EVP vs unique benefits: Enhancing the employee experience
By Isabelle Frischknecht (Consultant) and Evelyn Jackson (CEO)
In today's competitive job market, establishing a powerful Employee Value Proposition (EVP) is essential for attracting and retaining top talent. According to AHRI’s Quarterly Australian Work Outlook (2023), almost 47% of employers currently recruiting for talent are experiencing recruitment difficulties, a number that has been increasing from the year before.
An EVP is more than a set of employee benefits; it is the core promise an employer makes to its employees, encapsulating the essence of what it means to be part of the organisation. This article explores the importance of a well-defined EVP and how it distinguishes itself from unique employee benefits, enhancing both recruitment and retention strategies.
Defining the essence of an EVP
An EVP is a promise the employer as a brand makes to their current and future employees. It serves as a cornerstone of an organisation’s identity, offering a glimpse into what it’s like to be part of the team. It represents the unique mix of benefits, strengths, and opportunities an organisation offers their employees in exchange for their skills, dedication, and hard work.
An EVP encompasses the entire spectrum of the employee journey, including the 8 EVP Elements:
Brand purpose
Culture
Pay & tangible benefits
Meaningful work
Career development opportunities
Recognition
Connection
Work environment
It defines the essence of why individuals choose to work for a particular organisation and how they perceive their employment experience. Understanding the organisation across these elements is crucial when creating an authentic EVP. For an EVP to be authentic, understanding your talent audience is critical.
An EVP aims to create an emotional connection with employees by aligning their personal goals and values with those of the organisation. It focuses on fostering a sense of purpose, belonging, and pride.
The role of unique employee benefits
Often when reviewing their EVP, organisations start and end with a review of their benefits. While benefits are a critical part of applying the EVP, they must do so with purpose and deliver your point of difference.
Employee benefits are most impactful when they are specific perks to the organisation and are designed to enhance the employee experience in distinctive ways. These benefits complement the EVP by adding layers of personalisation and addressing specific needs or desires of employees beyond the standard offerings.
Generic benefits such as standard leave or health insurance often fail to excite employees and are seen as basic necessities, whereas unique, personalised benefits positively impact employee satisfaction, productivity and promote a better organisational culture.
With 1 in 10 employees considering a pay cut to have access to better benefits, a need for generous and unique benefits becomes evident [Forbes Advisor, 2023]. Today’s workforce is diverse, and a one-size-fits-all approach is not always sufficient anymore. Unique benefits are typically more tailored to individual needs and preferences, aligning with employee priorities such as wellbeing or work-life balance. This personalisation shows that an employer understands and respects different lifestyles and challenges their employees may face, which can greatly enhance employee satisfaction and loyalty. If the benefits align with the employees’ personal values and motivational needs, they can make them feel more connected and committed to their workplace.
Differentiating factors
When we talk about employee benefits, we are referring to tangible rewards and incentives provided by employers to employees. While the EVP is broader and includes benefits, an EVP is about the overall experience and the ‘unwritten’ contract and promises between an employer and their employees. Tangible employee benefits are therefore by nature transactional. Intangible benefits, however, are equally important and relevant in today’s changing world of work and together, they offer a way to represent the exchange of ‘compensation’ for work performed.
By emphasising factors such as meaningful work, career development opportunities, and recognition, an EVP motivates employees to perform at their best. It creates a sense of purpose and fulfillment, driving intrinsic motivation and higher levels of productivity. While certain employee benefits such as performance bonuses or professional development stipends can directly impact employee motivation and performance, the overall impact may vary depending on the individual's preferences and circumstances.
A well-defined EVP is closely aligned with the organisation's goals and objectives, guiding employees towards shared outcomes. It helps create a cohesive workforce that is committed to achieving the organisation's mission.
While employee benefits can support organisational goals by incentivising desired behaviours or skills development, they may not always directly contribute to the organisation's strategic objectives.
And here lies the benefit of a well-developed, authentic EVP.
An EVP for a high-performing organisation
A strategic EVP, rooted in the organisation's values and vision, is crucial for long-term sustainability. It helps attract candidates who resonate with the company's culture and purpose, leading to higher retention rates and reduced turnover costs. While attractive benefits packages can initially attract talent, they may not ensure long-term commitment if they are not aligned with the organisation's EVP and may often have a more immediate impact.
Employees may be drawn to a company initially because of its benefits package, but it is the EVP and the unique benefits that will make them stay and perform at the highest level.
Final thoughts
Defining your organisation’s values, culture, and brand purpose to create a compelling EVP that resonates with employees and aligning it with your vision and goals will help attract and retain top talent.
Identifying the unique needs and preferences of your employees and offering benefits that differentiate who you are as an organisation, go beyond standard offerings, and align with your EVP will enhance the employee experience and foster high performance.
How Corporate Crayon Can Help
At Corporate Crayon, we help organisations develop, communicate, and implement their unique and competitive employee value propositions (EVP), as well as review and provide recommendations for benefits that matter.
With industry-wide knowledge and a flexible approach, we can support you at any stage of your journey.
To find out more about our EVP and benefit solutions, get in touch with us today.