…long live the EVP!
Wait….what is an EVP?
An employee value proposition (EVP) is a way of looking at the whole package you offer your employees, not just how much you pay them but something more holistic.
There are a number of models but at Cloud9 People we follow the model set down by Henk Verhoek
Reward is more than pay
Henk says that there are 4 main elements to the EVP
- LEARNING AND DEVELOPMENT
The diagram below describes this and shows the fixed point in the EVP that is the employee perspective
The EVP doesn’t have to be a balanced score card, the beauty of this model is that you can tailor it to your business and your people, all of this sits behind the mantra from Henk that is “Reward is more than pay”
Let’s look at the elements
Here we find all elements of pay that your people will receive (Salary, Shift Premiums, Overtime and more!)
A quarter of the EVP is based around the benefits you offer, from pensions and share schemes to discounts and cashback at Tesco.
Wellbeing, financial education and company cars are all here!
From how your managers talk to your people to the break out area, whether you are Google or Joe Bloggs haulage you have a culture.
And your culture is really important, it defines you as a company,it’s what your employees will talk about outside of work, it’s something you can set the agenda for and it can cost you nothing more than time!
4. Learning and Development
L&D is not just about having the skills to do your role, it’s about personal development too.
The opportunity to get on…not just upwards but sideways too.
Helping your people develop skills they can take outside of work is pretty great too.
This might be financial education to enable parents to understand the new financial curriculum their children are working on, it could be on social media or how to use spreadsheets.
The employee perspective
At the centre of the verhoek model we see the employee perspective, this is central at the point all the points converge.
Building the EVP
What’s great about the EVP is that it is yours, all yours and you won’t find out what YOU should do in a book.
We would advise you to think about each element of your EVP about what’s important to you, to your employees, your business goals and affordability.
You may pay minimum wage but supplying Employee Benefits can be pretty cost effective and having a great culture can cost nothing.
Vital to your EVP is the communication of all this cool stuff you are doing for your people!
It’s no good providing amazing benefits if you don’t communicate it them.
Lack of good comms will move the EVP element outside of the employee perspective, as shown below:
Your benefits suppliers can help massively with employee comms and you should leverage this relationship.
We will be discussing more about effective communication in a later blog.
Why is the EVP dead then?
Hang on…you said the EVP is dead, all of this sounds fab! What’s going on?
It’s all about…
An EVP is great at describing the company approach to employee pay, benefits, culture and L & D but it’s at a very high level (in the 80’s we’d have said “A helicopter view”)
It’s a broad brush, generic approach and thats great at showing your company wide offering, but to get maximum value you need to personalise it for the individual with that employee perspective.
When you communicate a generic EVP you accept that you are not engaging with all of your employees
We are going to cover off how we at Cloud9 People think personalisation of the EVP can work in our next blog.
Thanks for reading and I’d love to hear your thoughts on this post!
You can connect with Nick over on twitter @Scruffy_Nick