Importance of Employee Value Proposition

 

                                       





To be strong in the market, unique assets as well as talented employees are very important factors.  Since current job market is 90% candidate driven, human factor becomes the most vital one. The creditability and profitability derived from the faces of human in the organization. (Deloitte, 2010 cited in Lambru, 2012). According to Anita Roddick who was the founder of Bodyshop, people are the first line of consumers. Paying attention to the behaviours and the attitudes of the individuals of existing and potential employees create recruiting strategies to be different among the competitors. (Zojceska,2018)  EHV process is a crucial decision for the business organization. In the point of view of business attracting competent talent from labor market and keep them with the organization for a long time improve its entire performance. Every organization make efforts to be the employer of choice to achieve high profitability and stability in the market. The researchers had found that strong effective EHV is correlated with the attraction, retention and the commitment levels. (Corporate leadership council,2006; Hager 2007 cited in Lambru,2012)

 Employee Value Proposition means what receive as the tangible or intangible rewards for employees in returns of their talent, skills and capabilities invested in the organization. These rewards can be high salary, compensation, other financial or welfare facilities, interesting projects, great company culture or flexible working hours. (Zojceska,2018) EHV is the tool to attract potential candidates and retain and highly engage the existing employees. It plays major role in Employer Branding process. EHV carries attributes to create attractive Employer Brand and retain existing employees. The EHV include employee’s experience on rewards and benefits. Opportunities for career development, management style, work environment and culture. (Kibbe et al, 2010 cited in Lambru, 2012) According to Raj (2021) EHV consists with three main values to retain existing employees for a long time.

                                  


                            (Figure 1. Value creates for existing employees (Author developed)

 

  1. Development value: create opportunities for personal and professional development
  2. Social value: Socialization through various internal and external media
  3. Economic value: Offer financial rewards

The business organizations have to identify benefits expected by employees and match with organizational needs. But these employee expectations can be changed over the time and depend on the different personality types of employees, generation they belong to and variable external influences.  The employer should have an understanding whether they can fulfill these volatile requirements of the employee to deliver EHV. (Lambru, 2012) The employer understanding ability, behavior and responsiveness directly influence on employee engagement, performance, retain as well as the leaving. Therefore creating employee centric, unique, relevant, enforcing Employee Value Proposition bring the competitive advantage to the organization. (Raj, 2021)

Nowadays more data sources are available for employees and outsiders in the market and they provide valuable information, advices, suggestions as well as the options. (Black, 2009 cited in Lambru 2012.) Since these sources confer positive and negative feedback, information about compensation, job details company’s rating and advantages as well as disadvantages working employer should more concentrate on their actions effected to expressed EHV and perceived EHV. When increase the gap between these two it brings down the trustworthiness of the organization. (Miller-Merrell, 2010 cited in Lmbru, 2012) According to the American research 75% of American would be unemployed rather  taking  a job in company with a bad reputation.(Deloitte,2010)

Zojceska (2018) presented 5 main components in Employee Value Proposition process



                    (Figure 2. Components in EVP-Author developed)


Although EVP comes with many difficulties and complexities, it is very beneficial to the business organization to deliver promised EVP to attract, retain and engage the talented people with them. Sometimes executive managements have to step extra miles to keep the best people business executives have to step extra miles. (Black, 2009 cited in Lambru, 2012)

 

Reference

Lambru, T. (2012) Employee value proposition and organizational commitment. [perlego] Germany: Lap Lambert Academic Publishing GmbH & Co.KG.

Raj, B.A. (2021) Impact in employee value preposition on employee’s intention to stay: moderating role of phycological contract and social identity. South Asian journal of business studies,10(2), pp 1-24.

Zojceska, A. (2018) Employee value proposition: magnet for attracting candidates. Talentlyft. [online] available at https://www.talentlyft.com accessed on 22nd April 2022 

 

 

 

Comments

  1. ShashikaApril 26, 2022 at 10:12 AM

    Why Employee Value Proposition
    Many workers including Tandehill (2006) have recommended organizations to build unique brands of themselves in the eyes of its prospective employees. This essentially means developing a statement of ’why the total work experience at their organization is superior to that at other organizations. The value proposition should outline the unique employee policies, programs, rewards and benefits programs that prove an organizations commitment to people and management development. In nutshell it should define an employee’s ‘why should I join this organization?’

    The employee value proposition needs to be communicated in all hiring efforts of the organization. It may be reflected on the company’s website, job advertisements and letters extending employment opportunities.

    ReplyDelete
  2. Kasun WarnapuraApril 28, 2022 at 11:27 AM

    Employee value Proposition refers to the rewards and benefits that an employee receives in return of the performance that he gives at the workplace in the organization. Employee value Proposition is at the core of all other organizational processes. The characteristics of the Employee value Proposition need to be reflected in the corporate and employer brands.

    (Pawar & Chark,2014)

    ReplyDelete
  3. Geethal PereraApril 30, 2022 at 9:10 PM

    As per my understanding, 1 reason for value proposition is both current and future employees expect large salaries and benefits. While job seekers focus more on the company's culture and mission than on compensation, a 2019 survey by CareerBuilder revealed that only 15 percent of respondents left their final job due to unsatisfactory compensation. A well-established EVP will help you express what your organization can offer you beyond the average salary and benefits.(Bayer, J.2022)

    ReplyDelete
  4. P.Janaka Chaminda PereraApril 30, 2022 at 10:49 PM

    Conferring to (Browne, 2012) It strengthens the whole work experience of an organization as a statement of why is superior to other organizations. The value proposition must identify the identity of Individual policies, processes, and programs that demonstrate the organization's commitment namely, employee growth, management development, continuous employee recognition, community service, etc. It should list the central reasons why people choose to commit to an organization.

    Reference
    Browne, R., 2012. Employee value proposition. Beacon Management Review, 2, pp.29-36.

    ReplyDelete
  5. Sajith JayakodyMay 1, 2022 at 9:48 PM


    Employee value proposition (EVP) is an evaluation of the employer-employee relationship. This refers to what an employee receives from his or her employer as a reward for hard work. However, in this blog, intangible rewards are highlighted because most people only consider tangible rewards. Data from the American research center, on the other hand, is used flawlessly to validate points. Anyway, I'd like to provide some references for this blog's readers for their use, and I've attached some examples below. Great article, well-produced and organized.

    Reference
    1) Evans, P., & Vladimir, P. (2009). The global challenge: International Human Resource Management. New York: McGraw-Hill Higher Education. Web.
    2) Ulrich, D., & Brockbank, W. (2005). The HR value proposition. New York: Harvard Business Press. Web.
    3) Chowdhury, S. (2010) The talent era. New Delhi: Pearson

    ReplyDelete

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