Elevate Your EVP With Sustainability

Creating a compelling employee experience is more critical than ever in today's highly competitive job market. Therefore, a strong employee value proposition (EVP) is crucial to an organization's employer branding and employee experience management efforts. The EVP refers to the unique benefits and rewards that a company offers its employees in exchange for their skills, abilities, and contributions, which helps in fulfilling the organizational goals and purpose. This can include opportunities for growth and development, a supportive and inclusive work environment, work-life balance, employee well-being, and a sense of purpose and meaning in work.?

At its core, the EVP is about creating a compelling offer for employees that considers their needs, desires, and aspirations beyond pay and nowadays' flexibility. It reflects an organization's values and culture, mission and leadership, and it communicates what employees can expect from their experience working for the organization.

By focusing on what employees truly value, organizations can create a more human-centered employee experience that meets the needs of their workforce and fosters engagement and commitment in return for the employees' positive productivity and performance. (Remember, an EVP is part of the employer's branding strategy and is a powerful marketing tool targeting the current and potential workforce).?

In part 3 of this series, I discuss how organizations can elevate their EVP with sustainability to attract and retain top talent, build trust with stakeholders, drive innovation, and manage risk.

Connecting the dots

A recent study by the Boston Consulting Group found that organizations that adopted sustainable practices can outperform their competitors financially by as much as 20%. Additionally, they show rising productivity from new ways of working, suggesting that they may have found a sustained source of advantage as in-person, remote, and hybrid working models find a new equilibrium.

So how does this connect with the employee value proposition?

Companies recognize that their responsibility extends beyond their bottom line and that they have a duty to society and the planet. One way that organizations can demonstrate their commitment to ESG is by integrating it into their EVP.

I explore below the advantages of integrating ESG into the employee value proposition and how it can benefit both the company and its employees.

Attract and Retain Top Talent

Incorporating ESG into the EVP can help attract and retain top talent. New research released by KPMG in January 2023 shows that ESG factors are influencing employment decisions for almost 50% of UK office employees, with millennials and younger workers driving the growing trend of ‘climate quitting’ – looking for more environmentally friendly jobs. In today's job market, where talented employees are in high demand, a strong EVP that reflects a company's commitment to ESG can be a differentiator.

In addition, employees who are aligned with a company's values and mission are more likely to be engaged and productive. Employees who say their company’s mission, vision, and values align with their own are far more likely to recommend their employer as a great place to work (70% vs. 25%) and to say their work gives them a feeling of personal accomplishment (72% vs. 29%), according to 2022 research from Qualtrics. The research also shows that Gen Z is the most likely to say they would take a pay cut to work at a company with better values, with more than two-thirds (68%) saying they would take a 5% pay cut or more, compared to just 35% of Boomers. When employees believe their employer is doing the right thing, it can increase their motivation, loyalty, and commitment to the company.

Build Trust With Stakeholders

As employees, consumers, and investors become more conscious of the impact of their choices, they are increasingly demanding that companies behave responsibly. Companies that are transparent about their ESG commitments can build trust and loyalty with their stakeholders. By incorporating ESG into the EVP, companies can demonstrate that they are committed to making a positive impact on society and the planet, which can enhance their reputation and brand value.

Both employees and consumers are increasingly interested in businesses that prioritize sustainability and social responsibility, not just compliance with regulations, and are willing to reward or penalize brands accordingly. Research by PWC in 2021 has found that although consumers have traditionally valued sustainability, the COVID-19 pandemic has heightened consumer awareness and expanded the number of conscientious consumers willing to pay more for products and brands prioritizing health and safety and environmental and social responsibility.

Drive Innovation

Companies that are committed to ESG are more likely to embrace new technologies and processes that reduce their environmental impact and improve their social performance. By incorporating ESG into the EVP, companies can encourage employees to think creatively and develop new ideas to improve their sustainability practices.

This can lead to innovations that not only benefit the environment but can also reduce costs and improve efficiency. In addition, when incorporating ESG into the company value proposition, the company can use ESG challenges to fuel employee-driven innovation programs and overall engagement. Take for example, Microsoft’s purpose to “empower every person and every organization on the planet to achieve more” or Best Buy’s purpose to “enrich lives through technology". Both have inspired significant innovations that have contributed enormously to their success and impacted the communities they serve.

Manage Risk

Companies committed to ensuring proper compliance and governance structures will be better prepared to navigate the changing landscape. Communicating that as part of the company’s brand and employee value proposition can help build trust and credibility with employees, stakeholders, and the wider community, leading to a positive impact on the overall reputation of the organization. It shows that it is taking ESG issues seriously and is committed to being a responsible and ethical business. This can help build a sense of purpose and shared values and strengthen employees’ pride in the brand. It can also help mitigate potential legal and reputational risks, reducing the likelihood of fines or negative press coverage that could damage the organization's reputation.

As ESG becomes increasingly important to consumers, investors, and employees, companies that integrate it into their EVP will be better positioned to succeed in the future. However, it is essential to be fully aware of and cautious about the perception of 'greenwashing' when incorporating sustainability into your EVP. Any claims or promises made in the EVP must be backed up by tangible actions, as employees – both current and future - will be the most prominent critics and can quickly detect any discrepancies between words and actions.

4 Ways To Highlight Sustainability In The EVP

Incorporating sustainability into the EVP and communicating it both internally and externally can have a range of benefits for companies, including attracting top talent, enhancing reputation, and meeting stakeholder expectations.

Internally, highlighting sustainability in the EVP can help engage and motivate employees by giving them a sense of purpose and contributing to a positive company culture. This can improve morale, reduce turnover, and increase productivity. Additionally, integrating sustainability into other aspects of the employee experience, such as training and development, performance management, and benefits, can further reinforce the company's commitment to sustainability and help embed it into its culture and values.

Externally, highlighting sustainability in the EVP can help build a positive brand image and reputation, which can attract customers who are increasingly interested in doing business with companies that have sustainable practices. It can also help build trust with stakeholders and investors by demonstrating the company's commitment to sustainability and its ability to manage environmental and social risks.

Below are 4 ways companies can highlight the connection between sustainability and EVP:

• Communicate the company values

Top talent wants to work for organizations that share their values. So organizations must ensure they communicate their commitment to sustainability in the workplace in their EVP and share it with the public. Additionally, we know that consumers want to buy from companies with sustainable practices, so the EVP can also help improve the organization’s reputation.

• Highlight sustainable practices

Building on the previous point, it is important companies provide information and resources about the sustainability practices taking place in the workplace and share examples of sustainable initiatives and policies that they have in place, both internally and externally. Externally, this will show potential talent and other stakeholders that the company is serious about its commitment to sustainability and strengthen the existing employees’ trust internally by seeing congruence between words and action. For example, the company can showcase its specific sustainability successes in various areas, such as energy and water conservation, waste reduction, and social responsibility. This can be done through storytelling, case studies, and reported metrics that demonstrate the company's progress in achieving sustainability goals.

• Highlight employee and leadership involvement

An organization can highlight how its leadership and employees contribute input to its sustainability goals. Engaged leadership and employees turn them into more satisfied workers, great company ambassadors, and band advocates.

• Highlight how sustainability is part of the organization fabric

A company can ensure that its sustainability efforts are integrated into other aspects of the employee experience, such as onboarding, learning and development, talent management, and benefits. Communicating these efforts through various channels such as the company’s website, intranet, and social media, performance management framework, and learning interventions are examples of how organizations can demonstrate that sustainability is part of their fabric.

I hope you are finding these posts helpful. Please join the conversation in the comments section on LinkedIn and share how you are embedding sustainability in the employee experience and the EVP in your organization.

Additional Sources:

Rethink Your Employee Value Proposition, https://hbr.org/2023/01/rethink-your-employee-value-proposition, January 2023

Employee Value Proposition Insights, https://www.gartner.com/en/human-resources/insights/employee-engagement-performance/employee-value-proposition, 2021

The Missing Link Between ESG and Corporate Innovation ?https://knowledge.wharton.upenn.edu/article/the-missing-link-between-esg-and-corporate-innovation/. March 2023

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