How to create an employee value proposition that stands out

Finding the right employees can be tough.

In 2022, 46.2 million workers voluntarily quit their jobs, a trend that experts dubbed The Great Resignation. And despite economic uncertainty, an estimated 46% of the American workforce wants to switch jobs in 2023, making job hopping and talent retention hot topics in the professional world. 

Many workers want more flexible hours, better compensation and benefits, and a stronger work-life balance. And as an employer, you might be able to offer those things. But when you don't effectively communicate those benefits, job seekers (or even current employees) might look for work elsewhere. 

But no matter the state of the job market, an effective employee value proposition (EVP) is vital for talent acquisition. It encompasses the assets you offer as an employer to attract new talent and retain your best employees. 

Learn more about employee value propositions and how to build an effective EVP to recruit and retain high-quality workers. 

What is an employee value proposition?

An EVP communicates the value an employer provides to its workers. Compelling EVPs include tangible assets, like compensation and employee benefits packages, and intangible values, like company culture and professional growth opportunities. 

The more benefits you provide — and the better you communicate them — the stronger your recruitment value proposition is when hiring new team members.

An EVP should appear in or on your company's branded materials, employee advertisements, and career page. Some organizations keep their EVP in an organized document so hiring managers and recruiters can share it with candidates throughout the hiring process.

Why is a strong employee value proposition important?

An EVP is an integral part of your brand and marketing strategy. It represents company values and demonstrates what you’re able to offer new employees to help them decide whether they’re the right fit for your company.

A good EVP supports also employer branding and shows potential employees what sets you apart from competitors. 

Along with the recruitment and hiring process, EVPs support marketing in general. When customers and clients see you treat your employees well, they might be more inclined to work with you. 

What does an employee value proposition include?

An EVP tells prospective employees what you have to offer, so don’t be afraid to get into detail. Here are five sections a good EVP should have (and what each could include):

1. Compensation

Although salary isn't the only thing a new hire considers, job seekers increasingly demand pay transparency. In 2022, 33% of job seekers refused to follow through to the interview stage without a salary range. And in some states — like California and Colorado — job postings are legally required to include a salary range.

You don’t have to include a set number in an EVP, but a compensation range tells potential employees what they could receive. Don’t forget to check the legal requirements for pay transparency in your area.

In general, a compensation section should list the following:

• Annual salary range
• Raise and promotion policies
• Bonus opportunities
• A policy for fair and inclusive compensation
• Severance pay
• Hazard pay

2. Benefits and perks

According to a Glassdoor survey, 60% of respondents value perks and benefits when accepting a job. The same survey reports that 80% of employees value stronger benefits packages over pay increases. Employee benefits are an important part of a good value proposition, and as an employer, you should be clear about what you’re willing to offer.

Benefits and perks may include the following:

• Health insurance policy
• Childcare
• Sick leave
• Parental leave
• Paid vacation
• Retirement plan
• Disability and worker's compensation
• Pension and stock options

3. Career development opportunities

Giving employees the opportunity to learn critical skills shows them you’re invested in their success. Many workers seek learning opportunities when searching for new positions.

A Gallup poll found that 57% of respondents were extremely interested in training that upgrades or teaches them new skills. And when training is free, and workers are paid or receive reimbursements, their interest shoots up to 71%.

In an EVP, career development opportunities could include:

• On-site training and education
• Education stipend
• College education and certification programs
• Tuition assistance
• College debt relief
• Coaching opportunities

4. Company culture

Unlike the tangible benefits above, a company's culture represents the way an organization values its employees and interacts with the world. There are some ways to show off company culture in an EVP — like making statements about diversity, flexibility, and other values — but it’s less concrete than other perks.

Here are some ways to quantify company culture to prospective employees:

• Hybrid and remote work opportunities
• Flexible hours
• Management styles
• Collaboration and teamwork values
• Diversity and inclusion statements
• Employee well-being events

5. Extra perks

Going the extra mile and getting creative with your perks can also impact a worker's well-being. Although these aren’t consistent or regulated between different companies, they add to company culture and help employees feel at home.

For example, Google’s additional benefits — titled “Googley extras” in the company EVP — include onsite meals, fitness classes, and internet reimbursement. 

Extra perks might include:

• On-site yoga, meditation, and mindfulness classes
• Wellness stipends
• Reimbursements on gym memberships
• Napping and meditation rooms
• Catered lunches or food stipends
• On-site health services
• Company car
• Discounts on company products and services

What are the benefits of a good employee value proposition?

A well-crafted value proposition attracts talent, supports positive company culture, and drives profits. Here are six reasons why a strong EVP should be part of your recruitment process and new hire checklist:

1. Talent acquisition

By 2025, millennial workers will make up an estimated 75% percent of the labor market, and millennial employees pay attention to a lot more than money. Millennials value healthcare options and wellness programs and ask for flexibility with remote work, sick days, and parental leave. 

As millennials continue to fill the job market, companies need to keep up with trends and demands. EVPs communicate what an employer has to offer so job seekers of any age can decide whether it suits their expectations — and so companies can show why they’re a great place to work.

2. Cultural add

An EVP presents the kind of employee experience a job seeker can expect from the organization, which lets them determine if they’d be a comfortable addition to the team.

For example, if a value proposition is all about community and collaboration, people who love to work socially will know your company is aligned with some of their values.

3. Passive candidates

People looking for a job don't fit into a single box — unemployed people are just a percentage of the market. Employed workers, sometimes known as passive job seekers, also contribute to the job market.

These workers are currently employed but are open to a new opportunity if it’s the right fit. In 2022, passive job seekers made up 73% of the job market. 

Because most passive seekers already have a job, companies must work extra hard to convince them to switch positions. Passive job seekers need more work-life balance, higher pay, and flexibility at a company that is stable economically and culturally. 

An attractive EVP that checks off all the boxes is one effective way to attract and persuade passive job seekers.

4. Employee retention

A good employee value proposition doesn't just attract potential employees. It lessens employee turnover, too. Passive job seekers can include people who already work for you but aren’t quite getting what they need. 

In an era when employees are so open to switching jobs, it's more important than ever to keep your current employees happy and engaged before their eyes start to wander. Offer a good EVP from the start to ensure their focus.

5. Company branding

How a business governs itself and interacts with the world has a tremendous impact on its success. Consumers increasingly support brands with value and purpose, and job seekers are often looking for the same.

When organizations openly market a strong EVP, it can positively impact brand perception both for customers and clients and for potential employees. Include your values and meaningful social contributions to show people what’s important to you. 

6. Profits 

Offering extensive perks, career development opportunities, and systems that foster worker autonomy is expensive. But the investment in employee satisfaction pays off. A great employee value proposition builds productive and content workforces that aid success.

When workers are happy, organizations grow revenue four times more than competitors with weaker company cultures. Likewise, companies with diverse workforces see increased revenue from innovation and creative problem-solving. 

Examples of employee value propositions 

A written EVP is usually at the top of a job advertisement or careers page. It should at least include a short paragraph demonstrating the company's core values and benefits.

Many EVPs have extra sections for different perks so potential hires can look at them individually. Here are two examples of EVPs:

Hubspot

Hubspot’s benefits page has a header with lots of different sections — locations, departments, benefits, students, and diversity — and a search bar for its open jobs.

It also has icons and short blurbs about unique benefits like sabbaticals and Healthy@HubSpot, a wellness program. At the bottom of the page is a testimonial section with quotes from real Hubspot employees.

Why does it work? This EVP keeps things organized and shows off what makes it unique. Including employee testimonials is a great way to tell job seekers why they should work at Hubspot without being too obvious.

Canva

Canva’s EVP starts with an on-brand lead-in — “Design your future with Canva” — and a video of employees talking about their Canva experiences.

The page focuses on the company’s values and community. It also has a “Discover your team” section with a section for every department.

Why does it work? Canva uses its EVP to represent its playful, design-oriented branding and tell potential employees what they can expect from working there. It also has a lot of photos to help job seekers better see themselves in Canva’s work environment.

How to create an employee value proposition that represents your company

To create an EVP that stands out, follow these tips:

1. Audit your current benefits

Think about what you already have that makes your company attractive to new hires and current employees. Create a comprehensive document with the current compensation ranges, benefits, company culture, and career opportunities and their related policies. This is your jumping-off point.

Your EVP will change over time, so it’s important for hiring managers, human resource leaders, or people operations teams to regularly update the documentation as you make new decisions.

2. Imagine a dream candidate

You can't build a plan without knowing its objective. Clearly define the qualities you’re looking for in a potential recruit. Ask yourselves what kind of talent you want to attract. These should include hard and soft skills, experience levels, and personality traits.

Knowing the characteristics you want from your workforce helps you tailor your employee value proposition to that kind of person. For example, if you want autonomous employees, you need to develop a strong company culture that offers remote and hybrid work models and flexible hours.

3. Talk to your employees

Your current employees are your best ally in improving your employee value proposition. Exit interviews and informal conversations are helpful, but an employee feedback survey documents what they like or want to change.

The answers will confirm your best assets to share with new hires and what direction the company needs to move toward.

Here are some questions to include in an employee survey:

• What do you value most about your job?
• What are the most important benefits you receive?
• What additional benefits would you like to receive?
• What support would you like to advance your career development?

This is also a great way to improve your diversity recruiting strategy. For example, someone who wants to build a family will pay attention to maternity leave, an older employee might want a retirement plan, and a recent college grad might prioritize employee assistance programs.

Different benefits encourage people from more backgrounds to apply and promise to help them thrive at your company. 

4. Communicate 

Share your EVP in job advertisements, company webpages, and appropriate social media. Likewise, incorporate your values into your internal branding documents, like an onboarding checklist or employee handbook.

A value proposition is meant to be shared so you can source candidates that share your values.

Boast your organization's worth with an EVP

An organization's values represent who they are and how they work with others — and every perk counts. Building the best version of your company will help the right talent come to you (and stick with you).

Think about your ideal candidates, learn from your employees, and make the necessary changes to build an employee value proposition that stands out from the competition.