Employers hoping to get the most from their employees – are there any other sort? -- had better have a plan in place on how to best leverage their long-term employee value proposition.
That’s the latest wisdom from Towers Watson. But, wait, what’s an employee value proposition, you ask?
Very simply, it’s that deal between you and your employee that helps them understand your expectations and what you’ll do for them when they deliver.
According to TW, less than half of the companies polled have a long-term plan on how to get the most from their EVP.
There’s a huge upside for organizations that use their EVP most effectively. TW says those that do are five times more likely to report their employees are highly engaged and twice as likely to report achieving financial performance significantly above their peers when compared to companies that use their EVP less effectively.
“The employee value proposition is one of the best tools available for companies to engage employees, as well as attract and retain top talent,” Kathryn Yates, global leader of communication and change management consulting at Towers Watson, said in a statement. “Unfortunately, to many organizations, the EVP remains a hidden gem that is unshaped, overlooked or not utilized to its fullest extent. Our latest research provides important insight into what makes the best companies — those with highly effective EVPs — different.”
The Towers Watson survey found that EVPs at the best companies are:
- Comprehensive and balanced: About half (49 percent) of companies 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 percent of companies with low-effectiveness EVPs.
- Differentiated: Nearly half (47 percent) of high-effectiveness EVP companies have EVPs that are significantly different, stand out from their competitors and are appealing to talent, compared with just 18 percent of low-effectiveness companies.
- Business-oriented: Almost six in 10 (59 percent) of the high-effectiveness companies are using their EVP to both drive the employee behaviors they need to deliver on their strategy and to be financially successful.
- Employee-focused: While most (57 percent) low-effectiveness companies focus on communicating the features and financial value of the deal, nearly half (44 percent) of high-effectiveness companies are helping employees understand how their individual needs are met.
The 2013 Towers Watson Change and Communication ROI Survey was conducted in September. A total of 207 large and midsize organizations from across North America, Europe and Asia participated.