Organisations today face a lot of challenges — technology shifts, labour shortages and geopolitical instability keep us all on our toes. However, attracting and retaining talented employees is an issue facing almost every company out there, big or small, regardless of sector. It’s our people, and their combined efforts, that make our companies great — so keeping them happy should be top of your agenda.
To stand out as an employer of choice, companies need to offer more than just competitive salaries to their dedicated staff — they need to offer meaningful benefits that will really speak to their employees and keep them engaged. To do this, businesses need to clearly define and develop their employee value proposition (EVP). But what is an employee value proposition and why does it matter?
Related: 7 non-financial employee rewards to keep employees motivated
An employer value proposition (EVP) is the combination of tangible and intangible benefits that employees receive in exchange for their work. An EVP encompasses everything from salary and perks to the organisational culture, development opportunities and the overall experience of working at the company.
A compelling EVP answers a simple question: Why should someone work here instead of anywhere else? Companies with strong EVPs not only attract top talent but also retain their existing people by providing a fulfilling and motivating environment.
A well-defined and developed EVP can significantly impact a company’s ability to hire and retain employees. Gartner has determined that organisations with a strong EVP reduce employee turnover by 69% and increase new hire commitment by 29%. These statistics demonstrate that when employees feel valued and see tangible benefits in their roles, they are far more likely to stay and do well within their roles.
On top of this, an employee value proposition influences employer branding, shaping how your company is perceived by potential candidates and the wider industry. It directly impacts hiring costs. Organisations with an appealing EVP can fill vacancies faster and at a lower cost — so it’s worth putting in the effort to get it just right.
A compelling employee value proposition revolves around five key pillars that collectively shape the overall experience of working at your organisation. These pillars address the core needs and expectations of employees, ensuring that the value offered is meaningful, impactful and motivational.
While other things certainly matter, we can’t avoid the reality that money matters. Compensation is the foundation of any EVP — it’s the tangible financial reward employees receive for their work. While a competitive salary is, of course, important, it’s also important to consider additional financial incentives such as:
When it comes to this pillar, there is clearly work yet to be done, with only 47% of employees across sectors satisfied with their pay. However, compensation goes beyond just numbers. Transparency in pay structures, timely payments and fairness across roles and demographics are just as important in building trust with employees.
Great benefits can really set your organisation apart from competitors. While traditional benefits such as private healthcare cover, pension contributions and paid leave are standard, forward-thinking companies are offering innovative perks tailored to employees’ evolving needs. Examples include:
The right benefits package demonstrates that your organisation values employees’ physical, mental and financial wellbeing, helping to create a sense of security and belonging. Our benchmark data shows that only 54% of employees are happy with the benefits their company provides — so it might be time to shake things up.
Employees are increasingly looking for roles that provide opportunities to grow professionally. Despite this, we know through our cross-sector benchmark data that only 52% of employees feel their career development aspirations are being met at their current company.
Career development as a pillar of your EVP reflects your commitment to their future, offering:
The work environment encompasses everything from the physical workspace to the company culture and leadership style. The stats paint a happy picture in this area, with 75% of employees feeling satisfied with their physical work environment, and 72% saying they have hte equipment and resources necessary to do their jobs properly.. Employees thrive in environments where they feel respected, supported and included.
Key aspects include:
Maintaining a healthy balance between professional and personal life is incredibly important when it comes to employee wellbeing. Employers who prioritise work-life balance demonstrate that they value employees as whole individuals, not just worker bees.
There are a lot of ways to improve work-life balance for employees, but popular methods include:
Building an EVP that resonates requires a deliberate and thoughtful approach, incorporating input from employees and aligning with your organisation’s goals and culture.
Here’s a step-by-step guide to crafting an EVP that attracts and retains top talent:
Before creating or refining an EVP, take stock of what your organisation already offers. Start by identifying your strengths and areas where employees feel supported and valued — collecting this information will ensure you are shaping your EVP on real, solid data, rather than assumptions from management and leadership. Some ways to gather this information include:
Your EVP should reflect your company’s unique identity and mission. In fact, you should think of it as an extension of your organisation’s culture and values. For example:
As mentioned above, an EVP should answer one critical question: Why should someone work here instead of anywhere else? To do this, you need to identify and explain what sets your organisation apart from competitors. Consider:
One-size-fits-all EVPs rarely work. Different groups of employees have varying needs and priorities. For example:
A strong EVP needs to be visible and well-articulated to have an impact. Use consistent messaging across all communication channels, including:
An EVP is not, and shouldn’t be, static. It should evolve with the changing needs of your employees and the broader employment market. Regularly review and update your EVP by:
Your employees are your most valuable resource when building an EVP. Engage them at every stage to ensure it reflects their needs and experiences. This can include:
Once your EVP is in place, measure its effectiveness to ensure it’s achieving the desired outcomes. Track key metrics such as:
Your EVP can include a wide range of benefits tailored to your workforce. Popular options include:
An employee value proposition is not just a list of benefits — it’s a commitment to your employees and a reflection of your company’s identity. Developing an EVP that resonates requires ongoing employee listening and a willingness to adapt as needs change.
To understand what matters most to your employees and how you can better support them, contact us today to learn more about our employee surveys or to book a demo of our platform. Let’s help you create a workplace where people feel motivated, valued and ready to succeed.
