Employers who invest time and money in developing employee value propositions (EVPs) are much more likely to hire highly-engaged staff.
In a survey compiled by Towers Watson, of 207 large and medium-sized business questioned, those using EVP most effectively are securing engaged employees five times more often.
EVPs are an employment deal which sets out what an employer expects from its employees and what is then provided in return.
Richard Veal, head of Towers Watson’s Reward, Talent and Communication consulting practice, says that the EVP is one of the best tools available for businesses to engage employees, as well as attract and hold onto the best staff.
However, the survey finds that less than half of firms have a long-term plan for maximising the benefits of EVPs.
‘Unfortunately, to many organisations, the EVP remains a hidden gem that is unshaped, overlooked or not utilised to its fullest extent,’ Veal adds.
‘Our latest research provides important insight into what makes the best companies – those with highly effective EVPs – different.’
The EVPs at the best companies, Towers Watson says, are both comprehensive and balanced by combining factors such as pay, bonuses and befits with intrinsic factors including work environment and teamwork, as well as differentiated.
Some 49 per cent of companies with ‘highly effective EVPs’ provide the comprehensive and balanced approach, while 47 per cent of those ‘highly effective companies’ have framework which sands out from competitors.
Further results show that 59 per cent of businesses successfully using EVPs are using them to drive the employee behaviour needed to deliver on strategy and to be financially successful. On the perspective of being employee-focused, some 44 per cent of the same bunch are helping employees understand how individual needs can be met.
‘The EVP defines the employment deal. It’s a promise to help employees meet their needs in exchange for their daily efforts to help the business succeed,’ Veal says.
‘What we found, though, is that low EVP effectiveness companies discuss the deal in terms of the programs they provide and how valuable they are. But the best companies go much further.’