Mercer - Global Talent Trends 2016

H E A L T H W E A L T H C A R E E R

M E R C E RG L O B A L T A L E N T T R E N D S

2 0 1 6 S T U D Y F I N D I N G S

M a u d e J u l i e n , M e r c e rm a u d e . j u l i e n @ m e r c e r . c o m

L o u i s e M c L e a n , M e r c e rl o u i s e . m c l e a n @ m e r c e r . c o m

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—G L O B A L I S A T I O N

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—I N N O V A T I O N

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—D E M O G R A P H I C S

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—C U L T U R E &E M P L O Y E EA T T I T U D E S

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


K E Y F I N D I N G S

2 0 1 6G L O B A L T A L E N T T R E N D S

A B O U T T H E 2 0 1 6 G L O B A L T A L E N T T R E N D S S T U D Y

G E O G R A P H Y

1,730+ HR Leaders

4,500 employees

15 countries

Spanning 11primary industries

O R G A N I S A T I O N S I Z E E M P L O Y E E J O B L E V E L

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

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D I S R U P T I V ET E C H N O L O G Y W O R L D

S O U R C I N G

W O R K F O R C E T R E N D S I M P A C T I N G T H ET A L E N T A G E N D A I N 2 0 1 6

A U T O M A T I O N& M A C H I N EL E A R N I N G

B I G D A T AM A N A G E M E N T

M U L T I -G E N E R A T I O N A L

W O R K F O R C E

F L E X I B L EW O R K I N G

R I S E O F T H EF R E E A G E N T

C O M P E T I T I O NF R O M E M E R G I N G

M A R K E T S

T A L E N TS C A R C I T Y

L E V E R A G I N GA D I V E R S E

L A B O U R P O O L

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T R E N D I N G T O T H E T O PM A J O R C H A L L E N G E S A F F E C T I N G T A L E N T P R I O R I T I E S

companies surveyed anticipate thatcompetition for talent will further increase in 2016

9/ 10

Seismic shifts in:Composition of the workforceSkills that drive business performanceTalent pools that will likely fuel growth in the future

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World Economic Forum: The Future of Jobs report

Job disruptionimpacting job

families

Loss of7 million

jobs

New skillsneeded tocompete

B Y 2 0 2 0

BUILD DIVERSETALENT POOLS

H O W D O W E A C C E L E R A T E T H E T A L E N T E N G I N E ?

EMBRACE THENEW WORKEQUATION

ARCHITECTCOMPELLING

CAREERS

SIMPLIFYTALENT

PROCESSES

REDEFINE THE VALUE OF HR

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ARCHITECTCOMPELLING

CAREERS

SIMPLIFYTALENT

PROCESSES

T O P F I V E T A L E N T P R I O R I T I E S

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Confident in filling critical roles internally70%

# 1 . B U I L D D I V E R S E T A L E N T P O O L S

“My company is failing meon the development front”

E M P L O Y E E S

Believe company isdoing enough tokeep their skillsrelevant

25%

“Our emphasis this year will be onbuilding rather than buying talent”

O R G A N I S AT I O N S

82%Plan to developand promotefrom within

Strongly agree they have robust methodsfor identifying high potentialsONLY 25%

Companies focused on developing local leaders inemerging economies

62%

BUT LESS THAN1/3 of employees

Agree their company is actively workingtowards creating a diverse workforce

How would you rate your manager?

“C grade or lower”

What would improve your work situation?

“More/better training”

Employee experience not alignedwith employee needs

Clear difference betweenorganisational goals and actions

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# 1 . B U I L D D I V E R S E T A L E N T P O O L S

B R O A D E NT R A D I T I O N A L

V I E W S O F T H EL A B O U R M A R K E T

B U I L DI N N O VAT I V ES O U R C I N G

S T R AT E G I E S

F O C U S O NB U I L D I N G

I N - D E M A N DS K I L L S

L E V E R A G EA N A LY T I C ST O E N A B L E

TA L E N T P O O L ST O T H R I V E


ARCHITECTCOMPELLING

CAREERS

SIMPLIFYTALENT

PROCESSES




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37% Are able to work virtually

“Coaching is one of thetop 3 in-demand skillsfor managers in thenext 12 months”


# 2 . E M B R A C E T H E N E W W O R K E Q U A T I O N

“My manager does notprovide the tools,coaching and supportI need to improve myperformance”

E M P L O Y E E S

Individualisation & Consumerisation Fair & Transparent Rewards

56% Employees permitted a flexible work schedule

Companies believe that their flexible work practicessupport employee productivity

66%

50%

Companies consider themselves transparentwith respect to pay information66%Employees say the same

50% Focusing on non-monetary recognition this year

Companies use a Total Rewards approach to recognition80%

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# 2 . E M B R A C E T H E N E W W O R K E Q U A T I O N

C O M M U N I C AT EA C L E A R

E V P

H E L PI N D I V I D U A L SF I N D T H E I R

N I C H E

B U I L D A G R O W T HC U LT U R E F O C U S E DO N D E V E L O P M E N T

& F L E X I B I L I T Y

S T R I V E F O RT R A N S PA R E N C Y

I N R E W A R D S



SIMPLIFYTALENT

PROCESSES



ARCHITECTCOMPELLING

CAREERS

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Say that career path information is available68%

# 3 . A R C H I T E C T C O M P E L L I N G C A R E E R S

“Even though I’m satisfied, I plan toleave in the next 12 months”

E M P L O Y E E S

Satisfied in job butplan to leave dueto lack of careeropportunities

28%

“Our talent pipeline is strong and wehave good processes in place”


70%Confident aboutfilling rolesinternally

of employees agreeONLY 53%

Conduct regular career conversations+70%

ONLY 56% of employees agree

Intend to add “stepping stone” rolesinto their career architecture

Companies intendingto add job levels

58% 45%

Mobility practices is an area wherelittle change is planned for 2016

Career Frameworks is on the HRagenda -but more urgency is needed

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# 3 . A R C H I T E C T C O M P E L L I N G C A R E E R S

D E S I G NH I G H - I M PA C T

C A R E E RPAT H S

FA C I L I TAT EM O V E M E N T& C A R E E R

P R O G R E S S I O N

E S TA B L I S H A NI N S T I T U T I O N A L

C A R E E R C U LT U R E M AK EC AR E E R S

F U N

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Have concrete plans to change their people strategy, talent acquisition,HR technology and performance management processes in 201686%Career Management and Compensation are lesser priorities

40% Need additional HCM technology to help integrate data fromacross the business

Our new HCM technology implementation offers an ease ofuse not available prior to investment

18%O R G A N I S AT I O N S

# 4 . S I M P L I F Y T A L E N T P R O C E S S E S

E M P L O Y E E S

“Our HR processes failthe test of being simpleand efficient”

“Our Talent processesneed an overhaul”

Employees want consumer-grade,technology-enabled interactions

Managers want processes thatrequire minimal time & effort

Intend to reduce the link between performance ratings and rewards50%Performance ratings are important as they help me to knowwhere I stand and encourage me to improve my performance65%

Over 80% of HR respondentsbelieve change is needed

Only 4% of employeesbelieve their company’s HRprocesses are state of the art

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# 4 . S I M P L I F Y T A L E N T P R O C E S S E S

R E A S S E S SW H I C H

P R O C E S S E SA R E K E Y

R E I M A G I N EE M P L O Y E E

I N T E R A C T I O N S

R E D U C EC O M P L E X I T Y

F O C U S O NS E R V I C E

O P T I M I S AT I O N

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“HR is not viewed as astrategic businesspartner ”


# 5 . R E D E F I N E T H E V A L U E O F H R

“it’s hard for me to getgood answers andinformation from HR

E M P L O Y E E S

Big Data was one of the top fiveworkforce trends impacting in 2016

Climate of scepticism about theimpact of the HR function

of companies have the ability to leverage predictive analytics10%

Only 4% of HR professionalssay HR is a strategic partner

Gaps in HR service deliveryand lack of key data impactsperceptions of HR

Can do ‘cause and effect’ analyses of key workforce trendsagainst business objectives

Shift in what businesses value from HR from static HR metrics andreview-based processes, towards dynamic HR insights and futurefocused activity such as workforce planning and career management

36%Technology investment is outpacing spend on HR trainingand development. The gap is leaving HR ill-equipped.

üDedicated Analytics functionüBetter quality of data and integrated systemsüSkills in handling unstructured data and causal analysis

59%

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F O C U S O NVA L U E C R E AT I O N

B U I L DC A PA B I L I T I E SI N K E Y A R E A S

S T AYA B R E A S T O F

T E C H N O L O G YI N N O VAT I O N S E X E C U T I V E

S P O N S O R S H I PF O R C H A N G E

# 5 . R E D E F I N E T H E V A L U E O F H R

H O W D O W E A C C E L E R A T E T H E T A L E N T E N G I N E ?M E R C E R ’ S 2 0 1 6 T A L E N T T R E N D S S T U D Y



ARCHITECTCOMPELLING

CAREERS

SIMPLIFYTALENT

PROCESSES


· Expand the use of analytics to identify talent flowopportunities and pinpoint key drivers of change

· Rethink talent acquisition through innovativesourcing strategies, informed skill matching, andnew worker profiles

· Build for tomorrow via experience-baseddevelopment interventions focusing on diversepopulation pools and emerging competencies

· Recognise “one size fits one” and build agrowth culture that supports flexibility,development and autonomy

· Create an environment where employeesfeel valued and have transparency aroundpay, feedback and progression

· Rethink how managers are incentivisedto identify, develop, and export talent

· Design career frameworks to reconcile theorganisation’s succession needs & individuals’expectations of career direction and velocity

· Stimulate talent movement in intentional andsystemic ways by making careers fun andfocusing on mobility & development programs

· Enable managers to hold meaningful careerconversations with their employees

· Challenge existing talent managementprocesses and technology to reduceduplication – aim for short and intuitive

· Align performance managementfundamentals with the organisation’sbusiness model and rewards philosophy

· Reimagine employee interactions topromote a positive brand experience

· Reassess how the HR function delivers HR operations, strategic talent insights and the employee experience

· Commit to investing in HR capability building, specifically around analytics, workforce planning and strategic partnering skill

· Establish the vital role of managers and executives in promoting a Talent-driven environment and sponsoring change

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Q U E S T I O N S

C O M M E N T S

Mercer - Global Talent Trends 2016

Recruiting & HR

Transcript of Mercer - Global Talent Trends 2016