The Relationship Between Employee Value Proposition and Employee Loyalty: A Conceptual Framework

Abstract: An Employee Value Proposition (EVP) is the unique value of benefits offered to the employees and the employee will get consequently from the skills, capabilities and experience they convey to an organization. An EVP is about differentiating the organization from the others. Employee loyalty is when they employee feels satisfied, obligated and willing to commit and stay with the organization for organizational success. In this paper, the relationship between EVP and employee loyalty will be proposed. A conceptual framework on this relationship is used as a fundamental for highlighting the roles of EVP in influencing talented workers or outstanding performers to remain loyal with the current organization.  Five dimensions of EVP such as rewards, opportunity, organization, work and people are discussed, and its potential significant influence on employee loyalty is concluded at the end of the discussion.

Key words: employee value proposition; employee loyalty; rewards; opportunity; organization

        JEL code: M12