Employee Value Proposition

The terminology "employee value proposition" (EVP) can in itself be confusing. Investor’s use of the term shareholder value to mean nothing apart from money has meant that value as a term is seen by many people in the narrowest way. Just as this led to the collapse of almost the entire banking system by the destruction of real value in search of mere cash so can misunderstanding the true meaning of employee value proposition obscure a company's strategy in both talent and reward terms.

Study after study has shown that money is just one factor among many. It’s just the easiest to deal with. And that simplicity is in itself very seductive. Studies show that to most employees money is a gateway. The going rate is £X. End of story. Paying £X plus does not heighten employee’s sense of value or worth.

The EVP is the interaction of three themes.
Money
Career
Culture.

The easiest to deal with is money. Second easiest to deal with is career. Hardest to deal with, especially in huge companies is culture. Changing the culture of huge organisations is like doing a three point turn in a supertanker. Big organisations also consist of a large number of micro cultures. Senior management can often be unaware of these micro cultures within teams or departments but they are a bigger influence on employees than the macro culture in terms of job satisfaction.

Creating a strong EVP involves people saying. “This is where I want to work because ....”

People with a long list of non-financial reasons are very hard to poach.

People with only financial reasons are very easy to poach.

People with a long list of non-financial reasons are not put off by adversity.

Adversity per se is not a reason for leaving a company where you are happy.Its ancient history now but people in UK still refer to the Dunkirk spirit. In 1940 after Dunkirk it would have been easy to surrender. People talk about Winston's effect on the country – his inspiration and his leadership. This was important, but Winston wasn’t doing the fighting our building the planes. Ordinary people were. He was both setting the mood of the country and in tune with the mood of the country. It has to be born in mind that most people in Britain thought the country was worth fighting for. And they were not the rich, well-paid, land-owning people. Any historian will tell you that many countries with lesser value propositions collapsed under the strain of war very quickly

Your challenge is to make sure that your employees see your company as worth fighting for. That needs you to do something trickier than hurling cash.

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