What is an effective Employee Value Proposition?


We can define Employee Value Proposition (EVP) as the balance of the rewards and benefits that are received by employees in return for their performance at the workplace.

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

The classic employer-employee deal is becoming extinct:

  • It’s unaffordable. Rising costs, especially for health care and taxes, concerns about existing or new legacy obligations, slow growth and continuing economic uncertainty require employers to rethink both the size and structure of their reward investments.
  • It’s outmoded. Long-established workplace practices are increasingly inadequate to meet the needs and support the performance of a technologically mobile and digitally savvy workforce
  • It’s ineffective — and inefficient. A rewards strategy that’s not aligned with the way a company creates value for its customers — or optimized to channel investment where it will have the most impact — will struggle to deliver desired performance or meet key financial and talent objectives

Companies face serious challenges when it comes to attraction, retention and engagement of talent. Following the research “Towers Watson 2012 Talent Management and Rewards Study – Global reveals what it takes to get it right

Companies that have adopted an increasingly integrated approach to Total Rewards strategy, design and delivery decisions — supported by an overarching Employee Value Proposition — are:

  • 5x more likely to report their employees are highly engaged
  • 2x more likely to report achieving financial performance significantly above their peers

 What is an effective Employee Value Proposition?EVP_HR StrategyThe evolution of an effective EVP and Total Rewards strategy

EVP evolution_HR strategyA Total Rewards framework provides the roadmap to update rewards strategy and align it with business needs.

Borja Burguillos

Author: Borja Burguillos

Global People Strategy

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