Why does your EVP matter?Companies that deliver a differentiated EVP that integrates total rewards and aligns with the business strategy are:

The EVP defines the employment deal, differentiating every aspect of an organization’s employee experience — from its mission and values, to jobs and culture, to the total rewards portfolio. It’s a promise to help employees meet their needs in exchange for their efforts each day. An effective EVP requires an aligned set of total rewards programs, a strong employer brand strategy and communication plan.

Consider the following steps to improve your EVP:

Develop an EVP implementation road map.

Involve senior leaders early in the EVP development.

Train and reward managers, and hold them accountable.

Measure EVP effectiveness among different employee groups.

The employee value proposition (EVP) defines “the give and the get” between the organization and the employee.

EVPs at the best companies are:

Want to learn more? Contact your local Towers Watson consultant.

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Insights From the 2013 Change and Communication ROI Study

How the Best Deliver on the

Employee Value Proposition

Yet only 43% of organizations report that their HR and communication team have a long-term plan in place to support the deployment of their EVP.

Comprehensive and balancedCombining extrinsic motivators and intrinsic factors

DifferentiatedAre significantly different and stand out from their competitors

Business-orientedDriving employee behaviors that are most valuable to the organization

Employee-focusedHelping employees understand how their individual needs are met

5Xmore likely to report their employees are highly engaged,

2Xmore likely to report achieving financial performance significantly above their peers.an

d

(Source: Towers Watson 2012 – 2013 Talent Management and Rewards Study)

EVP

Primarily intrinsic(including factors such as organiza-tion reputation, work environment, teamwork, etc.)

Primarily extrinsic(such as base pay, bonuses, health and wellness plans, etc.)49%

of high EVPeffectiveness

companiesare balanced.

24%of low EVP

effectivenesscompanies

are balanced.

51%of low EVP

effectivenesscompanies

focus on price.

59%of high EVP

effectivenesscompanies

drive employeebehavior.

44%of high EVP effectiveness

companies focus onindividual needs.

57%of low EVP

effectivenesscompanies focuson features and�nancial value.

Organizations with high EVP effectiveness have a clearly defined EVP that is aligned with their brand and understood well enough by employees to explain to others.

Organizations with low EVP effectiveness have a poorly defined EVP that is not aligned with their brand and is not well understood by employees.

Only 18% of low EVP effectiveness companies stand out.

47% (nearly half) of high EVP effectiveness companies stand out.