Do You Have an Aligned Employee Value Proposition?

Attracting the Right Talent with an Aligned Employee Value Proposition
If you define your company’s unique value proposition (UVP) as what clearly sets you apart from the competition in the eyes of your ideal target clients, you can think of your aligned employee value proposition (EVP) as what clearly sets you apart in the eyes of the ideal employees you need to execute your business strategy.

Just as your successful go-to-market business strategy depends heavily on a clear, compelling, and substantiated value proposition, your employee value proposition should be a powerful magnet to attract, engage, and retain the top talent that fits your unique situation and is a key component of your overall talent management strategy.

An aligned employee value proposition is all about defining the essence of your company — your unique organizational culture and company purpose that sets you apart from the pack and announces to prospective talent the compelling and meaningful benefits they will receive in return for the experience, skills, and competencies they bring to your organization. Think of your EVP as the:

• Way you want to be known as an employer
• Employee brand promise
• The true north that guides your employee experience
• Expectations of your employer/employee agreement.
• Initial motivation behind why new employees join your organization
• Compelling reason current employees stay even when times are tough
• Corporation’s calling card
• Manifestation of your corporate values on employees

Even though organizations report spending almost $3,000 per employee on employee experience, employee engagement actions have not measurably improved employee engagement in the last five years. And less than one-third of HR leaders believe their employees are satisfied with the current employee value proposition being offered.

The good news is that LinkedIn found that companies with a strong EVP and employer brand see a 28% reduction in turnover and that 75% of job seekers consider an employer’s brand before applying for a job.

When Your Aligned Employee Value Proposition Works
A well designed EVP becomes an effective marketing tool in a competitive job market. It draws in the kind of talent who identify with the concepts around which you want to build your company. It becomes a filter that self-selects those who find your value proposition appealing and those who do not.

And especially for companies that rely on their people to succeed, a strong EVP can save you from costly hiring mistakes and help you accelerate the high performance culture you desire.

When Your Aligned Employee Value Proposition Doesn’t Work
We know from assessing organizational culture that your EVP is only effective if it (1) reflects the true realities of working at your company and (2) is compelling to the talent you need to attract, engage, and retain. There needs to be alignment between the image you present externally, the internal reality of the day-to-day experience of your current employees, and the needs and desired of your talent pool — at all levels of the organization.

What the EVP Research Says
According to McLean & Company’s recent HR Trends Report, companies who excel at attracting and retaining top talent are 3.5 times more likely to have a branded, marketed, and communicated employee value proposition that is differentiated and segmented compared to those with more generic EVPs.

3 Steps to Create EVP Alignment
To create EVP alignment:

1. Start with the Business Strategy
   Strategic clarity accounts for 31% of the difference between high and low performing organizations.  Your strategic priorities also set the required context for a successful culture and people strategy. 
   
2. Create a Healthy, High Performing, and Aligned Workplace Culture
   Workplace culture accounts for 40% of the difference between high and low performing organizations.  How and why things truly get done in your organizational set the required context for the type of talent your business needs to be successful and what you will expect from your workforce.
   
3. Identify How to Align Your Talent with Your Strategy and Culture
   Because different talent contributes differently, leading organizations make sure that their talent strategy aligns with their unique organizational culture and business strategy. From an EVP perspective, that means defining exactly what you expect from your employees to execute your strategy and what they should expect in return — both personally and professionally.

A strong EVP creates clarity and aligns the people and the business.  To get it right you must not only understand what target employees want but also offer something that stands out and differentiates you from other employers targeting the same talent pool. To get your employee value proposition right, make sure you clearly answer questions like:

• How do you want to be described as an employer by top talent that fits?
• What culture and talent ingredients are most critical for your long-term people AND business success?
• What is the greater reason why the company exists?
• How does work really get done and what is it like to really work at your company on a day-to-day basis?
• Besides a paycheck, what do your employees receive in exchange for their contributions?
• What is truly unique and meaningful about working at your company?

The Bottom Line
Your employee value proposition is worth the time and effort to get right. A study from Alight Workforce found that 83 percent of employees feel that having a clear and aligned EVP is important.  We agree.  Is your EVP aligned with your business and people strategies?

To learn more about how to win the war for talent, download the Research-Backed Talent Management Recipe for Success