EVP Full Form and Meaning | What is Employee Value Proposition?
The salary and CTC are two different terms which are often used interchangeably. However, the CTC is the cost to the company which also includes the other benefits apart from salary. However, there are some benefits which are offered to employees but are not included in the CTC. EVP or Employee Value Proposition is one such benefit. So, in this blog, let’s learn about what EVP is and how it affects an employer and employee.
What is EVP?
EVP’s full form is Employee Value Proposition, which is the reward that an employee gets for achieving their goals. It is basically a performance-based incentive for employees. But how does it differ from other benefits? It differs from other benefits due to its intention. While other benefits focus on getting better performance from employees, EVP also focuses on branding the company for freshers. In simple words, it helps the company to get fresh talents easily by showcasing the EVP during the job posting.
Moreover, the benefits within the EVP package are also centred around the betterment of employees’ overall satisfaction. For instance, EVP doesn’t only have compensation as the only benefit but can also has elements like a shift to preferred location after achieving the target performance.
Now that you know the EVP meaning and what it is exactly, let’s explore some of its benefits for the employer and employee.
Benefits of EVP for Employers
Here are some of the benefits of EVP for employers:
1) Attracts top Talent
When employees know their value they always look for the jobs where they are being compensated well. With EVP you can make sure that you are able to attract such employees by offering them their value beyond the salary.
2) Employee Retention
EVP is also a great way to retain employees for long periods or even for the lifetime until they retire. It’s important to hold employees for longer periods as it helps you cut the costs of frequent hiring.
3) Improved Employer Branding
A well crafted EVP is also crucial for the employer’s branding. It creates a positive word of mouth among the people who might be looking for a job. This way you can make sure that a compatible employee is joining your organisation and your competitors.
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Benefits of EVP for Employees
The benefits of EVP are not limited to employers. There are many benefits for employees as well. Here are some of them:
1) Career Development
As we discussed above, EVP not only includes monetary benefits but also other benefits like career development, which allows employees to learn while earning and then increase their earning potential.
2) Job Satisfaction
It also gives employees the job satisfaction which is much needed in today’s corporate world. It makes sure that the employee feels that he/she is well compensated.
3) Life Stability
With EVP, employees can live a stable life without making decisions like leaving a company and joining others, which is a hectic process for any employee.
Conclusion
In conclusion, understanding the EVP full form and its meaning helps both employers and employees. It goes beyond financial rewards, enhancing job satisfaction, career growth, and company branding. EVP is a key element in attracting and retaining top talent, ensuring long-term success for both parties.
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