Employee Value Proposition: What it is and why it’s important

6 de October, 2022

The challenge of attracting talent is a clear reality in Portugal. According to ManpowerGroup’s Talent Shortage Survey 2022, Portugal is the second country with the greatest shortage of talent. 85% of Portuguese employers say they have some or a lot of difficulty recruiting and hiring the right candidates.

In an increasingly competitive job market, developing a consistent and attractive Employee Value Proposition (EVP) is crucial for companies. It is your EVP that will enable you to attract much-needed talent.

But how? Come and find out what the Employee Value Proposition is and why it’s so important.

“Companies that effectively implement their EVP can reduce turnover by around 70% and increase the involvement of new employees by around 30%.”

Gartner

What is Employee Value Proposition?

The EVP consists, as its name suggests, of the value proposition that the company presents to its employees. This expression derives from the concept “Unique Value Proposition”, widely known in the marketing world, and which refers to the unique value that a given product or service has and which makes it stand out from the competition.

Applied to the organizational and human resources context, it is an ecosystem of measures and benefits that the company provides in exchange for the skills, experience and performance of its human capital. It should represent the set of values that make the organization unique and make employees feel proud and excited about working there.

The Employee Value Proposition must be unique, relevant and appealing to employees and candidates. To achieve this, there are a few key elements it must take into account:

• Compensation: typically goes beyond remuneration and can include productivity bonuses, bonuses and other extra-salary benefits.
• Work-life balance: aspects such as flexible working hours, the possibility of working remotely or having extra vacation days are important for promoting work-life balance.
• Stability: through opportunities for career progression or professional training, for example.
• Respect: existence of a diverse and inclusive culture, good working environment, team spirit, among others.

Why Employee Value Proposition is important?

A solid, attractive and differentiating EVP is the answer to the question “why would a candidate choose to work for our company?”. It is a key element in attracting and retaining talent and in setting your company apart from potential competitors in the job market. EVP is therefore the main foundation of your Employer Branding strategy, as it contributes to improving the organization’s reputation.

It also contributes to

• Reduce turnover;
• Optimize recruitment processes;
• Improving the employee experience;
• Building a strong corporate culture.

In short, a strong EVP will allow your organization to stand out in the job market and for: candidates to prefer applying for jobs with your company over others; employees to feel satisfaction and motivation for working where they do.

Does your company already have an Employee Value Proposition?