Folklore

Craft a compelling EVP to attract, engage and retain top talent

A strong and clearly articulated EVP plays a crucial role in both attracting top talent and retaining existing employees. Beyond talent attraction and recruitment, it serves as a strategic tool to enhance engagement, motivation, and overall job satisfaction. Consistency and reinforcement of messaging to employees, through all stages of the employee lifecycle is key; for utilisation of offerings in your EVP, employee satisfaction and brand.

What is an EVP?

An EVP is the distinct set of offerings, benefits, and experiences a company provides to its employees in return for their skills, capabilities, and contributions. It is important for employer branding and encapsulates the key reasons why an individual should choose to work for a particular company over its competitors. A strong EVP aligns with the company's mission, values, and culture while addressing employees' professional and personal needs. In a market where attracting and retaining top talent is crucial, create an EVP that stands out and that is reflective of your company, culture and values.

It is never too early for a company to establish a well-defined EVP.

Key considerations when developing your EVP

Regulatory and tax implications: Be aware of country-specific regulations and tax considerations that may impact employee benefits. For example, in Australia, Fringe Benefits Tax (FBT) imposes limitations on the value of benefits employers can provide. To maintain equity, you may need to implement standardised global policies that comply with various legal frameworks. See more on fringe benefits tax in Australia here.
Defining clear EVP pillars: A strong EVP typically consists of multiple pillars that reflect both company values and employee priorities. These pillars should align with your company’s culture and the unique needs of your workforce. Example pillars are included in the template.
Effective communication and promotion: For an EVP to be effective, it must be well-integrated across the entire employee lifecycle, from recruitment and onboarding to retention and career progression. Employees should be able to articulate the EVP when describing their experience working at your company.
Relevance to workplace structure: Tailor your EVP to accommodate different working models, such as remote, hybrid, or office-based environments. Ensure that the benefits and perks provided are meaningful and practical for employees in various locations.
Equity and inclusivity: Strive to make your EVP as inclusive and equitable as possible, ensuring that all employees—regardless of location, role, or background—can benefit from its offerings.
Ease of access and usability: An overly complex EVP with multiple platforms or cumbersome processes can reduce employee engagement. Simplify access and ensure that the EVP is user-friendly to maximize adoption.
Continuous monitoring and optimisation: Regularly assess the effectiveness of your EVP by gathering feedback and analysing ROI. Remove or adjust elements that are underutilized to ensure the EVP remains valuable, relevant, and cost-effective.

‍Pillars of an EVP can include:

1. Wellbeing (mental and physical):

Wellbeing days: consider providing specific or extra days off for mental and physical well-being, supported by a budget for well-being activities
Employee assist program (EAP): explore programs such as Employment Hero, Uprise, Converge, based on your cost and session preferences
In-office wellbeing initiatives: consider providing healthy food options, fruit boxes, or subsidising gym memberships for a holistic approach.

2. Parental support:

Inclusive paid parental leave: offer inclusive parental leave policies, ensuring no minimum tenure is required, supporting diversity and inclusivity
Leave for loss: consider compassionate leave policies for situations such as miscarriage or stillbirth
Return-to-work support: provide assistance for a smooth transition back to work after parental leave.

3. Development:

Formal development programs: consider offering formal development opportunities, even in the early stages, to nurture your growing team
Regular 1:1s: implement regular one-on-one meetings for all employees to discuss their well-being and support needs
Training allowance: allocate resources for ongoing training and skill development
Internal coaching and sharing: encourage knowledge sharing through internal sessions, such as lunch and learn events
Visibility to the founder: leverage the startup environment to provide visibility to the founder, fostering a close-knit work culture
Leadership training: invest in leadership training programs for continuous growth.

4. Recognition:

ESOP: explore employee stock ownership plans (ESOPs) for long-term employee engagement and alignment with company success
Recognition programs: establish shoutout programs, peer or manager bonuses, and employee/star of the quarter awards
Merchandising: use branded merchandise as a recognition tool
Team bonding/rewards: plan regular team bonding activities or rewards to strengthen team cohesion.

Get inspiration and your EVP into action using the EVP template.

This resource, and any guidance within it, must not be relied on as legal advice. We recommend that you seek specific advice to deliver an outcome best suited to your situation.