Employee Value Proposition (EVP)

Employee Value Proposition (EVP) is usually defined as a set of monetary and non-monetary benefits provided by an organization to its employees, in return for the skills, capabilities, and experience they bring and the contributions they make to the organization. However, this definition is rather outdated. The modern definition of Employee Value Proposition is that it is an ecosystem of support, recognition, and values that an employer provides to employees to achieve their highest potential at work. The key difference here is that EVP should not be looked at as a two-way transaction, but as a comprehensive set of employer offerings that boost employee engagement and bring out the best in employees. An effective EVP helps organizations and recruitment professionals in establishing a strong employer brand.

Other Definitions of Employee Value Proposition (EVP)

• 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.
• Pawar and Charak (2015) define the employee value proposition as the one of a kind arrangement of benefits an employee gets consequently for the skills, capabilities, and experience they convey to an organization.

== Elements of an Employee Value Proposition A strong Employee Value Proposition consists of various elements. Together, these attributes determine how both your employees and candidates will perceive your organization as an employer. Gartner distinguishes the following five key elements of an Employee Value Proposition:

• Compensation: This attribute, also referred to as compensation and benefits, includes your employees’ satisfaction with their salary, but also additional rewards such as bonuses and aspects such as your evaluation system. Fair and performance-based compensation is one of the 7 HR best practices. Interestingly, compensation may not be equally important to everyone. There are generational differences in the workforce, with the younger generations valuing for instance development more than the older generations.
• Work-life balance: This is about benefits. Think about everything from paid time off and holidays to flextime options and retirement plans. When it comes to the kind of benefits employees value most, flexible hours, the opportunity to work from home, vacation time and paid parental leave all rank highly. There’s no magic, one-size-fits-all kind of benefits recipe, however. New parents probably value different benefits than graduates, so try to customize where possible.
• Stability : Stability as in career stability, opportunities for your employees to further their career, develop themselves and employee training. Naturally, this is where your learning and development efforts come into play as well as possible mentoring/coaching initiatives you’ve developed within the organization.
• Location: This component is about much more than the simple location of your office. You could think of it as location in the broadest sense of the word: a positive work environment, a certain level of autonomy, work-life balance, etc. In fact, the location element has a lot to do with the employee experience which relates to three environments: technology, physical space and culture (more about culture just below).
• Respect: Respect is about positive relationships, support, and team spirit, among other things. More than just respect, it’s about your company culture, what are your organization’s core values and beliefs.

source: Gartner