With hybrid and remote work now the norm, employers must take a hard look at what they’re really offering. In this new world, employee value propositions matter more than ever, says Chris Andrew, communication consulting lead, Global Communication Practice at Gallagher Benefit Services, UK.
As work patterns shift and settle, companies must ensure that their employee value proposition (EVP) – the unique promise an employer and employee make to one another – is flexible enough to reflect employees’ realities and priorities today.
One substantial change is that hybrid and remote work is less a benefit than a new normal. Since Covid-19, hybrid and remote work have increased by 10 percent, with 40 percent of companies in the UK offering hybrid work. Now, things are changing again. Many companies are rolling back on their hybrid policies in favour of returning to the office.
Change is inevitable, but its pace today is relentless. If the change is too rapid or too frequent, it can be challenging for HR teams to keep up. On top of this, our recent Employee Communications Report found that ‘change fatigue’ was one of the top five most challenging barriers in our daily working lives.
When the ground keeps shifting underfoot, the EVP is more valuable than ever. It provides a steady reference point and a clear promise that an employee can depend on when everything is moving.
How can EVPs stay relevant?
It helps to start by defining our key terms. Your EVP is the unique set of offerings and benefits provided to employees in exchange for their skills, experience, attitude and performance. Essentially, the ‘give and the get’ that answers the question: “Why should the people we want to hire want to work here rather than anywhere else?”. We know that people can struggle with change, but we must also be ready to update our approaches in response to prevailing cultural trends to ensure relevance and competitive advantage.
For example, an employer’s sustainability policy is a much bigger concern for employees than it was even 10 years ago. This is just one example of the many social changes that are influencing employees and their workplace satisfaction.
Another example we must not ignore is the UK’s ongoing cost-of-living crisis. As we have seen, hybrid working can offer some relief from the costs of commuting and childcare. In its way, it is a concrete employee benefit and is now top of people’s lists when looking for a new job.
‘No longer an assured benefit’
However, times have now changed. Hybrid work and flexible working hours are no longer an assured benefit. So, what can HR leaders do in response? As we saw in our report, benefits, rewards, and compensation were the second least communicated topic by leaders. The takeaway is simple, firms must be more transparent about their benefit offering to amplify and showcase the key aspects of their EVP.
In fact, they must be prepared to make new adjustments, which could help balance the impact of any concerns about an internal change, whether it’s a return-to-office call or otherwise. In any situation involving change, which may not be perceived positively by your people, the most important things you can do is provide absolute clarity as to why you’re making the change and create the right environment for an open and honest conversation. People notice when they’re genuinely heard.
Cultural trends and practical tips
Employee expectations continue to shift, and your EVP needs to keep up. Our own data says much the same. For HR leaders, change and uncertainty, including restructuring, are the second biggest contributors to deteriorating wellbeing (26 percent).
It’s vital that companies provide HR leaders with clear direction and support to create an EVP that can best lighten the load of change fatigue by providing a sense of stability and comfort.
There are a few practical ways of going about this. A good starting point is to ensure the EVP is employee-centric and based on a genuine mix of what your current and future people expect, what your business needs from its people and what makes you stand out in the market.
Regular surveys and even exit interviews are especially useful forums for understanding employee needs and identifying areas of improvement. And we can measure EVP effectiveness through retention rates, engagement scores, and candidate feedback.
Ensure you make full use of technology, where appropriate. HR analytics can track trends in employee satisfaction and segment a workforce into discrete groups. People need different things from their workplace and always have. An EVP should scale to suit different employees, based on everything from location and job role to length of tenure and readiness for change. An internal employee site, for example a digital ‘people story’ hub, can ensure employees are kept in the loop about their benefits and other aspects of the EVP.
EVP is the bedrock
There are no easy answers to the EVP question, and HR leaders know this. Every company’s workforce is different, and the workforce itself is full of individuals with their own needs. But one thing stays the same, whether it’s a cultural shift, or a radical restructure of how and where people work, the EVP is the bedrock on which everything rests.
If HR leaders can effectively use their EVP to help them to communicate change clearly, simply and with an appreciation of the emotional impact that change can have on their people, then change fatigue can be eased, and even turned into momentum.
