The Employee Value Proposition Canvas: A Tool for Human Resource Managers

The Australian workforce is currently facing a crisis, with a large number of workers considering quitting their jobs, and many others reporting feeling exhausted at work. Falling unemployment and rising burnout suggest that a change could be afoot. Workers are starting to expect more from their jobs and are struggling to answer fundamental questions, such as “why should I work,” “how should I work,” and “where should I work?” According to behavioural scientist Aaron McEwan, “employees don’t want to be seen as workers, they want to be seen as complex human beings with rich, full lives”. Workers are beginning to care much more about how their job enriches their lives. As a result, employers need to offer employee value propositions that address these concerns and provide a reason for their employees to stay.

An Employee Value Proposition (EVP) is a set of unique benefits and rewards that an employer offers its employees. It is a way for companies to differentiate themselves from their competitors and attract and retain top talent. The EVP communicates what employees can expect from their job and how the company supports its employees. It is an essential tool for companies to remain competitive in today’s job market where workers are increasingly looking for more than just a paycheck from their employer.

The question for human resources managers is what should they offer to meet the changing needs and desires of employees. To explain, I have adapted Osterwalder et al.’s Value Proposition Canvas, into an Employee Value Proposition Canvas.

Employee Value Proposition Canvas. Adapted from Value Proposition Design.

The Value Proposition Canvas is a tool typically used by businesses to identify the unique value they can offer their customers. It provides a visual representation of a company’s value proposition to the customer, which includes the customer segments it targets, the products or services it offers, and the benefits customers receive from those products or services. The canvas helps companies understand their customers’ needs and desires, enabling them to create products and services that meet those needs. Similarly, the Value Proposition Canvas can be used by human resources managers to identify the unique value their business can offer its employees. It helps companies understand their employees’ needs and desires, allowing them to design jobs and create a work environment that meets those needs and desires.

If you’re not familiar with how the Value Proposition Canvas works, watch this video.

Similar to how businesses design products and services to meet customers’ needs, human resources managers should redesign jobs to meet employees’ needs.

To use the Employee Value Proposition Canvas to understand employee profiles follow these steps:

1. Jobs: Define the tasks that each employee needs to perform. Most employees come to work to earn money. For some, it is a vital means to an end — it enables them to do things they enjoy in their life. Others want more from their job; they may seek a sense of mastery, autonomy, purpose, or socialization.
2. Pains: Identify the pains or challenges that employees face in performing their job. These can include anything that causes frustration, stress, or dissatisfaction, such as repetitive tasks, lack of autonomy, or poor work-life balance.
3. Gains: Determine the gains or benefits that employees derive from their job. These can include anything that provides a sense of achievement, satisfaction or pride, such as opportunities for growth, recognition for their work, or a positive work environment.

By analyzing these different elements, you can gain a better understanding of what employees require from their job and what motivates them to stay. This understanding can help you design an Employee Value Proposition that meets their needs and provides a reason for them to join or stay with your organisation.

The next step is to identify how to alleviate pain points and create desired gains. Use the map to illustrate how the jobs you offer address pain points and provide desired gains for your target customers. Use the Value Map to guide the design of your jobs and work environment, ensuring they meet the needs and desires of your target customers.

Annotated Employee Value Proposition Canvas. Adapted from Value Proposition Design.

In today’s competitive job market, companies need to do more than offer a paycheck to attract and retain top talent. Workers are increasingly looking for jobs that provide meaning, fulfilment, and a sense of purpose. By selling jobs to employees and creating an Employee Value Proposition that addresses their needs and desires, companies can attract the best talent and create a work environment where employees feel valued and fulfilled. This, in turn, can lead to increased productivity, employee satisfaction, and a stronger bottom line for the business. Companies that fail to sell jobs to their employees risk losing top talent to competitors who are willing to invest in their workforce.