Navigating the Future: How Change Management and Employee Value Propositions Converge for Success
In our world punctuated by constant flux, companies are awakening to the imperative of change management capability as more than just a buzzword. It’s a vital capability in the ecosystem that navigates the labyrinth of explicit and implicit human performance, emotion, behaviour, and expectations.
This capability intertwines with the Employee Value Proposition (EVP), a strategic framework that articulates the unique benefits employees receive in return for their skills and contributions. The confluence of these two paradigms is shaping the organisational landscapes of tomorrow, especially in the aftermath of global disruptions like the COVID-19 pandemic and the current low-level, not-so-cold war.
The rise of remote work, digital transformations, and shifting work paradigms leads to a heightened focus on how companies manage these changes.
For example, studies by EY show that a staggering 90% of respondents favour flexibility in their work location and timing, while 38% prefer shorter workweeks than a few years ago. Furthermore, 67% believe they can effectively gauge their productivity regardless of physical location. Despite these strong sentiments, only 48% feel that their company’s culture has positively evolved in recent years. This result suggests a disconnect between employee desires for work-life integration and their perception of their employers’ adaptability, pointing to areas that organisations may need to focus on for improvement. Of course, this situation applies to those who have work and have some expectancy that tomorrow they will continue to have employment. In economies with high unemployment due to collateral impacts of economic, political or social instability or gross incompetence of government, the changes organisations need to deal with are different. However, it does not detract from the need to increase change capability.
In short, change management is the practice that results in people adopting and behaving the changes we choose for them to make. Companies that view change management as a strategic pillar within their EVP have a marked advantage: they have already built platforms of trust and communication, governance and structures to build and support change management in projects and people, making it easier to deploy significant changes in operations or strategy as the need arises.
An effective EVP transcends material offerings to encapsulate cultural norms, career development opportunities, work-life balance, and, increasingly, a commitment to smooth change management. It also offers structures and expertise that help employees manage their own change. This offer transforms the perception that we are victims of change to one of being in control of ourselves and our team during change.
For employees, work should be an easily adaptable and engaging activity, with meaning, balancing autonomy and teamwork. This need must dovetail into the company’s overarching mission and values, infusing daily tasks with a greater sense of purpose. A supportive culture underpins this, marked by mutual trust and open channels for mentorship and coaching. All this must operate in alignment with the organisation’s strategy so that it achieves its purpose.
Work-life balance isn’t a perk but a staple, necessitating flexible work arrangements like remote and hybrid models. While a competitive salary is the foundation, holistic financial incentives like performance bonuses and stock options complete the package. Clear career advancement paths, including change management training, generate a compelling EVP.
Using change management to bolster these EVP strategies, organisations must issue transparent communication about the ‘why’ and ‘how’ of changes, encourage the active involvement of employees in decision-making processes, and leverage continuous feedback loops that allow for real-time adjustments. By embedding these elements into an EVP, organisations create an environment that embraces change, fostering a culture of agility, resilience, and employee engagement.
Solid EVP programs can yield advantages in talent acquisition and employee retention. For instance, studies by Gartner found that an appealing EVP allows organisations to halve the compensation premium they’d typically offer while reaching 50% further into the talent pool. Moreover, executing a compelling EVP can dramatically reduce annual employee turnover rates by nearly 70% and increase new hire commitment by almost 30%.
Yet, incorporating change management into an Employee Value Proposition (EVP) is still not widespread, particularly in Europe, the Middle East and Africa (EMEA). A Towers Watson study highlighted this gap, showing that only one-third of organisations in EMEA develop an integrated change management strategy when faced with change, a figure that is notably lower than the global average of nearly half. Additionally, while two-thirds of companies globally that excel in change management give their employees clear directions for success, only half do so in the EMEA region. These findings underscore the need for regional organisations to improve their change management strategies and communications to align with global best practices. Our experience in Southern Africa suggests a “leopard spots” environment with mature change management organisations following structured and purposeful approaches while others only address change sporadically or inconsistently.
As organisations adapt to a rapidly evolving world characterised by hybrid work models, new social contracts, and a renewed focus on employee well-being, the role of change management within EVP is set to solidify further. Indeed, change management should not be an afterthought but a core component of your EVP strategy. It’s about laying the foundation for a robust change-engagement framework, establishing trust, and co-creating solutions with employees so you prepare for change and arrive ahead of the curve.