Employee Value Proposition: Understanding EVP Meaning and Importance for Organizations

Employee value proposition, or EVP, can set your business apart from your competitors in terms of employee recruiting and retention. If you’re involved in talent acquisition for a company or want to help counter employee turnover, understanding EVP's role in attracting and keeping impressive employees is critical. This article outlines the basics you need to know about this concept, including why you should invest in delivering a strong EVP.

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EVP meaning in our current context

For much of the 20th century, the employee-employer relationship was much different than it is today. Employees tended to remain loyal to their employers and to follow their instructions in exchange for a reasonable salary and job security. Yet, with increased reliance on business technology expanding global competition and the employee gaining more power in the relationship, the days of the “loyalty contract” have ended [1]. Especially among the younger generation of workers, this contract has little appeal.

This shift leaves many organizations increasingly focused on talent acquisition, countering employee turnover, and developing a culture of employee engagement. Enter the concept of developing and promoting your employee value proposition.  

What is EVP? 

The employee value proposition captures what a business offers its staff. The EVP reflects the company’s values and mission, what it expects from employees, and what it offers in return. 

Developing an EVP can help you attract, engage, and retain employees that best suit your business objectives. You can better match potential hires with your company culture by clearly communicating the skills and knowledge you want to recruit and the practices and programs you’ll offer to help develop your talent.

Your EVP conveys your mission, values, and employee expectations and provides a reward system. It doesn’t necessarily have to be financial. Your company might attract some workers because you offer a small, family-like environment and leadership development. Another individual might prefer working at a large enterprise with a reputation for big bonuses and great benefits. Someone else could want to work somewhere where they can count on managers to take a genuine interest in their team’s professional development and encourage innovation. Each of these represents a different, simplified example of EVP.

Importance of EVP

Your EVP helps with employee retention and talent acquisition by establishing the company as a place where people want to work. Potential hires will weigh several factors of the EVP to make their decision about which job to accept. Research from Gartner identifies five primary categories in which EVP typically falls: rewards, organization, people, work, and opportunity. Examples of characteristics within those categories include:

• Experiences offered

• Organizational culture

• Compensation and benefits

• Development opportunities

• Work-life balance 

• Work environment

• Business credibility

• Employee morale

• Coworker quality

• Recognition and rewards

When the EVP positively impacts talent, your business can see more success in attracting the employees it wants. You can enjoy a wider talent pool supported by employee word of mouth. A successful EVP also helps to engage employees. When your workers feel they can do meaningful work in a safe space that meets the expectations set by the EVP, you can see payoffs in motivation and commitment. 

Employers can also slow employee turnover. The individuals attracted by the EVP can show greater enthusiasm for their roles as they understand role expectations and why their contribution matters. 

Further, your work in developing and communicating your EVP can give your business a reputation as a strong people brand. It can also help foster a stronger brand with external stakeholders and customers.

EVP challenges 

The EVP approach can backfire when the organization focuses on rewards that don’t motivate employees. Or you could develop an EVP that attracts employees but doesn’t effectively retain the right workers. It’s also possible that your company won’t want to attract and keep all its employees for the long term. You may want to hire people for shorter periods, but your EVP could give your employees different expectations.

How to develop your EVP for talent acquisition and retention

Many businesses want to build a brand as a “great place to work.” The EVP can help, but you’ll need to invest time and effort in developing a value proposition that accurately and effectively represents your organization. 

Ask yourself good questions.

Just as when you try to develop a value proposition for your product or service, sitting and reflecting on your strengths and differentiators can help you shape your EVP.  Thinking of the employee as a customer, you might ask yourself questions such as:

• What does our business offer its employees and its clients?

• What sets my company apart from competitors?

• What commitments do I make to my employees?

• What are my expectations of employees?

• How does the organization motivate employees?

• How do our leaders lead?

• What support do we provide for employee development?

• How do we reward employees?

• What feedback do we provide?

• What makes our company successful?

Be consistent.

Once you have developed your EVP, communicate it consistently throughout all your recruitment, hiring, and retention efforts. It’s best to have top-to-bottom buy-in to the EVP. You need managers and your rank and file to convey the same message about why someone should want to work with your business.

Gather employee feedback.

Asking employees what they think of your EVP can help create a more appealing offering. Plus, you can be more accurate in reflecting a compelling story about your employee experience. Asking your people what they value about your organization and what they still need can also help you stem employee turnover and improve productivity by demonstrating that you respect and value people’s opinions.

EVP Examples

You can find many examples of EVPs online. Take this one from NC State University in North Carolina:

“At NC State, our employee value proposition aims to create an ecosystem of meaningful work opportunities that align with Wolfpack 2030: Powering the Extraordinary, NC State’s strategic plan, and that provide an accepting and dynamic culture, opportunities for personal growth and professional development, and programs to support your busy life. Simply put, we want you to achieve your highest potential at work.” [2]

Or here’s what Unilever has to say about pursuing a career with the company:

“The people in our teams worldwide believe in our purpose: to make sustainable living commonplace. Do you? At Unilever, you can positively impact the world and be amazing at what you do – that makes us very lucky.

As one of the best-known businesses in the world, we attract the best talent at all levels and across all disciplines. Unilever is where you can bring your real self to work and be really proud of what you do. Take a look at the areas where our professionals are working.” [3]

Recruiting and retaining talent with Coursera

An effective EVP provides a focal point for your recruiting and retention efforts. It can also help to understand Talent Acquisition or learn more about Attracting and Sourcing Diverse Candidates. These are a few relevant courses you might explore on Coursera to enhance your ability to identify and hire top talent.