We urge you to think more on the terms of an employee’s value to the company (VTC) as opposed to their cost to company (CTC).
While researching on our team selection and optimization product ‘opTEAMize’, one element that constantly jumped out was the need to understand the motives for an employee to join a company, subsequently quit, or remain in the company.
Admittedly, this impacts the recruiting and retention strategies that companies adopt. The Employee Value Proposition (EVP) or Employer Value Proposition as some may deem it to be, lacks substance in many companies and is often a lazy attachment to the job offer letter or compensation statement negotiation discussions.
EVP has a lot of parts to it which we will break down now.
Critical EVP Elements
Critical elements of the EVP are usually the following:
|1.Salary (Cost to Company – a)
|2.Perks (Cost to the company – b)
|Meaningful & fulfilling|
Association & Affiliation
|Commitment to Organization|
|Commitment to team|
|Safe, secure, and comfortable work environment|
|Trustworthy boss & colleagues|
|Hometown, college, etc.|
The CTC focuses solely on the compensation element in the EVP and can differ greatly even between two similar companies due to the nature of the tax breaks availed and non-payroll allowances given.
Opteamize and VTC
At opTEAMize, we have started working on a concept called Value to Company (VTC) which extends beyond the Cost to Company (CTC) calculations currently in use by many companies, particularly in India.
In our optiSKILL product, we plan to incorporate the VTC wherein companies using our solutions and services can be able to put a value on their employees beyond just the CTC and/or titles. Be sure to contact us for more information regarding our products and services.