EVP (Employee Value Proposition): A Basic Guide (2021)

Ajay Ohri


Employee Value Proposition (EVP) is the unique set of benefits, compensations and rewards that an employee received in return for its valuable contribution in the form of work performance, experience and capabilities they serve to the organization. Organizations generally develop EVP for the upcoming candidates for creating branding so that candidates are attracted to that company.  An EVP is an employee-centric proposition aimed at integrating workforce planning for the existing and new employees. It acts as a key driver and must be unique, relevant and compelling to positively influence talented candidates, engagement and retention. It acts as a determining factor for attracting candidates or losing talent from your pool.

Hence it is of utmost importance for an organization to set remarkable employee value proposition examples. Employee value proposition meaning will gain much value if the organization brings in a spirit of confidence amongst the employees that their work is appreciated and their efforts are being taken into consideration.

  1. Salary
  2. Compensation
  3. Benefits
  4. Define Your EVP

1. Salary

Salary is one of the most important components of EVP. It is a unique selling point for getting the best talent for the betterment of the organization. This component is bargained the most by the candidate, and hence its importance can be immensely felt. Salary does form an integral part, but at the same time, work-life balance and other perks affect an employee’s morale. Salary is important as it brings employees money for their living and fulfilling their needs. Company has limited resources, and so companies amongst themselves cannot solely compete based on salary. Other factors should also be looked into.

2. Compensation

Compensation is a term used for appreciating employees for their good performance and work conduct. It will boost the enthusiasm of employees and make them feel proud that their contribution is being valued. This is variable-based and it is not necessary that it will be in the form of cash. It could be a prize, leave benefits, raises or promotions or in any other form. All employees have different motivating factors, and hence it becomes crucial to reward them with that factor. Hence an organization should find that compensation that drives the employee in defining their EVP.

3. Benefits

Benefits are a part of encouragement to the employees and are available in three ways-

  1. Supplementary compensation
  2. Values, mission and purpose
  3. People and Culture

1. Supplementary compensation

Supplementary compensations are those that are provided to the employees as a part of the organization values like company cars, beverages, medical insurance, lunch and snacks, working hour flexibility, gym membership, vouchers/ coupons for clothing, house rent allowances, paid leaves and many more. They are the right of employees, and they feel important when offered so.

2. Values, mission and purpose- 

They are a crucial factor but are rarely taken into EVP. Company values should be clearly defined so that employees don’t feel neglected by that fact. This, at times, becomes a greater motivating factor than salary. They also have employees who work exceptionally well and for a longer duration. They feel that the organization in which they are serving is recognizing its efforts, and there are also further growth prospects.

3. People and Culture- 

Colleagues are the ones who impact your work and attitude towards the organization. This optimistic and pessimistic vibe, along with the work politics, brings out the work culture. All the people working in an organization form a work culture. Having enthusiastic people ensures that the company is getting the required performance, and they are achieving their heights.

4. Define Your EVP

While defining an EVP, the most important rule is to be realistic. An organization should take into consideration all the relevant factors which will enhance its EVP.   

  1. Make an EVP by clearly defining the organization’s plus points and key factors which will drive more talented and enthusiastic candidates. All the data which an organization does for the betterment of its employees should be included. 
  2. Do not include any statements which are contradictory to your company’s policy. Only state facts as any false claims could tarnish the image of the organization.
  3. Start summarizing points. In this way, all the facts will be presented all together, and they can be analyzed and stated well.
  4. Run through the points and see how they can be improved and communicate the same.
  5. Keep reviewing the document time and again for any changes, additions or deletions.


We can infer that EVP is an element of the organization which will make the existing employees satisfied, and new candidates will be drawn into working for the organization by offering them benefits, compensation and salary in return for their valuable contribution towards the progress of the organization. It should be unique and act as a driving force for the company’s goodwill. It is an evaluation which the organization gives towards employee welfare, including all the aspects- monetary and non-monetary aspects.

Are you interested in learning more about Analytics in Workforce Management? Take a look at our People Analytics and Digital HR program, in collaboration with IIM Indore. This is a 3-month long program with instructor-led sessions by IIM-I faculty.


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