Hong Kong companies are lagging behind those of its developing counterparts in attracting and retaining talent on account of HR’s poorly developed ability to present the Employee Value Proposition (EVP). This according to the latest Global Talent Management and Rewards Survey from Towers Watson. The implications for organisations in the region are substantial--diminished employee engagement and ultimately reductions on the bottom line.
The EVP is a critical factor in hiring, retaining and driving staff—it articulates how that employer is unique, why that workplace is desirable and why its people want to stay put. In point of fact, the survey showed that companies with a strategic approach to EVP are seven times more likely to have employees that are highly engaged and three times as likely to see financial performance significantly above their peers.
A fully developed EVP would cover good management, training and career advancement, a respectable reputation and a comparatively strong rewards package within its sector. Rewards would be presented through a Total Rewards strategy, comprising, as the name suggests, fixed, variable and non-monetary elements including: salary, bonuses, pension, benefits and annual leave.
Yet the notion of having a formal EVP is still relatively new for many organisations in Hong Kong, and interestingly companies in fast-growing markets are more likely than those in developed markets to have a clear EVP in place. Jeffrey Tang, Director of Talent & Rewards at Towers Watson, Hong Kong suggested, “The challenging talent markets in these high growth economies are a possible reason for their early adoption.” It seems that fast-growing Asia Pacific markets are progressive and investing more effort in defining and delivering on EVP. Indeed, close to half of organisations surveyed have a formally articulated EVP, compared to only 38% of organisations in the developed region of Hong Kong.
The study also emphasized that communication is an important but often neglected component of a strong EVP and Total Rewards strategy. Companies need to articulate the EVP clearly so that that they can appreciate the full value of what the company is intending to provide. Only then can the EVP and Total Rewards strategy achieve the objectives of attracting and retaining key talent and motivating performance.
Branding and company USPs must be expressed explicitly. In Hong Kong, only 33% of the organisations questioned say that their EVP is clearly aligned with what the company represents in the marketplace, compared to 44% for fast-growing Asia Pacific markets. Furthermore, few of those Hong Kong EVPs are distinctive from other competing organisations.
Tang asserted, “Uncertain economic prospects, intense cost pressures and global competition for attracting and retaining employees will present all types of challenges for employers in the years ahead. Organisations should take a strategic approach to developing their EVP that will differentiate them from their peers.” He concluded, “Savvy employers will want to tackle the hard work of getting this right, because the benefits are demonstrable, significant and sustainable.”
Paul Arkwright
Publisher
