Shanghai HR Conference - Mercer...Hope for the future: More integrated, strategic approach to...

© MERCER 2019 0

Shanghai HR

Conference D R I V I N G T H E TA L E N T L E D

A G E N D A

M E R C E R G L O B A L H R C O N F E R E N C E S

Puneet Swani, Sr. Partner

Career Business Leader International Region, Mercer

1 8 S E P T E M B E R

© MERCER 2019 1

2014 to 2020:

How the

dialogue is

changing

Hot topics: • Redesigning jobs,

• STEM education,

• Digital collaboration

Sentiment: 6% increase in positive

conversations

Unresolved issues: • Creating development paths

• Advancing wellness efforts,

• Delivering an enhanced

employee experience

Hope for the future: More integrated, strategic

approach to addressing the

future of work

2014-2015 Future of Work

Digital

transformation

Cybersecurity

Co-working

spaces

AI

STEM programs

to train younger

generations early

Employee

experience

Reshaping

work

Digital

collaboration

Flexible working

2018-2019 Future of Work

Cloud-based collaboration

Reshaping

jobs

AI

Gig economy

Support for

STEM

education Employee

experience

Co-working

spaces

Digital

transformation

Reskilling

HCM

T H E F U T U R E O F W O R K – D R I V E R S O F C H A N G E

Copyright © 2019 Mercer

© MERCER 2019 2

V O I C E S T H A T M A D E U P T H E 2 0 1 9 S T U D Y – S I N G A P O R E

7,300+ voices globally

© 2019 Mercer – Singapore Deck

50 C-suite

executives

100+

HR

professionals

300+ employees

CHRO or

Executive

title

61%

Companies Growth

Reported

20%

40%

40%

< 5%

6-9%

10+%

Individual

contributors

22%

© MERCER 2019 3

c

Australia 84%

China 63%

Hong Kong 82%

Singapore 94%

Brazil 88%

France 94%

Italy 70%

UK 71%

Canada 77%

Germany 98%

Mexico 82%

USA 65%

South Africa 78%

Middle East 75%

Japan 80%

India 88%

% C-suite anticipating significant

disruption over the next 3 years

Consumer Goods

Healthcare

Energy

Financial Services

Insurance

Technology

Automotive

Life Sciences

Retail

% C-Suite reporting their company

offers a fully digital employee

experience

<10% 10-20% 20+%

I N P U T F R O M 1 6 G E O G R A P H I E S A N D 9 I N D U S T R I E S


© MERCER 2019 4

C - S U I T E C O N C E R N S E N T E R I N G 2 0 1 9

Top socioeconomic concerns

• Strength of emerging markets (63%)

• More responsibility for societal issues (53%)

• Consumer interest in ethical products (53%)

• Competition from regionalization/on-shoring (53%)

Top workforce concerns

• Gig economy (63%)

• Digital work experience (59%)

• Talent diversity (49%)

• Automation and AI (49%)

Regional call-outs

North America

Diverse talent pool is #1,

followed by changing

employee digital

expectations

Europe

Skills shortages is #1

workforce concern

Latin America

Consumer interest in

ethical products #2 top

concern

AMEA

Managing the gig

economy is #2 top

concern

Talent migration

Talent Migration concerns

have risen since last year

2018 Today

x2

© 2019 Mercer – China Deck

© MERCER 2019 5

H O W T H E 4 T H I N D U S T R I A L R E V O L U T I O N I S C H A N G I N G W O R K

of executives in

China anticipate

significant

disruption in

the next 3 years

(up from 8% in

2018)

63% Top drivers of industry disruption

73%

63%

61%

57%

49%

47%

Technology transformation

Changes in global trade policies

Rising customer expectations

Expanding markets

Threat of new competition

Industry consolidation


© MERCER 2019 6

SHAPE

• 86% of executives in China

believe that contingent workers

will substantially replace full-time

employment by 2022

• 55% of companies in China plan

to automate more work this year

SIZE

• Over three quarters of

executives in China believe

20+% of current jobs will cease

to exist

• The WEF anticipates that AI

may deliver up to 58M new jobs

globally

SKILLSET

• Many jobs in the future will

require greater cognitive maturity

• Employees globally say creative

thinking and technology skills will

be most critical for the future

H O W T H E 4 T H I N D U S T R I A L R E V O L U T I O N I S C H A N G I N G W O R K


© MERCER 2019 7

Aligning Work to

Future Value

Building Brand

Resonance

Curating the Work

Environment

Delivering Talent-

Led Change

© MERCER 2019 8

Aligning Work to

Future Value

Building Brand

Resonance

Curating the Work

Environment

Delivering Talent-

Led Change

© MERCER 2019 9

The question isn’t “where did the jobs go?”

It’s “where are they going?”

I M P O R T A N C E O F A L I G N I N G W O R K T O F U T U R E V A L U E

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C O M P A N I E S A R E A C T I V E L Y P R E P A R I N G F O R

T H E F U T U R E O F W O R K

HR’s confidence also grew

significantly this year

Most notably in their ability to:

• Identify jobs that are most likely to be

disrupted by automation

• Fill newly vacant positions with the

right external talent

Areas of opportunity persist around:

• Reskilling workers whose roles are

impacted by automation

• Providing outplacement services for

displaced workers

Built for speed:

Agility remains a critical

competency, and

executives are feeling

more confident than ever

Last year

14%

This year

37%

54%

54%

50%

46%

46%

Identifying the skills gap(supply vs demand)

Redesigning jobs (e.g., roles andresponsibilities)

Developing a people strategybased on future scenarios

Mapping how technology orbusiness shifts will change the

skills and behaviors needed

Revising workforce plans to closethe gap

100% of companies in China are taking

action to prepare for the future of work

Top Responses


© MERCER 2019 11

J O B S A R E P A R T O F T H E E Q U A T I O N , B U T T A L E N T N E E D T H E S K I L L S

T O D E L I V E R T H E F U T U R E O F J O B S

New jobs, new skills

Companies in China are

investing a median of

US$2,000pp

in reskilling

What are the barriers

to reskilling, according to HR?

Reskilled talent will leave 47%

Do not know what talent/skills we

have today 39%

We can’t keep pace with ever-

changing skill needs 35%

Do not know who has the

potential to be effectively reskilled 35%


66% Formal reskilling programs

directed at specific groups of

employees

66% Employee-directed learning

opportunities

52% Informal hands-on opportunities

for employees to learn

new/additional skills

What types of re/upskilling

programs are in place today?

© MERCER 2019 12

Employees, what is the most important thing your

company could do today to improve compensation?

Align rewards more to what I truly value

Link my compensation to the success of specific projects

Offer more types of rewards and compensation

Be more fair and equitable across employees

1

2

3

4

R E I N F O R C E A N D R E W A R D F U T U R E D I R E C T I O N

• Continue to leverage LTIs to focus on the future

• Align executive plans with transformation objectives

• Get creative with spot rewards and kudos systems

• Reward a culture of experimentation and learning

• Invest in strategic rewards to allow differentiated investment

Leading practices

HR’s Rewards

Priorities for 2019

in China

33%

32%

31%

30%

30%

29%

28%

28%

27%

23%

21%

18%

Pay band level equity

Skill-based pay

Career moves as rewards

Compensation transparency

More compelling EVP

Gig worker reward strategy

More diverse rewards

Drive Pay-for-performance

Reward for high-demand skills

Align rewards with org structures

Redesign jobs

Decrease compensation costs


© MERCER 2019 13

H O W T W O C O M P A N I E S A R E A L I G N I N G W O R K T O F U T U R E V A L U E


© MERCER 2019 14

Aligning Work to

Future Value

Building Brand

Resonance

Curating the Work

Environment

Delivering Talent-

Led Change

© MERCER 2019 15

An employer’s value proposition should be

multi-faceted – just like the talent that contributes

to an organization’s success.

In a transparent world, the consumer brand and

employee brand are one and the same –

authenticity is critical.

Attractiveness is a two-way street. A deal’s appeal

can be diminished by negative perceptions of the

brand or an inability to uphold brand values.

W H A T I S U N D E R L Y I N G T H E T R E N D O F B R A N D R E S O N A N C E ?


© MERCER 2019 16

Do employees in China feel a

sense of belonging to their company?

Thriving employees are 2 times more likely to feel a

primary sense of belonging to their company

To a function

To a profession

To your department

To your client

24%

19%

13%

3%

To your company

To an industry

To co-workers

To your manager

20%

17%

4%

1%

M O V I N G F R O M B U Y, B U I L D , B O R R O W T O B E L O N G I N G

Social personas and business

personas are merging


PERCENTAGE INCREASE

Build

86%

Buy

46%

Borrow

49%

Automate

55%

© MERCER 2019 17

W H A T M A K E S A D I F F E R E N C E ?

Thriving employees in China work in an inclusive, flexible environment that

offers a strong sense of purpose and valuable learning opportunities

Has a strong sense of purpose that

resonates with their personal values +24% Makes a positive societal impact +64%

+10% Offers them opportunities to

develop their skills +59%

Focuses on their health &

well-being

Makes efforts to be

intentionally diverse +7% Offers flexible work options +63%

Helps them achieve

their financial goals +66%

Ensures equity in pay

and promotion decisions +120%

AFFINITY

PRIDE

PURPOSE

CAREER &

WELL-BEING

COMPENSATION

& BENEFITS

WORKPLACE /

LIFESTYLE

They work for a company that…


© MERCER 2019 18

Executives are increasingly aware of

consumer interest in ethical

products and social responsibility

ETHICS

of companies are currently

using some form of AI in

HR processes 100%

EQUITY

Only 9% use analytics to measure the

extent of pay inequities and 0%

reported using modeling to correct

inequities

29% of employees give their

company an “A” grade for

equity in pay and promotion

3 in 5 companies disclose equity info

EMPATHY

measure employee engagement

at least twice a year

can identify the key drivers

of engagement

61%

28%

U P H O L D I N G T H E B R A N D V A L U E S : F O C U S O N T H E T H R E E E s


© MERCER 2019 19

H O W T W O C O M P A N I E S A R E B U I L D I N G B R A N D R E S O N A N C E


© MERCER 2019 20

Aligning Work to

Future Value

Building Brand

Resonance

Curating the Work

Environment

Delivering Talent-

Led Change

© MERCER 2019 21

How we think we work… …how we actually work

W H Y D O W E N E E D T O C U R A T E T H E W O R K E N V I R O N M E N T ?

© MERCER 2019 22

S I M P L I F Y I N G T H E W O R K E X P E R I E N C E

Thriving employees in China

are more likely to work for an

organization that: Executives globally rank

simplifying talent processes

as one of the most value-

adding workforce

investments Enables quick

decision making

69%

81%

Provides tools and

resources to do

their job efficiently 67%

79%


© MERCER 2019 23

C U R A T I N G H O W , W H E R E , A N D W H E N W E W O R K

38%

had flexible

working

request turned

down

27%

Believe flex

working impacts

career

prospects

• Hours and timing

• Discretion to change

• Location & ability

to vary

• Infrastructure

• Vary job content

• Ability to share or

exchange

• Vary intensity

• Scale up or down

• Distributed beyond

traditional workforce

• Automated

WHEN WHERE WHAT HOW WHO

Adaptive working through five lenses


Which statements are true with regards to flexible working? 2018

66%

61%

76%

58%

55%

61%

78%

78%

76%

76%

74%

72%

Performance is managed on results

The potential to work flexibly has been discussed with me

Colleagues are supportive of flexible working

Senior leaders are supportive of flexible working

I’ve been offered training on how to make flexible working work

I’m empowered to take time off as long as I reach my goals

© MERCER 2019 24

T H E R O L E O F H R I N C U R A T I N G C O N T E N T & C O L L A B O R A T I O N

Leading practices

HR and IT working together to help

employees network and get access to

knowledge

Employee-driven content sharing and

creation of digital expertise networks

Kudos systems that rate the digital

contribution to surface knowledge

experts

Systems that are self-governing e.g.

additional roles associated with an

‘expert’ ratings such as being a mentor

Search that is augmented by chatbots

61%

58%

57%

57%

57%

38%

39%

40%

37%

40%

Personal financial management tool

Outplacement digital tool

Self-service employee portals

Colleague recognition tool

On-boarding online portals

Other top tools to enhance the

Employee Experience are Using today Investing

76% 21%

Knowledge management is the

#1 area technology investment to

enhance the employee experience

in China

Using today Investing


© MERCER 2019 26

Aligning Work to

Future Value

Building Brand

Resonance

Curating the Work

Environment

Delivering Talent-

Led Change

© MERCER 2019 27

When asked which talent analytics

would add the most value,

employee burnout made the

top five for the first time globally

EXECUTIVES ARE TRACKING…

Only 2 in 5 HR leaders in China

believes their executive team

places top priority on human

capital risks

HR IS CONCERNED… 2019 TOP RISKS

Increase in

Employee

Attrition

Decline in

Employee

Trust

NEED FOR HR TO LEAD AT THE DRAFTING TABLE

In major change projects, HR leaders get involved in… of HR leaders are

confident to lead on

transformation efforts 92%

of HR departments using

predictive analytics 10%

H U M A N R I S K S , H U M A N A G E N D A


80%

implementation

53% idea generation

© MERCER 2019 28

Chatbots for

employee

self-service

Algorithms to

screen/assess

candidates during

recruitment process

AI to identify

employees at risk

of leaving

AI to customize

compensation or

improve pay

benchmarking

AI as part of the

performance

management

process

Top “AI in HR” investments for 2019 in China

Executives’ number one workforce concern globally this year is

meeting employees’ expectations for a consumer-grade digital experience

TOWARDS AN

INTEGRATION

MODEL

Build service

model around

value creation

Leverage automation

and plan for future

automation

Revisit relevance of

governance model

Identify talent analytics

that drive value

R E T H I N K T H E H R L I F E C Y C L E A N D E M B R A C E D I G I T A L H R

53% 53% 52% 50% 49%


© MERCER 2019 29

H R & T R A N S F O R M A T I O N

Digitization

HR in digital

organizations are 3X

more likely to be seen

as a significant

contributor

HR Core

2019 global process redesign efforts

focused on talent acquisition & career

management

HR Admin

53% of companies plan to increase the

number of functional staff per head

as they grow the business

Simplify

the work

experience is exec’s

2nd people priority globally

Automate

55% of companies

plan to increase automation

HR

Strategy

40% of HR leaders

very confident strategy

will deliver future needs

Process

Orientation

3 in 5 employees say

it takes 1+ hour to do

straightforward HR

tasks (e.g., time off)

Lean

Executives globally say

Improving HR efficiency is

the #1 area for business

technology investments

Agile

37% of executives describe

their organization as

change agile

Focused

57% of executives strongly

agree that HR is effective in

aligning people strategy with

strategic business priorities © 2019 Mercer – China Deck

© MERCER 2019 31

Aligning Work to

Future Value

Building Brand

Resonance

Curating the Work

Environment

Delivering Talent-

Led Change

© MERCER 2019 32

W H E R E Y O U F O C U S D E P E N D S O N W H E R E Y O U A R E T O D A Y

The change agent: Moderate disruption,

high digital aspirations

• Accelerate digital transformation

• Make it easy to innovate

• Regularly water-test your TVP

The traditionalist: Low disruption, steady

growth, less focus on digital

• Flatten structures

• Focus on onboarding

• Deliver tools to improve efficiency

• Engage in scenario planning

• Integrate your people strategy

• Focus on decision making speed

The revolutionizer: High disruption, high growth,

highly digital environment


Shanghai HR Conference - Mercer...Hope for the future: More integrated, strategic approach to...

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