People Matters PM April 2022

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Rethinking the EVP Equation? Consider the Mission, Values, and Purpose (MVP)

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STORY

Today’s new entrants to the workforce are no longer just looking at pay and prospects. The value they see in work has changed, and the employee value proposition model needs to be updated accordingly

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By Richard Smith, Ph.D.

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s the spring season begins in the northern hemisphere, I witness many final year university students busy planning their careers and life after graduation. Employers are hosting recruiting events, career offices are busy with career fairs, and graduating students are faced with a myriad of considerations for their future. While all of these activities may look like the same pattern that we have seen for decades, under the surface (albeit more virtual in many cases), there is an undercurrent of change. The traditional employer “pitch” or Employee Value Proposition (EVP) to new recruits has traditionally centred on the earning poten| April 2022

tial, nature of the job, and the career prospects. Some might argue that the traditional EVP can be simplified into a three-variable equation: EVP = S + R + C Where salary (S) combined with the nature of the role (R) and the promise of career prospects (C) are combined as a measure of the attractiveness provided by an employer. While this may be an over-simplification that does not consider many other factors, we do see evidence of this in job

choices by graduates. This three-factor model may be especially true in business schools where MBA students are seeking to achieve a high return on their investment (ROI). The prospect of earning high salaries in consulting, financial services, or the tech industry is still attractive, yet seems to be somehow insufficient for many graduates. As one employer noted during a recent campus visit, “We need to work harder to attract top talent – they are often looking for more of a

The prospect of earning high salaries in consulting, financial services, or the tech industry is still attractive, yet seems to be somehow insufficient for many graduates