Rethink the Importance of an Employee Value Proposition (EVP) to Hire the Best IT Specialists

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When choosing where to send the CV, 84% of IT professionals pay attention to the company’s reputation. However, attracting talent and motivating staff is not limited to a strong employer brand. It is important what perks you offer.

For example, in crises, the main thing is the support of your employees, providing additional sick leave, and helping to equip the home office. Such advantages and benefits constitute the Employer Value Proposition (EVP).

If you haven’t worked on the Employee Value Proposition yet, you can start today! We’ve highlighted what EVP is and how to develop it, using the examples of Airbnb, Netflix, and ITExpert.

Our plan:

• What is the Employee Value Proposition
• What is the difference between EVP, corporate culture and HR brand
• Why EVP is important for companies
• The main components of the Employee Value Proposition
• A step-by-step guide on how to develop an EVP
• Examples of successful EVPs of technology companies
• What to do after developing the Employee Value Proposition

What is an EVP (Employee Value Proposition)

EVP is a set of advantages and benefits in exchange for the specialist’s knowledge, skills, and experience. The Employee Value Proposition helps both the employee and the candidate answer the question: “‎Why should I work for this particular company?”‎.

With a successful EVP, you can attract IT specialists who resonate with your company’s values and corporate culture more effectively. In addition, with a value proposition, the employer will have more relevant candidates. For example, out of the first 100 candidates, about 90 will be more likely interested in working in the company and align with its values.
According to a Gartner study, EVP reduces annual talent turnover by 69% and increases new hire commitment by nearly 30%.

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EVP vs Corporate Culture vs HR Brand: What’s the Difference?

“Value proposition”, “Corporate culture”, and “HR brand/employer brand” concepts are often confused. Let’s explore the difference between these ideas.

1. Corporate culture means how people work and treat each other in and out of the company. It also includes the company’s values and mission. For example, there is an internal document at Netflix that outlines all the principles and requirements of working in the corporation.

One of the points of the company’s internal culture is the policy of trust. If an employee spends money on what he needs for work, the company will return it to him. Refunds are approved in almost 100 percent of cases. The main rule to follow is “Act in Netflix’s best interest”.

For example, one of the Netflix engineers told this story:

“I flew to the conference as a speaker, thinking it was good for the company because I represent our product and Netflix itself. Nobody checked me, did not demand a report, didn’t send me there (to a conference). Then, I added all the expenses for tickets, hotel, etc. into the internal system, and the company returned the money.”

Corporate culture is the starting point before EVP development.

2. EVP is the experience that employees gain, as well as the benefits they get while working for the company. For example, a company states on its careers page: “Only your ambition sets the limit to your success. We create an environment where people can turn into reality their career goals and potential.” 

And backs it up with a value proposition, or information about what exactly the company does to ensure that its employees constantly develop and grow vertically, horizontally, and cross-functionally (for example, a marketer can become a product analyst):

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An interesting, non-typical domain can serve as an additional “hook” for a candidate. For example, the MetaEngine company develops blockchain-based solutions and creates programs for virtual meetings and work conferences, including those interacting with the metaverse.

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3. HR brand (employer branding) means the information about the company that the employer broadcasts in various channels to attract and retain the best tech talent.

The value proposition is used within the company. However, to implement it, you need to first survey employees, candidates, and also analyze your competitors. It is based on data, responses, and corporate culture itself. At the same time, the employer brand is about developing an IT company brand, marketing, and the ability to convey information about the company’s values, goals, and benefits for the people who work there.

The Importance of the Employee Value Proposition for IT Companies

Nowadays, professionals from all over the world are motivated not only by salary. They strive to grow their careers, offer product ideas, share the company’s values, and feel their importance. And given the data from Adare Human Resource Management, which shows that the cost of replacing an employee costs companies €14,000, the conclusion suggests itself. A well-thought-out EVP is the basis for the success of hiring new specialists. Let’s explore four main reasons that prove this once again.

A better understanding of the company, employees, and the candidate portrait 

With a well-developed EVP, you will better understand who you are looking for in the company, and who you definitely won’t take on board. For example, if the company is a startup with challenging tasks, you should not consider IT candidates focused on stable work strictly without overtime.

Attract more relevant candidates

With a successful value proposition, it’ll be easier for you as an employer to hire tech specialists that resonate with your company’s values and internal culture. As a result, the company will get more relevant candidates at the earliest stages of the recruitment process.

Better competitiveness

EVP reflects the company’s values and mission that help differentiate an organization from its competitors.

Reduce employee turnover and increase the involvement of current team

Nowadays, you need to attract the best talent, but also retain current IT professionals. An EVP helps to present the company’s benefits besides the salary. By constantly broadcasting business goals and the benefits of working for you, you will allow employees to understand where your business is heading. With competitive advantages and friendly corporate culture, they will think less about moving to other companies.

The Three Main Components of the Employee Value Proposition

There are three elements of a company’s value proposition:

1. Financial and intangible benefits.
2. The experience an employee gains while working for a company.
3. Emotional attachment (why an IT specialist wants to work here).

The employer’s EVP can also be divided into levels of basic expectations, additional expectations, and the unique benefits of working for the company.

Basic expectations

At this level, the specialist wants to be paid a salary within or above the market, as well as wants his direct managers to recognize the achievements and provide feedback on work.

Additional expectations

This refers to how management helps build a career or maintain a work-life balance, how many vacation days, paid sick days, maternity or paternity leave provides, etc. This level includes standard working conditions and bonuses for all IT companies.

Unique benefits and perks

This level includes bonuses that distinguish the company from competitors. For example, you can bring your pets to the office of the Petcube technology company. In addition to salary, startup employees get the company’s stock options.

*Petcube is a company that develops gadgets for pets. They allow owners to monitor and play with their cats and dogs using a laser and a smartphone.

How to Develop an EVP: Step-by-Step Guide

There are four steps to creating an employer value proposition:

• Define business goals. For example, the goal is to enter new markets, hire new Senior developers, or reduce staff turnover. This will determine the expectations and requirements for new candidates.
• Analyze what candidates and employees want to get working at your company. To offer great conditions, you need to understand exactly what specialists want and what they are looking for in employers. To do this, you can conduct a survey among employees (including among those who have already left the company).
• Develop your EVP. At this stage, the value proposition of the employer is developed.
• Determine how to communicate the value proposition creatively: decide how to talk about EVP, and where to publish the employer’s offer to convey information to the market and reach the target audience.

The following questions will help shape your value proposition: “How do employees evaluate benefits and bonuses now?”, “Which of this list needs to be revised?”, “What is the company lacking now to start attracting employees with the required qualifications?”, “What factors affect the fact that IT workers remain working in the company?”, “What makes key employees leave? What can be improved/changed from this?”

Examples of Successful Employee Value Propositions

Let’s dive into several examples of employer value propositions for companies that are not looking for talents—specialists find them themselves. 

Airbnb

Airbnb unites employees with a mission “Create a world where anyone can belong anywhere”. This mission is supported by four core values that define how it is to work at Airbnb. It stands for inclusion, caring, support, and innovation. The company’s EVP is closely related to the tourism industry. Therefore, Airbnb offers a range of travel benefits: remote work, annual paid trips, accommodation discounts, and paid employee volunteer time.

Netflix

Netflix is loved by customers and employees. The company has a rule: “People over process.” It can be summed up in five points:

1. Encourage independent decision-making.
2. Share information openly, widely, and consciously.
3. Be very open and transparent with each other.
4. Keep only high-performing people on the team.
5. Avoid rules.

Netflix co-founder Reed Hastings often compares the type of Netflix corporate culture not with a symphony orchestra, where the score is carefully rehearsed and a strict hierarchy reigns, but with jazz. He is convinced that in a creative environment where innovation, speed, and agility are necessary conditions for success, you shouldn’t use the “symphony orchestra” principle.

The basic element of jazz is improvisation. True, there are stable melodic and rhythmic elements, but the very process of creating music takes place during its performance. Jazz band members are provided with complete freedom. It is the same with Netflix: company employees get freedom and responsibility for their decisions, as well as context instead of control.

ITExpert

Employees of our IT recruiting agency adhere to the following principles and values:

• Maintain long-term cooperation.
• Solve problems, not create them.
• Constantly develop your skills.
• Be ready for challenges.
• Reveal mindfulness.

Company’s IT recruiters should be ready for challenges. We are often looking for rare Senior tech specialists. For example, the ITExpert team hired Pixi Developers for the gaming industry (there are only 100–150 such specialists in the local candidates market), successfully filled Enterprise Architects vacancies for a well-known state-owned company, and was engaged in recruiting for IoT, Embedded, web3, AI, Data Science, and other domains and technologies. 

To promote the development of employees, we’ve launched and regularly update our internal knowledge base with video lectures and books on recruiting and technical IT. We also organize an internal club of recruiters and compensate for external events and resources for training. In addition, we help the team develop personal brands: write columns on our blog and external resources, participate in webinars, and more.

You’ve Developed an EVP: What’s Next?

Constantly measure the success of your EVP—for example by tracking candidate apps or employee turnover rates. Conduct employee surveys to understand what is important to your IT teams. Change the value proposition as needed to meet employee expectations. These tips will help you to become more efficient in hiring talented candidates.