Employee value proposition
Employee Value Proposition (EVP) is the balance of the rewards and benefits that are received by employees in return for their performance at the workplace.[1] Organizations generally develop an EVP to provide a consistent platform for employer brand communication and experience management. [2]
Minchington (2005) defines an Employee Value Proposition (EVP) as a set of associations and offerings provided by an organization in return for the skills, capabilities and experiences an employee brings to the organization. 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.[3][4]
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 organization's employer brand marketing and management activities are based. In this context, the EVP is often referred to as the Employer Brand Proposition.[5]
Tandehill (2006) [6] reinforces this link to employer branding, and urges all organizations to develop a statement of why the total work experience at their organization is superior to that at other organizations. The value proposition should identify the unique people policies, processes and programs that demonstrate the organization’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 organization. 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 organization's EVP has thus been described as "critical to attracting, retaining and engaging quality people".[7] Other key factors influencing how an individual may choose to balance his or her career path in an organization are relocation services, salary, perquisites, career development, location, and so on.
Benefits to an organization 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.[8]
Only if the EVP of an organization really matches what someone values in his/her work, is there a win-win situation. An employer can then count on a motivated, committed worker who will go the extra mile. And the worker will experience his/her job as meaningful and fulfilling.[9]
Notes and references
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- ↑ Mosley, R. (2014) "Employer Brand Management - Practical Lessons from the World's Leading Employers" - John Wiley.
- ↑ Minchington, B (2010) Employer Brand Leadership – A Global Perspective, Collective Learning Australia.
- ↑ Minchington, B (2006) Your Employer Brand – attract, engage, retain, Collective Learning Australia.
- ↑ Barrow, S. and Mosley R. (2005), The Employer Brand: Bringing the best of brand management to people at work, John Wiley & Sons
- ↑ "The Employment Value Proposition." Article which introduces the original concept, by Tandehill Human Capital. Workspan Magazine 10/06 http://www.tandehill.com/pdfs/Total-Rewards.pdf
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