What is EVP?
EVP (Employee Value Proposition) is the value proposition that a company establishes for its employees . It is based on offering tangible and intangible benefits, which help to attract the most qualified professionals in the market and, at the same time, retain the best talent in the company.
But it is important to emphasize that the results obtained through the EVP do not come from the proposal, but from its application in daily life. Therefore, before committing to deliver anything to employees, it is essential to verify if it is really possible to fulfill all the promises made so as not to end up generating an adverse effect.
EVP has become increasingly important to the success of companies in today’s market. It is not just a score or a detail, but a set of practices that can bring a series of benefits, not only for people management, but also for the business as a whole.
If you still don’t have a defined value proposition in your company for employees, you need to read this article until the end. Here, we will explain what EVP is, what its pillars are and its relationship with different HR practices. In addition, we’ll talk about the benefits of having an EVP and how to develop it. Follow up!
What are the five pillars of Employee Value Proposition?
A good EVP must be supported by five pillars, as we will see below.
Rewards are the direct rewards employees receive for their work. The main examples are salary, bonuses and the benefits package , but there may be others, depending on the case. They represent the minimum expected by people in exchange for their services and must be in accordance with what is practiced by other companies in the market.
Opportunities are related to the career and development of employees. In this sense, each person has their goals in relation to what they want to become in the medium and long term. Even though these definitions are still under construction, a company that contributes to the evolution of these professionals offers more advantages over others and this is an important differential in the value proposition.
The people pillar concerns the relationships established in the organizational environment . In this context, conflicts between employees, involving or not a matter of subordination, are serious and can lead to the loss of excellent professionals. Thus, the concern with the company’s collective well-being helps in retaining talent and also in improving productivity and innovation.
The work pillar is linked to what the employee must effectively do in their daily lives. Here, the company needs to make it very clear what it expects from the person who will occupy the position offered, so that both parties remain aligned and there is no wear and tear.
The organizational part includes issues related to the company’s values and how much they are aligned with those of employees. Therefore, it is very important that what is determined as a precept by the organization is, in fact, how it positions itself before the market in its daily actions.
What is the EVP’s relationship with people management?
The value proposition that a company has for its employees has everything to do with people management. After all, all the pillars must be maintained by the HR team together with the managers and the top management of the business. Now, look at some direct relationships between people management practices and EVP.
1-EVP and employer branding
The employer branding is the brand that a company builds in the market when it is a good employer. One of the bases of this practice is precisely the EVP, where the tangible and intangible benefits of being part of the workforce are exposed .
2-EVP and talent attraction
With the help of techniques applied in employer branding, EVP transforms the company into a more attractive place for the best professionals in the market . As a result, attracting talent becomes more efficient, finding the most suitable people for each of the vacancies that are available.
3-EVP and talent retention
A well-crafted and applied EVP makes people have no reason to leave the organization . On the contrary, it provides a very favorable environment for the employee, where he feels satisfied and sees opportunities for constant evolution, both in his career and in his financial gains.
4-EVP and behavioral management
Each person has specific characteristics that are related to how they react to certain situations. Therefore, knowing the behavioral profile of each one is the way to prepare a more accurate EVP , which takes into account the particularities of employees and allows for managing talent even more efficiently.
What are the main benefits of Employee Value Proposition?
The EVP is able to provide several benefits , both for employees and for the company itself. Among the main ones, we can highlight:
- reduction of indexes, such as turnover and absenteeism;
- increased productivity and business innovation;
- cost reduction;
- increase in profitability;
- improvement in the company’s image in the market
The development of an EVP is a long process and must be carried out on an ongoing basis . We must remember that the market changes all the time and the company must adapt to these changes, including with regard to its proposals to its employees.
But to build an EVP from scratch, it is important to consider some aspects, such as the company’s budget availability and the profile of employees. These elements are crucial for identifying the values to be offered for the initiative to obtain better results.