"A brand is a living entity - and it is enriched or undermined cumulatively over time, the product of a thousand small gestures" - Michael Eisner, former CEO, Disney
An Employee Value Proposition (EVP) is "the deal" struck between an organization and an employee in return for their contribution and performance. This "deal" should characterize an employer and differentiate it from competitors. Employees choose to join or leave organizations for many different reasons that include compensation, career opportunities, benefits, culture and work environment.
- The EVP is what you "stand for" in the labor market. It describes what employees receive in exchange for their contributions.
- It’s as much about what people hear as it is about what you say.
- Your company’s EVP is under the constant scrutiny of employees, candidates and people outside the organization so it must be "real."
- Conduct interviews and focus groups with leaders and employees to understand the company’s inherent strengths and DNA.
- Understand the company’s core values and operating model as well as its brand positioning in the market.
- Determine what causes current employees to stay and attracts prospective employees to join.
- Define the EVP so that it is distinct and compelling.
- Integrate the EVP into all aspects of how the business attracts, hires, deploys, develops, engages and rewards talent.
- Ensure that all leaders and managers are the stewards of the EVP and accountable for delivering on “the deal” with employees.
- Improves commitment levels of new hires by up to 29%.
- Reduces new hire compensation premiums by up to 50% when candidates view an organization's EVP as strong.
- Improves discretionary effort by employees.
- Increases retention by up to 87%.
Source of statistics: Corporate Leadership Council