Global organisations that use an employee value proposition (EVP) most effectively are five times more likely to report that their employees are highly engaged, according to research by Towers Watson.
Its Change and communication ROI survey, which questioned 207 large and mid-sized organisations in Asia, Europe and North America, found that organisations with effective EVPs are twice as likely to report achieving financial performance that is significantly above organisations that do not have an effective EVP.
An EVP is the employment deal that defines what an employer expects from its employees and what it provides in return.
The research found that nearly half (43%) of respondents have a long-term plan in place to support the deployment of an EVP.
The research also found:
- 49% of respondents with highly effective EVPs combine extrinsic factors, such as pay, bonuses and benefits, with intrinsic factors, including work environment and teamwork, compared to just 24% of organisations with low-effective EVPs.
- 47% of respondents with highly effective EVPs are significantly different, stand out from their competitors and are appealing to talent, compared with just 18% of those with low-effective EVPs.
- 59% of respondents with highly effective EVPs are using it to both drive the employee behaviour they need to deliver on their strategy and to be financially successful.
- 57% of respondents with low-effective EVPs focus on communicating the features and financial value of the deal, while nearly half (44%) of those with highly effective EVPs are helping employees understand how their individual needs are met.
Richard Veal (pictured), head of the reward, talent and communication consulting practice at Towers Watson, said: “The employee value proposition is one of the best tools available for organisations to engage employees, as well as attract and retain top talent.
“Unfortunately, to many organisations, the EVP remains a hidden gem that is unshaped, overlooked or not used to its fullest extent.
“Our latest research provides important insight into what makes the best organisations, those with highly effective EVPs, different.”