What is an EVP (Employee Value Proposition) and Why It Matters?
An EVP is the unique set of offerings, benefits, and values that a business provides to its employees in return for their skills, experience, and loyalty. Collectively, an EVP is a competitive differentiator for a business when it comes to attracting, engaging, and retaining talent
Additionally, an EVP has tremendous cost implications1:
Profitability – Engaged teams improve profits by ~20%
Productivity – A happier workforce is ~12% more productive
Retention savings – Retaining an employee can save up to 2x an employee’s annual salary
Traditional vs Modern EVPs
For much of the 20th century, the employer-employee relationship was transactional where the ‘commodities’ of exchange were pay, benefits, and job security in exchange for employees’ loyalty.
Things are different now. The pandemic fundamentally reset the way employees work along with their priorities inside and outside of work. A more educated and informed population has led to a candidate-driven market where employees can be selective about the companies they work with
Nowadays, attracting, engaging, and retaining talent means the ‘value’ part of a company’s EVP needs to not only be well articulated based on true employee needs but also needs to evolve with and reflect what your employees’ priorities are. This means thriving businesses need to solve for emotional needs and not just functional needs
Companies that fail to rethink their EVPs struggle to2:
Attract: ~80% of employees cannot attract the right talent
Engage: Only ~ 30% of employees are engaged at work
Retain: ~50% of employees are looking to switch jobs every year
Traditional EVP
Transactional: EVP solves for functional needs (e.g., pay/compensation, benefits, work-life balance, etc.) in exchange for employees’ loyalty
Top-down: EVP built based on a limited subset of experiences (often HR and management) to define what is important for existing and prospective employees
Static: EVP doesn’t evolve to a changing employee landscape and/or capture priorities across key employee segments
Modern, Strong EVP
Holistic: EVP solves for functional needs and doubles down on emotional needs (e.g., enjoyable/purposeful work, fair treatment and respect, workplace relationships, etc.) to foster a thriving work environment
Co-created: EVP built based on real-life day-to-day experiences involving employees, leadership, HR, and Operations to solve for what truly matters
Dynamic: EVP adapts to workplace changes and goes beyond demographics to cater to needs across employee segments
Clarity Beacon Consulting’s EVP Offering?
As a consulting firm that takes great pride in its people, we understand the importance of having a strong EVP and offer a proven approach for helping companies better attract, retain, and engage their employees. We are eager to help businesses:
Clarify Their Core: Understand your employees and clearly articulate the unique attributes, values, and benefits that define your organization as an employer
Embed It in Everyday Actions: Create solutions with (for) employees and ensure your EVP is consistently demonstrated through daily practices, policies, and behaviors
Adapt and Grow: Continuously evaluate and refine your EVP to stay relevant and competitive. Gather employee feedback, keep up with industry trends, and make necessary adjustments to meet evolving workforce expectations
Start your journey toward rethinking your EVP today by visiting www.claritybeaconconsulting.com or emailing us at info@claritybeaconconsulting.com
Sources: 1. Gartner; 2. Gallup
