Less than half (43%) of employers have a long-term plan in place for getting the most out of their employee value proposition (EVP), research has found.
A significant proportion of organisations were missing out on an opportunity to increase employee engagement, attract and retain talent and even improve financial performance, according to the survey conducted by Towers Watson.
The consultant explained that companies with the most effective EVPs went the extra mile to engage with employees.
Half of companies (49%) with highly effective EVPs were found to combine extrinsic factors such as pay, bonuses and benefits with intrinsic factors including work environment and teamwork, in contrast to just 24% of companies with low-effectiveness EVPs.
Business outcomes were a key component for companies driving successful EVPs. Six in 10 (59%) highly-effective EVPs used them to both propel the employee behaviour they needed to deliver on their strategy and to be financially successful.
Focus on the workforce was also vital. While the majority (57%) of low-effectiveness companies just focused on communicating the features and financial value of the deal, almost half (44%) of highly-effective companies helped employees understand how their individual needs were met.
Towers Watson reward talent and communication consulting practice head Richard Veal said: "The employee value proposition is one of the best tools available for companies to engage employees, as well as attract and retain top talent.
"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. What we found, though, is that low EVP effectiveness companies discuss the deal in terms of the programmes they provide and how valuable they are," he added.
"But the best companies go much further. They discuss how they meet their employees' expectations and, in return, what behaviours they expect employees to exhibit to help them succeed."
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