Your EVP is not a list of perks
We need to talk about your employee value proposition (EVP).
The real one. Not the list of benefits you tell people about when you're hiring.
Perks aren't value and they don't create connection or loyalty.
I'm talking about the value you provide to your people — beyond the salary and employee benefits.
Your employee value proposition is the ecosystem of support, recognition and value you offer in exchange for someone’s time, skills and energy.
There are two reasons we need to talk about this.
It's misunderstood.
It's powerful.
Let's tackle the second point first.
Various studies and sources demonstrate the benefits of an authentic, well-crafted EVP. Understanding and communicating your EVP is incredibly powerful for both attracting and retaining great people.
Gartner research suggests delivering on your EVP not only reduces turnover by 69 per cent, it also increases new hire commitment by almost 30 per cent.
According to KPMG Australia, a strong EVP can reduce compensation premiums by 50 per cent.
Another report by KPMG showed 61% of people and culture leaders are focusing on their organisation's EVP in response to external forces in the labour market.
The good news for nonprofit employers with limited budgets is that your real EVP may not be exactly what you think it is. This brings me to point 1 above.
A value proposition is a statement with three distinct characteristics:
it is substantiated
it is valuable (to the consumer)
it is differentiated.
Let's unpack the characteristics of your employee value proposition:
Substantiated
Your EVP is a description of the value exchange between employer and employee, developed from validated employee feedback and insights. It is a genuine and meaningful connection between an organisation and its people and is not:
defined by the people and culture team or CEO
aspirational
simply a list of benefits you offer
a one-off project or one-time statement.
Valuable
In the employer-employee relationship, the consumer is the employee.
Your real EVP is what your employees appreciate. It’s why they choose you over another employer – and why they stay. It's a statement which clearly articulates:
why choose us
what we offer beyond salary
how working here makes a difference to your life.
how working here is different from another employer.
Differentiated
The goal is not to strive to be better than another employer or try to be the best — because best is subjective. Forget trying to be better than the competition and instead focus on what makes your organisation different.
This is especially important for smaller organisations with limited funding or brand awareness. Standing out in the crowd is about being different. Knowing what makes you different and what value you provide is equally as powerful as any shiny list of perks.