Apr 3, 2025

What is an Employee Value Proposition (EVP)?

Attracting and retaining talent is more challenging than it used to be. Today’s employees seek a positive workplace culture, growth and purpose more than just a monthly paycheck. Your Employee Value Proposition (EVP) is a powerful tool to boost your employer brand, employee engagement and overall retention rate. Let’s explore what an EVP is and how it can help your organization.

Valentina Behrouzi

I'm Val, one of the Marketing Managers here at Teamtailor, responsible for our Global marketing. I love talking about candidate experience and how we can strive to make hiring more inclusive.

What is an Employee Value Proposition (EVP)?

Your EVP is your company’s unique set of perks and benefits that make up your wider employer brand and that employees receive in exchange for their skills and commitment. Beyond salary, it covers everything that makes your company worth working for, and what your employees will experience working within the organization.

Why is an EVP Important?

A compelling EVP is crucial in attracting and retaining talent and has a number of positive benefits for your organization.

Attracting the right talent: A compelling EVP will attract top quality candidates, but also those whose culture and values are aligned with yours.
Retention: Your EVP will reduce turnover and foster a sense of loyalty as the expectations of what you offer will be clear from the very beginning.
Employee engagement: Employees are more likely to perform better if they feel valued and motivated.
A strong employer brand: A clear and enticing EVP will affect how your organization is seen as an employer and boost your company’s reputation.
Competitive advantage: If your EVP offers stronger benefits than your competitors, you’re more likely to attract the right talent and increase employee satisfaction levels.

Key elements of a compelling EVP

A compelling EVP should encompass all aspects of your employees work and personal life, addressing the employee experience as a whole

Compensation
The financial benefits you provide will play a big role in the strength of your EVP. This will cover salaries, bonus and equity. In terms of more personal benefits, your EVP should also cover things like healthcare, pension plans, and any other financial incentives. If your company is global, make sure to tailor the compensation to different regions to keep things equitable.
Learning and development
Progression and growth is important for your candidates and one of the first things they will ask about during the interview process. Ensure the progression paths are clear and include any offerings for learning and growth, such as courses, mentorship programs or training.
Company culture
Your overall company culture is a crucial part of your EVP as it will help to both attract and retain the right talent, and has a big impact on the employee experience. A positive and supportive culture with strong leadership should be reflected in your EVP. This also includes your level of inclusivity and what Diversity, Equity and Inclusion (DEI) initiatives your company upholds.
Work-life balance
On top of all the above, a work-life balance is essential for a happy workforce. Your EVP should focus on what work arrangements look like for your employees, including flexibility, hybrid working options, holiday benefits, work from abroad benefits and anything else that allows your employees to prioritize their personal lives.
Recognition
To boost retention, your employees need to feel valued and appreciated. This is where recognition of their contribution and hard work comes in. Acknowledge achievements and show appreciation with team outings, internal awards, incentives, referral bonuses or wellbeing benefits.
Purpose
Lastly, it's important that your employees feel as though the work they are doing is meaningful. Your company values and mission should be clear and highlight where your employees come into it. A sense of belonging is powerful and increases employee satisfaction. This also includes elements like your corporate social responsibility (CSR) and your ethical business practices.

Measuring your EVP

For an EVP to be effective, it needs to align with both the business goals and employee expectations. You need to ensure your approach to creating your EVP has been strategic and that you continue to measure its impact.

Direct ROI is difficult to measure, but there are a number of metrics you can monitor to determine its effectiveness.

Cost per hire: If your EVP is resonating with the right audience, you should see a decrease in cost per hire as qualified candidates apply more readily and quickly.
Time to hire: A low time to hire means you’re able to fill roles quickly, a positive indicator of a good EVP
Career site engagement: High engagement rates and click through rates mean that candidates are engaging positively with your career site.

Optimizing your EVP

Your EVP might need to change over time, so make sure you’re always on top of it and have an understanding of industry and cultural trends. Use our tips below to ensure that your EVP is always optimized.

Employee feedback: Understand what your employees value the most by sending out regular surveys.
Competitor analysis: Research your competitors to see what they’re offering their employees and where you might be coming up short.
Align with company mission and values: Ensure your EVP is honest, consistent and reflects your company’s overall value and goals.
Communication: Make sure your EVP is clearly communicated and easy to find in all of your recruitment materials. This includes your career site, onboarding materials and internal communications.

Conclusion

Your EVP is the crux of your employer brand and can be a game-changer for your organization. It will strengthen your employer brand, boost your organization’s reputation and lead to a more engaged workforce. By crafting a strong EVP, and constantly measuring and optimizing, you can create a workplace where employees feel valued, satisfied and are engaging positively.

Now you know all about your EVP, download our guide on improving your employer brand below!