Employee value proposition

Components of an employee value proposition


Your employee value proposition should help your organisation stand out from the crowd and be unique to what your business does and how it does it. The proposition should aim to maximise staff performance, motivation, and commitment.

What makes up an employee value proposition?

Several components make up the employee value proposition including:

Salary compensation

Financial compensation includes the salary, bonuses, pension, and share schemes that your organisation offers. You should develop a compensation system based on fairness and equality. Salary transparency, where staff can understand how their salary is determined, can also help build trust throughout your organisation.

If your company cannot meet the high salaries of competitors, you can use the other non-monetary components of your employee value proposition to make up for this. Compensation in monetary terms isn’t always the motivation for job hunters, so ensure that your employee value proposition works as a whole package.

Lifestyle and wellbeing benefits

You can support your employees in achieving a healthy work-life balance, including holidays, paid time off, retirement plans, and flexible working. There is no one-size-fits-all approach as your staff will be at different stages of their lives, but engaging with a broad range of workers can help develop a fair and attractive policy for all employees. 

Some other wellbeing benefits may include offering mental health support, compassionate leave, additional holiday time, health insurance, cycle-to-work schemes, or gym memberships.

Positive work environment and culture

Your employee value proposition should outline how you strive to create a working environment where staff are happy, valued, and motivated to perform to the highest level of their ability. You could offer rewards as recognition of employee hard work. You could consider opportunities encouraging staff to collaborate and work effectively in teams.

Consider the options for office and home-working alongside where staff do their best work. Can employees work remotely or choose a hybrid model? For office-working employees, consider how the office surroundings contribute to helping employees do their best work and collaborate if needed eg break-out areas, meeting rooms, and other onsite facilities.

Support and growth opportunities

Staff require the support and the means to do their job in a physically and psychologically safe environment. Outline how you will train and support new employees and offer the equipment necessary for all staff to do their jobs. Commit to training line managers on how they can best support their staff and address any issues that might arise in the workplace.

Your employee value proposition could also outline your commitment to career development for all staff and how they can access the learning and development opportunities to improve and progress. Effective performance management, internal promotions, and mentoring opportunities can offer employees the motivation and support they need to develop their skills and further their careers in your organisation.