In an effort to promote the important role an employee plays in a company, many companies are creating employee value propositions. The employee value proposition is also known as an employee value profile. According to Encinitas Associates, a management consulting firm, an employee value proposition is “a statement that outlines the organizational objectives and performance measures for a particular employee.” Value propositions should be clearly defined and organized so that an employee understands their relationship to the company and how it affects their position and future with the company. Furthermore, an employee value proposition should also be easily accessed by employees and should include performance goals that align with a company’s own goals.
The key elements to developing an employee value proposition are clearly establishing organizational goals and objectives, identifying an employee’s role within the company, communicating the key elements of the goal to employees, providing compensation and benefits to employees that contribute to the success of the company, and rewarding good performance. Encinitas Associates believes that the key elements of an employee value proposition are the following: The key element is establishing organizational goals and objectives. These goals and objectives must be clearly defined and can include the purpose and definition of the company, its processes, policies, principles and practices, and its customers or clients. The second element is clearly identifying an employee’s role within the company.
According to Encinitas Associates, this element “sets the stage for a dialogue between an employee and his manager.” The employee value proposition should identify an individual’s role and responsibilities, which may require knowledge and skills from a professional counselor. The third element is providing compensation and benefits that employees bring to the company. Encinitas Associates believes that if a company does not provide a competitive compensation and benefits package, then an employee will “reject the offer” and consider quitting.The fourth element of employee value proposition
creation, according to Encinitas, is creating a strong workplace culture. “You cannot just ask people to apply to your company,” he said. “You need to ask them first to consider working in your company and then to apply for jobs within your company. Simply asking candidates to join your company is like telling those candidates that your company has no interest in their futures. A strong workplace culture encourages people to think beyond the job interview and if an employee does not feel like a part of your team, he is not likely to stay with the company.” Creating a strong workplace culture includes creating an excellent and supportive work environment, a strong rewards system, providing benefits and competitive salaries and benefits, and having a strong and well-defined benefits program.
The fifth element of employee value proposition creation, according to Encinitas, is having a strong overall sales performance. He explained that the key to a strong overall sales performance is recruiting and promoting the right candidates, hiring and retaining the right people, and providing a good benefits package. He also recommended that companies provide financial incentives for new and returning employees. Encinitas explained that companies need to provide a good financial return on investment and that incentives will encourage employees to increase their productivity. This is especially important for a company that is undergoing rapid growth because if sales growth is less than the business grows, profits fall.
The sixth element of employee value proposition creation, according to Encinitas, is providing a work-life balance for all employees. Creating a work-life balance is necessary for employees who are parents or who have other responsibilities at home. Furthermore, creating a work-life balance helps employees feel that they have choices. Therefore, a company should always consider the needs of its employees before choosing an employee’s role model and the pay level or benefit packages that employee receives.
The seventh and final element of employee value proposition creation that Encinitas considered was the ability of an employer brand to build trust and loyalty. An employee must have faith and trust in his employer. Without these, he cannot effectively communicate with others and develop effective plans and procedures. In addition, an employee must be able to trust and have loyalty to a particular company.
The eight employee value proposition points listed above are the most critical elements of creating an employee value proposition. They represent the core values that employees must be willing to embrace. According to Encinitas, companies that value employees can survive and succeed. However, he said that it takes more than just offering a good compensation package to keep a good employee.