With openings still rife and employees on the move, the labor market has undergone a fundamental shift in recruiting and retention. But have organizations modernized their employee value propositions (EVP) to rise up to these challenges?

The EVP gives employers a means to define what constitutes an exceptional employee experience and delivering it. It promises the tangible and intangible rewards that align with employee needs at work and home, communicating what it means to be part of the organization.

The EVP also represents what employee contributions will best drive organizational performance and helps ensure the right people will work and stay with the organization.

The employee value proposition 2022

An employee value proposition should reflect the realities of the current job market, which has changed dramatically since the onset of the COVID-19 pandemic.

Employers need to understand employees’ needs and desires as they relate to total rewards, culture, career opportunities and work-life balance.

The ongoing gap between job openings (11.3 million in February 2022) and takers (6.7 million)1 shows that organization have an opportunity to differentiate themselves from the competition.

The exchange of rewards, value, and effort that is expressed through the employee value proposition needs modernizing: Only 31% of HR leaders believe their employees are satisfied with their EVPs and 65% of candidates have actually withdrawn from consideration because of suboptimal EVPs.2

How to build a modern EVP

Modernizing an employee value proposition is key to supporting and cultivating a workforce that is engaged, growing and secure.

Reengineering the EVP starts with evaluation, and moves through the following steps:

  • Discover: Evaluating the current EVP starts with inventorying all existing rewards. It’s also important to evaluate how the EVP affects why people join or leave the organization, using focus groups, surveys, exit and stay interview data.
  • Develop: The evaluation will inform development of the EVP statement, which articulates the organization’s commitment to the workforce and the rewards system that upholds those values. A comprehensive communication strategy is also important, so current and potential employees can clearly see, hear and embrace the EVP message.
  • Delivery: Perhaps the biggest opportunity is weaving the EVP into the company’s HR processes and programs through recruiting, onboarding, professional development and management training. Organizations should develop comprehensive training to train leaders to be ready and willing to bring the EVP to life. The most significant influences on a company’s EVP reside with the leadership team.
  • Monitor: The EVP needs to be measured and monitored. As part of an organizational framework; the EVP should be monitored using measurements that reflect its effectiveness. Examples of such measurements include cost per hire, turnover, candidate quality, new-hire retention and employee referrals. With strong metrics, the organization can adjust the EVP over time to increase its impact.

HUB International’s Human Resource Consulting team is available to work with you on a diverse range of HR needs, from risk management and regulatory compliance to benefits strategy, program design and workplace culture.

1 U.S. Bureau of Labor Statistics, “Job Openings and Labor Turnover Summary,” March 29, 2022.
2 Gartner, “Make Way for a More Human-Centric Employee Value Proposition,” May 13, 2021.