A steady paycheck. Twinings in the kitchen. A gift-voucher to Woolies at the end of the year.
While these once may have been the makings of a happy employee, the pillars of workplace satisfaction look very different in today’s employment landscape – particularly post-pandemic.
Employees’ priorities and expectations in a job have changed. They’re driven by passion, purpose, flexibility, and a better overall workplace experience.
This creates a challenge for employers to step up to the plate and offer a competitive employee value proposition (‘EVP’) to both attract and retain team. And spoiler alert: a pizza lunch won’t cut it.
We explore the steps to building your business’ EVP, how smaller businesses can still be competitive and what a strong EVP looks like.
What is EVP and why should you care?
An EVP is the set of benefits an employee receives in return for the skills, capabilities and experience they bring to a job. These are both tangible and intangible offerings that not only attract top talent but retain the talent you have.
So why should you care? Well, your employees certainly do. As do plenty of other workplaces – which is where your team may look to if they feel undervalued.
The costs associated with low productivity and team turnover are significant to a business. Staff retention is one of the biggest threat to business, so ‘EVP’ should be the three letters on every employer’s mind.
Four key steps to building your EVP
STEP 1: Identify what makes your business unique
According to a 2022 report by KPMG, only 18% of organisations differentiated their EVP from their competitors – so there’s plenty of room for improvement.
Consider sending an anonymous survey to your team to find out their priorities – what’s working for them, what could be better, what would make them stay over taking a job elsewhere, and if people are leaving – why? Your existing team are a valuable resource. Bring them into the conversation.
When thinking about your EVP, consider the following factors:
- Reputation
This is often where employees start when considering a new employer.
How is your company viewed, both internally and externally? Where does it sit in the market? - Company culture & values
The intangible elements – like the experience of working under your leaders, social dynamics, management style and treatment of team. - Professional and personal growth
How do your employees feel a sense of progression, achievement and recognition? Are there clear career pathways, professional development opportunities, leadership training or mentorship? - The working environment
What makes up your positive working environment? Consider office location, the physical space, investment in technology and work-life balance. - Financial package
The financial rewards offered beyond a base salary. Includes frequency of pay reviews, transparency around pay, bonuses and profit-sharing schemes. - Employee benefits
The benefits aside from financial compensation.
Do you have flexible working arrangements, maternity leave, working from home, or company-sponsored holidays?
STEP 2: Consider what you can offer – and go outside your comfort zone
EVPs aren’t a ‘one size fits all’ solution. What works for one business might not for another.
Identify what EVPs your business can realistically offer based on its capabilities and needs.
If you’re grappling with what your business can provide, take a moment to challenge your thinking. Are flexible working hours truly impossible for your business, or are they just a departure from your traditional way of operating?
STEP 3: Write it down
Articulate your EVPs in a clear, concise statement. Consider it your business manifesto for what you stand for, what makes you unique, what keeps your employees there and draws new ones in.
STEP 4: Be authentic – and deliver
Employees are sophisticated. They can read lip-service a mile away. Afterall, they’re the ones witnessing the workplace up-close each day.
They also know their value in today’s market and what other workplaces are offering – because the businesses doing it well will be singing it from the rooftops.
It’s all very well to say you’re going to offer something, but organisations need to walk the walk and deliver on those promises.
Who’s doing it well? Examples of inspiring EVPs
Chamberlains
Voted a 2021 Australasian Lawyer Employer of Choice (1-99 employees), Chamberlains have multiple programs that prioritise their employees’ mental and physical wellbeing. These include mental health leave, flexible working arrangements, monthly massages, creative outlets such as team podcasts and demonstrated professional development.
Mantel Group
Mantel Group, a leading technology firm, has consistently been recognised as one of Australia’s Best Workplaces. The company offers a range of programs that empower its teams to pursue their individual goals effectively. This includes flexible leave policies, well-defined career pathways, valuable mentorship opportunities, and investments in developing passion projects. In addition, they provide personalised benefits, flexible work arrangements, and foster a culture of open and constructive two-way feedback.
Every business is unique, and what works as an EVP for one business may not be viable for the next.
Think about EVPs as a mutually beneficial proposition for both employer and employee, and not a conceding of power by management to its team.
It’s a relationship of symbiosis – the key is placing value on it.
