What is EVP? 5 steps to build effective Employee Value Proposition

EVP helps businesses build a professional recruitment brand in the eyes of potential employees through programs, policies, and salary and bonus regimes. So what is EVP ? Let's explore the EVP concept and process with 1C Vietnam through the article below!

1. What is EVP?

Employee Value Proposition or EVP, meaning "employee value positioning", is a concept in the field of employer branding. EVP refers to the characteristics of an organization or business used to attract and retain employees, including factors such as compensation, benefits, training programs, as well as intangible values such as work environment, team spirit, and commitment to personal development.

EVP in recruitment plays an important role in attracting new talent and retaining current employees. Here are some important meanings of EVP:

• EVP helps businesses reach the right potential candidates by positioning their brand in the labor market and creating great attraction for candidates.
• Employee Value Positioning EVP helps businesses re-inspire current employees by listening and meeting their desires and expectations.
• EVP helps impress different groups of candidates by creating programs and benefits tailored to each job position.
• Positioning employee value EVP helps businesses select candidates based on the needs of current employees and potential candidates.
• Employee Value Proposition EVP helps reduce compensation competition by creating an attractive work environment and benefits that attract talent without necessarily competing on salary.

2. The importance of EVP for businesses

The importance of employee value proposition (EVP) for businesses is undeniable. EVP helps create a dynamic, professional employee community, especially EVP helps:

2.1. Reduce employee turnover rate

EVP Employee Value Proposition plays an important role in reducing employee turnover. When businesses offer attractive and transparent remuneration, it helps attract highly qualified and most suitable candidates for the job, thereby helping to reduce the turnover rate.

2.2. Increase departmental cohesion

EVP also contributes to increasing employee engagement with the department and organization. When employees clearly understand the value the organization brings and the company's commitment to its mission, values and vision, they will be more committed to their work.

2.3. Clear and transparent mode

EVP creates a working environment with transparent, clear benefits and creates trust and mutual respect between employers and employees. Thereby, EVP helps improve interaction and communication in the working environment and retain good employees.

3. Steps to build an EVP to help position the brand effectively

Before implementation, businesses need to reevaluate current regimes, determine the tangible and intangible benefits the company provides to employees to build an appropriate EVP. Below is a simple, standard EVP creation process:

3.1. Determine business competitive advantage

Before starting to build an EVP, evaluating the policies applied to current employees helps determine the competitive advantage of the business. By listing employee benefits into two categories: tangible benefits and intangible benefits, businesses can evaluate the company's attractiveness to candidates, helping to focus on the factors that candidates like. highly appreciated by employees during the recruitment process.

3.2. Build an attractive reward and welfare regime

The next step in the EVP building process is to provide a more attractive EVP than what has existed in many businesses before by creating other attractive rewards and policies. Thereby, businesses can communicate values and purposes to employees through EVP.

3.3. Apply EVP into practice

After building an EVP, the next step is to apply it to the actual operations of the business. At the same time, when communicating Employee Value Proposition to employees, managers need to use clear and concise language to increase the attractiveness factor.

3.4. Evaluate and adjust EVP

To ensure the effectiveness of EVP, continuous evaluation and adjustment are necessary. By measuring metrics such as employee retention rate and candidate application rate, businesses can evaluate the success of their EVP. Additionally, conducting employee surveys helps better understand expectations and needs so businesses can adjust EVP accordingly.

4. Note when building an EVP to attract potential candidates

When building an EVP for a business, two main issues should be kept in mind:

• Difficulty in standing out: Faced with the challenge of being indistinguishable from competitors, differentiation is a key factor in attracting attention among businesses in the same industry, but building an EVP "similar" to each other is undesirable.
• Realistic and attractive: EVP must be attractive but must also reflect the true situation of the business, ensuring that employees feel their needs are met and are not "deceived" by flowery images.

5. Distinguish between Employee Value Proposition and Employer Brand

Although employee value proposition (EVP) and employer brand are closely linked, they serve distinct purposes. EVP focuses on the unique benefits and opportunities a company offers its employees, while employer brand is the external image of the company that works for them, shaped by employee experiences, policies and practices. and market awareness.

In particular, EVP plays an important role in defining the employer brand and reinforcing it through a positive employee experience.

Above, 1C Vietnam has provided an overview of EVP and steps to build an effective Employee Value Proposition to help businesses stand out in the competitive labor market, thereby attracting potential candidates. If you have any questions, please contact us immediately for answers.