Organizations with a strong employee value proposition (EVP) report better results with generating new ideas, enabling workforce productivity and fostering a sense of purpose in employees’ day-to-day work, according to a Dec. 12 report from McLean & Co.
Only 22% of organizations have an EVP, the firm found. While developing one, leaders should consider how an EVP resonates not only externally to attract the right candidates but also internally to retain talent and meet new hires’ expectations.
“A strong EVP provides a compelling but realistic view of the benefits of joining the organization while also leading to a connection that encourages employees to stay,” Elysca Fernandes, director of HR research and advisory services at McLean & Co., said in a statement.
“However, it is important to note that an overly aspirational EVP creates a disconnect with employees because they won’t recognize it as their lived experience,” she said. “Additionally, neglecting to look externally at what competitors are doing will result in an undifferentiated EVP, and in a competitive talent market, organizations need to stand out.”
The McLean report indicated that organizations with an EVP are 1.18-times more likely to report higher overall organizational performance, 1.16-times more likely to report high innovation or ability to generate new ideas and 1.14-times more likely to report high workforce productivity.
In addition, employees at organizations with an EVP were 1.23-times more likely to report a feeling of purpose in their day-to-day work than those at companies without an EVP.
Although employers may be pouring resources into EVPs, workers may not know, especially if leaders don’t communicate it well, according to a Gartner report. HR leaders must help employees understand the EVP, connect to it and believe in EVP improvements, the firm said.
Communication about the EVP is particularly important since HR teams and employees often don’t see eye to eye on engagement, according to a SurveyMonkey report. Leaders can make a difference by fostering strong feedback and open communication, the report found.