Remuneration’s role in the EVP decision-making process

Abstract

The key objective of this study was to determine the importance of remuneration in the organisational employer value proposition (EVP) decision-making process, who the EVP decision makers in organisations are, and whether EVP strategy is aligned with the organisational strategy.A quantitative study, using a survey as data-collection method, was conducted. The survey was developed to explore the importance of remuneration in the EVP process and to gather data regarding EVP decision makers and the alignment of EVP to organisational strategy. A total of 101 respondents participated in this study, and content analysis was used to interpret the data. The data were collected via SurveyMonkey and statistically analysed using SPSS.The findings indicate that remuneration and all of its components are crucial to the process of EVP decision making. The findings also indicate the importance of aligning EVP strategy to organisational strategy. The main EVP decision makers in organisations are the CEO and the Human Resources Manager. Organisations need to find the correct mix of decision makers in this process to optimise value. Organisations should also ensure alignment of the EVP with organisational strategy, and implement an optimal remuneration strategy to ensure the best possible EVP. A relationship framework was developed to graphically represent the findings of the study.