Introduction to EVP

CEB’s Employment Value Proposition Framework

CEB Corporate Leadership Council

© 2015 CEB. All rights reserved

Introduction
What it does:
This presentation introduces the concept of an Employment Value Proposition (EVP) to define the benefits and
components of an effective EVP before beginning your project.
How to Use it:
Review this presentation and present it to all leaders involved in the EVP redesign process to agree on the definition
and objectives of an EVP design.

2 © 2015 CEB. All rights reserved

Defining Employment Value Proposition

The Employment Value Five Key EVP Categories

Proposition (EVP) is the
set of attributes that the
labor market and
employees perceive as
the value they gain
through employment with
the organization.
Rewards Opportunity
•  These attributes fall into five
categories: rewards,
opportunity, work, people,
and organization.

Organization Work

People

Source: CEB Employment Value Proposition Survey; CEB analysis.

3 © 2015 CEB. All rights reserved

CEB’s EVP Framework
38 Attributes that Comprise an EVP

EVP
The set of attributes that the labor market and employees perceive as
the value they gain through employment in the organization

$
REWARDS OPPORTUNITY ORGANIZATION PEOPLE WORK
■  Compensation ■  Development ■  Customer Prestige ■  Camaraderie ■  Business Travel

■  Health Benefits Opportunity ■  Empowerment ■  Collegial Work ■  Innovative Work

■  Retirement Benefits ■  Future Career ■  Environmental Environment ■  Job–Interests

■  Vacation Opportunity Responsibility ■  Coworker Quality Alignment
■  Growth Rate ■  Ethics–Integrity ■  Manager Quality ■  Level of Impact
■  Meritocracy ■  Formality of Work ■  People Management ■  Location
■  Stability Environment ■  Senior Leadership ■  Recognition
■  “Great Employer” Reputation ■  Work–Life Balance
Recognition
■  Inclusion/Diversity
■  Industry Desirability
■  Market Position
■  Organization Size
■  Product/Service
Quality
■  Respect
■  Risk Taking
■  Social Responsibility
■  Technology Level
■  Well-Known Product
Source: CEB Employment Value Proposition Survey; CEB analysis. Brand

4 © 2015 CEB. All rights reserved

Benefits of a Well-Managed EVP
Percentage of Employees by Degree of Job Search
Benefit 1:
Behavior, Global Employed Labor Force
Enables organizations to reach 50% deeper into Potential candidates
are almost twice as 43.1% 45.7%
the labor market to attract passive candidates. 55.0%
likely to be passive
35.0% 29.7% 30.1%
than active.
27.3% 24.2%
15.0%
Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015

Passive Neutral Active

Source: CEB 2012–2015 Global Labor Market Survey.

Switching Premiums a, Global Employed Labor

Benefit 2:
Reduces the compensation premium needed to Force
Employees expect an
hire by 50%. 8.5% total pay increase to 11.0%
switch jobs. 10.0% 9.3%
8.5%
9.0%
8.0%
7.0%
Q1 2012Q3 2012Q1 2013Q3 2013Q1 2014Q3 2014Q1 2015Q3 2015
Source: CEB 2012–2015 Global Labor Market Survey.
a Switching premium expectations measure the percent change in total compensation an employee would
expect to receive when switching to a new employer.

Benefit 3: Engagement Levels, Global Employed Labor Force

Decreases annual employee turnover by 69%. Only about one third of
employees express high 40.0% 35.1%
32.3%
intent to stay with their
current organization. 30.0%
20.2%
17.5%
Source: CEB Employment Value Proposition Survey; CEB analysis. 20.0%

10.0%
Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015

Intent to Stay Discretionary Effort

Source: CEB 2012–2015 Global Labor Market Survey.

5 © 2015 CEB. All rights reserved

EVP Versus Employment Branding
Definition of Terms
Employment Value Proposition (EVP) Employment Brand
What an organization promises to employees as the value of The perceptions that the labor market has about an organization as an
working there. employer.

Rewards Work

Work

Opportunity Organization

People

EVP Management Employment Branding

The efforts undertaken by organizations to define and improve their EVP. The efforts undertaken by employers to manage labor market perceptions of
them.
Sample Activities: Sample Activities:

■ Prioritizing and articulating your EVP attributes ■ Defining specific messages to communicate
■ Delivering on your EVP promise across the employee lifecycle ■ Promoting these messages through different channels to reach active
and passive candidates
Source: CEB
Typical Owner: HR analysis. Typical Owner: Recruiting

© 2016 CEB. All rights reserved

 EVP and Employment Branding Project Plan

Process Map

I II III IV V
Phases Planning Delivering on Employment Monitoring
Designing the EVP
the EVP Branding

Steps ■ Assemble support. ■ Gather intelligence. ■ Align HR investments ■ Segment the ■ Measure EVP and
with the EVP. employment brand. branding effectiveness.
■ Set goals. ■ Prioritize
EVP attributes. ■ Deliver the EVP across the ■ Create brand ■ Govern and refine the
employee life cycle. messages. EVP and brand.
■ Segment
EVP attributes. ■ Communicate ■ Communicate the
the EVP to employees. brand to external
audiences.

Typical 1–3 months 6–9 months Ongoing

12–24 months 12–24 months
Timeline

Note: Phases III and IV can be completed simultaneously if resources allow.

Source: CEB analysis.

© 2016 CEB. All rights reserved

Sample EVPs

© 2015 CEB. All rights reserved