EMPLOYEE VALUE PROPOSITION (EVP) AS A TOOL OF EMPLOYER BRANDING

EMPLOYER VALUE PROPOSITION (EVP)

The Employee value proposition is a set of distinctive offering and benefits such as monitory and non-monetary provided by the organisation to its employees, in exchange for their skills, capabilities and experience they bring and further empower the company’s business vision, mission and values. Today's organisations face significant difficulties in employee attraction and maintenance, EVP keeps on being acknowledged as a vital structure for enhancing organizational execution (Watson, 2012), and driving attraction and duty in the work market. 

Main Component of EVP

EVP addressed the five main components, such as :

1. Compensation : this covers all the financial benefits/ offers such as salary, bonuses, promotions, allowances, etc. 

2. Benefits: this covers the additional benefits such as health insurance, retirement scheme, paid leaves, etc.

3. Career : Career stability and professional growth should be clearly defined. Every employee must be aware of the requirements required to move forward in the organisation. A clear career development and growth plan can be the difference between hiring high-quality talent and losing them.

4. Work Environment:. The positive work environment created by different factors such as flexible working hours, work-life balance, team building, proper communication system, etc.

5. Company Culture:  The grate company culture should be addressed by relationships (trust) with staff, mangers and directors. 

An EVP is more than just salary and perks, it's about the experience of working for your company.

EMPLOYER BRANDING 

The employer branding is all about making a difference and is a long-term strategy to manage the awareness and perception of the current employees, prospective employees and other key stakeholders of the company. Organisations apply branding principles which are derived from the marketing management discipline to human resource management for attracting potential candidates while retaining current employees in the organisation (Backhaus & Tikoo, 2004). According to (Backhaus & Tikoo, 2004), the employer branding process consists of three steps

1. the first step of Employer branding is used to develop &  communicate the value an organisation offers to its potential and existing employees. The value proposition derives after a comprehensive audit of characteristics which help the organisation to become a grate place to work. 

2. The second step of the employer branding process is external marketing of employer value proposition to attract suitable candidates.

3. The third step of the process is internal marketing of the employer brand to develop a committed workforce towards the achievement of organizational goals.

As an outcome of the above steps, organisation should understand the expectation of the employees which is called employee Value Proposition (EVP) 

EMPLOYER BRANDING AND EMPLOYER VALUE PROPOSITION (EVP)

Both employer branding and the employee value proposition (EVP) are closely related concepts that work together to attract, engage, and retain top talent. Employer branding is about making the company as a grate place to work. The EVP is about what employees receive while they work there.

The term employer branding demonstrates as how firms market employer value proposition (EVP) to the prospective and current employees and maintain the loyalty promoting both inside and outside the firm, a strong view of what makes it different and desirable as an employer (Backhaus & Tikoo, 2004)

Recommended Employer Brand Model, (TMP Worldwide)

Key different between EVP and Employer Branding

1. The Employer brand is external, EVP is internal to the company. 

2. EVP is research-driven, while Employer Brand is about creative expression of the EVP. 

3. EB focuses on how organisations are perceived as an employer by both current and potential employees. EVP specifically focuses on the tangible and intangible benefits and rewards that company offers to its employees in exchange for their skills, experience, performance, etc.

4. The purpose of EB is to Shap and manage the organisation’s reputation and image as an employer to retain, attract and engage top talent. The purpose of EVP is to articulate and communicate the specific value that the organisation offers to its employees in terms of the benefits, rewards and opportunities available to them. 

Here's how they intersect:

Alignment of Messaging: Employer branding efforts often incorporate elements of the EVP to communicate the organisation's value proposition to current and prospective employees. The EVP serves as the foundation for employer branding initiatives, ensuring that messaging is consistent and resonates with the target audience.

Differentiation in the Market: Both employer branding and EVP aim to differentiate the organisation from competitors in the talent market. By articulating a compelling EVP and effectively communicating it through employer branding strategies, organisations can attract candidates who are aligned with their values, culture, and offerings.

Attracting Top Talent: A strong employer brand and compelling EVP work together to attract top talent. Employer branding efforts highlight the organisation as an employer of choice, while the EVP communicates the unique benefits and opportunities that employees can expect. Together, they create a powerful proposition that appeals to high-caliber candidates.

Engaging Current Employees: Employer branding initiatives reinforce the EVP by highlighting the positive aspects of the employee experience. Engaged employees who have a positive experience with the organisation become advocates for the employer brand, further strengthening its reputation in the market.

Retention and Loyalty: A well-defined EVP contributes to employee satisfaction, engagement, and loyalty. When employees feel that their needs and aspirations are met through the EVP, they are more likely to stay with the organisation long-term. Employer branding reinforces this by showcasing the organisation as a desirable place to work, further encouraging retention.

Continuous Improvement: Both employer branding and EVP require ongoing evaluation and refinement to remain relevant and competitive. Organisations should regularly assess employee perceptions, market trends, and competitor offerings to ensure that their EVP and employer branding strategies remain effective and aligned with evolving needs.

CONCLUSION

Both EVP and EB are related concepts that play important roles in attracting and retaining top talent. Both concepts differ in focus, purpose, and scope. Employer branding is about shaping the organisation's reputation and image as an employer, while EVP is about articulating the specific value that the organisation offers to its employees in terms of benefits, rewards, and opportunities.

REFERENCE:

Backhaus, K., & Tikoo, S. (2004). Conceptualizing and researching employer branding. Career Development International, 9(5), 501-517.

Berthon, P., Ewing, M., & Hah, L. L. (2005). Captivating company: Dimensions of attractiveness in employer branding. International Journal of Advertising, 24(2), 151-172.

Cable, D. M., & Turban, D. B. (2003). The value of organizational reputation in the recruitment context: A brand-equity perspective. Journal of Applied Social Psychology, 33(11), 2244-2266.

Gagen MacDonald. (n.d.). https://www.gagenmacdonald.com. https://www.gagenmacdonald.com/communications/employee-value-proposition/

kpcompanies. (n.d.). https://kpcompanies.com/. https://kpcompanies.com/how-tomanage-a-multi-generational-workforce/