Over the last couple of weeks, we have had some interesting conversations with our clients around the topic of Employee Value Proposition (EVP), which led to some spirited dialogues among our research team leading to the following questions:
- What are the components of an employee value proposition?
- What are the most important outcomes of an employee value proposition?
- What are the most important questions high-performance organizations answer in order to create their employee value proposition?
- What are the barriers to creating an employee value proposition?
- Who is responsible for creating the strategy?
- What leading organizations have a competitive advantage because of their EVP?
- What impact does your EVP have on your organization?
EVP is not new, of course. Every company has an EVP. But is it impactful and perceived as a competitive differentiator? Many organizations do not have a formalized process for gathering employee data, don’t effectively analyze and use the data to determine gaps and development opportunities, and don’t have a well-developed strategic communication plan that is provided internally and externally.
However, due to the growing economy, and the necessity to hire and retain great talent, we are seeing a renewed focus on creating a strategy for creating an EVP that is long lasting and iconic.
This week I read an article in the Wall Street Journal, I Don’t Have a Job. I Have a Higher Calling, which described how important it is for employees to feel that their work has a higher meaning whether it is coordinating travel, serving coffee, or selling clothes. When employees feel their job has a greater purpose, they are inclined to be more productive. Also, the article stated that the words “mission,” “higher purpose,” “change the world” or “changing the world” were mentioned on earnings calls, in investor meetings, and industry conferences 3,243 times in 2014, up from 2,328 five years ago – a 45% increase. So executives are paying more attention to creating an environment where employees feel their work has more meaning than the task itself. This reinforces the impact EVP has on an organization, whether the company is strategically focused or not. Those companies that are paying attention and are strategically focused on it have a powerful competitive advantage over those that are not.
If employees feel their jobs are meaningful, then the results equal greater performance. Seems simple – hire the right people, provide development opportunities, reward them, and these employees will find meaning in their jobs and then perform better. But it’s not simple at all. A breakdown or disconnect can happen at any point in the employee lifecycle.
How does EVP become a competitive advantage? Companies need to have:
- A formalized process for capturing employee data
- Creative ways of capturing and engaging employees
- An ongoing approach to analyzing the data to determine gaps
- Development opportunities that align with the business and talent plans for performance improvement.
- A communication strategy that aligns with the business strategy and talent management programs.
If your organization has a well-thought-out approach to your EVP, we want to hear from you. Please apply to our HCM Excellence Awards in the category for Best Employee Value Proposition (EVP). Download entry form here.
The Best Employee Value Proposition (EVP) for the Talent Management category is for written descriptions of best practices in developing a formalized approach to EVP. The entry should describe the impact of the EVP on its organization. The EVP should include:
- Alignment of business goals, vision, mission and talent and reward programs
- Preparation, gathering and analysis of data from engagement surveys and newly hired employees
- Understanding of performance and development gaps and how they were addressed and improved
- Effective communications
- Results that improved business performance and productivity
If you have any questions about EVP or submitting an awards application, please contact Rachel Cooke.