Know more of a Employee Value Proposition: Stats & Tips

An employee value proposition (EVP) is a strategic document that outlines your organization’s unique selling propositions, and it’s an in valuable tool for recruiting top talent and closing the candidate experience gap. It may loosely linked to Employer’s branding.An effective employee value proposition creates clarity around your company’s hiring incentives and brand image. It also gives potential employees a peek inside your company culture to gauge if it aligns with their personal values.According to Wikipedia, DiVanna (2002) defined the employee value proposition (EVP) as the talent a company needs to exist to support the corporate value proposition. DiVanna (2003) later refines the definition of the EVP as a portfolio of skills and experiences which can be considered Assets and incorporated into a company’s balance sheet.DiVanna and Rogers (2005) provide additional clarity on the EV Pas the value of the employee centers on the simple premise that an individual must be self-aware of their contribution to the firm under the present set of business conditions. Pawar and Charak (2015) define the employee value proposition as the one of a kind arrangement of benefits an employee gets consequently for the skills, capabilities, and experience they convey to an organization (Reference: AIHR)Employee Value Proposition (EVP), according to Haiilo isusually defined as a set of monetary and non-monetary benefits provided by an organization to its employees in return for the skills, capabilities, and experience they bring and the contributions they make to the organization.To create a compelling EVP, you must include specific details about the job, policies and benefits in addition to your company’s mission, vision and values. Here are some secret ingredients of a compelling EVP that will help you attract the best candidates from all backgrounds.A clear mission statementYour company’s mission statement provides a succinct overview of what your company is all about. Include the mission statement from day one so new hires can see the company’s DNA in action.Make sure it’s a clear outline of your goals and objectives as a company. An effective mission statement should instill a sense of purpose and inspire employees to work towards those goals every day.If your company doesn’t have a mission statement, now is a great time to create one. You can start with the classic “mission statement” formula: Your mission statement should be short, memorable, and inspiring. Focus on your main goals as a company while keeping your employee value proposition in mind.Make sure the mission statement resonates with candidates who share similar values and that it accurately reflects the true employee value proposition of your company.The purpose of EVPemployee value propositionSource: Employee Value Proposition, Gagen MacDonaldCompany values that are actually lived and felt by employeesYour EVP should also include a few core values your company lives and breathes by. Your values should reflect your mission statement and be used to guide company decisions.Values such as transparency, innovation and collaboration are common among innovative companies. Add your company values to the employee value proposition so candidates can identify if they’re a good fit for your company culture.If your organization doesn’t have core values, now is a great time to create them. Core values should be words that reflect the heart and soul of your company. They shouldn’t be generic buzzwords or cliches.They must be genuine, relevant and important to your business. Start by looking at how your company operates and use those values as a guide for creating new core values.An explanation of your core business and why you existThe world would be a pretty boring place if we all did the same job. So, add an explanation of your core business and why your company exists. You might want to include the customer or client base you serve.This is a good opportunity to outline the problem your company solves and how you solve it. Keep in mind that you’re not just creating an employee value proposition for potential employees, but also for investors and partners.This section highlights the type of work your company does, the industry it operates in and the specific problems it solves. Include information about your customer base, the types of clients you service, and the location where they are.This helps potential employees better understand their role in the company and clarifies the type of work they’ll be doing every day. This section should give employees as well as potential clients a better sense of your company’s goals, vision and brand image.helps potential employees Image: pixabayAn out line of what type of employee you’re looking to hireThis section helps clarify what type of employee you’re looking to hire, the skills and experience they should possess, and the type of person who would fit best in your company culture. It also provides candidates with a realistic idea of what the job will entail.Discuss your hiring objectives and how the employee value proposition aligns with those goals. Include the skills, traits and experience you’re looking for in candidates, as well as the type of person who would fit best in your company culture.This section should also include information about what type of work you have outsourced. For example, if you have a large portion of your work done remotely, you can mention that in this section.Benefits for new employees (e.g. flexible working hours, training programs)The next section of your employee value proposition should focus on benefits that are important to every employee. This includes salary and equity as well as benefits such as family leave, paid holidays, and work-from-home options.This section should explain what type of benefits you offer and how they differ from what other companies offer. You can also include a list of benefits you’re planning on rolling out in the future. This shows employees that their voice is heard and that there is room for improvement.Company hiring incentives and conditions for current employees to stay at the companyFinally, you should discuss company hiring incentives and conditions for current employees to stay at the company. This section answers questions such as, “What happens if I change jobs or leave the company?” and “Are employee benefits guaranteed?” You can also include information about how long you’ve been in business and how many employees you currently employ.This section should include information about the employee stock option plan (ESOP) and other incentives you offer employees to stay at the company. You may also want to discuss any benefits employees receive while they’re working at the company. This includes information about the health insurance, retirement plans and stock option plan.Key elements of an Employee Value PropositionA strong Employee Value Proposition consists of various elements. Gartner distinguishes the following five key elements of an Employee Value Proposition:

  • Compensation
  • Work-lifebalance
  • Stability
  • Location
  • Respect

global EVPAccording to research from Gartner referring Vervoe,“Organizations that effectively deliver on their EVP can decrease annual employee turnover by just under 70% and increase new hire commitment by nearly30%”.Employee Value Proposition Stats by HaiiloKey Employee Value Proposition Stats by Haiilo

  • Organizations can reduce the compensation premium by 50% and reach 50% deeper into the labor market when candidates view their employee value proposition (EVP) as attractive (Gartner)
  • Businesses that effectively deliver on their EVP can decrease annual employee turnover by just under 70% and increase new hire commitment by nearly 30% (Gartner)
  • A well-executed employee value proposition can Increase the likelihood of employees acting as sponsors from an average of 24% to 47% (Link Humans)
  • 57%of recruiters say their top challenge is differentiating their company from the competition (Smart Dreamers)
  • 75% of Americans would not take a job with a company that had a bad reputation, even if they were unemployed (TalentLyft)
  • 43%of employees cite limited career paths as a primary reason for leaving a job(TalentLyft)
  • Happiness led to a 12% spike in productivity, while unhappy workers proved 10% less productive (Fast Company)
  • 64% of employees feel they do not have a strong work culture (Sapling)
  • While60% of employers have increased employee listening efforts, few are using formal listening approaches. Indeed, just 31% conduct employee surveys and 13% conduct focus groups  (Willis Towers Watson)
  • A survey run in the UK during the pandemic showed that 73% of the respondents believed they were more efficient when working from home (Statistica)
  • 22%of remote employees say that they struggle to unplug after work (Buffer)
  • 85%of employees say they’re most motivated when management offers regular updates on company news (Trade Press Services)
  • Only 21% of IC experts believe that employees have a good understanding of why senior leaders make the decisions they do (h&h)
  • Employees who say their manager is not good at communicating are 23% more likely to experience mental health declines (Harvard Business Review)
  • Only 13% of employees strongly agree that their leaders are effectively communicating with the organization (Gallup)
  • 45%of adults are reporting that anxiety and stress related to COVID-19 has had a negative impact on their mental health (The National Law Review)
  • 74%of employees have the feeling they are missing out on company news (Haiilo)
  • Only 23% of executives say that their companies are excellent at aligning employees’ goals with corporate purposes (Deloitte)
  • Employee satisfaction at Google rose by 37% as a result of employee support initiatives(Fast Company)

Bottomline: Why do you want to hire this specific type of employee?Finally, you must answer the question: “Why do you want to hire this specific type of employee?” Your hiring incentives should speak to the specific type of employee you want on your team.Put yourself in your candidates’ shoes and think about what would persuade them to join your company. Keep in mind that your hiring incentives are what entices candidates to apply for your company in the first place. They can also be valuable tools for retaining your existing team members.If your hiring incentives don’t appeal to all candidates or your current employees, you might want to revisit them and make changes. Keep these seven ingredients in mind as you’ recreating your employee value proposition.Remember, you don’t have to follow these ingredients exactly. You can use them as a guide to create an employee value proposition that bestfits your company.

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