Your employee value proposition (EVP) needs to evolve with our changing world
Employees’ core expectations about work are changing. Many are now searching for a caring corporate culture that prioritizes their mental and physical health while providing work-life balance and career paths – sustainably.
To attract and retain talent, it is critical to ensure your EVP reflects a changing world.
The importance of keeping your employee value proposition (EVP) relevant
For an employee value proposition to be effective, it must meet the real-world experiences of your employees. Our world has changed significantly in recent years, so to be truly compelling, your EVP must reflect and meet those changes.
EVPs are an integral part of total rewards strategy, predicated on an implicit psychological contract.
For much of the 20th century, the employer-employee relationship focused on pay, benefits and job security in return for a lifetime of commitment from employees.
Things are different now. The pandemic has fundamentally reset employees’ priorities, and they are seeking more than extrinsic motivators and financial incentives. In order for your employee value proposition to remain relevant and to attract and retain talent, your EVP must evolve with and reflect what your employees value.
A fundamental change in people’s values is underpinning a structural shift in the labor market. Organizations now have a moment of profound opportunity to pick up the tools of empathy honed during the pandemic – and carve a new way of partnering that is more relatable and ultimately more sustainable.
Global Leader of Advisory Solutions & Insights, Mercer
Employees’ work-related needs and desires vary based on their:
- Gender
- Generation
- Job level
- Caregiving status
What do your employees value in 2023? And how do you begin reviewing and evolving your EVP?
Engagement Snapshot Survey
Employee value proposition must haves
A growing body of research shows that while pay and benefits are important, employees now want jobs that:
- Enable flexibility, work-life balance and their chosen lifestyle
- Prioritize their physical and mental wellbeing
- Are intrinsically motivating
- Provide a sense of meaning and purpose
- Connect them to a community
- Have career paths and opportunities for growth and development
What employees want now is the "lifestyle contract."
Future-proof your employee value proposition
Work-centrality is declining as employee core values shift, so organizations need to evaluate their employees experience, EVPs, total rewards strategies and benefits packages against the world in which we now live.
Four steps to evaluate the appeal of your current employee value proposition and identify the future needs of your workforce:
EVPs are an essential part of workforce reward and incentive solutions
To compete, organizations must provide a compelling total rewards package and employee experience.
Designing competitive pay structures and policies that align to business strategies allow organizations to retain top talent and establish their brand in the market. An effective total rewards package goes a long way toward improving the employee experience and can be a differentiator in the competition for talent. As we continue to work in new ways and as jobs in many organizations continue to evolve, there is a renewed opportunity to invent market-leading total reward strategies to drive performance.
