What is an Employer Value Proposition (or EVP) and what does it mean? How does it differ from the Employer Brand (or EB) and why is it so important for companies to define and promote their EVP?

One way of defining the difference between the EB and EVP is to imagine the EB as an outward-facing marketing proposition and the EVP as an internal exercise that outlines the offerings provided by the company in return for the skills, experiences and capabilities an employee brings to the business.

The EVP is a strategic statement that defines how your business wishes to be perceived and outlines the company’s vision, mission and values. These are supported by the company’s offerings in terms of learning and development, career progression, benefits and remuneration thus shaping, supporting and giving credence to the EB.

The EVP and EB go hand-in-hand so that the experience matches the promise. Any mismatch between the two would undermine employee trust and engagement and no doubt lead to poor reviews on review sites such as Glassdoor.

A well-defined EVP can give employers a competitive advantage in the war for talent as candidates become more selective and discerning in their choice of employer. This is especially helpful if the business doesn’t have the budget to compete with the remuneration offered by its larger competitors. The EVP can promote other unique qualities that differentiate the business from its competitors, thus attracting the right talent.

An EVP should provide incentives that reward hard work and create a supportive, inclusive working environment.

According to research from Gartner, “Organisations that effectively deliver on their EVP can decrease annual employee turnover by just under 70% and increase new hire commitment by nearly 30%”

So how do we go about developing an EVP?

This should not be a top-down exercise dictated by senior management since leadership teams will see things differently from employees. Developing an EVP should be an inclusive activity involving HR, management and employees to ensure that strategy, vision and working philosophy tie in with reality.

Use works councils where they exist or create focus groups that represent a fair and diverse cross-selection of all employees. Ensuring inclusion across different levels, functions and disciplines, will help to make sure that any subsequent messaging resonates within each target group.

Start by identifying all the benefits of working at your company and the unique strengths of the organisation versus its competitors in terms of remuneration, working environment, career progression, learning and development and culture.

This could be done as a focus group exercise and/or through the use of a simple questionnaire. Alternatively, consider using the results of the questionnaire as a basis for your focus group discussions.

When considering remuneration, it’s worth bearing in mind that a generous remuneration package does not always compensate for a poor working environment and a lower-than-average remuneration package will need to rely on other unique selling points to attract key talent. A pleasant and welcoming working environment is as important as remuneration. A comfortable workplace with good facilities, bright open spaces, breakout zones and stylish furniture can be a very attractive feature. Supplying free healthy foods and snacks is also a welcome offering.

Covid has changed the face of the working environment and more companies are adopting a hybrid working solution. Where this is not possible (i.e., in customer-facing roles such as leisure, fitness and hospitality), businesses are providing more flexible working solutions such as job sharing and condensed hours to attract target audiences who value flexibility and a healthier work-life balance.

Opportunities for career progression is also an attractive proposition for high potential individuals who are looking for challenge and growth. Many employers like to showcase success stories of people who have risen in the ranks and who have been encouraged and supported throughout their career journey from entry-level positions to senior-level roles.

Examining the company’s policies on training, performance development and promotions will give clarity on the company’s attitude towards career progression and growth and how the company supports this by providing opportunities for learning and development and supporting good performance management and development practices.

The culture reflects everything from human, social and even political issues. Identifying with the corporate culture can help candidates determine whether or not their values and beliefs are aligned with those of the company. If candidates share the same beliefs, attitudes and behaviours as those identified by the company, this gives them some reassurance of a harmonious working environment which could lead to a longer-term working relationship.

Other benefits can also cover aspects such as financial strength and constant growth, unique products and services and a strong commercial footing, reassuring candidates in terms of security, stability and longevity.

In each stage of the EVP definition process, consider how the company fairs against its competitors in terms of remuneration, working environment, culture and career progression. This will help to establish the company’s USP against the competition and promote aspects that are more generous or attractive than its competitors.

These exercises will help analyse and define the company’s strengths which will form part of the EVP and give it more honesty and credence.

Where can you go from here?

For inspiration, take a look at EVP statements from corporations such as Nike, Airbnb and Starbucks who have invested time and effort in establishing strong EVP statements, testimonials, quotes and blogs providing a diverse and varied view of life at their organisation.

By giving detailed descriptions that support a few key points, you can present realistic and honest EVP statements that support the recruitment, retention and motivation of employees and unite current employees under a common manifesto.

When does the recruitment process end? Is it considered done and dusted as soon as an offer of employment has been made and accepted, once the contract has been signed or when the new recruit arrives for their first day of work? 

The reality is that the recruitment cycle continues well into the employee’s first 3-6 months of employment whilst they undergo a thorough onboarding process. During this time, they will undertake any necessary training and have regular conversations with their line manager to discuss and review their performance.  

The recruitment cycle concludes once the new recruit has successfully completed and passed their probationary period. Therefore, when establishing a stable, long-term working relationship, the first few months are critical. 

Embarking on a new career can be an exciting, albeit daunting experience for new joiners. They are motivated, enthusiastic and keen to learn and to perform well. 

Induction is the most important part of forming the employee relationship. Welcoming a new joiner and making them feel included, respected and valued reinforces their feeling of wellbeing and alleviates any anxieties or concerns they may have. 

In addition, as more organisations are working remotely because of Covid-19, it is especially important to tailor induction programmes so new joiners have a positive experience and additional support to connect with new colleagues. 

However, induction can often be overlooked and rushed, leaving the new employee feeling unproductive and demotivated. Statistics show that up to 40% of new recruits leave within the first 6 months of starting a new job and the cost of a replacement, including fees and loss of productivity, can be up to £30,000* per head. After all the time and effort spent sourcing the right candidate, it is disappointing, costly and damaging to the business to have to start the whole process again. 

Like the strong foundations of a new high-rise building providing a safe and solid base for construction, a robust, well-planned and thoroughly executed induction will form the basis of a fully engaged and motivated employee who performs well, is highly productive and shows long-term commitment. 

Therefore, it is important to take time to carefully plan the induction process, ensuring that all key aspects regarding the business, the office, the role, the teams, the systems and processes are covered, that training is provided and regular feedback, encouraged. 

By setting a good first impression, new joiners will feel confident in their choice of employer and in their new role. 

Start the induction before they come onboard by sending a welcome pack with some goodies such as a personalised company mug or t-shirt, creating a positive feeling in connection to your company. Provide an outline of what they can expect on their first day/week/month of employment, so there are no sudden surprises. Include any company literature or media that gives the employee an informative and engaging introduction to the company, the business and its people.  Avoid bombarding the employee with too much information and ensure that any information you do provide is relevant to the employee and their employment with the business. 

Any pre-employment matters such as right to work and starter forms should be dealt with before the start date.   

Prior to their arrival, ensure their work space is set up and fully equipped, with all the necessary resources they need to hit the ground running. Where applicable, ensure their PC is connected and working properly, their email is set-up and that all furniture and equipment are in good condition.  

Some new employees have been known to spend their first few days setting up their own workstations, chasing log ins and passwords and setting up accounts. This is timewasting and unproductive. It is also frustrating and demoralising for the new joiner. 

Depending on the nature and size of the company, induction can be conducted by HR and the line manager as well as other directors and team members. The induction can be delivered in many ways, via a combination of individual and/or group talks and presentations, social media and/or other media resources.  

Some companies prefer to address practical matters as a priority, such as on-site health and safety, workplace compliance, facilities and IT, company benefits and policies. Others prefer to focus on organisation information, culture and values, role specific information and learning and development in the first instance, as this is the more interesting and engaging part of induction. In any event, avoid treating induction as tick-box exercise and keep it as informal and engaging as possible. 

There are many tools available to facilitate the sharing of information and improving internal communications and interactivity. An intranet app such as Actimo can be uploaded onto smart phones and used as an effective social media and company communication tool, introducing new joiners, sharing knowledge, company news and information.  

Implementing a peer buddy system enables new joiners to integrate and settle in more quickly. Introducing new joiners to key employees will also help them to better understand the organisation’s structure and key responsibilities across all teams. Organising regular social events encourages newbies to meet their colleagues and make new friends in a relaxed and informal setting. Some companies like to arrange fun activities specifically aimed at encouraging new recruits to meet the teams, such as inviting them to distribute beers and drinks during Friday night socials. 

The induction process should be evaluated to determine whether it is meeting the needs of the new recruits and the organisation. Providing opportunities for feedback at the end of the induction process and inviting ideas and suggestions for improvement is always good practice. 

As well as gathering feedback from new employees, its important to identify key measures of success of the induction process and evaluate the process against these metrics. Information from turnover statistics or employee feedback can also be used, particularly from those who leave within the first 12 months of employment.  

The kind of start they get off to is crucial to shaping their attitude to the company and their job, so planning an induction will be more than worth the effort involved. 

*ACAS – Oxford Economics
* Work -force insights arm of credit-reporting agency Equifax 2013