Amidst the fastest pace of change in human history, thriving organizations are the ones that have realized that people have become more and not less important, as companies look at completely different ways of creating economic value. When manufacturing processes were automated, design skills became more critical. Yes jobs disappeared, but new jobs emerged. Understanding the impact of these changes and preparing people to ride the crest of opportunity is paramount.
When transformation is a business imperative, the employee value proposition should not be static. This is challenging our existing talent processes and how we deliver on a personalized value proposition that resonates at different stages of life to different employees.
Our new perspective of thinking about the new ‘deal’ to enable people to thrive, positions rewards into three primary categories of the employee value proposition continuum:
Contractual, which represents the traditional compensation and benefit deal
Experiential which encompasses the way an employee experiences the organization both inside and outside work - from Careers to Wellbeing programs, and the
Emotional, that is represented by the connection created through a sense of purpose. This is driven by the employee’s connection to the vision or mission of the organization as well as its social responsibility initiatives.
Translating the Employee Value Proposition (EVP) or the deal into a compelling experience for each and every employee, however, requires both art and science. HR Leaders will need to embrace data science and analytics to be able to truly understand the unique combination of the needs of their employees, in a way that drives engagement, productivity and the resulting performance.