June 17, 2022

What is employee value proposition in Human Resources?

In the current state of the work market, companies face a fierce competition when it comes to finding new employees that can fit in specific positions. For that reason, the ideal solution is keeping the best talent inside the organization. Professionals in the Human Resources area are always looking for new ways to attract, hire and retain their best workers, which is never easy. 

As a result, we have concepts such as the employee value proposition. This can help improve the company’s image in the eyes of its employees. Do you want to know more about it? In this article we will take a closer look at the employee value proposition model and its composition.  

What is value proposition? 

To have a better understanding of what employee value proposition is, let’s see what is value proposition. This is a concept that has been adopted from the fields of Management and Marketing. A value proposition is focused on engaging audiences and converting clients. To achieve that, the organization that makes the proposition develops what is known as a promise to its clients. It covers the benefits offered through the products and services and what sets the company apart from the rest. 

What is employee value proposition? 

Keeping in mind the previous paragraph, we can say that an employee value proposition (EVP) is the promise that an organization makes to its employees in order to get their best performance. What is exactly this promise we talk about? We are talking about all elements that bring value for employees such as benefits and rewards that the company offers. 

An employee value proposition must be part of a comprehensive strategy that aligns with the organizational culture and the talent management strategy. For that reason, it’s necessary to take into account all the important aspects for employees such as salary, professional development, work stability, work benefits, etc. 

Employee value proposition and employer branding 

Employee value proposition and employer branding

The employee value proposition has many similarities with the concept of employer branding. In fact, many people see both as two sides of a coin. On one side, an employer branding proposition tries to improve the image the company creates outwards; in other words, it works externally. That is done with the objective of having an attractive organization for potential new employees and the general audience. 

On the other hand, the employee value proposition works in a similar way but inside the organization. In this case, the process focusses on improving the image that the company creates for its current employees; in other words, it works internally. Therefore, we can say that employer branding keeps a constant flow of candidates interested in working for the organization while employee value proposition focuses on retaining employees. 

Elements of the employee value proposition 

An employee value proposition covers many different elements that are relevant for all employees. Let’s take a look at the most important ones. 

1. Economic compensation 

As part of the compensation, you need to consider all the aspects that constitute the economic dimension of the job for employees. To achieve that, you have to analyze and develop a proposition that covers attractive salary and bonuses for workers. These have to be consistent with the tasks employees are responsible for. 

2. Company culture 

While the economic aspect is always important, nowadays professionals prioritize other factors inside an organization. One of the most important today is finding a company that shares the same values and way of working they have. Having a defined organizational culture allows organizations to have a distinct identity and work philosophy, which is attractive for professionals. 

3. Professional development 

Another aspect that modern professionals value while working for an organization is the possibility of developing their career. That is why it’s so important to include as part of the employee value proposition a system of promotions inside the company or an employee wellness program focused on continuous training. 

4. Additional benefits 

The benefits related to the job position are not a minor aspect for employees. These are comprised of all the additional details the organization offers in order to retain workers. Here you must take into account details such as telecommuting or hybrid working, flexible schedules, days off, vacations, insurance, etc. 

We have taken a closer look at the concept of employee value proposition and its main components. Make sure to include it in your Human Resources strategy and you will have even better results. 

At Talent2Win, we strive to align your company’s business objectives with the best Talent Acquisition strategies available. If you want to learn more about the services we offer, do not hesitate to contact us.  

Leave a Reply

Your email address will not be published. Required fields are marked *

*

*