Employee Value Proposition (EVP) employee engagement in organizational performance

A lot of leaders believe that the formula for attracting and keeping talent is simple: Just ask people what they want and give it to them.
The problem is, that approach tends to address only the material aspects of jobs that are top of employees’ minds at the moment, like pay or flexibility.
And those offerings are easy for rivals to imitate and have the least enduring impact on retention.
Organizations instead should focus on what workers need to thrive over the long term, balancing material offerings with opportunities to grow, connection and community, and meaning and purpose.
Designing an EVP that is unique to your organization will considerably improve your talent acquisition and retention, giving you an employer brand that has an edge over your competitors.

1. Employee Value Proposition (EVP):
Employee Engagement in Organization
Performance
www.humanikaconsulting.com

2. Seta A. Wicaksana
0811 19 53 43
[email protected]
•Business Psychologist
•Pendiridan DirekturHumanikaConsulting dan hipotest.com
•AnggotaKomiteNominasidan RemunerasiDewan KomisarisPT Askrindo
•SekretarisProdi MM Program PascaSarjanaUniversitas Pancasila
•DosenTetapdan Penelitidi FakultasPsikologiUniversitas Pancasila
•Pembina Yayasan HumanikaEdukasiIndonesia
•Wakil KetuaAsosiasiPsikologiForensikIndonesia wilayah DKI
•PenulisBuku: SobatWay (2016), Industridan Organisasi: PendekatanIntegratifdalam
menghadapiPerubahan(2020), Human FaktorEngineering: IntegratifDesain Manusia
dan LingkunganKerja(2021), PsikologiIndustridan Organisasi(2021), PsikologiUmum
(2021), ManajemenPengembanganTalenta(2021), PIODiagnostik: PengukuranPsikologi
di LingkunganKerja(2021), TransformasiDigital: PerspektifOrganisasi, Talentadan
BudayaOrganisasi(2021), PsikologiPelayanan(2021) dan PsikologiKonsumen(2021).
•DosenTidakTetapdi: Program PascaSarjanaEkonomidi Univ. Pancasila, STP TRISAKTI,
FakultasPsikologiUniversitas MercuBuana, STIKOM IMA
•Certified of Assessor Talent Management (BNSP)
•Certifiedof Manager of Human Resources Management (BNSP)
•Certified of Human Resources as a Business Partner (SHRM)
•Certified of Risk Professional (BNSP)
•Certified of HR Audit
•IlmuEkonomidan Manajemen(MSDM) S3 Universitas Pancasila
•FakultasPsikologiS1 dan S2 Universitas Indonesia
•SekolahikatandinasAkademiSandi Negara
Seta A. Wicaksana
@setawicaksana
Seta A Wicaksana

3. Background
•A lot of leaders believe that the formula for attracting
and keeping talent is simple: Just ask people what they
want and give it to them.
•The problem is, that approach tends to address only the
material aspects of jobs that are top of employees’
minds at the moment, like pay or flexibility.
•And those offerings are easy for rivals to imitate and
have the least enduring impact on retention.
•Organizations instead should focus on what workers
need to thrive over the long term,balancing material
offerings with opportunities to grow, connection and
community, and meaning and purpose.

4. Relatable Organizations Are
Bringing Back The Joy Of Work And
Creating A Brighter Future For All
•This is a moment of profound opportunity: to pick up the tools of empathy
learned and honed during and after the pandemic and carve a new way of
partnering that is more Resilient, Sustainable, and attuned to the New Shape of
Work.
•Last year, nearly 11,000 Executives, HR Leaders, and Employees told us what’s
top of mind for them. We heard loud and clear that Relatable Organizations are
leading the way in reshaping work, working, and the workplace. What are they
focused on? Research shows that Relatable Organizations have five things in
common: They are constantly resetting for relevance, figuring out new ways to
work in partnership, delivering on total well-being outcomes, building for
employability, and harnessing collective energy to drive transformative change.
•According to 2,474 HR leaders around the world, these efforts continue into
2023. They recognize that even in the face of sociopolitical and economic
uncertainty, these priorities must remain front and center for organizations
and individuals to thrive.

5. Why Is Employee Value Proposition Important?
Employer branding is critical for an organization to attract top talent. Done
right; an EVP offers a compelling answer to the question –Why should a
highly talented person choose to work with us?
Designing an EVP that is unique to your organization will considerably
improve your talent acquisition and retention, giving you an employer
brand that has an edge over your competitors.

6. Why Is An Employee Value Proposition Important?
•Conducting this research is also a positive
signal throughout the organization. It
shows talent and how invested a business
is in its employees, their progression, and
what they receive in exchange for the
work they do. One of the most important
components of an employee value
proposition is also how it is
communicated throughout the
organization:
•According to research from Gartner,
“Organizations that effectively deliver on
their EVP can decrease annual employee
turnover by just under 70% and increase
new hire commitment by nearly 30%.”

7. Why Is An Employee
Value Proposition
Important?
Still wondering why it’s
important to have an
employee value proposition?
Here are some top-line
benefits:
•Attracting talent
•Improve your
employer’s brand
•Produce genuine
candidates
•Retain good talent
•Builds a positive
culture

8. Key Employee
Value Proposition
and Stats
•Organizations can reduce the compensation
premium by 50% and reach 50% deeper into the
labor market when candidates view their employee
value proposition (EVP) as attractive (Gartner)
•Businesses that effectively deliver on their EVP can
decrease annual employee turnover by just under
70% and increase new hire commitment by nearly
30% (Gartner)
•A well-executed employee value proposition can
Increase the likelihood of employees acting as
sponsorsfrom an average of 24% to 47% (Link
Humans)
•57% of recruiters say their top challenge is
differentiating their company from the competition
(SmartDreamers)

9. Key Employee
Value Proposition
and Stats

10. Key Employee Value Proposition and Stats
•22% of remote employees say that they
struggle to unplug after work (Buffer)
•85% of employees say they’re most
motivated when management offers
regular updates on company news
(Trade Press Services)
•Only 21% of IC experts believe that
employees have a good understanding
of why senior leaders make the
decisions they do (h&h)
•Employees who say their manager is not
good at communicating are 23% more
likely to experience mental health
declines (Harvard Business Review)

11. Key Employee
Value Proposition
and Stats
•Only 13% of employees strongly agree
that their leaders are effectively
communicating with the organization
(Gallup)
•74% of employees have the feeling
they are missing out on company
news (Haiilo)
•Only 23% of executives say that their
companies are excellent at aligning
employees’ goals with corporate
purposes (Deloitte)
•Employee satisfaction at Google rose
by 37% as a result of employee
support initiatives (Fast Company).

12. Employee
Value
Proposition and
Commitment
The EVP theory by analyzing the role of the affiliation dimension of the EVP on employee
commitment. This study helps to understand the impact of EVP attributes on employee
commitment in organizations. perceived organizational support, and work environment (WE)
influence employee commitment. Also, the relationship between organizational commitment
(OC) and OCB was found to be significant. The analysis also confirms that OC mediates the
relationship between the EVP variables and OCB. The finding would benefit organizations on
the need to enhance EVP fulfillment and its benefits findings from the study show perceived
organization support and WE affect OC while OC affects OCB. (arasanmi and krishna, 2019).
The research concludes that there is a significant impact of employee value proposition on
organizational commitment, a significant impact for organizational reputation on organizational
commitment, and the mediating role of organizational reputation in promoting the impact of
employee value proposition on organizational commitment is partial mediation. The results and
recommendations of this research assure that employee value proposition and organization
reputation is crucial in promoting the commitment of employees (Hussein, et al., 2021)
Results have indicated that drivers of EVP strategy and its effects include improved employee
retention rates, recruitment, and enhanced employee involvement and commitment. These
outcomes have been associated with improved operational and financial performance.
Opportunities for future study have emerged from the present study. Organizations interested
in implementing EVP factors and their consequences would be well advised to define what is
meant by Employee Value Proposition; what are its important factors and its effects on the
organization in association with an improved level of performance (Das and Dan, 2022)

13. What is EVP
•Pawar and Charak (2015) define the
employee value proposition as the one-of-
a-kind arrangement of benefits an
employee gets consequently for the skills,
capabilities, and experience they convey to
an organization.
•An EVP is about defining the essence of
your company –how it is unique and what
it stands for. It encompasses the central
reasons that people are proud and
motivated to work there, such as the
inspiring vision or distinctive culture. It is
crucial to make sure your EVP is unique,
relevant, and compelling. When integrated
into all aspects of a business, a strong EVP
will help retain top performers and attract
the best external talent.

14. What Are the
Components of
an Employee
Value
Proposition?

15. 1. Financial
Rewards
•This component of EVP addresses
an employee’s expectation from
the overall evaluation and
compensation system –the total
rewards. It covers all the financial
offerings like salary, bonuses, and
stock options.
•On the face of it, financial
compensation may seem like the
key motivator for the workforce.
But it is only a piece of the puzzle
when it comes to an employee
value proposition.

16. 2. Employment
Benefits
This component of EVP is associated with a
range of additional benefits associated with
the job. These include things like:
•Health insurance
•Retirement benefits
•Paid leaves
•Gym memberships
•Company-sponsored holidays
A benefits package works best when it’s
customized to the industry, the culture, the
organization, and the employees. So, feel
free to get creative with it.

17. 3. Career Development
Employees want to see the growth potential their job
has to offer and how the organization can contribute to
their career development. This component of EVP
includes:
•Technical training
•Leadership training
•Sponsored courses (things like a project management
certification or even an MBA)
•Mentoring and career guidance
•Promotion opportunities
•Opportunities to work in other cities or countries
•Opportunities to change domains
•Opportunities to work on specific coveted projects
For an organization that is unable to offer salaries at par
with its competitors, offering a clear career
development and growth plan can be the difference
between hiring and losing quality talent.

18. 4. Work Environment
This component of EVP is associated with factors that constitute a
positive working environment. These include things like:
•Flexible working hours
•Work-life balance
•Recognition
•Team building
•Communication systems
•Workspace design
•Employee wellbeing
Organizations must recognize the importance of creating a work
environment where employees thrive and do meaningful work.
This adds to positive employee experience and engagement. They
must consciously make efforts towards building and marketing such an
ambiance.

19. 5. Company
Culture
•Management guru Peter Drucker once
famously said, “Culture eats strategy
for breakfast.”
•Several industry leaders across the
world concur with this belief.
•In fact, according to an Indeed survey,
21% of job seekers decided to accept
the offer for their current job because
their interests and values were
reflected in the company’s mission.*
•*Indeed survey, n=5,970

20. 7 Steps to Creating a Great Employee Value
Proposition
•Assess what you currently offer
•Interview your existing and past
employees
•Define the key components of your
EVP
•Write your employee value
proposition
•Promote your EVP through the right
channels
•Review the results
•Continually update

21. 1. Assess What You Currently Offer
•EVP development should start with the
basics. You must assess what your
organization currently is and what it isn’t.
You should be clear about your branding.
•Make a checklist of all the components of
EVP in the above section. Go through each
item in the EVP checklist and determine the
extent to which your organization currently
offers each.
•It’s important to be completely objective
while carrying out this activity. That’s why
it’s useful to take opinions from your
employees about how well these are being
met.

22. 2. Interview Existing And Past
Employees
•Knowing what your organization can and cannot offer is crucial for
building a strong EVP.
•Use employee surveys to collect feedback from focus groups that
include current employees and any new hires.
•Include past employeesas well in employee surveys and understand
what the organization could have done to help them stay. Lastly, follow
this by researching your prospective employees.
•In the employee surveys, ask your current employees questions like:
•Why do you like working here?
•What motivates you at work to engage more?
•What improvements would you like to see?
•What’s the single most important need that you have related to
our company?
•What kind of support do you expect from the company to help
you achieve your professional development goals?
•Use the responses given by different focus groups to find out what
motivates your top performers and incorporate this feedback to build a
better job offer for your potential employees.

23. 3. Define The Key Components Of Your EVP
•Now it’s time to evaluate your findings and arrive at your organization’s
new employee value proposition. This is how you will attract and retain
top talent.
•Use the research from the previous steps to answer questions like:
•What salary range and employment benefits will attract my target
candidate persona?
•What career growth opportunities is my target candidate looking
for?
•What kind of organizational culture will help my target audience
succeed at work?
•What constitutes an ideal work environment for my target
candidate persona?
•Your EVP should also be segmented for different roles and levels.
For example:
•The EVP for recent graduates to fill an entry-level position will highlight
things like career growth, a fun office environment, positive employee
experience, and employee perks.
•The EVP for professionals who are not recent graduates will highlight
things like career stability, child-care support, and work-life balance.
•Once you have determined what you will offer, translate it into
statements that candidates can quickly understand and relate to. Now
your strong employee value proposition is ready!

24. 4. Write Your Employee Value Proposition
•Once you’ve identified how your company
differs from the competition and what
employee experience you can deliver, the
next step is to write a strong employee
value proposition statement.
•Make sure that your EVP statement is
clear, unique, and inspirational. That’s the
only way it will help you attract and retain
top talent.
•Also, make sure that your EVP is aligned
with your employees and the
organization’s expectations.

25. 5. Promote your EVP
through the right
channels
•So, you have a winning EVP in place, but even the
best EVP is pointless unless it is well
communicated.
•Once you have data on what your organization is
providing and what your employees need, make
sure managers and their reports are discussing
the employee value proposition in an integrated
way.If you’re explicit about how the factors are
related, it will reduce disagreements and
misunderstandings around the “why” underlying
key decisions. Don’t just announce the policy;
explain why it’s necessary for the company and
how it will benefit employees over the short and
long term.
•Don’t just talk about your EVP on the careers
page on your website. Promote it!
•Leverage the different internal and external communication channels you’re
currently using in your organization to get the word out.
•Internally,you can promote your EVP through company blogs, newsletters,
email, town halls, and internal communication tools.
•As with any attempt to change mindsets and behaviors, repetition and
consistency are critical. Somake sure that you have thoughtful, structured
conversations about the relationships among the factors when: Recruiting and
onboarding, Managing performance, and Setting and adjusting policies.
•Indeed, the way you communicate with your employees has a direct impacton
the employee experience you deliver and, by extension, your employee value
proposition.

26. 6. Review The Results
•The first step in the review process is to measure how
key talent is responding to your new EVP.
•Check metrics such as:
•Higher engagements on social media on job-
related posts
•Increase in applications
•Increase in responses from passive candidates
•Falling attrition
•But that’s not all!
•Keep reviewing your EVP from time to time –at least
once a year. People’s expectations change over time,
and even if your current EVP is extraordinary, fresh
takes are always important for it to keep working.
•Therefore, keep taking employee interviews in focus
groups to understand what people are looking for.
This will ensure your EVP is still strong to attract and
retain the right talent.

27. 7. Continually Update
•Employees’ needs are dynamic and should
be reassessed on a regular basis.
•Collecting data annually will suffice for most
companies, but those experiencing a
significant event such as a major merger or
acquisition may want to do it more
frequently.
•Ongoing measurement is vital to evaluating
how relationships among factors in the
system may shift as reinforcing loops or
tensions strengthen over time.

28. Example Companies Who Are Crushing It With
Their EVPs
•Canva
After being awarded the ‘#1 Place To Work In Australia’ in 2018, Canva has
remained a contender thanks to a great EVP. Some elements of its wonderful
work culture and benefits include free breakfast and lunch, relocation
benefits, flexible working hours, memberships to fitness studios and more. As
of 2021, its net retention rate is an impressive 152%.
•LinkedIn
As part of the #LinkedInLife EVP, the company has a comprehensive benefit
and compensation package, covering everything from childcare to life
insurance. Plus, employees get a “paid shutdown” at the end of the year, in
which the company closes for a week to celebrate.
•Nike
Nike’s “Win as a team” slogan could not be more on-brand for a sports-centric
company. Its investment in the health of its employees via free access to Nike
Sports Centres, fitness discounts, and therapy and coaching for staff and
family members aligns strongly with the type of employees they look for.

29. Conclusion
•In the race to attract top talent, a strong EVP
will set you apart from the rest.
•Today, employees seek a great place to work
and a great experience in the workplace.
•Organizations that realize this and factor this
into their recruitment strategy are likely to be
attractive employers for top talent.
•Your EVP is a promise to your employees and
one that, if you keep it, will boost people’s
engagement and their trust in you as an
employer.
•Living up to your EVP can even turn your
current employees into the best possible
ambassadors for your Employer Brand.
•All the morereason to carefully think about
your Why before you start communicating
about the What and the How!

30. References
1.https://www.indeed.com/perusahaan/c/info/employee-value-proposition
2.https://haiilo.com/blog/6-steps-to-build-your-employees-value-proposition/
3.https://www.michaelpage.co.uk/advice/management-advice/attraction-and-
recruitment/create-great-employee-value-
proposition#:~:text=An%20employee%20value%20proposition%20(EVP,they
%20bring%20to%20a%20company.
4.https://www.talentlyft.com/en/resources/what-is-employee-value-
proposition-evp
5.https://en.wikipedia.org/wiki/Employee_value_proposition
6.https://www.humanxhr.com.au/blog/what-is-an-employee-value-
proposition-why-is-it-important
7.https://www.aihr.com/blog/employee-value-proposition-evp/
8.https://hbr.org/2023/01/rethink-your-employee-value-proposition
9.https://www.asean.mercer.com/our-thinking/career/global-talent-hr-trends-
2023.html?utm_source=google&utm_medium=cpc&utm_campaign=global-
talent-trends-2023&utm_content=total-wellbeing-
eng&utm_country=id&gclid=Cj0KCQjwk7ugBhDIARIsAGuvgPYOGbVV_brWEg
6-70vqxtxmSwrUNN2haW1IkkFEC95XhKWu9DkQM08aAnB7EALw_wcB
10.https://www.emerald.com/insight/content/doi/10.1108/ICT-05-2019-
0043/full/html
11.https://www.amazon.com/Employee-Value-Proposition-Organizational-
Commitment/dp/3659172979
12.file:///C:/Users/User/Downloads/TheMediatingRoleofOrganizationalReputati
oninPromotingtheimpactofEmployeeValuePropositiononOrganizationalCom
mitment.pdf
13.https://amity.edu/UserFiles/admaa/85906AJMR%20584-594.pdf

31. Learning and Giving for
Better Indonesia
www.humanikaconsulting.com