It may seem counterintuitive to be talking about an employee value proposition when so many companies have just completed significant lay-offs or will soon announce a reduction in force.  But in times like these, it is imperative for human resources practitioners to focus on the fundamentals of attracting, engaging and retaining high quality talent.

Scores of research studies find that leading up to and following a reduction in force employee morale, engagement and productivity decreases. And if a company is not careful, its best employees are also likely to walk out the door in search of a more secure environment or company with a better employee value proposition.

What is an employee value proposition (EVP)? Simply put, EVP is an employee’s perspective on “what’s in it for me to work here?” and an employer’s communicated promise to its employees. Key components of an EVP might include:

Compensation - salary, incentives, cash recognition, pay process
Benefits – healthcare, retirement, insurances, recognition programs
Affiliation – work environment, trust, transparency, organizational commitment
Career – advancement opportunities, personal growth and development, training, job security
Work Content – challenge, autonomy, meaningfulness, variety

In many companies, the focus of an EVP is often confused with an employer brand and as a result, it is solely communicated to attract job applicants. An EVP certainly contributes to the employer brand and draws from it, but they are not the same thing. Developing the right EVP requires an understanding of the company’s current and future talent needs in the context of the business strategy.

Let me share a few examples:

 "What makes Allstate a great place to work is our commitment to our employee value proposition," says Joan Crockett, Senior Vice President of Human Resources.  "That proposition includes three components: a company that is innovative, successful and community minded; leaders who inspire, build trust and empower employees to achieve optimal performance; and an environment where employees feel valued and rewarded.”

At Sodexo, we support and encourage our employees to shape their own future and grow with the company. These themes can be summarized with the Employee Value Proposition.

• We care about our employees in the same way that we care about our clients and we strive to provide each and every employee with a wide range of professional and personal opportunities to improve the quality of their daily life.
• Our employees are able to develop their careers both locally and globally across all of our service areas. They have the flexibility to align the pace of their career with their various life stages.
• By living the Sodexo values and ethical principles, and actively fostering diversity and inclusion, our people make Sodexo a company of the future.

Five commitments capture the Sodexo Employee Value Proposition: Recruiting, Welcoming, Living, Growing and Rewarding. For more information on the Sodexo EVP, talk to your manager. Comprehensive visual and printed materials are available now.

Isn’t it just wonderful how the Sodexo statement includes guidance for employees to talk with their manager?

More than 51% of all corporations today now cite “improving culture” as their top talent challenge (TalentWatch® Winter 2009).  Today forward-thinking companies are revisiting their employee value propositions and making sure that they are timely, clear, and relevant.   While today most employees are just happy to have jobs, people need a sense of trust and clear focus from their employer.  How are you refining your employee value proposition in today’s business realities?