What else can employers do to promote security in an unpredictable economy?
Develop a clearly defined employee value proposition (EVP) and harness its retention powers through an internal communications program. Only 25 percent of employers have a formal EVP and many view it strictly as a tool for attracting external candidates. But our data show that among high-performing companies 42 percent have an explicit EVP that conveys the total benefits of employment, and market its value internally and externally. Employment deals should not be left to the interpretation of employees, since ambiguity erodes engagement and makes top performers vulnerable to competitors.
The best news for employers is that value extends beyond monetary rewards in the eyes of employees. Thirty-nine percent of U.S. employees value the opportunity to develop innovative products or services and 55 percent value a wide range of jobs and work experiences. So tout job rotation, formal mentoring programs and the ability to work in global locations or serve on cross-functional teams when authoring a comprehensive EVP. Talk to employees about the unique tangible and intangible benefits of employment with your company.
How can employers satisfy a large group of diverse employees?
Certainly employers want to uncover the general needs and preferences of employees through surveys and focus groups, but savvy employers tailor their offerings and rewards by understanding the unique desires of employees in specific geographic regions and professions. Wide gaps between what employees want and what they believe is attainable can lead to disenchantment and an unwillingness to devote discretionary effort to the job. For example, highly coveted software engineers may favor an innovative environment and the opportunity to work with emerging technologies, while employees in a European subsidiary may favor a generous time-off allowance. Don’t settle for a one-size-fits-all approach. Employers should target vulnerable groups and diverse cultures by creating a series of unique, customized compensation programs and EVPs.
What’s the best-kept secret of high-performing companies?
Savvy employers work hard to turn managers into leaders so they can help the company retain and motivate critical employees during economically challenging times. While managers play an important role in helping the organization run efficiently, it takes leadership to catapult the company into a winning position in this kind of an environment. Leaders are expert communicators who build relationships with employees, understand their needs and effectively convey the company’s EVP. Sparse funding for training and development can be an impediment, but employers should exhaust every low-cost option to grow managers into leaders so they aren’t bemoaning the loss of critical employees and institutional knowledge after they’re gone.
Rick Beal is the consulting director for the Rewards, Talent and Communications Practice in Northern California at Towers Watson. Reach him at (415) 733-4310 or [email protected].
