Delivering an Impactful EVP—Advice for European Human Capital Executives

Although the global recession is still not a baseline prediction for the Euro Area, human capital leaders based in Europe must be ready for what may come. For now, the European labor shortages and wage pressures highlighted by The Conference Board economists in European Labor Market Outlook 2022 H1 are still relevant. Despite anticipation of a slowdown in Europe, it is very possible that firms in the Euro Area will keep hiring for the rest of 2022 and only after that slow down the pace.

So what does this mean for human capital leaders and the people strategies and agendas of companies operating in Europe? In most cases, this does not mean reinventing the wheel nor increasing investments (for example in higher compensation & benefits); rather, organizations must now, more than ever before, fine-tune and stay focused on delivering a great employee value proposition (EVP), with attraction, retention, and development strategies that are employee-attractive, business-relevant, and sustainable. The European Labor Market Outlook 2022 H1 report outlines some key EVP strategies which link to a positive worker experience: development opportunities (including upskilling or reskilling), a focus on well-being strategies (a high retention/expectation from employees), and promoting the hybrid work model (continues to be both a competitive attraction and retention proposition).

Human capital leaders can activate the human capital strategies highlighted in the report, and proactively mobilize and enable their organizations to ensure their EVP is embedded holistically in business and people strategies. It needs to be relevant for employees as well as competitive and sustainable given the external backdrop of the ongoing war in Ukraine, the emergence of another Covid variant, and the risk of profit pressures due to a possible global recession in 2023. And it needs to be lived on a daily basis.