Organizations that have developed an EVP, which when delivered effectively, were fives time more likely to report highly engaged employees and twice as likely to achieve financial performance far greater than their peers.Willis Towers Watson
Do you have an Effective EVP ?? Ascertain the Employee Value Proposition Effectiveness of your organization with The Brew’s EVP Effectiveness Index. This unique tool indicatively helps understand the likelihood of building a distinct identity as an Employer for pre-defined target groups and differentiating from competitors, which if done properly can be a force multiplier for a high-performance workplace. (Also see, The EVP Capability Maturity Index to build a strong differentiation for future of work)
Based on 10 fundamental principles to build compelling differentiation, these range from Organizational Purpose & Alignment, Business Strategy & Alignment, Talent Strategy Alignment, Differentiation, Inspirational & Aspirational, Relatability to People Champions & Believability etc. This will help you perfect the identified EVP themes (these themes can be identified distinctly from Engagement levers, aptly measured over employee engagement solutions – also see what’s not engagement) objectively in embedding them into the organizational fabric.
EVP Effectiveness Index
Employee Value Proposition (EVP) – The Concept (click to expand)
The ‘People Promise’ that defines the expectation the employer has for its employees and what the employees expect in return. The Employer branding starts with an Employee Value Proposition (a compelling one, ofcourse), it is a ‘statement of everything to do with each employee’s experience throughout their life-cycle within the organisation’.
The Employee Value Proposition encases the company mission, values, leadership, career progression, development opportunities and company benefits. Also see, How to strengthen your reputation as an employer ?, HBR 2018
Why does a compelling Employee Value Proposition matter ? (click to expand)
- A well-developed EVP creates a significant competitive advantage, attracting, retaining and engaging employees – no more bad Glassdoor reviews!
- A strong EVP diverts all the focus on pay and benefits as an employee’s main motivator – According to the Corporate Leadership Council an unattractive EVP requires 21% higher compensation premiums to hire staff than those organisations with a well-crafted EVP.
- The employment market is getting highly competitive and as the war for talent continues, where employer branding and company culture can form a competitive advantage, attracting and retaining top talent is not simply a priority but a necessity.
Critical Success Factors of an Effective Employee Value Proposition (click to expand)
- It should come from the top – an effective EVP starts from Leadership;
- The EVP should fit in with the Organizational Culture;
- It should resonate well with multiple employee segments – High Performers, High Potentials, Tenured employees etc. (pick the employee vibes through focus groups, surveys – leave this to The Brew, no sweat here);
- ‘Make sure you live it’ – deliver on your promise and keep it consistent
Crafting an Effective Employee Value Proposition (click to expand)
The Brew’s 10 step recipe for effective Employee Value Proposition (EVP)
- Create a laundry list of all that is on offer now (Employee Progression, Developmental Opportunities, Talent Management programs, CSR opportunities, Organizational Benefits, Recognition, Workplace attributes of Culture, Flexibility, Work-Life balance, High Performance Teams etc – The Brew has an exclusive EVP determination survey, part of Engagement toolkit to capture inputs from employees)
- Review it in consultation with multiple target segments of employees – Ask them what they think about the current plan, how well the company delivers it and how it can be improved.
- Of the perspectives from workforce – revisit the gaps with feasibility of what can be deployed now, deferred or never against these contexts: Budget constraints, Capability & Capacity to deliver, Will there be resistance to change ?
- Craft the revised employee promise – Along with tangibles, make it inclusive of, Organizational Values, Management & Leadership attributes, Organizational levers of Collaboration, Innovation, Excellence etc.
- List it down – with high stress on simplicity, clear messaging & equally clear interpretation; In short, the plan should be easy to communicate to everyone, splitting it into 6 categories – The People, the Work, the Organisation, the Opportunities, the Benefits & the Rewards.
- Stress Test & Market validation: Post setting out the employee value proposition, it is essential to make sure the organization is delivering on its promise – Hence, have regular checkins with workforce. Create focus groups and have employees express their turn-ons and put-offs, this helps in recalibrating the messaging appropriately.
- Communicate, Communicate, Communicate: Have a marketing plan in place – this includes Leadership & Management reinforcing the key messages, updating it on the company website, using social media to get the message out there and through internal networks to communicate to workforce; Make the communication as relevant as possible, using facts, testimonials, examples and stories to explain.
- Delivery on Your Promises, Always: When you deliver what you promised and maintain this, in return employees will stay focused, engaged and productive. People work for people, and when they love where they are, it will be something to shout about. Employees are the best sources of employer branding, validating organization as employer of choice.
- Revisit & Refine, continually: Monitor pulse through engagement surveys, analysis on employee productivity, financial performance and by gathering feedbacks. Having constant and active feedback loops in place, will help to recognize whether Organization is delivering on it’s EVP promise and whether employees believe-ability in it.
- Communicate, Communicate, Communicate: Whether it’s by email or publicly on the website, Employees will develop conviction and take it in only when – it’s consistently communicated & expressed in action and behaviors.