What Is an Employee Value Proposition?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 15 August 2019
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Employee value proposition (EVP) is an assessment that makes it possible for employees to identify the range of benefits associated with exhibiting certain levels of performance while engaged in managing the tasks assigned by an employer. The general concept behind employee value proposition is to provide incentives for employees to make the best possible use of their gifts and talents during the course of providing services to their employers. Doing so can help produce a number of benefits for the employer, who can then recognize the effort with the granting of employee rewards that are based on the level of performance demonstrated by the employee.

The type of employee benefits and rewards that are considered as part of an employee value proposition may be tangible and intangible in nature. For example, employees who consistently perform at certain levels may be provided the opportunity to participate in a bonus program that allows them to receive bonuses in addition to their normal salary or wages. At the same time, the rewards may be in the form of something that is less tangible, such as catered lunches in celebration of those additional efforts, or the opportunity to participate in some activity sponsored by the employer that is considered to be enjoyable.


One of the underlying aspects of employee value proposition is the need to recognize exemplary efforts on the part of employees. While additional money is often one of the ways this takes place, the use of other methods in tandem with the financial rewards can often create a more unified and harmonious working environment. An employee who is recognized for his or her efforts is likely to feel more loyalty to the company and take pride in being associated with the employer. The end result is that the company benefits from access to the skills and abilities of the employee over the long term, rather than having to find a replacement for the employee when he or she finds a more attractive working situation elsewhere.

The course of employee value proposition often provides benefits that are aimed at assisting employees to realize their career goals. To that end, assistance with educational costs, offering advancement opportunities, and even aiding the costs of relocation when employees move from one company-owned facility to another can go a long way toward strengthening employee loyalty and allowing the business to continue benefiting from the talents and skills of its valued employees. Even small businesses can create employee value proposition guidelines that help to strengthen ties with valuable employees and increase the chances of keeping those employees on board over the long term.


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