null

Employee Value Propositions (EVP) can be considered too abstract, complex or costly to tackle. Yet none of these misconceptions are true. In their session at Gallagher’s Beyond Today conference, Matt Frost, Director for People Experience Consulting, Gallagher Benefit Services and Chris Andrew Head of Caburn Hope, a Gallagher company, debunked some of these myths, and here is a summary of their key points.

The audience poll at the start of the event showed a mixed understanding of EVP, which is likely to be representative of UK businesses in general. While 39% of attendees said an EVP is fundamental to their culture and future business success, 30% didn’t actually know what an EVP was.

Why create an EVP?

Gallagher has seen a sharp rise in clients wanting to devote more time, effort and attention to their EVP as they become increasingly aware of the importance of looking after their employees’ wellbeing.

There are a variety of stats that illustrate the connection between an effective EVP and productivity and performance. Edelman's Trust Barometer found that in 2022, employees are now the most influential group in a company's long-term success, overtaking shareholders and customers for the first time1.

Unpicking the Value of an Employee Value Proposition

There are three core components within an EVP that must work together: package, amplification and experience. An EVP bridges the gap between employer and employees; it convinces candidates to join and represents the lived experience that motivates employees to stay. The package itself is the combination of the organisation's purpose, vision values, culture, policies, working environment, flexibility, internal processes, tools and technologies, reward and recognition.

Where to start?

An EVP is not a one-off proposition, but a living, breathing, and constantly evolving part of what makes an organisation unique. Leaders should consider it as an emotional promise that represents their way of doing work and demonstrating value. The EVP should also be clear and upfront about what the business expects from its employees in return and reflect the exchange of values between the employer and the employee.

The EVP must authentically capture the realities of an organisation today and balance this with the ambition and vision of where it is going and what that will enable the employee to achieve both at a personal and professional level.

There are six pillars that help to answer the question of what makes an organisation special:

Unpicking the Value of an Employee Value Proposition

From a Gallagher perspective, we're looking at an EVP as a combination of these six pillars. We use our PX (people experience) Framework with clients, which brings leaders together from across the business to assess their strengths and weaknesses and agree on the current state, what makes them unique, and what things they need to fix.

What is the Gallagher FX Framework

A combination of hyper personalisation, educational content, impactful design and interactive functionality; but one that wraps expertly curated content around forward-looking tech, capturing employee preferences upfront, and using deep learning to redefine what great employee communications look like.

It is crucial for businesses to listen to their employees and keep listening, while also connecting with external focus groups. By doing so, they can combine the insights gained from these sources with their leadership message, organisational purpose, and strategic goals to gain a comprehensive understanding of where people stand.

Once the story and framework have been crafted, it's time to bring it to life within the organisation. Businesses can make a meaningful impact on the employee experience by focusing on the key areas of their day-to-day work life. These include important milestones such as the benefits cycle, compensation conversations, and the onboarding experience. However, it's important to also consider what support is available for the more challenging moments, for example, when employees return from long-term illness, suffer a bereavement, or return to work after maternity leave. The organisation must consistently prioritise people to demonstrate that they are important.

How to measure success

Like any business imperative, the impact of an EVP has to be measurable. Businesses want to know that they are making a meaningful difference to the lives of their employees but also the success of the organisation. Here are six ways to potentially demonstrate the value of an EVP:

  • Employee satisfaction, engagement and retention
  • Recruitment metrics
  • Employer brand perception
  • Performance and productivity
  • Costs like recruitment partners and employee benefits
  • Exit interview feedback

Want to know more? Listen to Matt and Chris’ session on demand and please contact your local Gallagher representative if you would like to find out more about how Gallagher supports clients in developing their EVPs.

Sources

1. https://www.edelman.com/trust/2023/trust-barometer

Disclaimer

The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.