EVP: The Impact and Importance of a Strong Employee Value Proposition

When it comes to HR, the development and application of a qualitative employee value proposition is essential.

Encompassing all the tangible and intangible benefits offered by a company to its employees, the EVP stimulates recruitment and retention. But that’s not all!

Today, we explain what an effective employee value proposition is and the positive effects it can have on your business.

EVP: What is it?

EVP is made up of all the benefits, opportunities, and quality of experience that a company offers its employees. In other words, it includes everything you offer your employees in return for their contribution to the company.

The tangible and intangible benefits of EVP can be divided into 4 categories:

• Compensation: salaries, bonuses, potential raises
• Professional potential: development opportunities, training, promotions
• Benefits: paid vacations, company health insurance, retirement, luncheon vouchers, transport allowances
• Work environment: work-life balance, workspace, work organization

To these concrete elements, we can add more subtle but equally important aspects, such as company values, quality of life at work, and sense of belonging. These all play an important role in boosting employee commitment.

Positive impact of a well-thought-out EVP

A solid EVP can be a major asset in meeting the challenges faced by HR in terms of internal recruitment and management.

1. It is a powerful binder that enables you not only to strengthen and sustain your talent pool but also to stand out from the crowd.
2. Your employee value proposition can help you attract the best people to your organization, even in professions where recruitment is difficult. A well-thought-out EVP, for example, will compensate for the specific difficulties of a given position.
3. Still on the subject of recruitment, an EVP that reflects your values helps you to recruit employees who are a good theoretical and practical match for your company. This gives you a better chance of creating lasting collaborations.
4. Internally, an effective EVP helps to limit turnover by promoting employee retention and minimizing attrition. In this way, not only do you retain your top talent, but you also save time and money.
5. Finally, by defining an EVP that reflects your values, you set yourself apart from your competitors by enhancing your employer brand and overall corporate reputation.

How do you define an effective EVP?

There is no universal formula for an impactful EVP, simply because its characteristics will vary from one structure to another. The employees of a company in the medical sector, for example, will not have the same expectations as those of a company in the food industry.

Generally speaking, however, an effective EVP takes into account both the needs of the company and the expectations of its employees, whether potential or existing. It also adapts to new parameters in the professional world, such as the growing importance of telecommuting.

To define an effective EVP, there are several levers to pull:

• Understand your brand, its values, and the direction it wishes to take.
• Understand your employees’ expectations and aspirations through interviews, questionnaires, or cross-functional group workshops.
• Survey your employees on what motivates them to stay with your organization.
• Ensure that your EVP is in line with your company’s potential. The aim is to avoid broken promises, which could affect your HR both externally and internally.

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As you can see, a solid employee value proposition is fundamental to finding and keeping the best talent. Alongside a good EVP, you can also enlist the help of headhunters specialized in executive recruitment, like radar, to help you unearth rare pearls!