Leveraging Employee Value Proposition for Organizational Effectiveness

Abstract

Employee Value Proposition (EVP) has caught the imagination of HR professionals across the globe as a determinant of organizational effectiveness. In simple terms, EVP can be defined as sum of all the tangible and intangible rewards/benefits that employees receive for their contribution to the companies where they work. Employees are more likely to contribute to organizational success by using their discretionary efforts if they perceive that their employers are willing to offer greater value in the bargain. EVP has been closely linked with the overarching HR agenda of attracting, retaining and engaging the highly talented employees who have the competencies to realize the organizational vision and mission. This paper provides a holistic framework for applying EVP to harness human capital in contemporary organizations to gain or retain competitive advantages. The authors have relied on the secondary literature to make sense of EVP in the context of current trends and practices revolving around talent management aimed at profitability and viability of the organizations in the long term.