Valerie Bolden-Barrett* says a new study has confirmed that career development opportunities and meaningful work are key drivers of the employee value proposition.
A Mercer study has found that career development and meaningful work are key drivers in creating a greater “employee value proposition” (EVP).
The Global Talent Trends report analysed data from more than 5 million employees in more than 140 organisations across the globe on how to foster employee commitment, attraction and retention, especially in a tight labour market with record-low unemployment.
Half of the HR leaders polled said talent scarcity was a concern, and nine in 10 C-suite executives said they expect talent competition to increase even more in the upcoming few years.
According to Mercer, turnover costs range from an estimated 90 per cent to 200 per cent of a departing employee’s salary.
The report focused on employees’ satisfaction with seven crucial EVP factors: reward for performance, compensation, benefits, career development, support for wellness, sense of belonging, and meaningful work.
The analysis factored in how employee satisfaction correlated with five outcome measures: overall satisfaction, levels of motivation, advocacy for an organisation, commitment, and retention.
Study results found that the seven EVP factors and five outcome measures were significantly connected.
Generally, career development had the strongest correlation with outcome measures and employees were more motivated to perform their best when they feel their work is personally meaningful.
Mercer concluded that although there was no direct causal relation between EVP factors and outcome measures, the report raises important considerations for organisations, such as whether their total rewards strategy is broad enough, career paths are clear, employees think their work is meaningful, and their organisation has a strong sense of community.
The connection between EVP factors and outcome measures is no surprise; various studies have shown that the biggest drivers of EVP are compensation, career development as a top total rewards factor, work flexibility and healthcare and voluntary benefits.
More recently, meaningful work and a sense of belonging have emerged as contributors to employee satisfaction.
Branding also is an important part of EVP and employers’ efforts to break through the talent scarcity.
For instance, recruiters are marketing their organisations and their value to candidates, whose experience is enhanced by personalising the process.
But more generally, branding and EVP have made employers more seriously consider how they are perceived both internally and externally, and have brought some to consider making certain forms of relevant activism tied to their brand.
Employees increasingly want their employers to take a stand on issues, too.
The Mercer report gives employers important considerations for building stronger EVP.
Achieving this goal won’t be without challenges in a labour market that favours workers.
But by staying focused on the human factor, which includes what workers want most — respect, along with recognition, work–life balance, employer accountability and honesty — employers can stay competitive.
* Valerie Bolden-Barrett is a business writer and content specialist and Contributing Editor to HR Dive.
This article first appeared at www.hrdive.com.