Define the three criteria for employee value propositions: magnitude, mix, and distinctiveness

What will be an ideal response?

Magnitude refers to a reward package that is neither too small nor too large in economic terms. Investing too little in a reward package risks offending applicants, discouraging them from applying or accepting job offers, and being noncompetitive. Spending too much on rewards can negatively impact the firm's financial stability, and hurt investor's return on their investment in the firm.

Mix refers to the composition of the reward package matching the needs and preferences of applicants or employees. Offering stock options that vest in five years to a young, mobile workforce that tends to turn over every 3-4 years, or free daycare to an older workforce may not be consistent with workers' needs and preferences.

Distinctiveness refers to the uniqueness of a reward package. Rewards with no special appeal and that do not set the organization apart as distinctive do not present a compelling value proposition. Some Internet start-up firms in the 1990s created distinctive intrinsic rewards by allowing employees to bring their dogs to work and to dress casually.