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Abstract
This article addresses an important business concept called Employment Value Proposition (EVP), which describes the value or benefit an employee derives from his or her membership in an organization. The EVP has been suggested to be a determinant of employee engagement and retention, both of which have an impact on critical business outcomes. Specifically, this article describes a pilot study which examines the relationships between various EVP and employee engagement measures and the business outcomes of profit margin, productivity, voluntary turnover, and accounts receivable. Using an on-line survey, 614 respondents rated the strength of their organizations' EVP and self-reported their levels of employee engagement. Results showed several important relationships between EVP fulfillment and the intention to stay component of employee engagement. However, relationships between the employee measures and business outcomes were not as robust. Recommendations for making human capital investments and improving the design of future linkage research interventions are discussed.
Introduction
Never before have we witnessed such a remarkable transformation in the nature of work than what we have seen in the past two decades. The wave of corporate restructurings, technological advances, and competitive pressures that began in the early 1980s has rippled well into the 21st century by revolutionizing the terms and conditions of work and redefining the relationship between employer and employee.
Much has been written about the "new employment relationship" and how it is characterized by diminished feelings of employee loyalty, trust, and commitment.1 It is interesting, then, to observe that the new employment relationship coexists in time with a business practice termed employee engagement, which is often touted as a source of competitive advantage.2 The discrepancy between the new employment relationship and the desired business outcome of achieving competitive edge through human capital presents significant challenges to those who are charged with retaining key employees and engaging the workforce. These challenges are compounded by a growing job market in which employees increasingly reevaluate their fiims' Employment Value Proposition (EVP)- the value or benefit an employee perceives by serving as a member of the organization-and determine for themselves the extent to which this "value" is competitive. Employees who perceive their own organizations' EVP to be less competitive than the EVP of other organizations are likely to disengage from their...