Mapping out Employee Value Proposition
Companies that don’t attract and retain the best talent will soon find themselves at a competitive disadvantage, says Jim Collins in his book Good to Great.
As we discuss the rise in resignations and people constantly looking for a change in employment and market changes, it’s essential for companies to compete effectively for superstar talent. Just being a good employer is not enough; companies need to figure out where they can be distinctively great. They should be able to spell out what makes their company culture and job offerings exceptional when compared with other companies.
”The only way to do great work is to love what you do.” — Steve Jobs
The fact that people working in the company for more than a year and not knowing what their company does, what they offer, what kind of policies are flailing around, and how their individual contribution helps push the wheel of business has an impact on overall objectives — calls for a value proposition.
Companies need to shed light on what makes their company unique, creating a secret sauce of Employee Value Proposition (EVP). EVP can set out the cornerstones that make the organisation special to the employees. A study by Glassdoor found that companies with a strong Employee Value Proposition have 42% higher employee retention rates and 26% lower recruitment costs.
”Culture eats strategy for breakfast.” — Peter Drucker
An Employee Value Proposition, in layman’s terms, is a promise you make to people when they will be working for you. It is a unique amalgamation of benefits, values, and experiences. A lot of people believe that EVP is just a list of perks offered by a company, but it’s much more than that. It’s a promise to employees about what they can expect to get from their work — one that improves hiring and retention and moves the focus of leaders and workers alike from what they want in the moment to what they need to build a thriving and sustainable future for the organisation and for themselves. A strong EVP can attract and retain top talent. It’s broadly composed of four factors, according to Harvard Business Review.
”To win in the marketplace you must first win in the workplace.” — Doug Conant
Material offerings include compensation, physical office space, location, commuting subsidies, computer equipment, flexible schedules, and perks.
Opportunities to develop and grow comprise all the ways an organization helps employees acquire new skills and become more valuable in the labor market — for instance, by assigning them new roles, putting them through job rotations, offering them training, and promoting them.
”People will forget what you said, people will forget what you did, but people will never forget how you made them feel.” — Maya Angelou
Connection and community are the benefits that come from being part of a larger group. They include being appreciated and valued for who you are, a sense of mutual accountability, and social relationships. Their foundation is an energising culture that allows people to express themselves candidly and engenders a sense of belonging.
Meaning and purpose are the organization’s aspirational reasons for existing. They align with employees’ desire to improve local and global society. They’re the answer to the core question of why employees do the work they do.
”Choose a job you love, and you will never have to work a day in your life.” — Confucius
These factors vary with respect to how employees experience them, whether it’s consulting work or research industries ranging from financial services to consumer goods to software as a service. Employees have started to understand how these four factors are important to their professional as well as personal growth. Companies should step back and try to identify all the things that their employees need over time to thrive and produce high-quality work. Realizing how fragile the bond between an employee and a company can be, organizations should pay much more attention to how they draft their EVP.
For instance, in research, it was concluded 86% of employees say that their company’s EVP is not aligned with their personal values and aspirations.
”What lies behind us and what lies before us are tiny matters compared to what lies within us.”– Ralph Waldo Emerson
So, here are a few things to keep in mind before crafting EVP for the employees and potential employees, as it’s a huge part of employer branding:
Being cognisant of employees’ perception
Companies need to go back and refer to employment engagement surveys and pick a few questions that help stitch a story about why people like the organisation. It could be anywhere from “because the leaders are helpful” to “organisation has a very non-serious culture,” which will be answering broader questions like what motivates people to come to work every day, which part of the culture they like, and what attracted them to apply in the company. After reading a few, you will be able to see a theme like “the manager” that means the leadership of your organization is strong; or “the coworker,” which indicates a strong culture of collaboration. Whatever they are, they are what your employees perceive as valuable.
”The best way to predict the future is to create it.” — Peter Drucker*
Where business meets people
It’s important to know what the organization needs to get the wheel rolling. Picking out the attitude and behaviors you need from your employee. It can land up to “strong commitment to the company values” or “thinking outside the box,” whatever the organisation needs and why it matters to the business. For instance, Adidas defines “six beliefs and qualities” that they want people to feel and experience.
Building the colonnade less but better
Employee Value Propositions need to build their pillar on the most powerful theme, be it benefits, values, and experiences. The team stakeholders need to be finicky and pick out only four to five strong areas so that it doesn’t look like a watered-down version which cannot direct into a specific way. The leaders have to weave it into a strong fabric by embracing a lot of things in a focused way.
”If you want to go fast, go alone. If you want to go far, go together.” — African Proverb
Word-smithing the pillars of EVP
Once the pillars have been picked out, they need to be described in a very specific and concise way. It can’t be pointing in multiple directions and especially should not give the impression of a big but a hollow piece. We don’t want the meaning to get lost in the translation.
Keeping it simple
It’s very important that EVPs are simple and human-centric, which can be relevant to the whole team. The companies need to break the EVPs according to the team to have a better cognizance. For instance, if the EVP of a technology service company is “Be the Catalyst: we contribute small innovations to create big transformation.” For customer success teams, it will be “Be the Catalyst: We’re empowered to test and share ways to create a better customer experience.” And similarly, different for every vertical.
”Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do.” — Steve Jobs*
One question which people often wonder about when it comes to crafting the Employee Value Proposition (EVP) is whether it should be inspiring, ambitious, or realistic. Here’s an idea: Why not aim for it to be aspirational? Companies want to improve the lives of their employees. By framing the EVP as the best version of what the company can offer, it becomes like a guiding light for leaders and Talent teams. It helps everyone work towards making things better. While it’s important to dream big with the EVP, it’s also crucial to recognize that there’s work to be done to reach those goals. It’s about being honest about the current state of affairs and rallying the team to help achieve the company’s vision. So, in a nutshell, aim high with your aspirations, lead by inspiring others, and communicate honestly about what needs to be done to make those aspirations a reality.
”The future belongs to those who believe in the beauty of their dreams.” — Eleanor Roosevelt
Series
Worth to read 💥