Employee Value Proposition

 

Employee Value Proposition is the word frequently used to determine the functions and the benefits of working for a organization. An EVP explains the combination of features, advantages, and ways of operating in an industry. For any organization, the challenge is to find quality people – people with the skills, knowledge, experience, competencies and values that provide a match for the roles within the organization. The person faces a different challenge: they look around, think about their personal circumstances, compare options, and then choose to take up or stay in positions on the basis of the best value for them on offer. This, the Employee Value Proposition (EVP) is the balance of reward and benefit, work policies and practices, experienced by an employee in return for their work: it describes why the total work experience is better than at any other organization and accordingly it may be critical in attracting and retaining quality people (Hill & Tande 2006). This is the arrangement concluded between an entity and workers in exchange for their Commitments and performance.

 

An employer always trying to differentiates them with in the industry where they perform. Based on that,  nowadays most of the organizations are facing two main problems.

1. The benefit that they are giving for their employees

2. How they differ from competition

 

An aggressive EVP can bring major benefits to an organization.

1. It helps the organization to attract and retain the employees

2. Organizations can cater to numerous markets and difficult to employ talent groups

3. Creates a good identity for people

4. Great Employee Commitment

5. Reduce costs for new recruits

 

Therefore, To keep the best and the brightest workforce, companies will need to have an attractive Employee Value Proposition for employees. The concept of the EVP has been around for decades, many organizations have yet to realize the importance of having a strong EVP. This can be a costly mistake, especially with the continuing strong demand for talent across many industries and professions. More than ever, employees now have access to the information and tools that will help them find new jobs. Employees could start to look to leave their current companies after facing cost-cutting measures and layoffs, especially if a new opportunity offered the opportunity to have greater job security, better pay, and a better work-life balance.

 

 

Reference

 

Hiltrop, J-M., 2006. A diagnostic framework for building HR capability in organizations. Strategic Change 15(7/8), 341-356.