Report on employee value proposition

The Tribunal undertood an own-motion review to further its understanding of the public sector employee value proposition (EVP).

The Tribunal’s final report is available here:

Further information about the Tribunal’s review and its key findings are below.

What is employee value proposition

For the purpose of its work, the Tribunal defined EVP as ‘the monetary and non monetary factors associated with a job that are taken into account by employees when deciding whether to accept or stay in a job’.

Remuneration plays a critical role in a job’s EVP. Studies have shown that it is a strong motivator of job preferences and application intentions. Examples of other key EVP factors are the sense of meaning provided by a role, workplace culture and flexible work options.

Why the Tribunal carried out its review

The Tribunal has several legislative functions that relate to the remuneration of senior Victorian public sector positions. The Tribunal heard from stakeholders that it should consider the EVP of senior public sector roles as part of undertaking its work.

In addition, public sector organisations can use this project’s findings to optimise their strategies for recruiting and retaining executives.

How the Tribunal undertook the review

The Tribunal reviewed previous research and literature on EVP.

It also surveyed current and prospective public sector executives.

The survey used a sophisticated technique called choice-based conjoint analysis. Respondents were asked to choose between several job offers, which required them to trade off job features and weigh up alternatives.

This technique allowed the Tribunal to infer future behaviour and tap into unconscious drivers of choices that people make about executive roles. It also allowed a comparison on the utility and relative importance that individuals ascribe to job features, such as remuneration, contract length and the hours of work required.

Key findings

Respondents preferred jobs in the public sector, demonstrating a positive public sector EVP

Workload and remuneration had the greatest impact on job preferences

Employees value flexible work opportunities

Relative preference for flexible work options