© MERCER 2017
H E A L T H W E A L T H C A R E E R
F U T U R E O F W O R K
Milan Taylor
Partner, Mercer
© MERCER 2017
G E O P O L I T I C A L V O L AT I L I T Y
© MERCER 2017
G L O B A L T R E N D – N O T J U S T U S
What is on our
employees’ minds?
© MERCER 2017
W E FAV O U R O U T S P O K E N P O L I T I C I A N S
64%
79%
79%
79%
74%
72%
71%
70%
68%
66%
66%
64%
64%
64%
60%
59%
59%
58%
57%
53%
51%
49%
47%
Total
Argentina
Hungary
Israel
Spain
Peru
Poland
France
South Korea
Belgium
India
Mexico
Germany
Great Britain
United States
Australia
Italy
Sweden
Canada
Turkey
Brazil
South Africa
Japan
Strongly Agree/Tend to Agree
Q10 Politicians should be able to say what’s on their minds regardless of what anyone else thinks about their views
© MERCER 2017
W E W O R R Y A B O U T B R E A K I N G R U L E S
49%
80%
69%
68%
66%
66%
65%
60%
54%
51%
50%
50%
48%
42%
42%
41%
41%
40%
39%
36%
35%
23%
21%
Total
France
Israel
Italy
South Korea
Turkey
India
Poland
Belgium
Peru
Australia
Great Britain
Brazil
South Africa
Hungary
Mexico
Canada
United States
Japan
Argentina
Spain
Sweden
Germany
Strongly Agree/Tend to Agree
Q10 To fix [country], we need a strong leader willing to break the rules
W H E R E I S O U R O P T I M I S M ?
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W H AT D O E S I T A L L M E A N ?
1
2
3
World is round Internet and MNCs are making us all more global
World is diverse Not one global village, but many local villages
World is changing We are looking for new answers
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A U T O M AT I O N / R O B O T I C S
G L O B A L I Z AT I O N
3 D P R I N T I N G
D I G I TA L I Z AT I O N
M A C H I N E L E A R N I N G
D I S R U P T I O N T O W O R K
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Source: Future of Jobs Report, World Economic Forum
G R O W T H D E C L I N E
+492
+0.70%
Business and Financial Operations
+416
+0.97% Management
+405
+3.21%
Computer and Mathematical
+339
+2.71%
Architecture and Engineering
+303
+0.46% Sales and Related
-4,759
-4.91% Office and
Administrative
-1,609 -1.63%
Manufacturing and Production
-497 -0.93%
Construction and Extraction
-151
-1.03%
Arts, Entertainment and Media
-40
-0.15% Installation and
Maintenance
Over 7.1 million jobs lost and 2 million jobs created
G L O B A L E M P L O Y M E N T O U T L O O K
(JOBS CHANGE IN THOUSANDS, 2015-2020)
D I S R U P T I O N T O W O R K
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Skills instability will be high for all
industries regardless of
the employment
outlook
Only 50% of skills needed today will be applicable in
2020
Current stable jobs will require
different skill sets in just a
few years
Current roles are already
hard to recruit for
I M PA C T O N S K I L L S
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F O U R T H I N D U S T R I A L R E V O L U T I O N
Lifelong-learning from “education for employment” to “education for employability” and from “job security” to “career security”
Learnability Learn and teach
through internships and externships
Dynamic Re-Skilling Incentivize
re-education and training among
existing workforce
Digitization Promote digital
fluency
Innovating the Education Ecosystem
Developing modern curricula
Intra- and cross industry collaboration
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F O U R T H I N D U S T R I A L R E V O L U T I O N
Gender-balanced, diverse, inclusive, inter-generational workforce
Deformalization of Work
Recognize diversity of work models (on-demand /
contract / seasonal work, etc.)
Increased Flexibility
Agile implementation of
new regulations
Adjusting Cultural Norms
Close the gender gap
Develop careers for different generations
Empowerment of the Individual
Increased Personalization
Employees treated as customers
© MERCER 2017
FUTURE OF JOBS FUTURE OF TALENT
R E S P O N D I N G T O T H E N E W W O R L D O R D E R
© MERCER 2017
ABOUT MERCER’S 2017 GLOBAL TALENT TRENDS
STUDY
37 countries
5,400+ employees
1,700+ HR professionals
400+ executives
20 industries Agriculture/Forestry
Automotive
Construction
Consumer Goods
Education
Energy
Financial Services
Healthcare
High Tech
Hospitality
Insurance/Reinsurance
Internet Based Services
Life Sciences
Logistics/Supply Chain
Manufacturing
Mining
Professional Services
Retail
Telecommunications
Utilities
© MERCER 2017
K E Y TA L E N T T R E N D S I N 2 0 1 7
GROWTH BY DESIGN
THE QUEST FOR INSIGHT
A SHIFT IN WHAT WE VALUE
A WORKPLACE FOR ME
A T T R A C T I N G & R E T A I N I N G
T O M O R R O W ’ S T A L E N T
B U I L D I N G F O R A N U N K N O W N F U T U R E
C U L T I V A T I N G A T H R I V I N G W O R K F O R C E
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G R O W T H B Y D E S I G N
A more symbiotic relationship between man and machine will
emerge
D I S R U P T I O N O N T H E H O R I Z O N
DIGITALIZATION
Business model disruption
INTERNET OF THINGS
New ways of working MACHINE LEARNING
Value creation opportunities
8%
Digital
77%
On digital journey
ORGANIZATIONS CONSIDERING THEMSELVES DIGITAL TODAY
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G R O W T H B Y D E S I G N
ORG. REDESIGN BEING PROPOSED
C-suite: How are you planning to change your organization design over the next two years?
Moving support
functions to
shared services
41%
Flattening the
organization
structure
33%
Decentralizing
authority
31%
Eliminating roles,
functions,
departments
31%
WHAT IS DRIVING THIS CHANGE?
Increased
innovation
Reduced
costs
Greater
customer
intimacy
Increased
agility
Greater
efficiency
93% of executives are
planning a redesign in the next 2 years
© MERCER 2017
G R O W T H B Y D E S I G N
of companies plan to change their job evaluation
method this year in response to the changing workplace
50%
HOW COMPANIES ARE REDEFINING THE LANDSCAPE
1. Establishing a consistent job architecture aligned with the new structure
2. Evaluating who can do jobs (employee, contingent, robotics, algorithms)
3. Increasing differentiation in the leadership roles that exist
4. Using science to value emerging roles and define reward eligibility
5. Quantifying work in terms of experiences with jobs as anchor points
IMPLICATIONS FOR
THE FUTURE OF JOBS
HR: How do you anticipate jobs changing in the next 3 years?
High value jobs focused on design and innovation
Broader span of control for management
More focus on sales & delivery, less on management
Salaried workforce will be confined to management
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A SHIFT IN WHAT WE VALUE
FORCES OF CHANGE
2016 focus on learning
2017 pay and opportunity
for promotion
PAY DISCLOSURE & TRANSPARENCY
RESPONSIBLE LEADERSHIP
UNCERTAINTY AND VOLATILITY
A COMPELLING CAREER PROPOSITION
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© MERCER 2017
A SHIFT IN WHAT WE VALUE
97% of employees want to be recognized and rewarded for a wide range of contributions
of companies plan to make changes to increase transparency of executive pay 83%
W H A T W O U L D M A K E A P O S I T I V E I M P A C T O N Y O U R W O R K S I T U A T 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
© MERCER 2017
A SHIFT IN WHAT WE VALUE
W H AT ' S H A P P E N I N G W I T H P E R F O R M A N C E M A N A G E M E N T ?
Changes to goal cascade or calibration
83%
Introduction of continuous feedback
81%
Shift of focus to careers and future contribution
81%
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
W H AT E M P L O Y E E S W A N T
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W O R K P L A C E F O R M E VOICE OF
THE EMPLOYEE: “Help me invest in myself”
Technology enables individualized choice without adding an undue administrative burden for HR
Me, Inc. BALANCING MY WORK/LIFE
56% want their company to offer more flexible work options
CARING FOR MY HEALTH
53% of employees want their company to focus more on their health and wellness
STEERING MY CAREER
1 in 3 employees do not feel empowered to create their own career success at work
MANAGING MY MONEY
Mercer research shows that employees spend 13 hours per month worrying about money matters at work
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© MERCER 2017
W O R K P L A C E F O R M E
E M P L O Y E E P R I O R I T I E S
HEALTH
61%
WEALTH
23%
CAREER
16%
No.1 asks from employees
“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
“Focus on my health and wellness” Brazil, France, Hong Kong, Singapore
People who felt that they could not achieve their own career success at work want their
organization to take more time to get to know their skill sets
Employees are seeking ways to “make work work”
for their individual circumstances
© MERCER 2017
Q U E S T F O R I N S I G H T
27% executives report that HR delivers actionable analytics for business leader decision making
HR
Analytics used
EXEC
Most valuable
Key drivers
of engagement
Reasons to
leave/stay
Why
Join
Risk of
burnout
Effective
training
Team
performance
Who is likely
to leave
MORE LESS STRATEGIC VALUE
Not used
Reporting
Correlation
Cause and effect
Predictive
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Q U E S T F O R I N S I G H T
INNOVATIONS Games and tools to source
qualified talent or speed up the sifting
Network Analysis
Social Data
Cluster Analysis
TALENT DATA
Over 60% use innovative learning methods
Culture fit
82%
Personality Cognitive
ability
86% 86%
Games
66%
VAC
73%
© MERCER 2017
A F R I C A H A S I T S O W N C H A L L E N G E S
Source: Human Capital Index 2013
North America
Europe And
Central Asia
Asia And
Pacific
Latin America
and Caribbean
Middle East and
North Africa
Sub-Saharan Africa
HUMAN CAPITAL INDEX • Education • Health and Wellness • Workforce and Employment • Enabling Environment
© MERCER 2017
V I E W S F R O M S U B - S A H A R A
• Leadership but not the hero
• Source and develop talent locally
• People strategy for new markets
• Performance management work is changing
• Reward in diverse and changing markets
• Digitize HR to deliver to the individual
Preserve brand and culture
1
2
3
4
5
6
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50%
40%
28%
14%
10%
9%
35%
6%
11%
38%
33%
25%
22%
13%
9%
33%
30%
16%
0% 10% 20% 30% 40% 50% 60%
Culture
Brand Recognition
Business Model
Pay/Rewards
Benefits
Diversity & Inclusion
Executives
HR
Employees
B E W A R E , A R E W E A L I G N E D ?
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C U LT I VAT E A T H R I V I N G W O R K F O R C E
T H R I V I N G W O R K F O R C E
Diverse and Energized
Inclusive and Growth Focused
Committed to Health & Wellness T H R I V I N G O R G A N I Z AT I O N
Business Success
Resilient and Adaptive
Positive Social Impact
T H R I V I N G E M P L O Y E E
Growing and Contributing
Empowered and Connected
Healthy and Energized
© MERCER 2017