The balancing act: How to create an employee value proposition that aligns business goals with employee benefits

HR leaders have the big job of aligning what a business wants and what employees need. It can be tough, but we’ve got some great tactics to help.

In this installment of our series on employee value propositions, we focus on how health benefits give businesses the flexibility to balance out gaps in an employee value proposition. If you’re in HR and looking for employee recruitment and retention tactics, this is a great read for you.

What is an employee value proposition

Before we get started, let’s level set. What is an employee value proposition? 

An employee value proposition (or EVP) is a statement that outlines what a company provides to its employees in return for their skills and contributions.

You can read about it in our blog post that gives an overview in the context of healthcare.

Employee value proposition: what it is and why it matters in the world of benefits

Developing an employee value proposition

If you’re ready to create an employee value proposition, it’s good to have a model. Here is a step-by-step guide for how to build a strong EVP.

Do your homework

The first step is research, and you should include internal and external factors.

Start by listening to your employees. Conduct surveys, focus groups, or one-on-one interviews to understand what employees value most about working for your organization and where there’s room for improvement. 

Then, move to competitors. Find out what peer companies are offering; you can do this by looking at job postings or HR resources that publish benefits trends.

Analyze the results

Look for patterns in what drives employee engagement and satisfaction. This could include tangible elements such as benefits and PTO, or it could be intangible elements such as work-life and a sense of purpose. 

Compare insights from your internal research alongside external data to pinpoint your organization’s unique strengths. 

Build a framework

Once you’ve identified the offerings you want to promote, distill them into clear, compelling themes.

This part doesn’t have to be complicated. Your employee value proposition framework could be a simple spreadsheet or drawn on the whiteboard of your office. Create the sections that work for you, while keeping in mind that common sections include compensation, benefits, career development, workplace setting, and company culture.

Get to writing

The final step in creating your employee value proposition is to fill in the details. (If your company has a brand guide, be sure to reference it before writing.) Use simple language that will resonate with existing or prospective employees and conveys the essence of what it’s like to work for your company.

Spread the word

Your employee value proposition says a lot about you. So share it! Publish your EVP in job descriptions, your website, or internal documentation.

You have a lot to be proud of, and an employee value proposition is a great way of showing it. 

Using an HRA to fill in the gaps

So, you’ve created your employee value proposition, and you see that there are some weak spots. For instance, salaries aren’t quite as high as competitors, or there isn’t a lot of room for employees to have upward mobility.

That scenario might seem scary, but there is actually a great solution: balancing out gaps with an HRA. Offering an HRA could not only bolster your employee value proposition, it would very likely benefit your bottom line.

HRA snapshot

A quick HRA overview: An HRA is a health reimbursement arrangement. It’s a budget-friendly way for employers to provide health coverage by setting contribution allowances that employees use to purchase an individual health plan.

There are a ton of benefits to having an HRA. Some of our favorite are:

• Attract & retain top talent with amazing health benefits
• Get on-demand compliance and regulatory support for HR teams
• Eliminate unnecessary work, avoid HR stress & burnout
• Balance the cost of health benefits with overall value

Learn how our HRA benefits HR and benefits teams

HRAs for employee recruitment and retention

Employee recruitment and retention can be a major focus of HR. If your employee value proposition has gaps, getting (and keeping) great talent could be at risk.

We know that employees value health coverage, and in the U.S., they expect their employer to provide it. So ask yourself: Is your health coverage working for or against you?

If you see room for improvement, here are some ways you might leverage an HRA:

The net net

Leveraging an HRA could balance out deficits in your employee value proposition. That’s in addition to all its inherent benefits like max budget control and employee choice.

Take Command has experts who design incredible plans, and we can help you navigate the world of HRAs.

Keep Reading

• Employee value proposition: what it is and why it matters in the world of benefits
• HRA guide: an overview of health reimbursement arrangements
• HR retention strategies: enhancing bonuses for recruitment & retention

Contact Take Command to learn about HRAs

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