the skills, capabilities and experience the employee will bring to the business, and what the business will provide to them in return.

It is designed to show employees why they are joining your business, which might include the chance to work with specific clients, in a particular team, at a suitable location, professional training, or the benefits package provided. 

A good EVP will differentiate your company from its competitors, and clearly show employees what they gain from working there.

As the employee moves through their career with the company, it is important to check that the EVP evolves with them.

2) Why is an EVP important?
A strong EVP helps a business become attractive to highly motivated and high-achieving employees. In particularly competitive industries, a robust EVP can play a key role in the successful recruitment of talented individuals.

It will also help to retain employees who are already performing strongly and who could otherwise be target recruits for a competitor. When a business builds a good reputation for how it treats its staff, this leads to more potential employees being attracted to join.

At the other end of the spectrum, the process of establishing your EVP can often highlight areas that your HR team needs to address. Any problem areas that could eventually result in staff becoming disillusioned or demoralised should emerge during the research and analysis stages of producing an EVP.

Disenchanted workforces with low levels of morale and engagement can also be encouraged back to optimum performance with the creation and delivery of successful EVPs.

According to research, Preparing for the turnaround: engaging the workforce for future growth conducted by the Corporate Leadership Council in 2010, strong EVPs increase the commitment of new hires by up to 29% and reduce the compensation premium – sometimes by up to 50% – demanded by new recruits.

And companies with the best EVPs often have three times as many engaged - and therefore productive - staff compared to other organisations. 

3) How do you create an EVP?

To start the process, you first need to learn a number of details about your employee, such as:

  • What attracted them to work for you?
  • What do they think are your USPs?
  • What do they value about working for you, and why do they stay?
  • What would make them leave?

It’s important to enable your employees to provide input on how they view your business. Don’t underestimate how important regular informal discussions can be in this process: it builds trust and respect between an organisation and an employee.

Next, it’s equally important that you respond to their views. Don’t ignore them if it is uncomfortable; instead you should embrace it, look for ways to improve, where possible, and add your own insights into the mix. It’s also important to explain why you cannot change something.

At this stage a business is ready to start writing its EVP. The EVP itself should outline the unique employee policies, training programmes, rewards and benefits, people and client work that prove your commitment to your people, their satisfaction and their development. 

It should be branded, and should not be full of jargon. A good EVP should be understandable and meaningful.

The EVP also needs to be flexible and reflect the differing needs and priorities of multiple age groups and cultures.

4) When should you deliver your EVP?
To make the most of your EVP, it’s important that employees can see it whenever they wish. It should not be a document that is hidden away; it should also form a central part of your appraisal and feedback processes.

Maximise your EVP by publishing it on the careers section of your website. Include a copy of your EVP in any job offers you make, and reinforce it again in any warm-up letters you send to potential recruits.

Another key time is during the employee’s induction. You should ensure it is what they expected, and take time to schedule ongoing reviews to check that both parties are delivering on the proposition.

The best employers will continuously look for ways to enhance and strengthen their EVP, and this will feed into a culture of recruiting and retaining the best talent in the industry.

Done well, EVPs are a key part of a company’s growth and success. How does yours look? 

This article was provided by Mazars.  

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