Six reasons your NFP needs an Employee Value Proposition


It’s fair to say that most people working in the NFP sector aren’t primarily motivated by money.

So what do staff get out of working at your organisation?

While the answer might seem obvious – the satisfaction of working towards a better world, opportunities for career development or camaraderie with like-minded colleagues, for example – this is a significant question that many NFPs might struggle to easily answer for their organisation.

Enter the Employee Value Proposition, or EVP – recognised as an effective way to answer this question.

Though it may sound like HR jargon, an EVP describes the unique characteristics and benefits your staff receive from your organisation in exchange for their skills, time and expertise.

Put simply, an EVP breaks down the central reasons staff are proud and motivated to work at your organisation.

It also characterises and differentiates your organisation from its competition – and however great your organisation is, there will always be other organisations out there competing with yours for the best and brightest people.

And according to the Corporate Leadership Council – which works with HR professionals at the world’s largest corporations – the benefits of a well-considered and properly executed EVP include a 29 percent increase in commitment among new staff, as well as a boost of up to 47 percent in the likelihood of staff advocating for the organisation.

Need more convincing? Here are six benefits of a great EVP:

1. It helps attract and retain the best people

A strong EVP that’s clearly communicated to potential employees is a powerful tool in attracting and retaining high-quality candidates – ones you might otherwise lose to organisations with more attractive EVPs.

2. It appeals to in-demand candidates in different markets

Rather than using a ‘one size fits all’ approach, a good EVP contains elements that are attractive to candidates from a diverse range of backgrounds. The most effective EVPs combine the needs of key workforce segments to create an employer brand, which is then communicated to each segment.

3. You can use it to reengage disenchanted staff

Want to build long-term trust and boost motivation in your workforce? In developing an EVP, you’ll need to involve and survey your staff to gain their first-hand perspectives – in itself, a powerful method of reengaging staff. It also gives them a chance to reflect on what works – and what doesn’t work as well – in your organisation.

4. It can sharpen your organisation’s HR priorities

Developing an EVP should draw out your organisation’s HR priorities by highlighting what’s important to existing and potential staff. With this information, you should then have a better understanding of specifically what needs to be done to attract, engage, retain and develop the people you want, and where improvements need to be made.

5. It helps creates a strong ‘people’ brand

With a strong and credible EVP, your organisation is better placed to be recognised by potential employees for the way you treat people, as well as the work you do. It’s one more way for you to stand out among other employers.

6. It can improve your organisation’s bottom line

A study by US consultants Towers Watson of 1,605 employers revealed that those who’d invested the most time and effort into developing a strong EVP enjoyed better financial performance over those who hadn’t. An EVP should also save your organisation precious resources by helping to attract the best talent faster, reducing the time you need to spend recruiting.

So have we whet your appetite to get started on developing an Employee Value Proposition for your organisation? We’ll walk you through the steps to creating a winning EVP in our next post.


If you’re ready to get started on creating an EVP, check our our next post: Seven steps to creating a strong Employee Value Proposition for your NFP.

Parts of this post are based on a report on EVP from UK-based organisational development consultants Talent Smoothie.

Does your organisation have an Employee Value Proposition? If not, have you been convinced of the value of developing one? Share your thoughts in the comments below.

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