Employee Value Propositions (EVPs) help organisations create a clear strategy for attracting the right kind of talent. They also help existing employees recognise the value of working for the organisation, driving engagement and productivity. Yet many businesses are missing out on the opportunities a clear EVP brings.
According to the Aon Benefits and Trends Survey 2019, employee engagement is the number one objective for 90% of employers. It is closely followed by retention and recruitment, with cost management and market positioning further down the list.
Despite the focus on engagement, many companies are missing out on harnessing a strong and clear Employee Value Proposition (EVP). An EVP helps to clarify why employees should want to work for a business. It goes beyond compensation and benefits to include other aspects that help employees feel valued and engaged, including company culture, work-life balance and progression.
Companies have an opportunity to better target talent by clarifying the kinds of skills, attitudes and values they want to attract. There is still some work to do in this area for lots of businesses.
Defining an employer’s value
An EVP helps employers to communicate their broader offering beyond financial rewards, which is increasingly important for employees. A recent study of 2,400 professionals found that “the ability to learn, grow and progress at work” was more inspiring than money.
Businesses can use their EVPs to define how they support their employees to achieve their own goals, and 70% agree an EVP had a positive impact on recruitment, according to the Aon survey. Despite this, only a quarter of companies have a clear EVP.
The Aon study does suggest that businesses are making progress in this area. 51% of respondents said they are now planning to develop an EVP. If businesses continue with their plans, we should see more employers attracting talent that is engaged by the company’s principles and goals.
Bringing an EVP to life internally
An EVP can be just as powerful in giving employees a reason to stay, as well as join. In the Aon survey, 65% said an EVP was helpful for employee engagement and 63% agreed it was valuable for retention.
Yet of the quarter of businesses that have an EVP in place, only 32% had communicated it to their current employees. As well as being a missed opportunity to emphasise the benefits of working at a company, it could also lead to a disparity between how new and existing employees view company culture and the value of their work. Businesses also need to communicate any changes in an EVP to ensure employees continue to feel included and motivated to achieve their goals.
Small communications budgets and relying on email could be to blame. The Aon survey highlighted the need for a multifaceted communication strategy. Using various platforms, including email, webinars, face-to-face discussions and app push notifications, businesses can instil the EVP across the company.
Using benefits to create a holistic EVP
Benefits form part of an EVP, and businesses should think more broadly about their values when designing their packages. For example, if part of the EVP centres on offering long-term stability for employees, benefits should include retirement planning support. EVPs that focus on autonomy should reflect these values with digital access to benefits, so people can easily manage their own plans.
Flexibility is essential for bringing benefits in line with an EVP. At Swiss Life Global Solutions, we make sure flexibility is a key part of all our Global Employee Benefits Solutions, so businesses can adjust their packages to suit their EVPs and talent strategy.