How To Calculate The ROI Of Your Employee Value Proposition

Your Employee Value Proposition (EVP) is the package you offer to your employees; it’s everything from competitive pay, great benefits, opportunities for growth, and a company culture that makes employees and candidates feel welcome. 

But how do you know if your EVP is truly delivering the desired results? 

And by being able to measure the effectiveness and impact of your EVP initiatives through quantifying your ROI, you can determine if your investments in employee benefits, development programs, and workplace culture are generating tangible returns.

How to show ROI and shout about the great work you’ve been doing

Demonstrating your ability to generate revenue and contribute to your employer's success is essential for satisfying your bosses. By being able to show the value and impact of your contributions, you can open doors to more opportunities for rewards, personal growth, and overall satisfaction.

Here are some key factors to consider:

• Awareness - assess the level of awareness around your company and its values. Determine how well-known your employer brand is and identify opportunities for improvement in terms of visibility and recognition.
• Perception - evaluate how your company is perceived, both internally and externally. Compare this perception with your competitors. It's essential to be honest during this evaluation to identify areas for enhancement.
• Engagement - measure the level of engagement your company generates across various platforms, such as social media, website interactions, and other channels. Analyse the quantity and quality of interactions to gauge audience engagement.
• Conversion - determine how effectively your call to actions are being converted into desired outcomes. Assess whether individuals respond positively by applying for jobs, referring others, or making use of the employee benefits your company offers.
• Retention - evaluate employee satisfaction, loyalty, and advocacy to determine if your EVP initiatives have influenced employee retention. Consider factors such as employee turnover rates, absenteeism and sick days, diversity stats and employee engagement.

What do we mean by ROI when we are talking about EVP and People? 

Hard ROI are your tangible metrics

These are measurable outcomes that directly affect your financial bottom line. These metrics provide concrete evidence of the value generated through your EVP initiatives such as cost savings and speed of hiring.

Soft ROI are your intangible benefits

Hard ROI metrics you can measure

Here are some of the top Hard ROI metrics you should be measuring.

Cost per hire

Keeping track of the costs associated with recruiting, onboarding, and training new employees is essential; doing so can allow you to gauge the effectiveness of your compensation and benefits strategies. A lower cost per hire suggests that your efforts in attracting and retaining talent are paying off. 

With Flexa, you can reduce your cost per hire by a staggering 90%. Our users are able to favourite the companies they admire and receive notifications about new job openings, making passive hiring more effortless and successful than ever before.

Time to hire

This is all about measuring the duration it takes for you to fill a job vacancy from the moment the position is opened to the candidate's acceptance of the job offer allows you to gather insight into the efficiency and effectiveness of your hiring processes. A quick hiring process is likely to indicate you have an attractive EVP that makes candidates want to work for you. 

Recruiter fees

Measuring the cost of outsourcing your recruitment process can provide valuable insights into the cost-effectiveness, candidate quality, resource allocation, and overall success of your company's recruitment strategy. Evaluating these costs will allow you to make informed decisions to optimise your recruitment efforts.

Flipdish is a phenomenal example of this. They were able to reduce their reliance on agency spend and stop spending six figures on hiring in just 6 months. Whilst building a reliable and diverse talent pipeline at the same time. It was all because of Flexa. 

Louis Thorne, Global Talent Acquisition Lead

"People are watching what we’re doing because our brand is so much stronger now - because of Flexa."

Diversity stats

Companies with a diverse and inclusive EVP are more likely to attract a broader pool of talented candidates. Your diversity stats, such as the percentage of candidates from underrepresented groups, can determine the effectiveness of your EVP in fostering inclusivity. A higher diversity ratio among applicants indicates that your EVP resonates with a diverse candidate pool, expanding your potential hires and improving your chances of securing the most aligned talent. 

Companies like Hydrogen Group have seen impeccable results since being on Flexa with 76.4% of applicants in the hiring pipeline now being women.

“We’ve seen ROI from being on the Flexa platform; we’re getting more direct traffic and applications than we’ve ever had before.” - Dean Jennings, Global Head of Talent Acquisition. 

As well that, companies like Amplifi have seen a 65% increase in diverse talent and have over 750 aligned candidates in their hiring pipeline.

"Being recognised in the Flexa100 has meant that candidates now come directly to us, rather than us needing to find them" - Dan Malins, Head of People & Culture.

Employee retention and turnover rates

Keeping an eye on turnover rates can give you insights into any underlying issues that might be causing higher attrition. You can also compare turnover rates between different departments or teams to pinpoint areas that need improvement. It's all about retaining your top talent and continually measuring and refining your EVP.

Absenteeism and sick days 

Measure the rate of employee absenteeism, including sick leave and unplanned absences. High absenteeism rates may indicate elevated stress levels and the need for interventions to alleviate workload-related stress.

One way to combat this is through offering flexible working which is particularly beneficial for  employees who have a disability and long-term health conditions or frequent burnout and stress. 

Molly Johnson-Jones, CEO & Co-founder at Flexa

"Before Flexa, my autoimmune disease wreaked havoc on my life. From countless hospital visits and multiple days off work to struggling to walk and battling hives and swelling, each year was a struggle. Everything changed when I started Flexa - hospital visits reduced and work absences became rare. The frequency of hives and swelling decreased significantly, there have been fewer tears, and the fear of public judgement faded away. Embracing flexibility and managing my own time brought a renewed sense of control and productivity. Flexibility isn't just nice to have. It is literally life-changing."

Productivity 

Analysing productivity metrics such as sales revenue and project completion rates over time allows companies to assess whether their EVP initiatives have led to increased output and, consequently, improved ROI. And there’s plenty of evidence to showcase the impact that flexibility has on productivity. 

Targets hit 

When employees are aligned with the company's goals and objectives, they are more likely to actively work towards achieving targets. A well-defined EVP that emphasises clarity, purpose, and employee involvement can contribute to goal alignment. If targets are consistently being hit or exceeded, it indicates that the EVP has successfully motivated and engaged employees to contribute their best efforts. As a result, your bosses will be happy too. 

Internal promotion rates 

Soft ROI metrics you can measure

Now, let’s go over the soft ROI metrics you should be keeping in mind. 

Employee happiness 

Happy employees tend to be more engaged, motivated, and productive. They approach their work with enthusiasm, creativity, and a sense of purpose, leading to higher levels of performance. When employees are satisfied and fulfilled in their roles, they are more likely to go the extra mile, deliver quality work, and achieve better outcomes.

Your EVP contributes towards this from the flexibility you offer to company perks and a great company culture, when these are aligned with your employees and the candidates you want to attract, you’ll have a thriving team. 

Employee engagement 

Engaged employees tend to be more productive and perform at a higher level. They take ownership of their work, show initiative, and willingly go the extra mile to achieve goals. 

When employees are engaged, they are motivated to deliver quality work, meet deadlines, and have a higher level of commitment. Although no monetary value can be assigned to this, you can effectively measure employee engagement in relation to your EVP by carrying out employee surveys, analysing turnover rates, tracking productivity metrics, and monitoring employee feedback.

Uptake in benefits 

This provides insights into the value and effectiveness of your EVP in meeting employees' needs and enhancing their overall experience. To measure uptake you can track participation rates, carry out surveys or focus groups to gather employee feedback, and analyse trends over time to ensure they align. 

If you notice employees aren’t making use of the benefits you’re offering it’s time to reevaluate.

Leadership and role modelling 

Strong leadership and positive role modelling inspire and motivate employees. When leaders exhibit behaviours that align with your company’s values and vision, employees are more likely to feel a sense of purpose and are more engaged in their work. 

And engaged employees are more productive, innovative, and committed to achieving company goals.

Remember, respect boundaries and lead by example!

Recognition and rewards

When employees feel appreciated and valued for their contributions, it enhances their job satisfaction and overall engagement. This positive emotional connection to their work translates into increased productivity and a willingness to go above and beyond. 

How to present the case for a strong EVP 

To effectively advocate your EVP and secure budget approval, it's essential to present a compelling case backed by data and evidence. Here are some of the steps you can use to present your case.

1) Identify the relevant metrics

Identify the metrics that align with your EVP goals and objectives. Consider metrics such as employee satisfaction, retention rates, engagement levels, productivity, and talent acquisition metrics. These metrics will serve as tangible evidence with the impact of your EVP initiatives.

2) Showcase past data and trends

Collect and analyse historical data related to your chosen metrics. Demonstrate the trends and improvements that have occurred as a result of previous EVP initiatives. Use visuals such as charts or graphs to present the data in a clear and concise way. Highlight any positive changes and the correlation between EVP efforts and desired outcomes.

3) Demonstrate the impact of initiatives

Clearly illustrate how past EVP initiatives have positively influenced your metrics. Provide specific examples of initiatives that have made a measurable difference in employee satisfaction, engagement, retention, or other relevant areas. And quantify the impact wherever possible to demonstrate the return on investment.

4) Highlight continuous tracking and improvement

Emphasise that it’s necessary to carry out continuous tracking and improvement. Showcase the systems, processes, or tools in place to monitor the effectiveness of EVP initiatives. Present evidence of ongoing evaluation and feedback mechanisms that ensure initiatives are responsive to employee needs and aligned with company goals.

5) Predict future impact

Use the past data and trends to predict the potential impact of future EVP initiatives. Demonstrate how these initiatives are strategically designed to address areas of improvement identified through data analysis and feedback. 

Showcase how a strong EVP will positively  contribute to company growth and better hiring; make sure to utilise Flexa’s resources as your source of truth to present data around future trends. 

6) Facilitate budget approval and EVP changes

Last but not least, emphasise the correlation between the EVP initiatives and positive outcomes, such as increased employee satisfaction, engagement, and productivity. 

Clearly articulate the potential ROI in terms of talent attraction, retention, and improved performance. 

Use our case studies as prime examples when pitching to show the real-life impact that a strong EVP can make towards company success.