What is an employee value proposition anyway? (and what is it not?)

If you’ve seen the acronym EVP, chances are you’ve seen plenty of conflicting content about what an employee value proposition (EVP) actually is.

Before we get into some myth-busting about what an EVP is not, let’s start with this:

An authentic EVP is the secret ingredient to help you understand, shape and grow your organisation.

What is EVP?

Employee value proposition. Let’s start with the word value. This is a big, wide-reaching word that has different meanings for different people.

Does the value an employer gives to an employee include monetary reward and benefits? Sure. But for most people, the value you get from a job is about more than your paycheck, right?

EVP is more than monetary reward and a bunch of benefits (which we all value differently).It’s not a statement our people and culture or leadership team carefully curate or concoct.

One modern definition of EVP is ‘the ecosystem of support, recognition and value(s) an employer provides to employees to achieve their highest potential at work.’ Your EVP is part of the foundation of your organisation. It’s based on everything your employees value and appreciate most about their experience working for you. 

So what do your employees value and appreciate? 

Of course, you’ll need research to be able to answer that question honestly, but let’s take a wider view of the contract between employer and employees, including a look back in time.

The employer/employee contract has changed over time.

The loyalty contract

Research by McKinsey & Company discusses the evolution in what people have come to expect from their job and workplace. It reflects on the loyalty contract, which was the norm for most of the 20th century. 

For most people, this is a contract that is very much history. It consisted of an employee offering based largely on extrinsic motivators and financial incentives. Employers were expected to provide pay, benefits and job security in exchange for a lifetime of commitment from the employee. 

The engagement contract

Over the last two decades, we’ve seen a shift in what people want from work. Research shows that people want to feel a sense of belonging, camaraderie and purpose through their work. 

To meet this need, employers have begun focusing on the psychological needs of their people. Rather than just targets and bonuses, leaders aim to highlight achievements  in all aspects of a job. Contribution and teamwork are encouraged, and intrinsic rewards are offered in exchange for effort.

The lifestyle contract and the era of talent

Things have changed a lot over the last few years. A new workforce has emerged. It can be powered remotely with virtual meetings and an openness to do things differently because it works. People know they can achieve a better work-life balance through hybrid and flexible working.

While job security and professional development are still important, in today’s era of talent, people are more concerned with their health and wellbeing. Beyond basic financial and psychological needs, people want to make work work for them. 

In exchange for sustainable performance, the modern employee wants a job that is motivating, a job that provides a sense of meaning and purpose. People are looking for a lifestyle contract that fits in with their world, whatever that may look like.

It’s easy to see that the value employees want (and expect) from their employers has changed. That means your EVP has changed too.

Why your EVP is important

When you understand and can define your EVP, you can build an authentic, proactive employer brand. Armed with these two things, you can attract people who will be an asset to your organisation. 

Modern, forward-thinking organisations EVPs that are: 

• authentic

• accurate

• unbiased

• based on research.

There are several methods you can use to understand  your employee value proposition and how it relates to key audiences, including current and past employees and candidates. The most powerful and unexpected insights come from:

• asking open-ended questions

• allowing employees to share their thoughts

• using advanced qualitative methods and natural language processing to develop rich descriptions of employee experience.

The most critical point of an employee value proposition is that it paves the way for you to showcase your employer brand. Your employees are your brand ambassadors. They are the voice and reason that make your workplace a great place to be. 

An attractive EVP will engage the right people and repel those who are not suitable. 

Everyone’s values and expectations of work are different. What some may deem important, others see as irrelevant. Your EVP allows people to make an informed decision about whether or not they are the right person for the job and whether they would like to work for you. Your EVP will help you build a solid team of people who share your mindset and values and drive the success of your organisation.

What next?

Looking for more information and insights about talent attraction and engagement? Check out Heart Talent’s employer resources.