Employee Value Proposition – A Complete Guide

The recruitment industry has undergone a paradigm shift over the last few decades. It’s the candidates and job seekers who have the upper hand now, not the recruiters. The war for acquiring top talents has been at its peak, especially with the pandemic upon us. According to a study, 63% of recruiters say talent shortage is their biggest problem. So, that’s why industries are more concerned and conscious about building their employer brand now than they ever have been in the past. The current recruitment scenario is all about the employer brand. To stand out, you need to offer something unique. That’s why, when you offer your employee value proposition, you can easily define your plans.

Today, employees have tons of options to choose from and they are very discerning about their choices. Amidst this, employer branding becomes the key to attracting and hiring top talents. So, employer branding is not just a way to drive tangible hiring results, it also allows organizations to keep their passive candidates engaged. Employer Value Proposition (EVP), is the key to guiding and building a strong employer brand. So, in this post we are going to explore everything there is about the employee value proposition.

What Is Employee Value Proposition?

Before we get into our own definition, let’s first see what experts have to say about EVP. Andrew Collett in a 2014 article for Edelman says:

“The EVP serves to define what the organization would most like to be associated with as an employer and defines the “give and get” of the employment deal (the value that employees are expected to contribute with the value that they can expect in return).”

Technically and formally speaking, EVP is a set of monetary and non-monetary benefits that a company offers to its employees in return for their skills, time, and other resources they dedicate to the company. EVP is the benefits and rewards you offer your employees to stay committed to your organization and give their best towards its growth. It is basically what you offer your employees in return for the value they bring to your organization.

EVP is not all about benefits and compensations. It also includes a set of appealing factors that make the top talent want to work for you. This could be anything, a typical workday in your company, or how you celebrate events and festivals. EVP is basically the complete set of key benefits that make working for your company a fantastic experience. The EVP you offer to your employees or are willing to offer your future employees is what makes your company appealing to the great talents looking for jobs.

Why Is Employee Value Proposition Important?

Now that we understand what EVP is, one may wonder why is it important? What are the benefits of EVP? There are many benefits and reasons for you to have an effective EVP. Let’s take a look at some of the most important ones.

EVP Gives A Boost To Your Hiring Efforts

The heading says enough. An effective EVP does not only boost your recruitment efforts but also enables you to mark your presence amidst the passive candidates. It helps you attract more relevant talent for your hiring needs. The best benefit of having a unique EVP is that it sets you apart and build differentiates you from others. In a nutshell, a good EVP helps you become the employer of choice.

EVP Is The Foundation Of Your Employer Brand

The truth is, whether or not you’ve put in your efforts for creating an EVP, you already have one by default. Whatever you do or implement throughout the hiring process serves as your de facto EVP. It builds an internal and external perception of your brand. In a nutshell, EVP is the base, the foundation of your employer brand.

Helps You Attract And Retain Talents

The recruiting scenario has changed. Your potential employees are more discerning about making job choices now than they have ever been. Your current, as well as future employees, are looking for much more than just a great salary. They want to work for a company where their work is valued. So, a well-thought EVP can help you articulate and convey what you have to offer other than just a great salary and benefits. It can help you attract the top talents and retain the already hired and current employees effectively.

How To Create An Effective EVP

The process of developing an efficient EVP should not involve any kind of guesswork or hit and trial. Developing an effective EVP is a process that is constantly shaped by the feedback and preferences of the current as well as future employees. It is an enlightening process that mainly consists of the following components.

  • Compensation And Benefits

This attribute refers to your employees’ satisfaction and expectations for the salary package and additional benefits that you provide. It covers all the financial aspects like salary, bonuses, incentives, etc. Apart from the financial benefits, it also covers the additional employee benefits that the job covers like health insurance, retirement benefits, paid leaves, etc. This is indeed the most important component that makes your EVP unique. However, it’s not the only component, it’s just a part of the puzzle.

  • Career Development

For today’s workforce, learning is a never-ending process. They seek opportunities where they can not only showcase their already existing skills but also can acquire new ones. Employees want a job that can offer a steep learning curve and growth and contribute towards their career development. So, this component of EVP should include various training and development programs.

  • Work Environment

Of course, providing information about the work location is a must. However, to create a positive EVP, you need to provide more than the simple location of your office. Think of location in a much broader sense: a positive work environment. Your EVP should include factors like flexible working hours, work-life balance, recognition, team building, etc. These factors will ensure that your EVP conveys a positive work environment guarantee to your employees.

  • Company Culture

To exhibit what your company has to offer and why working for you is going to be fantastic, it is essential to showcase your company’s culture effectively. You need to very clearly convey your culture, beliefs, values, vision, and mission to your current and prospective employees to make sure their interest is piqued and they stay engaged.


These are some of the basic components that you need to keep in your mind while building your EVP strategy. A great employee value proposition is not only important for your future hiring needs, but it also ensures that your current employees and satisfied and happy with their jobs. So, just having an EVP is not enough. You need to deliver on them too.

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