This post was first published in February 2019
When people think of the Employee Value Proposition, positive and effective leadership is not usually the first thing they think of. Employment Hero describes the Employee Value Proposition (EVP) as “the balance of rewards and benefits that a company can offer its employees in return for their amazing performance within the workplace”.
Why is a Strong EVP important
Your EVP is basically your company or employer Brand and helps differentiate your Brand from others – it’s what makes people want to work for you instead of your competitors. It can also be a useful bargaining tool when trying to attract new talent as it is something unique that you can offer. This becomes particularly important as we struggle through global talent shortage both when looking for new talent and retaining existing talent.
In fact, Gartner suggest that companies with a strong EVP reduce annual employee turnover by over two-thirds (69%) and increase new hire commitments by nearly 30%.
Furthermore, Hubspot reports a whopping 86% of workers would not want to work for a company that has a bad reputation with former employees. By contrast, 75% of active job seekers are likely to apply for a job if the employer actively manages its employer brand and their company’s EVP.
Defining Your Leadership Value Proposition
Leadership might not be the first thing that springs to mind when thinking about EVP, but it is critical. People leaders contribute directly to their team’s career development and job satisfaction, and it is important that these individuals have their own “leadership proposition” that attracts and retains people.
When developing your unique ‘leadership proposition’ consider the following:
- Customizable career opportunities. If you want to attract high value talent to your organization, then you need to offer them something of high value in return. A one size fits all approach is no longer sufficient and you may have to negotiate with both the individual and your superiors to come to a mutually satisfactory outcome. Examples of meaningful compensations can include greater flexibility, financial incentives, specific job titles, and development and experience opportunities.
- Team and company culture. This goes beyond being great people producing great work. As a people leader you need to be aware of your own biases and manage or remove any historical barriers so that when you lead your team you enable its diversity to thrive.
- Advocate for your team throughout the organization. Create stretch opportunities and coach around self-limiting career beliefs to motivate and inspire career aspirations.
- Trust your people to work flexibly and remotely. Work with them to set up team rules, guidelines or performance objectives and start making flexibility the new normal. Be aware that if you can’t make it work, another leader who wants your staff member, will.
- Adopt a philosophy of ongoing learning for yourself and your team. Open the door to mentors and coaches for your people. Support secondments, lateral moves and projects to further develop capability.
- Build your own strong network of potential future employees, both within and external to your organization. If you have a critical vacancy in your team, consider what you are doing to find the right person. Stop leaving this up to HR. Instead, embrace social technology so that potential employees are aware of you and the work you do. Keep aware of competitor or aligned industry changes and individuals in those businesses who are talent. Mentor individuals outside your organization to extend your reach.
Live your Leadership Value Proposition
A leader who says all the right things to their team, but does not take their own advice, risks being considered inauthentic. A leader who is truly engaged at work and finds satisfaction their career is naturally more inspiring to others. And by being a great leader you’re more likely to retain your employees longer and see increased levels of employee satisfaction.