"An employee value proposition is about capturing every aspect of the relationship, so it goes beyond what companies offer in terms of pay, benefits and even total rewards," Sejen says. "It's outlining the corporate culture, mission, vision and values, and showing how the leaders behave. It's about the whole employee experience. On the flip side of the coin, it's also about what the companies expect of employees."

When it comes to recruiting employees using an employee value proposition, highlighting reward components is typically the most influential factor. But job security is another one of the top drivers of attraction, according to research by Towers Watson.

Research by Towers Watson found that organizations with formal employee value propositions are five times more likely to report having a highly engaged workforce and are less likely to experience problems recruiting and retaining critical talent. An organization with an employee value proposition in place also is more likely to experience positive financial results, according to Towers Watson.

For an employee value proposition to work, input for multiple business units and an alignment with company strategy is necessary, Sejen says. While senior leadership is better positioned to provide the mission and vision statements, the marketing department can make sure the employee value proposition is properly communicated. Meanwhile, human resources works with potential and current employees to ensure they understand the employee value proposition.

"If you can make sure there's alignment between the employee value proposition and the company strategy, you'll be positioned well for success in creating an employee value proposition that resonates," Sejen says. "You need to be able to stand behind your employee value proposition because it's one thing for a company to articulate and communicate an employee value proposition, but it's another challenge to make sure you're delivering on those promises."