The employee value proposition (EVP) encompasses the benefits and rewards employees receive in return for their performance in the workplace.
What Are Examples of Benefits and Rewards Part of the Employee Value Proposition?
The employee value proposition varies depending on the organization. There are 5 main categories of benefits.
- Financial benefits: salary, bonuses, stock options, etc.
- Employment benefits: health insurance, retirement benefits, paid leaves, gym membership, additional holidays, summer work hours, etc.
- Career development: specialized training, scholarships, mentoring, promotions, opportunities to work abroad, etc.
- Work environment: work-life balance, flexible work hours, workspace design, recognition, etc.
- Company culture: employer branding, values, mission, alignment with goals, etc.
Why Is the Employee Value Proposition Important?
The employee value proposition (EVP) of a company plays an important role in attracting and retaining top talent. Specifically, the EVP contributes to the desire of an employee to work for a given company over another.
How to Create an Employee Value Proposition?
The steps to create an employee value proposition typically include:
- Assessing the current offer of the company;
- Interviewing existing and past employees to understand what motivates them;
- Defining the key components of the EVP (financial benefits, employment benefits, career development, etc.) that make the organization unique;
- Writing the employee value proposition in an official capacity;
- Presenting and promoting the EVP.