Aon Benefits and Trends 2020 shows Employee Value Propositions have a positive impact on retention
Employee Benefits Propositions (EVP) are gaining in importance now that employers are more focused on offering a bespoke employee experience, and the Aon UK Benefits and Trends 2020 Survey shows that although the number of employers who have or are working towards an Employee Value Proposition remain similar (76%), there has been a significant increase in the number of employers who now communicate that EVP to staff.
The survey shows that, of the employers that have an employee value proposition (EVP), 77% now explain it to employees, which is an increase of 9% from last year.
The report also shows an increase in companies that say their EVP has a positive impact on employee engagement (up from 65% to 77%), retention (up from 63% to 76%), and recruitment (up from 70% to 78%).
According to Aon principal Jeff Fox, “developing a joined-up approach with values, culture, policies, and benefits is vital in creating a successful EVP”. He cites a rapidly-changing workplace where employers need to recruit and retain the best talent. The EVP is just part of a whole that includes a benefits package that needs to be communicated to potential employees, and employers should focus on that goal.
EVP is especially important for employers to consider early in the year as, according to Glassdoor research, January is a peak time for job seeking in the UK, with 17% more job applications than at other times in the year. This is so even though employers are slower to promote their openings, with 8% fewer job openings posted than in typical months.
In terms of their benefits strategies, the survey revealed that 91% of employers had employee engagement as one of their top five most important objectives. This was followed by retention (71%) and employee choice (62%). However, just 6% of employers say that they are very successful in meeting benefits strategy objectives, although 58% feel they are somewhat successful.
Access the complete Aon UK Benefits and Trends 2020 Survey here.