In a recent people management article, it was claimed employers fail to maximise ‘hidden gem’ of employee value proposition. Less than half of employers have a long-term strategy for getting the most out of their employee value proposition (EVP), according to research by consulting firm Towers Watson.
The article had the following highlights:
- Employers who use their EVP effectively – by defining well what they expect from employees and what they will provide in return – are twice as likely to perform better financially, and five times more likely to enjoy high employee engagement
- Towers Watson’s research found that companies who got the most from their EVP tended to combine extrinsic factors such as pay, bonuses and benefits with intrinsic factors such as work environment and teamwork
- Nearly half of those employers with an effective EVP had a proposition that differed from its competitors and was therefore appealing to potential recruits – having a EVP offering that stands out is important
- Six in 10 of those with effective EVPs use this to encourage behaviours in employees that will help the business to deliver its strategy
To get more from their EVP, employers could look at developing an implementation road map, involving senior leaders earlier in the process, and training. They should also hold managers accountable and measure how effective their EVP is across different employee groups, Towers Watson advised.