Your Employee Value Proposition (EVP) is an expression of what you offer employees in return for their contributions. It usually consists of a mixture of tangible elements—such as salary—as well as intangible elements—such as flexible work arrangements.
A good EVP will communicate why your employees value working in your organisation, and form the bedrock of your employer branding. It will resonate with potential hires, attract talent to join your organisation, and help retain your current employees.
At the recent Radford Annual Talent & Rewards Conference in Australia, we hosted a panel discussion with two prominent HR leaders from Commonwealth Bank of Australia and Empired Group. Both speakers shared valuable insights into how their respective organisations approached EVP. Here are the key takeaways:
1. It’s different for every organisation
There is no right way to create your EVP. For instance, Empired Group, a fast-growing IT services provider, created an EVP that is anchored in five pillars: meaningful work, outstanding leadership, personal growth, creating an empowering environment, and belief in the organisation’s mission. Commonwealth Bank of Australia however, approaches it differently. It’s not about setting pillars, but just living by a simple but genuine belief that they should focus on valuing their employees as individuals.
Even for companies in the same industry, EVPs can be very different. Google is famous for having great offices and free food, which is based on their belief that the best work gets done when everyone is there together. Microsoft however, believes that work can be done anytime, anywhere—as long as it gets done. Their EVP is all about freedom and flexibility.
2. It goes beyond pay
An employee’s salary is a basic requirement, but rewards and benefits are a given—it shouldn’t be the factor that significantly differentiates you as an employer.
Nick Woodward, Head of Remuneration—Support Functions at Commonwealth Bank of Australia, elaborates on the same sentiment, “Pay might help people stay and say good things, but pay won’t get you the ‘strive’ element in employee engagement.” The bank believes that the better approach is to allow their employees to be themselves, and empower them to do great work that makes them feel fulfilled.
3. Focus on the individual
Every person is different. They’ll move in different directions and grow at different velocities. But it’s crucial that all your employees feel that they’re moving and growing. To achieve this, the frameworks that organisations adopt for performance management have to focus on the individual.
For Rose Clements, Executive GM—People and Performance at Empired, it’s clear that the “hunger games approach to performance management is over”. Instead, organisations need to adopt a more holistic view and enable their employees to create a career of their own choosing—one that is less about moving up the hierarchy and more about growing their marketability, aligning personal values, and developing skills.
Ultimately, EVP is all about the ‘why’. Why should an employee invest their time and energy in your organisation? Why should this candidate pick you over a different company? The answer to these questions should be articulated in your EVP.
Depending on goals, values, and culture, every organisation’s EVP will be different. But a strong EVP will go a long way in helping any organisation attract, engage, and retain top talent. And this is true whether your firm is in Australia, Asia, or anywhere else in the world.
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Radford delivers talent and rewards expertise to technology and life sciences companies. We empower the world's most innovative organisations—at every stage of development—to hire, retain and engage the amazing people they need to create amazing things. Radford is part of the Talent, Rewards & Performance practice at Aon plc (NYSE: AON).
Need help to drive a strong EVP for your organisation? Get in touch with us.