Glossary: HR & Recruiting Definitions
The employee value proposition (EVP) is the summary of all the benefits an employer has to offer and is a part of employer branding.
With the EVP, employers not only increase their attractiveness to potential candidates, but also increase their employee retention.
The employee value proposition (EVP) represents an agreement that employees and employers enter into, and it is the basis of employer branding.
According to Prof. A. Pawar's article on “Employee Value Proposition Revisited”, the employer branding process starts with the definition of an EVP and then continues with the promotion of it through internal and external channels.
Employers make an offer to employees and expect a certain level of performance in return. The agreement can also be understood as a healthy relationship of giving and taking.
The agreement consists of mutual obligations and promises. The employer creates incentives such as:
Employees meet this offer by:
Within this overall agreement, there are further sub-agreements. These are usually tailor-made, workable agreements between, for example, team leaders and team members, which reflect the employees' possibilities for shaping the workplace.
The EVP deals with these questions from (potential) employees:
In addition to the employee value proposition that companies make to their employees and candidates, the employer also communicates a so-called employer value proposition that strengthens its employer brand and reflects the company's value proposition.
An effective employee value proposition can provide significant benefits to a company. According to a study by the Corporate Leadership Council, a well-designed and well-executed EVP can result in:
An employee value proposition offers several benefits. It helps companies:
To ensure that an EVP achieves its full potential, it must be built on values that truly appeal to the desired talent. In addition, the EVP should align with the company's strategic goals and illustrate the company's uniqueness.
It’s important that the EVP should be authentic, unique to your company, and mostly true. However, the EVP should also contain elements that are not currently fulfilled but are explicitly aspired to.
This is important to drive change and progress and to give employees the feeling that the company is responsive to the changes they want to see.
In addition to the 'content' of the EVP, the style in which it is written is also important. Many companies write about themselves in boring corporate language, and the result is many employers who claim to be unique but sound the same!
The characteristics of an EVP should reflect the company's brand.
The communication of the EVP is done through different channels:
When implemented well, the EVP is the driving force for engagement, influencing recruitment and communication with employees. It helps to set strategic HR priorities and drive the business strategy.
Would you like to strengthen your employer branding from the inside out? Then you should definitely take a look at our Recruitment & HR Blog. Exciting articles around the topic of employer branding are:
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Employer branding is the practice of managing and influencing your employer brand to attract, recruit and retain employees.
Employee retention as part of human resources policy is an important instrument for the long-term retention of employees in a company.
Company culture is the term used to describe the views, morals, values and general internal atmosphere of a company.
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