Thursday, July 31, 2025

Rethinking Employee Value Proposition (EVP)

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Whenever we talk about humans as a possibility it has to be linked with a fundamental question under what conditions would ‘an individual consider himself as a possibility and how this potential can fully transform to performance’. I feel answers to such questions are related to ensuring the creation of right EVP for employees which is about overall ‘contract’ that employee has with the employer. High-performing organizations create a sustainable EVP and total compensation strategy based on needs, aspirations, demographics, and ‘what’s in it for me factor’ in employees.

Other benefits of EVP may include attraction and retention of talent, creating a strong talent pipeline, re-engagement of disengaged employees, building right perspective for employees towards the organization and building of organisational capabilities. AIHR asserts that an employee value proposition is the unique value employer offers to its employees in return for their competencies, experience, and commitment to organizatio

This includes components like compensation & benefits, rewards, career development, and work-life balance, as well as values, mission, purpose, & organizational culture. In contrast to employer brand which is related to external reputation of the organisation EVP is internally oriented with employer communications to employees as to what they would receive in return for their commitment to the organization.

Different HRD Systems should work collaboratively towards designing EVP. L&D programmes should be a mirror of organisation’s values and should work towards learner-centric, customised and ‘one-size-fits-one’ learning experience that responds to needs of different learners. Effective and purposeful EVP can be chalked out by understanding diversity issues critically. Performance management to align with EVP should focus on feedforward and be simplified for attaining excellence in tasks rather than criticising and giving inaccurate rating on performance.

Clifton & Harter, the Chairman & CEO of Gallup and the Chief Scientist of Gallup respectively, found that ‘Good health’ & ‘Wealth’ were reported as ‘best possible future’ by employees while ‘Career well being’ was most vital element of employee well being. Additionally, in their study it was found that individuals with mentors had substantially higher performance, intentions to stay with their organization, positive attitude towards their career, overall motivation and better health practices. Also, it was reported that Managers who received training on skill building to engage employees had 2.5 times impact on their team’s engagement.

A good example of people empowerment leading to positive EVP and development of talent was in 2020 by Schneider Electric which introduced internal mobility platform, an open talent market to create internal gig economy for 135000 employees in 100+ countries and there were mentors, training opportunities and part-time work to facilitate opportunities for talent development.

Mortensen & Edmondson (2023) in one of the Harvard Business Review articles titled ‘Rethink Your Employee Value Proposition” wrote about role of leaders in diagnosis of the organizational issues and as such assessment of what organisation has, and what employees would need and an in-depth review of causes of disengagement of employees.

Also, once data is available as to what employees need then leaders to make sure that managers and their reports are having thoughtful conversations about EVP in an integrated way. This may include communicating the offerings that organisation would provide at time of talent acquisition interviews in, building sense of purpose behind work during goal setting and performance conversations as well as policy level updates. ‘Diagnosis’ of what employee needs should be a repetitive process.

EVP and Positive EX

Today, organisations are spending huge amount on building EVP and creating rich employee experience. Practices may include focus on employee training and development including reskilling & upskilling, mentoring and coaching, recognition and rewards, efforts on ensuring wellbeing, and other digital experiences.

A purposeful EVP would lead to the right employee experience or EX (which is the employee’s perception regarding organization-wide practices that keep him connected, healthy, productive, informed, empowered, and committed).

Sustainable EVP causing positive EX may be considered as the root that leads to the growth of the tall tree of ‘Customer Experience.’ Josh Bersin, a Global HR expert says, “You should define and design your Employee Experience, not just monitor it. And they want to see the company investing in their pay, growth, and advancement…..So before we simply raise wages or add perks to make employees happy, we have to focus on the core.

  • Employees want a feeling of purpose from their employer.
  • They want to trust their leaders and institutions.
  • They want to feel that they belong and that their team will take care of them.
  • They want to be treated fairly, respecting their uniqueness and identity as a person.”

Right kind of diagnostic OD interventions and proactive HR systems & practices may lead to insights on practices for creating employee engagement, low turnover intentions, high-performing employees, and happy customers. So HR & OD professional be ready to collaborate!!!!!

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Dr.Deepak Sharma
Dr.Deepak Sharma
Dr. Deepak Sharma, Faculty Member (HR), NMIMS, Bengaluru Campus. He has more than 23 years of work experience as HR professional in the capacity of Corporate Trainer, HR/OD/IR Consultant, Leadership Coach and Faculty Member. He has previously been associated in similar capacity with premier Business Schools of India such as International Management Institute and Lal Bahadur Shastri Institute of Management, New Delhi as well as he carries a rich industry experience.