Why You Should Start Thinking About Your EVP & Where To Start
The jobs market is nuts right now, it’s calmed down a little from the flurry of activity we saw after the various lockdowns, but it’s still in a place we haven’t seen before. And candidates know their worth, and perhaps more importantly, what their peers earn and experience in their roles more now than ever before. So attracting, engaging, and retaining top talent is a significant challenge for all businesses, yours included. To stand out from the crowd and create a compelling reason to either join or stay with your business, an Employer Value Proposition (EVP) is an invaluable tool.
What is an EVP?
We’ve mentioned this on all the blogs in case you’ve only picked at one. If that’s the case, in brief, an EVP, or Employer Value Proposition, is a set of unique offerings, values, and experiences that a company promises to its employees. It encompasses the work environment, culture, opportunities for growth, and the rewards and benefits that an organisation provides.
Why Start Using an EVP?
Before diving into the process of creating an EVP, it’s crucial to understand why it’s worth the effort. So here are the reasons you may want to start thinking about one:
- Talent Attraction: In a survey by LinkedIn, 75% of professionals indicated that they consider a company’s reputation and EVP when evaluating job opportunities.
- Employee Retention: A strong EVP can reduce employee turnover. Research by the Corporate Leadership Council found that companies with a strong EVP experienced a 69% decrease in employee turnover.
- Increased Productivity: Employees who feel connected to their company’s values and mission are more engaged and productive. A Gallup study showed that companies with highly engaged employees outperform their peers by 147% in earnings per share.
- Cost Savings: Reducing employee turnover not only saves on recruitment and training costs but also increases operational efficiency. The Centre for American Progress estimates that replacing an employee can cost up to 21% of their annual salary.
- Positive Brand Image: A strong EVP not only attracts talent but also delights current employees, turning them into brand ambassadors. According to Edelman’s Trust Barometer, 63% of employees say they need to hear information from a company three to five times before they believe it.
Now that we understand why an EVP is crucial, let’s look at how to start using one.
How to Get Started with an EVP
- Research and Assess: Begin by researching your current employee perception and engagement. Conduct surveys, interviews, and focus groups to understand what your employees value most in their workplace experience.
- 76% of employers report using surveys to understand and improve their EVP, according to Deloitte’s Global Human Capital Trends report.
- Define Your Values: Identify the core values and culture of your organisation. This step is crucial as your EVP should be authentic and align with your company’s mission and principles.
- 84% of organisations surveyed by Randstad Sourceright reported that a strong company culture is essential for a successful EVP.
- Craft Your EVP Statement: Create a concise, compelling statement that encapsulates what sets your organisation apart. It should convey the essence of your organisation’s culture, values, and what employees can expect.
- A study by Mercer found that 98% of companies believe that having a clear EVP is essential for their business.
- Engage Your Employees: Involve your employees in the process. Seek their input and feedback to ensure that the EVP resonates with them.
- Companies with highly engaged employees see a 37% reduction in absenteeism and a 41% reduction in quality defects, as per a Gallup study.
- Communicate Your EVP: Once you’ve crafted your EVP, it’s essential to communicate it effectively. Use various channels like your website, social media, and internal communications to spread the word.
- 59% of employees said that they want their employer to provide them with more information about their organisation’s mission and values, according to Edelman’s Trust Barometer.
- Measure and Adjust: Continuously monitor and evaluate the impact of your EVP. Use surveys, employee feedback, and performance metrics to gauge its effectiveness and make necessary adjustments.
- Stat: 70% of organisations surveyed by LinkedIn measure their EVP’s effectiveness through engagement and retention data.
Real-World Success Stories
Let’s take a look at two real-world success stories to highlight the positive impact of starting to use an EVP:
Google is renowned for its compelling EVP, which includes innovative projects, a flexible work environment, and extensive employee benefits. And lets be honest Google spend a lot of money understanding where they can seize a competitive advantage in their market, and what will make them more profitable. Their EVP helps in both these areas.
- Google receives over 3 million job applications annually, showcasing the appeal of their EVP.
- Their average employee tenure exceeds five years, a remarkable feat in the tech industry.
- Google consistently ranks as one of the world’s best places to work, proving the impact of a strong EVP on talent attraction and retention.
- Marriott International
Marriott International, a global leader in the hospitality industry, understands the significance of an EVP in a labour-intensive sector. Their EVP emphasizes career growth, diversity, and a vibrant company culture:
- Marriott’s employee turnover rate is 35% lower than the industry average.
- The company’s EVP played a significant role in their acquisition of Starwood Hotels, showcasing how a strong EVP can also drive business expansion.
Your journey to using an EVP begins with understanding the value it can bring to your organisation. The statistics we’ve explored highlight the tangible benefits, from talent attraction and retention to productivity and cost savings. As you embark on this journey, remember that your EVP should reflect your unique culture and values, resonate with your employees, and be effectively communicated. By following the steps outlined above, you can create a powerful EVP that will propel your organisation to new heights in the competitive world of talent acquisition and retention.