May 13, 2021
May 13, 2021
Contributor: Swetha Venkataramani
The EVP for the postpandemic workforce must orient toward employees as people, not workers; provide an exceptional life, not work, experience; and focus on the feelings, not just the features that match employee needs.
The pandemic has changed the relationship between people and their work, and the employee value proposition (EVP) must evolve to reflect these changes.
Organizations today spend an average of $2,500 per employee on employee experience every year, and such investments are expected to continue.
Attempts to modernize the EVP typically add on features — from upskilling workers to keep up with emerging digital skills to offering pet insurance. These efforts are costly and are not yielding the expected benefits. Employee engagement hasn’t improved tangibly since 2016 — and then came COVID-19.
Download Guide: Reinvent Your EVP for a Postpandemic Workforce
“The reality is that three shifts in the work environment have eroded the impact of the traditional EVP: Employees are people, not just workers; work is a subset of life, not separate from it; and value comes through feelings, not just features,” says Carolina Valencia, VP, Gartner.
Persistent engagement and attraction challenges, and the human crises of 2020, have proven that the management principles underlying the EVP are outdated. EVPs have long been managed with three principles in mind: defined around employees, designed to provide an exceptional employee experience and focused on delivering features that match employee needs.
“Clearly, this traditional approach to employee value proposition is falling short,” adds Valencia. Recent Gartner research of 5,000 employees and 85 HR leader interviews on EVP practices, challenges and solutions indicates that the problem could be too much focus on “what we give employees” rather than “why.”
Here are some telling signals that point to deepening weakness in traditional EVP:
HR leaders must evolve their EVP management by delivering a more human deal centered around the whole person, designed to provide an exceptional life experience and focused on the feelings and features that match employee needs. The new human deal comprises five components: deeper connections, radical flexibility, personal growth, holistic well-being and shared purpose.
In delivering on all aspects of this human deal, people perceive emotional value in employment in the organization by enabling them to feel more understood, autonomous, invested, cared for and valued. This reinvented EVP, designed to deliver an exceptional life, not just work, experience, results in higher employee satisfaction.
“When HR leaders can generate these emotions in employees, both organizations and the human beings that comprise them win,” says Valencia.
Here are some key actions leaders in the organization can take to build their new human-centric EVP:
Build deeper connections by integrating inclusion goals into day-to-day work and talent processes, focusing on direct family benefits that match employee and organization needs, and training managers on how to identify employees’ trust through empathetic conversations.
Provide radical flexibility to all by giving employees flexibility — choices within team-established boundaries, determining which activities within a role can be flexible and identifying manager-tested flexibility solutions.
Create personal growth opportunities for employees by providing them with objective career coaches and empowering them to design development that meets their personal needs.
Ensure holistic well-being by holding employees accountable for personalizing well-being progress, encouraging mental health champions to hold honest conversations about mental well-being, and establishing clear dos and don’ts for how managers can support employee wellness.
Take action on shared purpose by establishing cross-organizational ownership of societal issue decision making, use peer coaching to hold employees accountable for taking personalized action on societal issues and prioritize societal issues aligned with the organization’s goals.
Join your peer CHROs and senior HR executives from leading organizations to discuss specific HR challenges and learn top HR trends and priorities.
Recommended resources for Gartner clients*:
EVP During Disruption: What Your Employees Really Value
*Note that some documents may not be available to all Gartner clients.