January 31, 2020
Communicating employee rewards boosts engagement
Communicating a business’s “employee value proposition” or EPV – the package of rewards that it offers in return for the person’s performance at work – is having an increasingly positive impact on employee engagement, retention and recruitment, research has claimed. Aon’s Benefits & Trends 2020 Survey (registration required) suggests that although the percentage of employers who have, or are working towards, an EVP remains similar to last year (76 percent), the number that now communicate it to staff has increased. Of those employers that have an EVP, 77 percent now explain it to employees, an increase of 9 percent on 2019.
The report also highlights an increase in companies that say their EVP has a positive impact on employee engagement (up from 65 percent to 77 percent), retention (up from 63 percent to 76 percent) and recruitment (up from 70 percent to 78 percent).
Jeff Fox, principal at Aon, explained: “The concept of an EVP is becoming the new normal and many more employers are developing clear branding and messaging around the whole ‘employee experience’. Employee benefits are just a part of that overall experience so developing a joined-up approach with values, culture, policies and benefits is vital in creating a successful EVP.
People are becoming more aware and selective about the type of organisation they want to work for, especially in a near full-employment economy.
“This is of critical importance as we witness employees’ expectations of the workplace changing rapidly, with employers responding accordingly to recruit and retain the best talent. People are becoming more aware and selective about the type of organisation they want to work for, especially in a near full-employment economy. Within a few generations, the workplace has moved from a ‘job for life’ to [a job to] ‘fulfil my needs and make my life easier’, which impacts employer actions, not least helping employees to feel present, focused and productive. The benefits package, wider EVP and supporting communications ultimately need to be focused on that objective.”
Peak time for staff to jump ship
Aon urges employers to review their employee rewards now as, according to Glassdoor research, January is a peak time for job seeking in the UK, with 17 percent more job applications than at other times of the year. Yet employers are slower to promote their openings, with 8 percent fewer job openings posted than in typical months.
The research also says that 91 percent of employers surveyed had employee engagement as one of their five most important objectives. This was followed by retention (71 percent) and employee choice (62 percent). However, just 6 percent of employers say that they are very successful in meeting benefits strategy objectives, although 58 percent feel they are somewhat successful.
Image by Gerhard Gellinger