ⓘ Employee value proposition


ⓘ Employee value proposition

DiVanna defined the employee value proposition as the talent a company needs to exist to support the corporate value proposition. DiVanna later refines the definition of the EVP as a portfolio of skills and experiences which can be considered as Assets and incorporated into a companys balance sheet. DiVanna and Rogers provides additional clarity of the EVP as the value of the employee centres on the simple premise that an individual must be self-aware of their contribution to the firm under the present set of business conditions. More importantly, to keep the firm competitive, employees must also be cognizant of the firms future directions and prepare to add value in new ways under a variety of emerging business conditions.

Minchington 2005 defines an 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.

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 organizations 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 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 organizations 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 away from compensation as the primary "offer".

Personal job satisfaction is driven by far more than financial factors such as salary and benefits. An organizations 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 organization are relocation services, salary, perquisites, career development, location, and so on.

An organization benefits from a well-formed EVP because it attracts and retains key talent, helps prioritise the HR agenda, creates a strong people brand, helps re-engage a disenchanted workforce, and reduces hire premiums.

Only if the EVP of an organization matches what someone values in his/her work is there a win-win situation. An employer can then count on a motivated, committed worker. And the worker will experience his/her job as meaningful and fulfilling.