Employee value proposition
Encyclopedia
Employee Value Proposition (EVP) is a term used to denote the balance of the rewards and benefits that are received by employees in return for their performance at the workplace.
Minchington (2005) defines an Employer Value Proposition (EVP) as a set of associations and offerings provided by an organisation in return for the skills, capabilities and experiences an employee brings to the organisation. The EVP is an employee-centered approach that is aligned to existing, integrated workforce planning strategies because it has been informed by existing employees and the external target audience. An EVP must be unique, relevant and compelling if it is to act as a key driver of talent attraction, engagement and retention.
It has become closely related to the concept of employer branding
, in terms of the term EVP being used to define the underlying 'offer' on which an organisation's employer brand marketing and management activities are based. In this context, the EVP is often referred to as the Employer Brand Proposition.
Tandehill (2006) reinforces this link to employer branding, and urges all organisations to develop a statement of why the total work experience at their organisation is superior to that at other organisations. The value proposition should identify the unique people policies, processes and programs that demonstrate the organisation’s commitment to i.e., employee growth, management development, ongoing employee recognition, community service, etc. Contained within the value proposition are the central reasons that people will choose to commit themselves to an organisation. The EVP should be actively communicated in all recruitment efforts, and in letters offering employment, the EVP should take the focus off of compensation as the primary "offer."
Personal job satisfaction is driven by far more than financial factors such as salary and benefits. An organisation's EVP has thus been described as "critical to attracting, retaining and engaging quality people". Other key factors influencing how an individual may choose to balance his or her career path in an organisation are relocation services
, salary
, perquisites
, career development
, location, and so on.
Benefits to an organisation of a well formed EVP include attraction and retention of key talent, helps prioritise the HR agenda, creates a strong people brand, helps re-engage a disenchanted workforce and reduces hire premiums.
Minchington (2005) defines an Employer Value Proposition (EVP) as a set of associations and offerings provided by an organisation in return for the skills, capabilities and experiences an employee brings to the organisation. The EVP is an employee-centered approach that is aligned to existing, integrated workforce planning strategies because it has been informed by existing employees and the external target audience. An EVP must be unique, relevant and compelling if it is to act as a key driver of talent attraction, engagement and retention.
It has become closely related to the concept of employer branding
Employer branding
The term employer brand was first used in the early 1990s to denote an organisation’s reputation as an employer. Since then, it has become widely adopted by the global management community...
, in terms of the term EVP being used to define the underlying 'offer' on which an organisation's employer brand marketing and management activities are based. In this context, the EVP is often referred to as the Employer Brand Proposition.
Tandehill (2006) reinforces this link to employer branding, and urges all organisations to develop a statement of why the total work experience at their organisation is superior to that at other organisations. The value proposition should identify the unique people policies, processes and programs that demonstrate the organisation’s commitment to i.e., employee growth, management development, ongoing employee recognition, community service, etc. Contained within the value proposition are the central reasons that people will choose to commit themselves to an organisation. The EVP should be actively communicated in all recruitment efforts, and in letters offering employment, the EVP should take the focus off of compensation as the primary "offer."
Personal job satisfaction is driven by far more than financial factors such as salary and benefits. An organisation's EVP has thus been described as "critical to attracting, retaining and engaging quality people". Other key factors influencing how an individual may choose to balance his or her career path in an organisation are relocation services
Relocation services
Relocation services or employee relocation include a range of internal business processes to transfer employees, their families, and/or entire departments of a business to a new location. Like other types of employee benefits, these processes are usually administered by human resources specialists...
, salary
Salary
A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis....
, perquisites
Employee benefit
Employee benefits and benefits in kind are various non-wage compensations provided to employees in addition to their normal wages or salaries...
, career development
Career development
In organizational development , the study of career development looks at:*how individuals manage their careers within and between organizations and,...
, location, and so on.
Benefits to an organisation of a well formed EVP include attraction and retention of key talent, helps prioritise the HR agenda, creates a strong people brand, helps re-engage a disenchanted workforce and reduces hire premiums.