G L O B A L P E R S P E C T I V E O N T A L E N T T R E N D S

E X E C U T I V E B R I E F

By Katherine Jones, Ph.D., Karen Shel lenback, Kate Bravery, Joana S i lva and Tamar Hudson

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3 HIGHLIGHTS• Globally, only 4% of HR professionals think HR is viewed as a strategic business partner.

• 85% think talent management needs an overhaul.

• Finding skilled talent remains a global concern.

2 TAKEAWAYS• The nature of work in the digital, globalised world has changed: HR needs to change with it.

• The majority of companies across the globe recognise the need for such change.

1 ACTION• Prioritise the changes required in your organisation carefully; plan a multi-year devise of attack.

YOUR BRIEFING IN 3…2…1…

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Geopolitical headwinds, Brexit, instability in Europe, slowing economies in Asia and radical changes in the nature of work due to automation, robotics, globalisation, and the impact of machine thinking are all contributing to a climate of caution in the year ahead. Clearly, the future will not be a continuation of the past and, as talent remains a C-suite concern, it places HR professionals in the eye of the storm.

The world of work has been experiencing seismic shifts: the composition of the workforce, the skills that drive business performance, and the talent pools that will likely fuel future growth. Organisations need to look at talent and its development through a new lens — examining traditional concepts about the nature of work, what constitutes employment, and the ingredients for creating a thriving workforce.

A WAKE-UP CALL FOR HR

On average, 85% of organisations that participated in a 2016 Mercer global study said their talent management programmes and policies needed an overhaul. Managing this amount of change will be a challenge for even the most skilled professional — and can only be achieved with support from the top. With merely 4% of the surveyed HR professionals reporting that HR is viewed as a strategic business partner in their organisations, there has never been greater urgency in getting that overhaul underway. At the same time, another Mercer study found that employees who are satisfied with their current organisation say that they are nevertheless seriously considering a move within the next 12 months.

CHALLENGES WORLDWIDE IN TALENT ACQUISITION AND RETENTION

Nine out of 10 employers surveyed for this report anticipate that the competition for talent will further increase in 2016 — and more than a third expect that increase to be significant. Continued moderate economic growth and a shrinking working–age population across most of the world contribute to this issue, as employers seek the talent they need to fuel growth. But the dilemma isn’t simply a lack of available talent — unemployment remains high in many countries today. Rather, the issue is a scarcity of the right talent where and when it is needed to drive competitive advantage and deliver results to the business.

Demand continues to outstrip supply for talent with analytic, leadership and people development skills,

as well as specialised technical skills in growing areas such as STEM, cybersecurity, and IT, in general. Also in short supply are those with the skills to manage complex, global organisations, especially in industries facing the prospect of disruptive innovation.

Employers from both mature and emerging markets in this study concur that they face shortages for these critical skills. However, not all regions are equally concerned. Organisations in Asia (most notably Singapore and Japan), South Africa, Australia, and the United States are greatly concerned about the impact of talent scarcity. The majority of European companies, on the other hand, are more sanguine about the availability of needed talent, with only 10% of European companies listing talent scarcity as a concern for 2016.

Rising competition for talent from emerging economies is the number one trend impacting companies in Brazil, Germany, France, India, Mexico, and the US.

Talent scarcity is the top workforce trend

in Australia, Japan, Singapore, and South

Korea.

Only 10% of European companies list talent scarcity as a concern.

Companies in Italy reportedly leverage an

increasingly diverse labour pool.

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Big data management is most likely to impact companies in China and the United Kingdom.

CHANGE IS AFOOT

Companies around the globe perceive the need for changes in their overall talent management strategies. The necessity of employee training, an area of decreased spending during the economic recession, is increasing as employers recognise the need to create and maintain the skill levels required for sustained productivity and, ultimately, profitability. The internal management of employees is also under scrutiny as companies question the efficacy of their performance review processes, the viability of their succession planning, and the strength of their bench for the future.

Nonmembers can purchase the global report as well as 15 individual country reports for the following:

HR departments are least likely to leverage data analytics in companies in Europe (UK, Germany, Sweden, Germany), as well as Canada and Singapore. Companies in fast-emerging countries like India and China are leveraging data analytics more than companies in developed nations.

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FOR MORE INFORMATION

MSI Members can access the 2016 Global Talent Trends — Global Edition and the 2016 Generational Talent Trends — Global Edition for not-to-be-missed research studies based on 1,730 employers and 4,500 employees across 15 countries. These reports highlight current issues in the world of work and identify priorities demanding attention. Employer and employee data is presented by generation for each of the 15 countries.

We love to hear from our members. If you have any questions about this brief or MSI in general, please contact us at selectintel@mercer.com.

Canada

Mexico

Brazil

South Africa

France

UK Sweden

Germany

Italy

India

Singapore

Australia

China JapanUS

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ABOUT MERCER SELECT INTELLIGENCESM

Mercer Select Intelligence is a new web destination for analysis, news, tools, and constantly refreshed, actionable information to help create effective and competitive organisations. Provided as an annual membership programme, Mercer Select Intelligence provides professionals like you with the human capital insights you need to succeed, along with people-relevant insights to address tomorrow’s business challenges. Areas of research and content include retirement, health and benefits, workforce and careers, rewards, talent strategy, and managing people risk.

We constantly refresh the Mercer Select Intelligence website with analysis, news, tools, and actionable information to provide you with the human capital insights you need to succeed.

ABOUT MERCER TALENT Mercer consultants are experts in helping our clients shape and drive their talent agenda. Globally and regionally, Talent consultants have new and emerging points of view on workforce trends, the future of jobs, and cutting edge HR solutions. Reach out for advice in one of these six professional areas:

• Talent Strategy: Forecast your talent needs and develop the strategies and infrastructure to ensure the right flow of talent to meet current and future business objectives.

• Talent Mobility: Optimise your talent investments by developing and executing mobility strategies and maximising the value of international assignments.

• Workforce Rewards: Attract, retain, engage, and motivate your workforce through programmes that reward the right behaviours and outcomes using globally consistent methodologies, insights, and data.

• Executive Rewards: Align executive rewards with your business objectives to attract, retain, and motivate the best leadership talent to enhance business performance while meeting governance requirements.

• HR Transformation: Enhance the efficiency and effectiveness of your HR function and better align HR’s focus with business needs to add long-term value.

• Communication: Use proven methodologies and digital solutions to create and deliver results-driven communications to support major HR initiatives and M&A related change.

Visit us to discuss your needs with the Mercer team near you.