A new snapshot from HR research firm McLean & Company reports that most organizations have not yet defined their employee value proposition (EVP), a gap the firm says can limit innovation, productivity, and employees’ sense of purpose. The findings, released Thursday, suggest that as employers move into 2025, a clear and compelling EVP may help them retain skilled workers and control labour costs.
“Only 22% of organizations report they have an employee value proposition,” said McLean & Company in a newly published research summary. Without a well-defined EVP, the firm said, many employers risk missing out on benefits such as higher productivity, new ideas, and greater employee fulfilment.
The Toronto-based HR advisory firm’s snapshot says an EVP should showcase what is unique about the employee experience, helping attract the right candidates and encouraging them to stay. According to McLean & Company, an EVP that is too optimistic, or does not consider what competitors are doing, risks failing to connect with current and prospective employees.
“A strong EVP provides a compelling but realistic view of the benefits of joining the organization while also leading to a connection that encourages employees to stay,” said Elysca Fernandes, director, HR Research & Advisory Services at McLean & Company.
The firm’s findings show that organizations with a defined EVP are 1.18 times more likely to report higher overall performance than those without one. They are also 1.16 times more likely to report success in generating new ideas and 1.14 times more likely to report high workforce productivity. Employees are 1.23 times more likely to feel a sense of purpose in their daily work when their organization has an EVP, McLean & Company said.
The research snapshot outlines a four-step process for creating and rolling out an EVP, starting with goal-setting and data gathering, followed by shaping and testing the EVP, and finally launching it both internally and externally. The firm also offers a range of tools, from a workbook to communication guides and presentations, aimed at helping HR teams develop and sustain their EVP.
“However, it is important to note that an overly aspirational EVP creates a disconnect with employees because they won’t recognize it as their lived experience,” said Fernandes.
McLean & Company is a division of Info-Tech Research Group, and draws on evidence-based research and HR expertise to inform organizations of all sizes. The firm said that as organizations compete for talent in a tightening market, clearly articulating what sets them apart as employers will be central to their hiring and retention strategies.
