Why is there a need for Employee Value Proposition (EVP)

Sheela, an entrepreneur of a medium sized enterprise*, is currently thriving in her business ventures. Her company’s revenue increased by 25% in the last 2 years. She is undertaking new projects and is planning to expand her business across India. Last week, while she was on a regular visit to meet our talent experts, she narrated her success story on how her company progressed from being a mere start-up company to what it is today.


We have known Sheela for quite some time now. Two years ago, she sought expert advice from our talent experts on employee retention and hiring strategies. We helped in optimising her existing recruitment strategies and gave her insights on Employee Value Proposition (EVP).


At first, she was unsure of integrating novel concepts into her business because her organisation had just entered the industry. She was unwilling take risks. But, after persistent advice from out talent experts, she finally agreed to implement it. Today, her success story speaks for itself.


What is Employee Value Proposition (EVP)?


EVP is creating a balance of rewards and recognition in return to an employee’s performance at work. It revolves around the concept of “Give and Get” – your productivity and contribution to the organisation gets you the reward and recognition you seek.



EVP focuses more on a mutual relationship of “Giving” and rejects the “Give and Take” policy. The more an employee performs, the more recognition they get.


Like Sheela, you must be curious to know why EVP is important in the HR domain. Well, here is a list of points that will help you understand the value of EVP in your company:


• Higher Productivity and Profitability:


A company that adopts EVP as a key concept in their recruitment strategies will unquestionably produce valuable employees. Since, the concept considers employees as determiners to success, it helps them recognise their true potential thereby leading them achieve their targets on time.


Also, some of the technical elements that enhance EVP such as remuneration, job structure, dynamism, employee benefits, inbuilt services and technology play a crucial role to engage employees in their current working conditions.


• Helps you Segment Employees


Employee segmentation in terms of skills and performance becomes complex and redundant over a period time. However, by adopting EVP you can measure the performance of employees and segregate them as per their abilities. It lets you to distinguish between performers and non-performers.


Segregating employees by means of how they think, behave, and their motivation level can enhance EVP. It allows you to specify whether employees belong to either a highly team-centric work culture (employees who are creative thinkers, impulsive and logical) or a metric –oriented work culture (employees who are purely driven by performance), based on which you can set rewards for them.


• Employee Branding


Most EVP activity revolves around employee branding. EVP lets you to shape employees behaviour, so they project the brand identity of your company’s services or products through their everyday work behaviour.


In a way, EVP balances the needs of both the company and its employees. The company gets its employees to perform as per their requirement. Likewise, employees, get a boost in their intelligence and also helps them build their self-esteem to a larger extent.


• Motivation


In my previous article on Talent Mobility, I mentioned how internal mobility motivates employees to stay in the company for a longer duration. Similarly, EVP strategies act as a great stimulus not only retain employees but also motivate them to perform better and bring laurels to the company. EVP and talent mobility are symmetrical in nature. The latter, however, is considered as an offshoot of EVP itself.


EVP intrinsically motivates employees to a greater extent. It allows them to experiment and absorb themselves into the company’s work culture.


The development of Employee Value Proposition (EVP) strategies and its delivery involves your investment in time and commitment from the entire company. A well-shaped EVP concept, however, reaps several benefits in the long run as it offers better attraction and retention of key talent. It helps focus on your HR agenda and creates strong employee branding and also has the ability to re-engage a dissatisfied workforce.


But you must also remember, an EVP concept must be unique and compelling as it acts as a key driver to retention of employees, engagement and attraction of new and external talent.


Do you want ideas for a unique EVP concept for your organisation? Get in touch with our talent experts and we can help you derive some of the best and unique EVP strategies.
*(Names of company kept anonymous to protect privacy)