What Is Employee Value Proposition?

What Is Employee Value Proposition?
Last Updated: September 19, 2023

Employee value proposition is the benefits and rewards organizations use in today's competitive job market to entice, engage, and retain their employees. This strategy sums up what employees expect in return for their loyalty and contributions to the organization.

According to a study by Gartner, the employee value proposition has an impact of a 28% increase organization's recommendations if the benefits are lucrative. The Employee Value Proposition represents the perceived overall deal between employer and employee. Minchington (2005) defines an Employee Value Proposition (EVP) as a 'set of associations and offerings an organization provides in return for the skills, capabilities, and experiences an employee brings. According to a LinkedIn article by Peter Morgan, employee value proposition shows the set of perks and rewards that workers receive for their abilities, capabilities, and loyalty to the company. According to research conducted by Gartner, organizations that effectively deliver on their employee value proposition can decrease annual employee turnover by almost 70% and increase new hire commitment by nearly 30%.

In this article, we shall detail the importance of employee value proposition, employee value proposition examples, employee value proposition models, and how to measure employee value proposition.

Understanding Employee Value Proposition

An Employee Value Proposition (EVP) is the unique value that an employer grants their workers in return for contributions to the company. These contributions are detailed or, rather, labelled as tangible and intangible aspects. It goes beyond mere compensation and benefits and encompasses a broader range of factors contributing to the overall employee experience. A well-crafted employee value proposition conveys what makes an organization distinctive, why it is attractive, and how it supports its employees' personal and professional growth. Generally, the employee value proposition targets to inform aspects that employees should expect.

Importance of Employee Value Proposition


Employee value Proposition strategy that is well crafted is of great essence to the organization. Here are some of the benefits of using employee value proposition:

• Attracting Top Talent

Today's work environment is highly competitive; a solid employee value proposition may assist organizations to stand out and attain the best talent. This can be made a reality by vividly communicating the exceptional perks and opportunities for the employees. By doing this, companies tend to place themselves as an employer to rush to and gain the attention of high-performing possible candidates.

Related: 15 Work Perks That Work

• Retaining Valuable Employees

The importance of employee value proposition does not just end on attracting talent but also plays a crucial role in retaining employees. In instances where employees feel valued and rewarded, they tend to be more likely to stay with the organization. In the long run, this results in higher employee engagement, added productivity, and, best of all, lessened turnover volumes. A study done in Nigeria by Faremi (2017) revealed a significant relationship between strategies aimed at the retention of teachers and job security in private secondary schools. Based on the findings, it was therefore recommended that teacher retention strategies should rely on a basic employee value proposition (EVP).

• Driving Business Performance

Last but not least, a solid employee value proposition positively impacts business performance. When an organization is engaged and satisfied, employees tend to be very productive, resulting in appraised overall performance and profitability. Employee value proposition also contributes to a conducive work environment and pushes for a culture of success.

Employee value proposition examples/ models

In the ever-evolving landscape of recruitment and selection, employee value proposition stands as the north star for companies thriving in best talent attraction and engagement. But there comes a question: What does a highly effective employee value proposition look like in practice? This section will assist you in answering this question through the use of models, showcasing how leading organizations use the same EVP strategy. Let's explore each model in detail:

1. Compensation

Compensation is a broad term that refers to anything a business provides to an employee in exchange for their effort. Compensation also refers to monetary rewards in exchange for employee loyalty and hard work. According to Keith Davis, employees receive compensation in exchange for their contribution to the organization. Examples of these are remuneration, bonuses, and other monetary perks.

A study by JLL found that 54% of those surveyed wanted to earn a comfortable salary, which was their second priority after achieving a good quality of life. However, it is also key to note that compensation alone cannot be enough to make a compelling employee value proposition. Organizations need to look into having a package that encompasses overall rewards and benefits as much as possible.

Related: Compensation Philosophy- What You Need To Know And Why

2. Benefits

In addition to compensation, benefits are in the same circle and play a crucial role in an employee value proposition. These benefits usually include health insurance, paid time off, and professional opportunities to mention a few. When an organization offers lucrative benefits to its employees, it ends in a situation where their commitment and well-being are uplifted.

Related: A Guide To Employee Benefits: An Employers Guide To Good Practice

3. Work-Life Balance

When it comes to work-life balance, it entails the ability of the employees to manage work tasks and personal life responsibilities. Companies who put work-life balance first usually do this by providing flexible working times, paid leaves, and supportive work-life balance policies.

4. Respect and Recognition

Respect and recognition are essential for creating a positive work environment. Employees want to be valued for their contributions and efforts. An EVP that emphasizes respect and recognition can include elements such as a supportive and inclusive culture, professional growth and development opportunities, and regular feedback and appreciation.

Typical Examples of Outstanding Employee Value Propositions

Let's take a look at some examples of companies with outstanding employee value propositions:

1. Canva

At Canva, which is a graphic designing site, they give out a different combination of benefits and perks to their employees. After setting aside the chefs making breakfast and lunch, Canva puts pressure on individual growth for their employees. The organization pushes to motivate individuals to create and attracts top talent passionate about making a difference.

2. Chevron

In the energy sector, Chevron looks into the full usage of diversity and inclusivity in its employee value proposition. Their main drive is to attain and retain a diverse workforce by creating a supportive and inclusive workspace. The organization offers programs that support women in the sector, for instance, the "welcome back" for those reentering the work realm.

3. Unilever

Unilever is roughly a consumer goods organization and thoroughly highlights and actions on their employee value proposition. Employees here are allowed to create a better business and a better world of work for tomorrow. They also offer global exposure to their employees as part of their employee development support of their value propositions.

How to Measure Employee Value Proposition

In any strategy, there is a need to have assurance that it has been successful, in this case, to determine the effectiveness of your organization's employee value proposition strategy in attaining the best talent for vacancies. There is a need to look into various indicators such as the number and quality of the engaged talent, recruitment turnaround time, and cost of recruitment.

Metrics can also be verified, such as the employer reputation and employer value proposition index, which assesses the attractiveness and reputation of the organization's brand in the market. The more attractive and reputable your EVP is, the higher the chances of reducing your hiring costs and time while increasing your talent pool.


In the complex world of modern employment, where the best skills are the lifeline for companies, employee value proposition brings hope in attracting the best talent for your organization. Employee value proposition is not only a concept but a transformative force of the new world of work.

Tanyaradzwa Shava
This article was written by Tanyaradzwa a Consultant at Industrial Psychology Consultants (Pvt) Ltd

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