Developing a strong employee value proposition is about defining the essence of your company – how it’s unique and what it stands for.
It encompasses the main reasons people are proud and motivated to work for you, such as your vision or distinctive culture.
It’s crucial to make sure your EVP is unique, relevant, and compelling.
While salaries and benefits are vitally important, they are not the only way to attract, recruit and retain the best people in our organisation. Your mission, purpose and values all play a role in magnetising talent.
What is an employee value proposition (EVP)?
An organisation’s EVP explains the reasons potential and existing employees should choose your company by being transparent about your values and goals.
It’s the sum of everything an employee experiences at work - their pay, benefits, and working conditions. This is then combined with the culture, relationships, sense of identity, and belonging.
A powerful EVP will be honest, reflect why your organisation is a great place to work at, and humanise your business – providing a focus on workforce happiness above how much money they are making.
Why is a strong employee value proposition important?
Boosting your employee value proposition and making it as authentic and strong as possible has many tangible benefits, these include:
Better talent attraction and retention –it helps you highlight your unique offering as an employer. By championing the benefits and opportunities available to employees, you will be able attract and retain the people who resonate with what you offer. In short, it is a vital part of any permanent recruitment solutions strategy.
An engaged workforce – By defining what your proposition is, you will give employees a clear understanding of your mission and values. This has the power to boost employee engagement.
Business growth - A more engaged, productive, and satisfied workforce will perform better, leading to greater profitability and growth.
Cost savings – Strong attraction and retention will save your organisation money on recruitment and retention costs.
Increased transparency – Open, honest organisations will foster mutual trust with employees, boosting respect and retention.
Key elements of an effective employee value proposition
The key elements of an employee value proposition (EVP) include:
Remuneration: Competitive salary, bonuses, and other financial incentives.
Benefits: Health insurance, retirement plans, paid time off, and family leave. To find out more about how a strong EVP, including robust benefits packages, can improve your recruitment and retention strategy, download Reed’s ultimate guide to employee benefits.
Company culture: Positive and supportive environment, collaboration, and employee engagement initiatives.
Career development: Training programmes, mentorship opportunities, and promotion paths.
Work-life balance: Flexible work arrangements, reasonable hours, and time-off policies.
Recognition and rewards: Acknowledgement for achievements, awards, and recognition programmes.
Values and mission: Employees feeling their personal values align with the company's mission.
Work environment: Physical workspace, location, and overall atmosphere.
How to develop an employee value proposition: step-by-step guide
There are some vital steps you should follow when creating a strong employee value proposition:
1. Collect employee feedback and conduct initial assessment:
Research and determine the aspects of your business that people value most. To do this, it’s essential that you gather feedback from your current employees. What aspects of the organisation do they value most? How would they describe your company culture? Do they know what your mission and values are? A bottom-up approach is key here if you want to ensure your EVP is authentic.
This information can be used to draft your EVP, measuring how it fits in with your strategic objectives, allowing your organisation to stand out by being honest and realistic, and appealing to different groups in your business.
You should then test your EVP with existing employees and the external market to see if it articulates why potential employees would want to work for you
2. Communicate your employee value proposition:
Once your EVP has been defined, find creative and relevant ways to communicate it to the talent you are trying to attract.
This can be done by conveying it through all hiring channels, including your company website, via advertising, and within the interview process itself. This means prospective employees will be able to determine if they would make a good fit for your business.
By consistently communicating a compelling EVP through branding, public relations and marketing, you will gain positive recognition across the wider hiring market.
3. Make sure your EVP is aligned across your organisation:
Your existing employees are your most powerful source of advertising and play a vital role in attracting new talent. As such, your employees must see consistency in the image you sell externally and in the day-to-day reality of working for you.
Incorporate the EVP into the company’s induction plans, reward and recognition schemes, internal communications, policies, and business plans, so it is reflected daily – and review your EVP annually to ensure it continues to reflect the changing employee experience.
Employee value proposition frameworks and models
As the importance of EVP continues to emerge as a key topic in the world of talent acquisition there are several popular frameworks and models that can be used to help define and create a proposition. One of the most prominent is one labelled ‘the five pillars of EVP’.
As it says on the tin, this model splits EVP into five core areas, these include:
Compensation and benefits: this includes looking at salary, bonuses, healthcare, retirement plans, and other financial incentives.
Career development: covers opportunities for learning, promotions, mentorship, and professional growth.
Work environment: encompasses workplace culture, leadership style, diversity and inclusion, and company values.
Work-life balance: considers flexible work arrangements, remote work options, time-off policies, and wellness programmes.
Company purpose and reputation: this is where you reflect on an organisation’s mission, impact, and brand perception, influencing employee pride and engagement.
Another model is Gartner's Human Deal Employee Value Proposition (EVP) which offers a modern approach to employee engagement and retention that focuses on treating employees as whole individuals rather than just workers. This model has emerged in response to the evolving work environment and the need for organisations to adapt their strategies to better meet the needs and expectations of their workforce.
There are three key components to the model according to the Gartner website, these include:
Whole-person focus: the framework identifies the needs of employees as complete individuals. This includes their personal lives, wellbeing, and overall life experience, as well as their professional role.
Exceptional life experience: instead of merely providing work-related benefits, the human deal aims to enhance the overall life experience of employees. As part of this, businesses should consider mental health support, work-life balance, and personal development.
Feeling over features: traditional EVPs focus on tangible benefits, this model encourages a focus on the emotional and psychological aspects of work, such as a sense of belonging, purpose, and fulfilment.
Overall focusing on these elements as part of an EVP the model aims to create a more human-centric work environment that fosters loyalty, engagement, and overall wellbeing among employees.
No matter what model you chose to utilise, you really need to ensure you create a strong proposition that works for your company. You can download our free guide ‘How to create an employee value proposition that resonates’ here.
Employee value proposition examples and template
In our ‘How to create an employee value proposition that resonates’ eBook, Annie Parry, Recruitment Process Outsourcing (RPO) Operational Excellence Director at Reed Talent Solutions provides her thoughts and observations on some best-practice examples of EVP.
Strava
Strava aims to keep its employees as energised as the runners, cyclists, walkers,
and gym buffs who love their product. That means a fully stocked kitchen offering
healthy snacks and meals.
Their proposition is:
“You will engage in interesting and challenging work that will improve the lives of our athletes. And in the same way that Strava is deeply committed to unlocking the potential of our athletes, we are dedicated to providing a world-class workplace where our employees can grow and thrive.”
Annie says: “This is a potentially powerful alignment of both company and employee values which would have a significant impact on both attraction and long-term retention.”
Google has always been big on brand. The phrase ‘Don’t be evil’ – often thought of as the company’s motto – is part of its corporate code of conduct. When Google restructured as Alphabet Inc in 2015, ‘Do the right thing’ was incorporated as the company motto, but ‘Don’t be evil’ remains part of the code of conduct.
Their proposition is:
“There’s no one kind of Googler, so we’re always looking for people who can bring new perspectives and life experiences to our teams. If you’re looking for a place that values your curiosity, passion, and desire to learn, if you’re seeking colleagues who are big thinkers eager to take on fresh challenges as a team, then you’re a future Googler.”
Annie says: “When we ask for examples of a strong EVP Google always comes up. They really are the gold standard of how an EVP can become renowned not just across your immediate employees.”
PwC
PwC’s multinational professional services network focuses on each employee’s impact and the opportunity to do amazing work with amazing people. The company offers benefits that demonstrate a commitment to employee wellness, including a Student Loan Paydown programme designed to improve financial health.
Their proposition is:
“From developing leaders at every level, to digital training to help you embrace the innovative technology of tomorrow, PwC provides you with support to help you develop your career and build relationships with people from diverse backgrounds and across multiple industries. Are you ready to make an impact?”
Annie says: “PwC really do bring to life what an employee-centric EVP can look like. They have looked at the detail of what will appeal to employees in the current market.”
If you’re looking for guidance on create an EVP, our downloadable template helps you gather the information you need to create a winning, robust employee value proposition that truly reflects your organisation. Filling in the Reed Talent Solutions template will allow you to:
Address why your business needs to formulate an EVP and what your competitors are doing.
Discover why it’s important that your employee value proposition is not only compelling but accurate and will resonate with a broad range of people.
Unlock the five areas you should look at when creating your employee value proposition strategy.
Define the perfect employee value proposition for your business.
Download the template free and get started on unlocking your EVP.
Improving your current employee value proposition
An employee vale proposition doesn’t just stand still; it should be reviewed annually or when changes are made within your organisation.
When looking to improve or review your proposition you need to first gather feedback from employees to understand their needs, concerns, and perceptions of the current EVP. Conducting surveys, focus groups, and exit interviews can provide insights into areas where your organisation is excelling and where improvements are needed. Benchmarking against industry standards and competitor offerings can also help identify gaps and opportunities. Once this data is collected, you can then prioritise key areas for enhancement, ensuring that any changes made are meaningful and address real employee concerns.
One of the most effective ways to enhance an EVP is to improve compensation and benefits to remain competitive in the market. This doesn’t always mean increasing salaries - it can include offering more personalised benefits. Companies should also ensure that their benefits reflect diversity and inclusivity, offering solutions that cater to employees at different life stages and from varying backgrounds.
Beyond financial incentives, career development opportunities are a crucial component of a strong EVP. Employees are more likely to stay engaged when they see a clear path for growth within your company. Enhancing learning and development programmes, offering mentorship initiatives, and creating internal mobility opportunities can help employees build their skills and advance their careers. Transparent communication about career progression and promotion criteria also fosters a sense of trust and motivation.
Workplace culture and leadership play a significant role in EVP enhancement. Employees want to feel valued, respected, and heard. Creating an inclusive and supportive work environment where employees have a voice can make a major difference. Leaders should be trained to practice empathy, provide regular feedback, and recognise their employee’s achievements. Recognition programmes, whether formal (such as performance bonuses) or informal (such as public appreciation), can go a long way in reinforcing positive behaviours and increasing morale. Additionally, fostering a strong sense of purpose by clearly articulating the company’s mission and impact can help employees feel more connected to their work. Finally, ensuring that the EVP is authentic and consistently delivered is critical. Employees will quickly disengage if they feel that the EVP is just a marketing slogan rather than a lived experience. Regularly reviewing policies, adapting to workforce trends, and maintaining open communication can help keep the EVP relevant and effective.
Employee value proposition vs employer brand
It is important to distinguish between an organisation’s employer value proposition and employer brand.
As you have seen, an EVP is a unique set of benefits which employees receive in return for the skills and experience they offer.
This proposition helps to shape your company culture and everything from your workforce’s motivation and ambition to how your organisation responds to major decisions. It engages employees and helps companies to retain their most talented people and attract new ones.
This differs from your employer brand which reflects how your company is perceived by both your employees and people outside of your organisation. Although shaping this perception can be challenging, a robust and compelling EVP can significantly impact it. It's crucial that your EVP isn't merely a formality; when you genuinely embody your values, others will recognise their authenticity, enhancing their view of your company.
In short, EVP is the articulation of the employer brand. It explains why someone should work for, or stay at, your company – employer brand is your reputation, EVP is the narrative.
Your organisation needs to be recognisable and relevant to current and future talent. We can help you develop an employee value proposition that resonates. Get in touch today or find out more about our EVP services.
