Employee value proposition
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.[1]
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.[2][3]
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.[4]
Tandehill (2006) [5] 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".[6] 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.[7]
[edit] Notes and references
- ^ "The Employee Value Proposition: 6 Things You Need to Know". Recruiters Network. http://www.recruitersnetwork.com/articles/article.cfm?ID=1456. Retrieved 05-06 2008.
- ^ 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
- ^ "Developing an Employee Value Proposition". University of Canberra. http://www.canberra.edu.au/pmp/program/courses/developing-an-employee-value-proposition. Retrieved 15-01 2009.
- ^ "Employee Value Proposition Infosheet". talentsmoothie. http://www.talentsmoothie.com/wp-content/uploads/2010/02/Employee-Value-Proposition-infosheet.pdf. Retrieved 2010-04-26.
