HEALTHY, WEALTHY AND WORK-WISE - Mercer · 2020. 3. 9. · 2 HEALTHY, WEALTHY AND WORK-WISE In the...

H E A LT H Y, W E A LT H Y A N D W O R K - W I S ETechnology: Driving a Revolution in Financial Fitness How Employers Can Use Technology to Simultaneously Enhance Health and Financial Well-being AND Improve Their Employees’ Experience

H E A LT H W E A LT H C A R E E R

22 G L O B A L R E P O R TH E A L T H Y , W E A L T H Y A N D W O R K - W I S E : T H E N E W I M P E R A T I V E S F O R F I N A N C I A L S E C U R I T Y

T E C H N O L O G Y : D R I V I N G A R E V O L U T I O N I N F I N A N C I A L F I T N E S S 1

C O N T E N T S

01 Introduction 2

Improve Employees' Financial and Physical Well-being

Plan for the Workforce of the Future

Deliver a Consumer-Grade Benefits Experience That Employees Crave

Personalize the Employee Benefits Experience for a Diverse Workforce

Technology: The Key to an Empowered Workforce

02 Four Ways Employers Can Use Technology to Enhance the Employee Experience

Conclusion

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Technology and the Role of the Employer 6

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H E A L T H Y , W E A L T H Y A N D W O R K - W I S E2

In the era of the Fourth Industrial Revolution, new thinking, collaboration and structures are critical to closing gaps in health, savings and career skills. Progressive companies recognize that helping employees better manage their health, wealth and careers is critical to the organization’s value proposition and to attracting and retaining top talent. As life and work become more intertwined, employers are required to provide more tools to help employees manage their careers and their lives — in particular, their health and financial well-being. Health and financial stress are intrinsically linked, and the stress of financial security is currently impacting people in all countries and organizations.

At the same time, various disruptors are changing the way people live and work. Workforces are being reshaped and becoming more diverse, and employee expectations are changing. We are living longer and our lives are becoming more digital; technology is now an integral part of our daily lives.

Smart companies are looking to technology to deliver an employee experience that empowers the workforce and improves the physical and financial well-being of individual employees and their families.

I N T R O D U C T I O N

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Technology Is Infiltrating All Aspects of Life …People want the convenience of easy and instant access to information and services no matter where they are. As a result, more aspects of our lives are integrated with technology than ever before. We use apps on smartphones for a wide range of purposes, from monitoring our step count to changing the temperature in our homes. Some people have embraced innovation to the point of wearing their technology: smart watches and rings can be synched to smartphones.

… and Disrupting Workforces …Advances in technology are dramatically impacting businesses and redefining workforces all over the world. Artificial intelligence (AI), robotics and machine learning are changing the way businesses operate, displacing jobs but also creating opportunities for new jobs. At the same time, technology is creating new ways of working, greater flexibility and seamless work-life integration. As businesses and workforces react to this disruption, the war to win and retain talent is rising.

... While Employee Expectations Are ChangingGlobally, individuals are demanding more from the organizations they work for and interact with. Organizations are under increasing pressure to demonstrate how they are making positive contributions to society, including the well-being of their employees and of the communities in which they operate. As the concept of work-life

integration starts to dominate, employees expect their employers to take a more holistic approach to supporting their careers and lives.

But Technology Brings Great Opportunity for EmployersHistorically, it was enough for employers to provide access to core benefits, such as a retirement savings plan and affordable healthcare. Today, employees still expect these benefits, but they are looking for a more diverse range that matches their life stage and circumstances. They also expect greater support and assistance in making decisions and optimizing the benefits on offer. One of the primary drivers of these demands is the feeling of financial insecurity prevalent among individuals around the world.

Mercer’s recent study, Healthy, Wealthy and Work-Wise: The New Imperatives for Financial Security, examined the forces that have the greatest impact on financial security and how people, live, work and save. The study revealed imbalances between our need to save and our ability to do so — which affects all of us, regardless of income status. Only 35% of adults feel financially secure (see Figure 1 on the next page); however, a resounding 79% of individuals trust employers to give sound, independent advice on planning, saving and investing.


35% S E C U R E

N E U T R A L 30%

35% I N S E C U R E

7% V E R Y S E C U R E

29% S O M E W H A T S E C U R E

30% N E U T R A L

22% S O M E W H A T I N S E C U R E

13% V E R Y I N S E C U R E

Figure 1. How Financially Secure Do You Feel Today?

O F W O M E N A R E S E C U R E31% O F M E N

A R E S E C U R E38% O F B U S I N E S S L E A D E R S A R E S E C U R E

53%

Further, 85% of individuals are looking for online tools to help them manage their finances. Employers have great capacity to join these dots, and provide a more diverse range of financial tools for employees, helping them to manage their finances today and ensure greater financial security for the future. Employers can redefine the employee experience and the way that they engage with employees around their employee benefit program. Technology is the enabler.

Technology Enables the Employee ExperienceLeading organizations are looking to technology to deliver a customized employee experience that empowers its workforce, delivering financial well-being, health programs and career management.

Smart companies will help employees grow professionally, lead healthier lives and make better financial decisions. They will leverage technology to efficiently deliver an enhanced employee experience by creating a personalized people strategy that addresses the needs of a multigenerational, multicultural and evolving workforce.

Through personalization and digital tools, employers can provide the more diverse range of benefits employees are demanding — benefits that can help employees become not just physically fit but also financially fit. It is time for a revolution in financial fitness.

Employee experience is defined as a combination of the cultural, technological and physical aspects of a workplace. This spans the environment in the workplace, remuneration and benefits, the tools employees need to do their jobs (computers, mobile devices, etc.) and the physical objects they use or consume in the workplace (desks, chairs, food and beverages, etc.). Employee experience is crucial to an organization, as it impacts the motivation and productivity of its workforce.


Read on to learn more about the intersection of technology and the role of the employer, and discover four ways employers can use technology to enhance the employee experience:

• Improve employees’ financial and physical well-being

• Plan for the workforce of the future

• Deliver a consumer-grade employee benefits experience that employees crave

• Personalize the employee benefits experience for a diverse workforce

ABOUT THE RESE ARCH:

MERCER’S HE ALTHY, WE ALTHY AND

WORK-WISE — THE NEW IMPER ATIVES

FOR FINANCIAL SECURIT Y

We conducted this research to better understand employer and employee beliefs, perceptions and behaviors around financial security. The study examined the forces that profoundly impact how people live, work and save and their long-held beliefs about retirement. This initiative equips all decision-makers (governments, employers and individuals) with the insights, data and technology-driven solutions they need to create a new people experience.

We surveyed individuals and senior decision-makers from both the private sector and government in 12 countries in the developed and developing world. The study surveyed adults across six age groups, along with senior executives in business and government.

A total of 7,000 adults aged 18 years and older in Chile, China, Ireland, Japan, the Nordics (Denmark, Norway, Finland and Sweden), the UK and the US completed a 15-minute survey. Six hundred senior decision-makers were interviewed in China, Japan, the Nordics, South America (Chile, Brazil and Mexico), the UK and the US.


T E C H N O L O G Y A N D T H E R O L E O F T H E E M P L O Y E R

Employees Crave Technology in the Workplace …All around the world, technology is becoming an integral part of our daily lives. More people are conducting their lives online, especially on mobile devices. In many parts of the developed world, using smartphones or tablets to make everyday tasks, such as personal banking and grocery shopping, paperless or more convenient is now commonplace. Employees therefore expect the same personalized, digital experience when they are at work. They expect technology and AI to be interwoven into their workplace to help them work faster and smarter. Ultimately, workers do not want to feel like they are traveling back in time when go to work each day.

Transformation and innovation in the workplace are needed to keep pace with the technological advances happening all around us and will help companies get the most out of their employees. More than just going paperless, these involve weaving digital processes into the company’s DNA and creating a working environment that motivates employees and allows them to work more efficiently. Research shows employees waste valuable time at work worrying about their finances; leading organizations recognize this and leverage technology to help people plan and manage their unique physical, mental and financial needs throughout the course of their careers.

… and They Trust Their Employer for Financial AdviceOur Healthy, Wealthy and Work-Wise research shows that people place a high degree of trust in their employers for finance-related recommendations and are looking for them to provide access to financial tools. Also, online financial tools are proliferating in our digitally enabled world, and 85% of people have an interest in using them. In response to these trends, smart companies leverage technology to efficiently deliver an enhanced, consumer-grade experience to their workforce.

Not surprisingly, when people are thinking about retirement planning, they are most likely to go to their partner or family for advice; however, a significant 79% of adults trust their employers to give sound, independent advice on planning, saving and investing. In comparison, 56% trust a financial advisor and 61% trust online web tools or apps. The greater level of trust that employees place in their employers compared to other sources surprised business leaders, who assumed employees placed an equal amount of trust in financial advisors and their employers. As employees place a great deal of trust in employers for financial advice, now is not the time for organizations to reduce employee healthcare or financial security benefits.

My partner or spouse


Fortunately, Employers Are Well Placed to Help Their EmployeesOrganizations are in a good position to assist employees in this area, as they have far greater capacity and resources to determine quality products, such as savings tools and insurance policies. Also, businesses are better placed to negotiate costs and terms and conditions, so employers can also help their employees derive better value and service from the products they use. This creates a virtuous circle that rewards quality providers and products as well as delivers greater protection and value to employees.

Figure 2. How Much Do You Trust the Following People or Organizations to Give You Sound Advice on Planning, Saving and Investing for Retirement?

My partner or spouse 88%

My family

My current employer

Online financial tools, apps or websites

My immediate line manager

An independent financial advisor recommended by my employer

My personal financial advisor

The government

Often, employers shy away from providing access to financial services as an employee benefit. In particular, many employers are worried about the liability risk associated with providing access to financial advice. In reality, the risk is low and employers have many options for guiding employees without providing formal advice. Our Healthy, Wealthy and Work-Wise findings show that people are not necessarily seeking advice, but rather easy-to-use, secure and personalized online tools that empower them to make their own decisions. Trust in such tools is growing, and they open the door for employers to, at last, offer scalable and sustainable solutions.

85%

79%

61%

57%

56%

56%

55%


Employers Benefit, Too: Reduced Financial Insecurity Yields Productivity GainsMercer’s 2018 Global Talent Trends survey found that half of employees would like to see a greater focus on health and well-being. In addition, people spend on average 10 hours worrying about finances while at work each week, but only a quarter of companies offer policies and practices that address employees’ financial health today. Introducing financial wellness programs to reduce employees’ financial insecurity can be beneficial to organizations as they gain improved productivity and employee engagement.

The Importance of the Employee Experience The phenomenal amount of change organizations are experiencing and the changes in employee expectations for jobs mean that market-leading employers are focusing on enhancing their employee experience.

How we think about jobs in our lives and societies is changing. Younger generations have new expectations and aspirations regarding work, career and life. Numerous studies show that millennials are concerned about growing inequality throughout the world, as well as issues such as climate change, poverty and access to healthcare. When they go to work, younger generations want to feel valued by their employer, but most important, they want to feel that they are part of something meaningful and to believe they are making a difference. According to our Global Talent Trends research, 75% of thriving employees say their company has a strong sense of purpose that resonates with their personal values.

To attract and retain the best talent, leading organizations ensure their employees are able to bring their whole selves to work. Smart companies focus their employee experience on whole-person well-being and proactively support their employees’ physical, mental and financial health. To deliver an experience that resembles the role technology plays in our lives outside of work, these employers are digitizing their workplaces. They are proactively planning their people strategy for the future as their organizations transform and respond to workforce disruptions.

Improved Employee Experience Can Increase Engagement, Productivity, and Acquisition and Retention of Top TalentOrganizations that ensure their workforce is fit and financially secure and has fulfilling work benefit from improvements in employees’ productivity, engagement and job satisfaction. Reducing concerns around financial insecurity, health and job security not only benefits individuals and businesses but also has a positive impact on society more broadly.


Reducing concerns around financial insecurity, health and job security not only benefits individuals and businesses but also has a positive impact on society more broadly.


F O U R W A Y S E M P L O Y E R S C A N U S E T E C H N O L O G Y T O E N H A N C E T H E E M P L O Y E E E X P E R I E N C ETechnology has reignited the focus on the employee experience. Specifically, with multigenerational workforces, with the rapid pace of technological change and the abundance of digital tools, employers must put more effort into ensuring that their employee experience is driving the engagement and productivity required. Some actions for employers include:

• Improve employees’ financial and physical well-being: Use technology to deliver engaging health and well-being strategies.

• Plan for the workforce of the future: Use digital tools to actively plan and prepare for current and future workforce needs to understand the transformation required and determine opportunities for reskilling.

• Deliver a consumer-grade employee benefits experience that employees crave: Deliver employee benefits and engage with employees using “consumer-grade” digital tools.

• Personalize the employee benefits experience for a diverse workforce: Use technology to efficiently create a people strategy that addresses the needs of a diverse and evolving workforce.

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Let’s Start a Technological Revolution in Financial FitnessTechnology is giving individuals the opportunity to observe and engage in aspects of their lives that were previously difficult; for example, physical well-being apps can count the number of steps we take or help monitor our sleep patterns. It is now possible to provide individuals with instant access to real-time data and insights about their own lives.

The financial fitness industry can take a page from the physical fitness industry’s technological revolution to engage individuals in saving for the long term. Just like exercise, saving can be painful. Individuals take more pleasure in consuming now than planning for later, and working with savings-related products or financial planners can be complicated, confusing and time-consuming, as well as potentially risky.

To transform saving into an engaging consumer experience rather than a financial services experience, employers must present it not as something difficult and unpleasant but as something that is achievable and interesting by using simplified language, useful tools and the ability to track progress in real time.

Providing individuals with easy access to this information can bring issues like health and financial wellness to life and engage people to give greater thought and attention to these issues.

I M P R O V E E M P L O Y E E S ' F I N A N C I A L A N D P H S Y I C A L W E L L- B E I N G


Improving Employees’ Financial SecurityTwo crucial factors contributing to an individual’s financial insecurity are health and career, both now and in the future. An individual’s skillset as well as physical and mental health will affect that person’s ability to work in the future, which will directly impact the individual’s financial security.

Concerns about financial security affect us all, regardless of our age or the country we live in. Sixty percent of adults feel stressed about their financial situation (see Figure 3). We each face the prospect of outliving our savings, losing a job or not being able to work due to poor health. Time spent worrying about finances at work can

be costly for businesses due to the reduced productivity of a stressed workforce. Enhancing financial security benefits — or improving access to what is offered — provides substantive value to both employees and employers. Eighty-six percent of people say that improving pension plan benefits would improve their relationship with their employer — ultimately increasing engagement and productivity. The high comfort level individuals have with do-it-yourself tools and the trust they have in their employers offer businesses a great opportunity to leverage technology to help their workforce take better control of their finances.


Technology: The Pathway to Enhanced SavingsGlobally, people are not saving enough for their futures. With increasing longevity and shrinking pensions, this is becoming a critical issue with more and more people set to outlive their savings. In fact, less than one-third (30%) of us are confident we will be able to afford to live as long as we likely will.

One of the key takeaways from our Healthy, Wealthy and Work-Wise research is that technology provides an excellent pathway to enhance individual savings. The workforce is looking to employers to provide easy-to-use, secure digital tools to “help me help myself” with financial planning. This demand is driven primarily, but not exclusively, by technology-first millennials — the largest segment of the workforce.

Figure 3. When You Think About Your Financial Situation, How Stressed or Anxious Do You Feel?

40% N O T S T R E S S E D

60% S T R E S S E D

13%

27%

42%

13%

5%

O F W O M E N A R E S T R E S S E D64% O F M E N A R E

S T R E S S E D55%

Eighty-five percent of adults (including 93% of 18–34-year olds) are interested in obtaining access to secure, easy-to-use, jargon-free, online financial tools to help manage their finances. Additionally, two-thirds of adults spanning all age groups are comfortable managing their savings using mobile banking, online tools or smart apps.

Our findings show that there is desire to save more; most people (81%) believe they are responsible for ensuring they have enough income in retirement, and they are willing to do something about it. Eighty-five percent are willing to make changes today to improve their income in retirement; 40% are willing to save more of their disposable income, and almost a third are prepared to reduce consumption or downsize their lifestyle to improve their standard of living in retirement.


Figure 4. What Would You Be Willing to Do, Trade or Give up to Ensure That You Could Maintain a Desired Standard of Living After Retirement?

Save a greater percentage of my disposable income now 40%

32%

27%

19%

15%

13%

10%

9%

Spend less and downsize my lifestyle

Take on part-time work

Downsize my house, car or other assets

I’m not willing to trade or give up anything after retirement

Work for longer full time

Give less money away to others (family, charities etc.)

Give up vacations or holidays

N O T W I L L I N G T O D O A N Y T H I N G15% W I L L I N G T O D O

S O M E T H I N G85%

Find the Right Delivery Model: Employers have various options when implementing programs to help their employees better manage their financial, physical or mental well-being. The right delivery model will depend on the organization’s comfort and willingness to be involved with helping employees make decisions. At one end of the spectrum, employers can simply provide access to vetted tools, leaving employees to decide when and how to use the tools. Employers who are willing to nudge employees in the right direction can also provide guidance to employees throughout their careers to encourage them to make better decisions. At the other end of the spectrum, employers can provide both access and advice on how individuals should manage their health and financial wellness.


Most people (81%) believe they are responsible for ensuring they have enough income in retirement, and they are willing to do something about it.

T E C H N I Q U E I N P R A C T I C E : D I G I TA L E N G A G E M E N T O F F I N A N C I A L W E L L N E S S P R O G R A M

The challenge: An organization dedicated to its employee experience was looking to improve the financial well-being of its US-based employees. But it needed help identifying the best course of action to achieve its goal.

Steps taken: The first step was to develop a deeper understanding of the situation and how different benefits were being valued by different segments of the workforce. To do this, Mercer performed data analysis to statistically segment the workforce population by behavior and then identified the level of engagement related to different benefits for each segment of the workforce. We also identified a lack of awareness of the current benefits available. To resolve this, we worked closely with the organization to create a digital engagement campaign to deliver a customized experience to drive engagement across different segments of the workforce.

The outcome: An online microsite was implemented to deliver the customized the employee benefit experience using persona visualizations and targeted benefit offerings. Via the microsite, employees now have access to a single online location and can easily locate their financial-based benefits. The microsite provides employees with instant access to personalized information and actionable next steps throughout their working lifecycle. The HR function is also benefiting from a personalized experience, as it has the ability to easily review the site usage, enabling the organization to glean further insights on user interest to explore the need for additional tools and services.



The impact that health has on both individual and corporate performance is well documented. Healthier individuals are more present and energized at work, and they are more likely to be able to work longer as they age, helping them to be financially secure in retirement, too.

Our Healthy, Wealthy and Work-Wise research found that personal health is the second top

Technology Solutions Exist Beyond Financial Wellness …cause of stress related to financial security (the first being economic conditions), with 40% of individuals having concerns about their health impacting their financial security. Yet a disparity exists, as business leaders rank health as the fifth most important factor, with only 9% of them recognizing this as the most important factor. Access to various health benefits with support of digital tools leads to better-quality health.

39% E X C E L L E N T + V E R Y G O O D

G O O D + F A I R 55%

6% P O O R

15% E X C E L L E N T

25% V E R Y G O O D

31% G O O D

24% FA I R

6% P O O R

Figure 5. How Would You Rate Your Overall Health in Terms of Your Ability to Work and Earn Today?

Research (Global Employee Benefits Watch 2017/18) from Thomsons Online Benefits, a Mercer company, found that benefits that help employees stay physically and financially healthy, offer them advice, help them manage childcare or improve their career development will engage employees and provide the best value to employers. It also shows that benefits now truly sit in the digital and global domain, and that companies are adopting a technology-enabled approach to their benefits strategy.

Thomsons found that over 90% of organizations that have technology that allows them to measure all aspects of their benefits program have made well-being a high-priority initiative, whereas less than 40% of organizations that aren’t tech enabled have done so.


Technologies such as AI and other concepts, including gamification, can transform the frustration of navigating healthcare and benefits into something personalized, engaging and educational. AI will be a critical enabler to facilitate a shift from treatment to prevention and to better engage individuals in their overall well-being, offering the ability to enhance the performance of the workforce. AI is set to grow the fastest in healthcare, where it can make treatments more efficient and improve diagnosis, patient care and drug discovery. AI is already impacting how people receive healthcare.

Existing digital approaches to physical well-being also need to be revamped. People are not so likely to view a tool that tells them to eat their fruits and vegetables as a positive experience. Health information is better welcomed socially, in digital bites and on demand.


Figure 6. What Causes You Stress, if Anything, With Regard to Your Financial Security?

41%The general economic conditions

40%Personal health

No guarantee of future employment 25%

Level of personal debt 18%

Having dependents or others to support 16%

No fallback to state pension 16%

9%Not feeling that I understand financial matters

7%Not knowing who to go to for advice

2%Other

9%None of the above

Not saving enough for retirement 32%M E N W O M E N29% 35%

Employers and employees are not aligned on the value of benefits: Mercer’s 2018 Global Talent Trends survey showed that people place benefits second only to pay and rewards when considering a company’s employee value proposition. However, business executives ranked benefits sixth, revealing a disparity exists in what employees are looking for in an employer and what employers think employees want.


We are at a time when workforces are evolving quickly, experiencing huge disruptions and becoming more diverse. Digitization transforms how organizations leverage talent — helping them build diverse workforces, embrace flexible work-ing, improve teaming and analyze performance.

Technology Is Disrupting WorkforcesAdvances in technology are dramatically impacting businesses and redefining workforces all over the world. AI, robotics and machine learning are changing the way businesses operate and are displacing jobs while, at the same time, creating opportunities for new jobs. As businesses and workforces react to this disruption, a war to win and retain skilled talent is rising.

Our Healthy, Wealthy and Work-Wise research highlights the stress around future employment and the desire to delay retirement: 75% are not confident they can work for as long as they choose to and 68% never expect to completely retire. Mercer’s 2018 Global Talent Trends study found that only 42% of employees believe that they have the power to create their own career success, and one-third do not feel that their company has offered them an opportunity to grow professionally. Helping employees enjoy compelling careers and supporting them with a robust career path are vital for attracting and retaining top talent.

Given the amount of change workforces are experiencing, the future has never been so unpredictable and the skills we have today may not be relevant tomorrow. Mercer’s 2018 Global Talent Trends study revealed that more than half of business executives think that at least 20% of the roles in their organization will cease to exist by 2022. They would benefit significantly

P L A N F O R T H E W O R K F O R C E O F T H E F U T U R E

from a career management tool that provides personalized access to career paths and learning opportunities. The need has never been greater to ensure employees are able to reskill to keep pace with the transformation the organization will go through in the future.

THE FUTURE TALENT ECOSYSTEM IS

E VOLVING Not only are workforces becoming more diverse in terms of the generations and geographies they span, but they are also expanding outside the employer’s organization. Rather than managing only the internal workforce, the best companies will establish and manage an extended talent ecosystem comprising multiple talent pools and spanning multiple generations, according to Mercer and Oliver Wyman’s Workforce for the Future 2017 study.

• Mercer’s Global Talent Trends study revealed that most companies (96% of respondents) are planning an organization redesign in the next two years.

• In the US alone, the gig economy is now estimated to represent about one-third of the workforce and is expected to increase to over 40% by 2020.

• The future workforce will be made up of internal, partnership, freelance, crowd-sourced and co-opetition talent. The extended talent ecosystem now connects technology companies with talent beyond their organizational boundaries.


Using Digital Tools to Plan for Tomorrow’s Workforce, Today Having instant access to real-time information and data on the current workforce can allow HR teams to quickly understand their own unique talent pool and identify any existing skills gaps. Businesses can stay ahead of the curve and be more in tune with the needs of their employees by digitizing the way they plan for their future workforce.

Digital tools make it easier to adapt to the needs of a rapidly changing workforce. The ability to efficiently compare data on the current workforce with the workforce required to meet future talent demands allows organizations to understand the transformation they must make to build their future talent pool. Technology can be used to map skills sets from current roles to new roles that are expected to be created in the future. This can be a powerful tool to allow workforces and, importantly, individuals to grow and transform as the organization they work for goes through transformation. This type of analysis can ultimately provide employees with a more robust career path and more security around how their career will evolve as their employer’s business transforms.

Executives surveyed for Mercer’s 2018 Global Talent Trends study said the most valuable talent analytics determine:

• Whether it’s better to build, buy or borrow talent

• What causes people to leave or stay with the organization

• Which training programs are most effective

• What drives engagement

• Which characteristics are unique to high-performing teams


Using Technology to Get the Best Value From Employee Benefit Programs Digital tools can also be combined with data analytics to evaluate the effectiveness and value of an organization’s benefits program. Real-time information and data available on benefit usage and employee behavior can be analyzed to assess the popularity of and engagement with different offerings. This allows employers to constantly monitor and fine tune their strategies to better meet the needs of their changing workforce. Crucially, it provides the insights organizations need to optimize their strategy to deliver the best value in terms of return on investment.

An example of this might be responding to the need for improved employee well-being. Thomsons’ research (Global Benefits Employee Watch 2017/18) has shown that organizations that have the technology in place to measure the impact of their benefits program are more than twice as likely than those that lack it to be responding to the employee need for well-being — over 80% versus under 40%, respectively.

Additionally, by using technology to relieve the administration and measurement burden, HR teams will have the time and head space to plan these important communication and well-being programs.


The technology used at work typically pales in comparison to what we have at home. Our 2018 Global Talent Trends study shows that while 72% of HR leaders say digital technology is not a core part of their people strategy today, 47% say it will become so in the next 12 months. Meanwhile, only 43% of employees say that they have digital interactions with HR.

To unlock growth in the Human Age, technology must augment the human work experience. People want new ways of working and an employee experience that offers just-in-time, intuitive digital access, personalization and wellness. They also want digital tools that will help them do their jobs better, faster and smarter. Our study shows that two-thirds of employees believe that state-of-the-art digital tools are critical to their success.

Leveraging integrated technology platforms that offer a consumer-grade experience has become a requirement. Our study revealed that 87% of digital organizations have a compelling and differentiated employee value proposition. The challenge is to keep the human touch. Digital solutions that help companies engage their talent ecosystem and support their employees’ health, wealth and careers will be essential in the future of work.

D E L I V E R A C O N S U M E R - G R A D E B E N E F I T S E X P E R I E N C E T H AT E M P L O Y E E S C R A V E

DIGITAL FROM THE INSIDE OUT: ADVICE FOR LE ADERS (2018 GLOBAL TALENT TRENDS)

• Enable and reinforce a digital culture by adopting new technology, reinforcing comfort with data, and cultivating a spirit of exploration and experimentation.

• Be transparent about digital transformation, including AI and automation, and equip managers to discuss the implications for future jobs, mindsets and skill sets.

• Invest in technology tools that modernize HR, encourage collaboration and teaming, support career growth and learning, and enable stronger predictive analytics.

H E A L T H Y , W E A L T H Y A N D W O R K - W I S E24 G L O B A L R E P O R T24

T E C H N I Q U E I N P R A C T I C E : R E A L L O C AT I N G A N D R E S K I L L I N G A N A G I N G W O R K F O R C E

Steps taken: Mercer executed workforce “job adjacency” analytics to identify specific skills that were at risk of automation and map the employees to jobs with closely related skills. Mercer then worked with the organization to understand how to use training to fill the gap between current and closely related job skills and how to apply skill-based linkages to optimize the reallocation and reskilling of workers to different functions across the organization.

The outcome: Mercer’s job-adjacency analysis revealed that three jobs in particular were at risk of being either eliminated or changing substantially, and closer examination of the adjacent-positions analysis revealed the potential pathways for these workers. As a result, the organization now has valuable insights on its current and future workforce to help preserve key skills, experience and talent while simultaneously upskilling its workers.

The challenge: A global hardware company recognized that its older workers (those between the ages of 55 and 64, representing a fifth of the company’s workforce) were at risk of seeing their jobs become automated in the future. However, the organization also realized the productivity gains of a diverse population and the need to retain long-standing employees who are familiar with the organization’s culture and processes. Instead of hiring new employees, the company set a goal to reskill these individuals and keep them in the company.


But Security Is a Key Concern for Online Financial Planning ToolsOur Healthy, Wealthy and Work-Wise research dug further into what type of financial tools people are interested in and what type of features are important to them. The key message was that people want tools that are easy to use, but they must also be secure and jargon-free. For 62%

We also found that people are much less worried about the lack of human contact (26% have concerns) that comes with digital tools and have little concern around the amount of time taken to use technology (only 15% are concerned). Although most individuals, 65%, are willing to allow a financial online app to hold their personal

of people, ease of use ranked in their top three most important features. Being able to store personal data securely was important to 39% of people, and 35% highlighted the importance of having tools that are simple to understand and jargon-free.

Figure 7. What Features Do You Most Need From Online Financial Tools?

1 2 3

R A N K E D ( 1 = M O S T I M P O R T A N T )

Independent 7%8%4%

Accessible 7%5%19%

Private, so only I can access 15%10%6%

Jargon-free, simple to understand 10%14%12%

Value for money 14%14%8%

Able to store my personal data securely 18%13%8%

Easy to use 13%21%29%

data, they do have concerns about the validity and security of the tools they use. Almost half of individuals have concerns about sharing their data, and 38% are skeptical about trusting the results and have concerns about the possibility their valuable financial data could become lost.


Convincing individuals that new solutions are safe and secure, particularly in a world where large-scale hacks are ever present in the media, will be a major challenge for online financial security

solutions to succeed. To meet employees’ demand for online access to benefits and financial tools, providers must ensure the tools are secure.

Figure 8. What Concerns Might You Have About Using Technology Tools to Plan, Invest or Manage Your Savings?

The amount of time and effort it would take to... 15%

Not understanding how to use the technology 18%

Not having a human who understands to talk to 26%

Potentially losing valuable financial data 38%

Trusting the results 38%

Having my financial data shared with others 49%

Figure 9. How Willing Are You to Allow an Online Application to Hold Your Personal Data to Help Manage Your Finances?

65% A T L E A S T A L I T T L E W I L L I N G

9% V E R Y W I L L I N G

27% S O M E W H A T W I L L I N G

29% A L I T T L E W I L L I N G

26% N O T A T A L L W I L L I N G

O F 1 8 — 3 4 - Y E A R - O L D S W I L L I N G80%

9% I D O N ’ T K N O W


Combining Communication and Technology Is Critical As much as the way in which benefits are accessed is important, so is the relevance of communications that employers send about the benefits on offer. Often, employees do not appreciate their employers’ investment in benefits simply because they are not properly communicated. Thomsons' research (Global Employee Benefits Watch 2017/18) revealed that employees rate communication as one of the biggest influences in whether their needs were met by their benefits offering. They were also 31% more likely to say that their benefits best met their needs when they were accessed through an online portal (regardless of the actual benefits being offered).

Increasingly, employees want communications that are personalized and show the employer understands what is going on in their lives. For example, Thomsons' research (Global Employee Benefits Watch 2017/18) shows that 70% of employees want their employer to talk to them about benefits related to life stages such as childbirth, but only 46% said that their employer does so.

Thomsons found that organizations that continuously communicate (at life changes and at scheduled intervals) and use a variety of digital tools (mobile apps, single sign-on, access from mobile devices, benefits enrollment tools) as well as initiatives (well-being campaigns, benefits brand, segmented communications) significantly improved their employees’ awareness of the benefits on offer and experienced greater engagement as a result.

The motivation for employers to adapt to employee needs when it comes to benefits access and communication is compelling. Thomsons found that employers that communicate frequently and use technology to both communicate and provide access are 60% more likely to have employees who make use of the benefits on offer.


It Cannot Be a One-Size-Fits-All ApproachWorkforces today are the most diverse, not just across geographical borders and multiple generations. Organizations today are recognizing the varying ethnicity, gender and sexual orientation of their workforce. As such, companies must focus on the “whole person” (individual circumstances, physical, mental and financial well-being) while recognizing that different segments of their workforce have different needs. Although diversity brings fresh perspectives and encourages innovation, it can make personalization a complex task when designing and communicating benefits programs.

Technology can help organizations efficiently deliver a customized experience to a large and diverse workforce.

Our Healthy, Wealthy and Work-Wise findings show that age and geographical location really matter when it comes to using and interacting with online financial tools. When considering implementing any digital solution, it is vitally important to anticipate the end user’s reaction. Health and financial wellness programs should be suited to solving issues most important and prevalent to the different segments of the workforce, and should evolve over time to reflect the different life stages individuals move through.

P E R S O N A L I Z E T H E E M P L O Y E E B E N E F I T S E X P E R I E N C E F O R A D I V E R S E W O R K F O R C E

People respond positively to personalized messages and services. These items attract our attention and can provide a more fulfilling experience as they acknowledge our personal uniqueness. Given the increasing focus on the consumer experience, customization for the end user is becoming common. As a result, a successful enhanced employee experience does not incorporate a one-size-fits-all approach.

Given today’s vast cultural and generational diversity, delivering a personalized service to employees can seem complex, time consuming and costly; however, technology solutions can make this process much simpler and more efficient.

We can design a personalized journey throughout every life and career stage by developing a collection of personas that reflect different groups of employees who have similar circumstances (for example, recent university graduates, part-time working parents, those close to retirement). We can then use technology tools, supported by data analytics, to automatically identify which persona(s) relate to each individual employee. This allows organizations to efficiently target the specific needs of different segments of a large, diverse workforce. Benefit packages and communications can be tailored, and nudges can be timed to coincide with levels of engagement or key life events (for example, marriage, relocation, starting a family). This type of intelligent and deliberate communication can give individuals the courage to make better decisions.

Get Personal When Delivering Well-being Programs

T E C H N I Q U E I N P R A C T I C E : I N T R O D U C I N G A C O N S U M E R - G R A D E , P E R S O N A L I Z E D E X P E R I E N C E F O R E M P L O Y E E B E N E F I T S

Steps taken: Mercer identified the need and opportunity to disrupt the existing employee benefits program. We worked closely with the organization to build and implement a technology platform for benefit enrollment, management and engagement — a solution centered on blending real-time data analytics with the company’s global benefits strategy.

The outcome: With the technology platform in place, employees are able to easily connect with their flexible benefits and now receive a personalized and localized experience at any time, from anywhere. The HR function now has a single source of data and instant access to unprecedented insights, including complete visibility of costs and take-up at country and global levels, employer benefits spend and insurance rates. As a result, HR can react quicker and make informed decisions to improve employee benefits and experience. The implementation of the platform has helped minimize the organization’s administration issues, costs and exposure to risk.

The challenge: An organization wanted to leverage technology to provide a consumer-grade employee experience and was willing to make big changes to reinvent its approach to governance and cost management.



Age Does Matter When Delivering Financial Wellness ToolsOur Healthy, Wealthy and Work-Wise research confirmed that age does matter when it comes to stress around financial security and comfort with and acceptance of online tools and advice.

Millennials — who expect to and will actually live longer — face a savings gap compounded by changing jobs more frequently over their lifetimes than previous generations did. At a greater rate

However, perhaps unexpectedly, millennials have a high level of trust (83%) in their employer’s ability to give good financial advice. Also, employers who offer better savings and/or investment benefits have a positive impact among this age group, resulting in higher job satisfaction as well as greater commitment and loyalty to the organization.

than any other segment in the survey, 71% of millennials expect to keep working in later life and wish to maintain their desired quality of life. Conversely, as they are still in the early stages of their careers, they are also the most stressed about finances of all the age groups surveyed. Not surprisingly, as digital natives, they are the most interested in online tools and mobile apps.

Millennials are twice as willing as baby boomers to allow an online app to hold their data and manage their finances for them (80% compared to 42%). However, they are the group most concerned about trusting the results, compared to older generations.

1 8 – 2 4 2 5 – 3 4 3 5 – 4 4 4 5 – 5 4 5 5 – 6 4 6 5 A N D O L D E R

Figure 10. When You Think About Your Financial Situation, How Stressed or Anxious Do You Feel?

64% 64%

54%

42%

64% 63%


Figure 11. How Willing Are You to Allow an Online App to Hold Your Personal Data to Help Manage Your Finances?

18%

73%

29%

62%

43%46%52%

37%

80%

11%

80%

14%

1 8–2 4 2 5–3 4 3 5–4 4 4 5–5 4 5 5–6 4 6 5 A N D O L D E R

W I L L I N G

N O T A T A L L W I L L I N G

Figure 12. What Concerns Might You Have About Using Technology Tools to Plan, Invest or Manage Your Savings?

1 8 – 2 4

2 5 – 3 4

3 5 – 4 4

4 5 – 5 4

5 5 – 6 4

6 5 A N D O L D E R

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

40% 41% 43%

37%

32%

26%

41% 41% 41%

38%

34%32%

AG

E


Glocalization Is ImportantDigital solutions inherently allow for scale, which is part of the appeal. However, different cultures and regulatory environments often necessitate tailored solutions for different parts of the workforce. Culturally, we see significant differences across the globe in how employees are willing to engage with technology, what they are comfortable using it for, and who they trust. Any solution or strategy that is pursued globally needs to support the workforce locally.

In particular, willingness to allow an online app to hold financial, health and personal data to help individuals plan and manage their finances varies significantly by region. For example, respondents in China are almost twice as willing compared to respondents in Sweden (87% versus 45%, respectively). These regional differences underscore the need for organizations to ensure their global strategy acknowledges and responds to the local needs of their workforces.

CH

I NA

US A

I R E L A ND

NO

R DI C

S

CH

I L E

J A PA N

UN

I T E D K I NG

DO

M

6 5 % G L O B A L L Y A R E W I L L I N G T O S H A R E D A T A W I T H A N O N L I N E A P P

Figure 13. Proportion of Individuals in Each Country Willing to Allow an Online App to Hold Their Financial, Health and Personal Data to Help Plan and Manage Their Finances for Them

87%

65%

47%56%61%

81%

56%


Maybe more surprisingly, huge differences can exist between neighboring countries, highlighting the fact that rolling out the same benefits programs across different regions will not always be successful. For example, when comparing China and Japan, the Chinese are the second most willing to embrace online tools for managing finances (only 8% have no interest), whereas

the Japanese are the least willing (with 27% not interested), highlighting the significant cultural difference between these countries. Similarly, the Japanese are much less willing to allow online tools to hold their data, with only 47% willing, compared to 87% of employees in China, who are the most willing to share data.

CH

I NA

US A

I R E L A ND

NO

R DI C

S

CH

I L E

J A PA N

UN

I T E D K I NG

DO

M

1 5 % G L O B A L L Y A R E N O T I N T E R E S T E D I N O N L I N E F I N A N C I A L T O O L S

Figure 14. Proportion of Individuals in Each Country Who Have No Interest in Online Financial Tools

15%

27%

16%

19%

7%

17%

8%


T E C H N O L O G Y : T H E K E Y T O A N E M P O W E R E D W O R K F O R C E

Our health, wealth and careers all play a part in how confident we feel about our finances. The stress of financial insecurity affects all countries, organizations and people. Leaders need to work together to ensure that financial security does not become the next generation’s burden, and the time to cultivate financial security is now.

In a world with rapid change and diverse workforces, technology can help organizations elevate their employee experience. Whether their focus is combatting employees’ financial insecurity, winning the war for talent, improving their employees’ physical well-being or providing a consumer-grade experience for their workforce, technology has a key role to play.

H O W M E R C E R C A N H E L P

At Mercer we are dedicated to helping organizations support their employees reduce financial worries (through our retirement, investment and financial wellness programs) while assisting employers with building their workforce for the future and increasing workforce engagement and productivity.

Want to learn more? Visit us at http://www.mercer.com/our-thinking/healthy-wealthy-and-work-wise.html

C O N C L U S I O N

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http://www.mercer.com/our-thinking/healthy-wealthy-and-work-wise.html

For further information, please contact your local Mercer office or visit our website at: www.mercer.com

Copyright 2018 Mercer LLC. All rights reserved.

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This report contains confidential and proprietary information of Mercer and is intended for the exclusive use of the parties to whom it was provided by Mercer. Its content may not be modified, sold or otherwise provided, in whole or in part, to any other person or entity without Mercer’s prior written permission.

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