When we think of hiring, we put tremendous emphasis on the different stages such as sourcing, screening, interviews etc. The humble EVP gets lost somewhere in the midst. And yet, it can be one of the most powerful tools for talent attraction.While doing my research for this blog, I came across some compelling research which I’d like to share with you.
A study by KPMG found that organizations with strong EVPs can decrease annual employee turnover by nearly 70%. The same study also states that a compelling EVP can help you reduce the compensation premium by 50% when attracting top talent. This translates to significant cost savings, as the cost of recruiting and onboarding new employees can be substantial.
A Gartner research highlights that organizations effectively delivering on their EVP can increase new hire commitment by nearly 30%.
Who knew that a single document can help attract the best and most committed minds we are all running after?
Demystifying the EVP: Definition of Employer Value Proposition
An EVP is essentially a promise you make to potential hires – a clear articulation of what makes your company special and why they should choose you over competitors. For staffing agencies utilizing NurtureBox's AI-powered recruitment tools, building a compelling EVP becomes even more crucial. NurtureBox streamlines your outreach, but the human touch of a strong EVP is what seals the deal with top talent.
Patagonia and Tesla are two great examples to illustrate how an EVP can act as a reflection of a brand.
Patagonia’s EVP goes beyond great products and competitive pay. They focus on environmental responsibility, activism, and a strong work-life balance. They offer employees paid time off for activism, on-site childcare, and generous benefits packages. This resonates with candidates who are passionate about sustainability and social justice.
On the other hand, Tesla attracts talent with its audacious goals and focus on innovation. Their EVP highlights the opportunity to be part of a revolutionary movement in clean technology and push the boundaries of what's possible. Whatever you might think of Elon Musk’s Twitter (now X) takeowver and his cryptic posts, the brand still resonates with developers who are passionate about breaking boundaries.
In a nutshell, the EVP plays a crucial role in shaping the employer brand. It single handedly defines how the organization is perceived as an employer by both internal and external stakeholders, and what it has to offer to a potential new employee. In a competitive job market, a compelling EVP sets the organization apart from competitors. It identifies what makes the company unique and why talented individuals should choose to work there over other options.
Difference between Employer Brand and Employer Value Proposition
Employer Brand and Employer Value Proposition (EVP) are closely related concepts but have distinct focuses and purposes.
Employer brand refers to the overall perception and reputation of an organization as an employer. It is an intangible entity that encompasses how the organization is perceived by current or past employees, potential candidates, and internal and external stakeholders. Employer brand is a broad term and is often used to denote the sum total of the organization’s culture, values, work environment, leadership style, and reputation in the marketplace.
The primary objective of any employer branding effort is to create a positive and compelling image of the organization as an employer of choice, thereby attracting top talent, enhancing employee engagement and retention, and improving overall organizational reputation.
The EVP, in contrast, specifically focuses on the unique set of benefits and rewards that an organization offers to employees in return for their skills, capabilities, and experience. Think of it as a specific offer you make to potential hires. It outlines the unique benefits and experiences they can expect if they choose to work for your company. It's a targeted message designed to differentiate you from competitors.
EVP is primarily targeted at potential candidates and current employees, aiming to influence their decision-making process when considering job opportunities or evaluating their current workplace.
Key Differences
Employer branding
EVP
Focus
Employer brand focuses on the overall perception and reputation of the organization as an employer
EVP focuses specifically on the benefits and rewards offered to employees
Scope
Employer brand is broader and encompasses various aspects of the organization's identity and reputation. For instance, a SaaS company’s reputation would be determined by its clientele, partners, demography etc.
EVP is a more structured message highlighting the specific value proposition for employees. It emphasizes the aspects that set your company apart and resonate with your target audience
Audience
Employer branding targets a wide range of stakeholders, including employees, candidates, customers, and investors
EVP primarily targets potential candidates and current employees
Objective
Employer brand aims to enhance overall perception and attract diverse stakeholders
EVP aims to attract and retain talent by clearly communicating the benefits of working for the organization
Creating the perfect EVP
Now that we understand what the EVP does, let's delve into the core elements of creating one. You can use the following pillars to create your own employer value proposition template:
Competitive salaries, comprehensive health insurance, and retirement plans are essential. But consider going beyond the basics. Offer benefits that cater to your specific talent pool. For instance, young professionals might appreciate student loan repayment assistance, while working parents might value childcare options.
High-potential candidates seek opportunities to learn and grow. Highlight your commitment to professional development through training programs, mentorship initiatives, and participation in industry conferences. NurtureBox can help personalize these offerings by identifying skills gaps within your talent pool and recommending relevant training resources.
Today's workforce prioritizes a positive work environment that fosters collaboration, creativity, and work-life balance. Showcase your company culture by highlighting flexible work arrangements, team-building activities, and a commitment to diversity, equity, and inclusion (DE&I). NurtureBox's candidate engagement features can help you demonstrate this positive culture even during the virtual recruitment process.
Millennials and Gen Z, in particular, want to work for companies that make a positive impact. Articulate your company's mission and values, and tie them back to the work your temporary and contract employees contribute to.
💡 PRO TIP: Before crafting your message, it's vital to understand your ideal candidate. Here's where NurtureBox shines. Utilize its talent pool insights to gain valuable data on candidate demographics, skills, and career aspirations.
Understanding industry trends and the specific needs of skilled professionals in different sectors is crucial. For example, IT professionals might value opportunities to work with cutting-edge technologies, while healthcare workers might prioritize work-life balance and tuition reimbursement.
It is also recommended that you look at the target demography. Millennials and Gen Z prioritize a purpose-driven work environment and professional development opportunities, while older generations might value stability and competitive salaries. NurtureBox can help you tailor your message based on the demographics of your talent pool.
Making Your EVP Shine
Define your Unique Selling Points
Identify what sets your organization apart from competitors. This could include specific benefits, opportunities for growth, a strong company culture, or unique perks. Highlight these elements in your EVP to showcase why candidates should choose your organization over others.
For instance, the careers page for Warby Parker clearly calls out their DEI initiatives so candidates can know that the company promotes inclusivity.
Use compelling messaging and storytelling
Craft your EVP using engaging and compelling language that resonates with your target audience. Use storytelling techniques to illustrate real-life examples of employees who have benefited from working at your organization and have grown professionally.
Recommended reading: How Salesforce decided to create their EVP
Showcase employee testimonials and success stories
Include testimonials from current employees who can speak positively about their experiences working at your organization. Authentic feedback can provide valuable insights and credibility to your EVP.
Engage employees at all levels in the development and refinement of your EVP. Their input can provide valuable perspectives and insights into what truly matters to them and what makes your organization an attractive place to work.
Ensure consistency across channels
Your EVP should be consistently communicated across all channels, including your careers website, social media profiles, job advertisements, and recruitment materials. Consistency helps reinforce your employer brand and ensures a unified message to potential candidates.
The Zappos website is a good example to follow. They have two pages called Zappos for Good and Zappos One which elaborates on the company’s initiatives for sustainability, and the social causes they champion; including their DEI initiatives.
We have already discussed Patagonia and Tesla above. But I’ll leave you with two more examples to close out this blog and I hope this will help you understand what to add to your EVP as well.
Deloitte prioritized revamping their EVP and reward strategy. Their new message – "Passion for Purpose," "Be the True You," and "Never Stop Growing" – emphasizes personal development, a sense of purpose, and an inclusive environment. This aligns with their values and strategy, reflected in competitive compensation, clear performance evaluations, and a focus on employee well-being. The result? A more inspiring workplace where employees can thrive.
Following the pandemic, WD-40 employees desired continued remote work options. The company responded with a "Work From Where" philosophy, emphasizing trust: "We don't care where you work from, but we do ask that you use our corporate values to make your decision." One of those values, "creating positive, lasting memories in all relationships," encouraged employees to consider their contribution to the team culture. Surprisingly, most opted for in-office work. A recent survey revealed a 90% satisfaction rate with the company culture – a testament to the success of this flexible and trust-based approach.
Key thoughts I’d like to end this blog with
These examples showcase the power of a well-crafted EVP. By prioritizing employee growth, purpose, inclusion, and flexibility, companies like Deloitte and WD-40 foster a positive work environment and achieve impressive results, including lower turnover and higher employee satisfaction.
Remember, a strong EVP is an investment in your company's future, attracting and retaining top talent in today's competitive job market.
