Topic: Internal Communication and Employee Value Proposition
Author(s), Title and Publication
Towers Watson. (2010). Capitalizing on Effective Communication: Communication ROI Study Report. Towers Watson.
This report identified how high-performing companies inform and engage their employees in challenging economic times. The data were collected from a survey of 328 organizations that represent five million employees in various regions and industries, with an emphasis on employee value proposition (EVP), which refers to what employee can expect from the company and what the company expects from employees.
Companies described as highly effective communicators had 47% higher total returns to shareholders over the last five years compared to companies described as the least effective communicators. Highly effective companies had a clearly defined EVP strategy and were more likely to communicate with their employees about the values of reward programs in a comprehensive way. However, few companies (14%) are revising their EVP, and only 42% spent time training their managers to talk about the company’s EVP. This survey also found that managers in high-performing companies are much better at implementing change, supporting the company’s vision, communicating with diverse audience, and dealing openly with resistance to change.
The survey also discovered an increasing use of social media. Highly effective communicators are making greater use of social media than their less-effective peers, and are more likely to report their social media tools are cost-effective. Social media were mainly used for collaboration and team building, adapting to change, and promoting health and wellness. The chief reason for not implementing social media was the lack of staff/resources. Despite the increased use of social media, the Intranet, email, and face-to-face communication are preferred by employees for business change messages. High-performing companies were more likely to have a documented communication strategy and formal measurement system than low-performing companies.
Implications for Practice
Companies can benefit by articulating their EVP, explaining how it has changed, and what the new deal is going forward. Communicators can help prepare supervisors and front-line managers in this regard by creating key message points and information packets for use. Social media and other innovative channels and approaches should also be explored. Measurement of the effectiveness of EVP communications is considered crucial to success and future planning.
Location of Article
The article is available online at: http://www.towerswatson.com/assets/pdf/670/NA-2009-14890.pdf