HEALTH WEALTH CAREER

MERCER
GLOBAL
TA L E N T
TRENDS
STUDY
2017

EMPOWERMENT
IN A DISRUPTED WORLD
 Digitalization, business model disruption, automation, and AI
are accelerating the evolution of work

while the nature of “a worker’” is experiencing its own revolution

What can we expect in 2017?

© MERCER 2017
O U R S P E A K E R S T O D AY

KATE BRAVERY NATALIE JACQUEMIN DAVID WREFORD SUSANNAH HINES

Global Practices Talent Strategy Workforce Rewards Employee Engagement
Leader Practice Leader, Practice Leader, and Communication
Europe Europe Practice Leader, UK

© MERCER 2017
IMPENDING WORKPLACE DISRUPTION

A U T O M AT I O N / R O B O T I C S

M ACHINE LEARNING

G L O B A L I Z AT I O N

3D PRINTING

D I G I TA L I Z AT I O N

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A NEW SOCIO-DEMOGRAPHIC STRUCTURE

LONGEVITY

M U LT I C U LT U R A L I S M

A D VA N C E S I N F E R T I L I T Y

RISE OF THE FREE AGENT

D I G I TA L S O C I A L W O R L D

© MERCER 2017
RESPONDING TO THE NEW WORLD ORDER

FUTURE OF JOBS F U T U R E O F TAL E N T

Help me plan for an unknown future, Give me a clear path to promotion

while mitigating expense risk and help me thrive at work

© MERCER 2017
A B O U T M E R C E R ’ S 2 0 1 7 G L O B A L TA L E N T T R E N D S S T U D Y

20 industries
400+ 5,400+ 1,700+ Agriculture/Forestry
Automotive
Insurance/Reinsurance
Internet Based Services
executives employees HR professionals Construction Life Sciences
Consumer Goods Logistics/Supply Chain
Education Manufacturing
Energy Mining

37 countries
Financial Services Professional Services
Healthcare Retail
High Tech Telecommunications
Hospitality Utilities

© MERCER 2017
M A C R O T R E N D S I M PA C T I N G T H E W O R L D O F W O R K

WHAT ARE EXECUTIVES MOST

FORECAST OF TALENT SUPPLY
CONCERNED ABOUT?
Administration

Finance

Talent scarcity Sufficient/

Legal
Oversupply
Technology at work
Undersupply IT Technology
Aging workforce
Executives see the Core Operations / Service Delivery
leadership shortfall
more acutely than HR Leadership
Leadership
– making this the No.1
skill gap Marketing
DISRUPTION ON THE HORIZON for them
Sales
Change in Strength of emerging Change in
labor regulations market economies border control

© MERCER 2017
M E R C E R TA L E N T T R E N D S 2 0 1 7 : K E Y F I N D I N G S

GROWTH A SHIFT IN A WORKPLACE THE QUEST

BY DESIGN WHAT WE VALUE FOR ME FOR INSIGHT

AT T R A C T I N G
BUILDING FOR C U LT I VAT I N G A
& R E TA I N I N G
AN UNKNOWN FUTURE THRIVING WORKFORCE
T O M O R R O W ’ S TA L E N T

© MERCER 2017
GROWTH BY DESIGN

DISRUPTION ON THE HORIZON

INTERNET OF THINGS

DIGITALIZATION New ways of working MACHINE LEARNING

Business model disruption Value creation opportunities

A more symbiotic relationship

between man and machine will emerge

ORGANIZATIONS CONSIDERING THEMSELVES DIGITAL TODAY

8% 77%
Digital On digital journey

© MERCER 2017
GROWTH BY DESIGN

ORG. REDESIGN BEING PROPOSED

C-suite: How are you planning to change your organization design over the next two years?

41% 33% 31% 31%

Moving support Flattening the Eliminating roles,

Decentralizing
functions to organization functions,
authority

93%
shared services structure departments

of executives are WHAT IS DRIVING THIS CHANGE?

planning a redesign in
the next 2 years
Greater Increased Greater customer Reduced Increased
efficiency agility intimacy costs innovation

© MERCER 2017
G R O W T H B Y D E S I G N : W H AT D O E S T H I S M E A N F O R J O B S ?

IMPLICATIONS FOR
THE FUTURE OF JOBS 50%
HR: How do you anticipate jobs of companies plan to change their job evaluation
changing in the next 3 years? method this year in response to the changing workplace

High value jobs focused on

design and innovation

Broader span of control

for management HOW COMPANIES ARE REDEFINING THE LANDSCAPE
1. Establishing a consistent job architecture aligned with the new structure
More focus on sales & delivery,
less on management 2. Evaluating who can do jobs (employee, contingent, robotics, algorithms)

3. Increasing differentiation in the leadership roles that exist

Salaried workforce will be 4. Using science to value emerging roles and define reward eligibility
confined to management
5. Quantifying work in terms of experiences with jobs as anchor points

© MERCER 2017
A S H I F T I N W H AT W E VA L U E

2016 2017
pay and opportunity
focus on learning for promotion

A COMPELLING CAREER PROPOSITION

RESPONSIBLE
LEADERSHIP

PAY DISCLOSURE UNCERTAINTY

& TRANSPARENCY AND VOLATILITY

FORCES OF CHANGE
© MERCER 2017
A S H I F T I N W H AT W E VA L U E
83% of companies plan to make changes to
increase transparency of executive pay
© MERCER 2017
97 % of employees want to be
recognized and rewarded for
a wide range of contributions
W H AT W O U L D M A K E A P O S I T I V E I M PA C T
O N Y O U R W O R K S I T U AT I O N ?
1. Compensation that is fair & market competitive
2. Opportunity to get promoted
3. Leaders who set clear direction
4. Working with the best & brightest
5. Transparency on pay calculations
6. Career path information
7. More flexible work options
A S H I F T I N W H AT W E VA L U E

W H AT E M P L O Y E E S W A N T W H AT ' S H A P P E N I N G W I T H
PERFORMANCE MANAGEMENT?

83% 81% 81%

Changes to goal Introduction of Shift of focus to careers and

cascade or calibration continuous feedback future contribution

T O R AT E O R N O T T O R AT E
28% of companies eliminated ratings last year
About 30% added or removed forced rankings in 2016, but 39%
of those are planning to reverse their decision in 2017

Just 14% have disconnected base salary adjustments with

performance metrics

© MERCER 2017
 VOICE OF
A WORKPLACE FOR ME THE EMPLOYEE: “Help me invest in myself”

CARING FOR MY HEALTH STEERING MY CAREER

53% of employees want their 1 in 3 employees do not feel
company to focus more on empowered to create their own
their health and wellness career success at work

Me, Inc.
BALANCING MANAGING MY MONEY
MY WORK/LIFE
Mercer research shows that
56% want their company employees spend 13 hours
to offer more flexible per month worrying about
work options money matters at work

Technology enables individualized choice without adding an undue administrative burden for HR

© MERCER 2017
A W O R K P L A C E F O R M E : P E R S O N A L I Z AT I O N

Employees are seeking ways to No.1 asks from employees

“make work work”
for their individual circumstances
“Offer more flexible work options”
Canada, Japan, USA

“Enable quick decision making”

Australia and Germany

“Understand my unique interests & skills”

India, Italy, South Africa, UK

“Actively support innovation”

China and Mexico
EMPLOYEE PRIORITIES
“Focus on my health and wellness”
Brazil, France, Hong Kong, Singapore

HEALTH WEALTH CAREER People who felt that they could not achieve their own
career success at work want their organization to take
61% 23% 16% more time to get to know their skill sets

© MERCER 2017
A WORKPLACE FOR ME: FLEXIBILITY

FLEXIBLE WORK ARRANGEMENTS WHAT WOULD MAKE YOU WORK FOR ONE COMPANY
OVER ANOTHER?

POLICY AD HOC CORE EVP Top 6 Others

63% 27% 35%

Employees
want more 12% 6%
time off
Well being Recreation
17% services 8% facilities
FLEXIBILITY IN PRACTICE Additional paid holidays Fitness Financial
4-day work week facilities advice
Paid holiday trips
Unlimited paid vacation
1 in 3 requested 1 in 2 concerned
but turned down about promotion Summer Fridays
4yr @ 80%pay
+ 1 year off @ 80% pay

77% would consider working on a contract basis

© MERCER 2017
THE QUEST FOR INSIGHT

USE OF ANALYTICS IN HR MISMATCH IN TALENT ANALYTICS

Same results as 2016 Key drivers

More opportunity for progress of engagement

Reasons to
LESS POWERFUL STRATEGIC VALUE MORE POWERFUL leave/stay

Team
performance EXEC
2017 2016
Effective
training Most
valuable
Who is likely
to leave

Risk of HR
Analytics Stage 1 Stage 2 Stage 3 Stage 4 burnout
not used Basic reporting Benchmarking Cause/effect Predictive
& trend analytics and correlations analysis of key analytics Why Analytics
with business workforce outcomes Join used
metrics
Only 27% of executives report that their HR delivers
actionable analytics for business leader decision making

© MERCER 2017
THE QUEST FOR INSIGHT

TALENT DATA INNOVATIONS

Companies are using the following tools to understand their talent In the quest to open up the pipeline,
(% currently using or planning to in 2017) games and tools to source qualified talent or
speed up the sifting process have exploded

86% 86% 82% 73% 66%

Online Virtual
Personality Cognitive/ability Game-based
assessment for assessment
assessments assessments culture fit centers assessments

Over 60%
use innovative learning methods
such as games, mobile enabled apps Social Data
and virtual tools to support training
and development initiatives
Network Analysis
Cluster Analysis

© MERCER 2017
 HR IS THE KEY TO SUCCESS

GROWTH A SHIFT IN A WORKPLACE THE QUEST

BY DESIGN WHAT WE VALUE FOR ME FOR INSIGHT
CRITICAL

DESIGN THINKING EVP COMMUNICATION DIGITAL COMPETENCE TELLING A STORY WITH DATA
SKILLS

JOB REDESIGN, CHANGE CAREER FRAMEWORKS PERSONA DEVELOPMENT PREDICTIVE ANALYTICS

THE FUTURE OF HR
© MERCER 2017
HOW DO YOU WIN
IN AN AGE OF DISRUPTION?

AT T R A C T & R E TA I N BUILD FOR C U LT I VAT E

TOMORROWS AN UNKNOWN A THRIVING
TA L E N T FUTURE WORKFORCE

© MERCER 2017
AT T R A C T A N D R E TA I N T O M O R R O W ’ S TA L E N T

Embrace the consumerization of hiring

Treat employees as customers

Align EVP to your DNA & the whole person agenda

Authenticity + personalization = commitment

Lead on responsible rewards, define exciting career

pathways, and take risks on non-traditional talent

© MERCER 2017
BUILD FOR AN UNKNOWN FUTURE

Quantify future-focused capability gaps and amplify

impact through integrated people planning

Mitigate risk by building a diverse portfolio of skills,

sharing knowledge, and encouraging innovation

Improve agility by simplifying decision making,

promoting lifelong learning, and improving mobility

© MERCER 2017
C U LT I VAT E A T H R I V I N G W O R K F O R C E

Understand talent flows, identify what matters to

your talent pools, and address choke points

Build a contribution culture: clarify direction,

encourage collaboration, get out of the way

Differentiate your workplace around

aspects of flexibility, health, and wellbeing

© MERCER 2017
C U LT I VAT E A T H R I V I N G W O R K F O R C E

THRIVING
WORKFORCE
Diverse and Energized

Inclusive and Growth Focused

THRIVING THRIVING
Committed to Health & Wellness
O R G A N I Z AT I O N EMPLOYEE

Business Success Growing and Contributing

Resilient and Adaptive Empowered and Connected

Positive Social Impact Healthy and Energized

© MERCER 2017
QUESTIONS

KATE BRAVERY NATALIE JACQUEMIN DAVID WREFORD SUSANNAH HINES

Global Practices Talent Strategy Workforce Rewards Employee Engagement & Communication
Leader Practice Leader, Europe Practice Leader, Europe Practice Leader, UK

P O L L : W H I C H O F T H E S E T R E N D S & I M P E R A T I V E S
W O U L D Y O U L I K E T O D I S C U S S F U R T H E R /
QUESTIONS R E C E I V E M O R E I N F O R M A T I O N O N ?
Please type your questions in the Q&A section of the toolbar Attract & Retain
and we will do our best to answer as many questions as we tomorrows talent
have time for. Build for an
uncertain future
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Cultivate a thriving
button, on the floating panel, on the top of your screen. workforce

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© MERCER 2017
CALL TO ACTION

“I have a dream of organizations that are capable of

spontaneous renewal…where an electric current of innovation
pulses through every activity…[and] companies actually deserve
the passion and creativity of the folks who work there.”

Gary Hamel & Bill Breen

© MERCER 2017 Copyright 2017 Mercer LLC. All rights reserved. 14091A–HB