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Glossary: HR & Recruiting Definitions

What is an employee value proposition (EVP)?

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.

What does an employee value proposition consist of?

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:

  • Personal career development
  • Organisational support
  • Fair and transparent performance management
  • Salary
  • Holiday entitlement

Employees meet this offer by:

  • Respecting working hours
  • Promoting and supporting the employer both inside and outside the company
  • Contributing skills, enthusiasm, and entrepreneurial thinking
  • Finding productive ways to work efficiently and effectively

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:

  1. Why do I (still) want to work for this company?
  2. What motivates me to work in this company?
  3. Why would I recommend this employer to friends and family?
  4. Why should I come back to this employer? (we’ve already written an exciting article on boomerang 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.

Why is an EVP important?

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:

  • A 29% increase in the engagement of new hires
  • Reduce the cost of hiring new staff by up to 50%
  • The likelihood of employees becoming brand ambassadors increases from an average of 24% to 47%

What are the benefits of an EVP for companies?

An employee value proposition offers several benefits. It helps companies:

  • Attract and retain top candidates
  • Target new markets and talent for hard-to-fill positions
  • Differentiate themselves from their competition

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.

Factors such as the company culture, the benefits offered, and specific retention measures are all part of the EVP and ultimately impact talent attraction.

What needs to be considered when developing an EVP?

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.

How can the EVP be communicated?

The communication of the EVP is done through different channels:

  • Through internal communication to existing employees (e.g. intranet)
  • In recruiting, for example via the careers page on the company website
  • Through external communication with other stakeholders (e.g. by employees via social networks)

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.

More articles about employee value proposition

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:

  • Why team building and company culture are essential
    Regular team building activities can do wonders for communication, relationships, and productivity in your company. 
  • These are the corporate benefits employees actually want
    Appropriate employee benefits, also known as corporate benefits, are not only an integral part of everyday work, but also of a good job advertisement. They have long since become an essential part of employer branding, which is so important for companies and can tip the scales when it comes to attracting talent.
  • How to create the best careers page on your website 
    The careers page is a long-overlooked talent acquisition tool. Creating an optimised careers page gives your company the opportunity to give potential employees another incentive to click “apply”.

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