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MAY 21 , 2018

Kate BraveryGlobal Practices LeaderCareer, Mercer

T H R I V I N G I N A D I S R U P T E D W O R L D

T H R I V I N G I N A N A G E O F D I S R U P T I O N

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AI, Robotics and technological advances such as 3D printing are disrupting industries and redefining value chains

D I S R U P T I O N I S S T E A L I N G T H E H E A D L I N E S

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Employment outlook across job families 2015 - 2020

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

Source: Future of Jobs Report, World Economic Forum

Business and Financial Operations Management Computer and

MathematicalArchitecture

and Engineering Sales and Related Education and Training

Office and Administrative

Manufacturing and Production

Construction and Extraction

Arts, Design, Entertainment, Sports and Media

Legal Installation and Maintenance

-4759 -1609 -497 -151 -109 -40

G R O W T H ( T h o u s a n d s )

+492 +416 +405 +339 +303 +66

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S E I S M I C S O C I O - C U L T U R A L S H I F T S A R E U N D E R W A Y

The traditional family is fast becoming atypical

Rapid acceleration in longevity

Shifts in migration, racial and ethnic diversity

Changes in fertility and parenthood

The rise of the Free Agent

Importance of our digital identity

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—E M P L O Y E E

—

—H R—

—B U S I N E S SL E A D E R S

—

T H E S E C H A N G E S A R E R A I S I N G C R I T I C A L Q U E S T I O N S

S T R AT E G YC A PA B I L IT IE S

L E A D E R S H IP & C U LT U R E

TA L E N T M A N AG E M E N TE V P / TOTA L R E WA R D S

E N G AG E M E N T & E M P O W E R M E NT

C A R E E R A S P I R AT IO N SW O R K & L I F E D E M A N D SS AV I N G S & R E T I R E M E N T

How can we attract & retain

tomorrow’s workforce?

How can we build for an

unknownfuture?

What does career success

mean intoday’s world?

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Redesignthe wor ld of work

Contributeto a new HR Agenda

Builda better ta lent engine

T H E O P P O R T U N I T Y

THRIVE IN AN AGE OF DISRUPTION

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THIS IS A HUMAN STORY

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SU-MEI

Senior professional, Married, no dependents

GM of AsiaPac Product Development

Goal: Executive position, Board experience

Tenure: 20 years with company, 5 years in role

Retention Risk moderate, Burnout Risk high

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Young Professional, 2 young children

Sales Executive – including travel

Goals: success in new role, balance

Tenure: 3 years with company, just promoted to team lead

Retention risk low, burnout risk moderate

JAMES

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% F E M A L E I N P R O F E S S I O N A L & A B O V E L E V E L S , 2 0 1 5 – 2 0 2 5

W H E N W O M E N T H R I V E R E S E A R C H

35%

25%

37% 36%39%

35%

40%

28%

37%

49%40% 40%

ADDITIONAL OPPORTUNITYCURRENT 2015 REPRESENTATION PROJECTED 2025 REPRESENTATION “BASELINE”

G LO B A L A S I A E U RO P E L AT I NA M E R I C A

U S &C A N A DA

AU S T R A L I A& N Z

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52%“My organization is committed

to creating an environment where employees are able to Thrive”

48%“My organization is not yet committed

to creating an environment where employees are able to Thrive”

M E R C E R T H R I V E R E S E A R C H

800+ PA RT I C I PA N T S 57 CO U N T R I E S 26 I N D U S T R I E S

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

TOP 10 GLOBAL THEMES IN TERMS OF WHAT MADE A DIFFERENCE IN TERMS OF THRIVING

Career & development opportunitiesLearning opportunities

Fair assessmentsFlatter structures

Equity in pay and rewardsEnablers for efficiency

Positive working environmentAnalytics driven actionsEmployee involvement

Connected/purposeful leaders

Asia EU LatAm NAGlobal

NOTABLE REGIONAL DIFFERENCES FROM GLOBAL RESULTS :

+5.7%A S I A :Career & development opportunitiesStrategic workforce planningAnalytics Driven ActionsWork life balance

E U R O P E : Analytics Driven ActionsEmployee involvement

-4.3%

+4.1%-3.8%

L AT I N A M E R I C A : Flatter StructuresCareer & Development Opportunities

+8.2%-10.7%

N O R T H A M E R I C A : Connected & Purposeful LeadersFair Assessments

+3.3%-4.0%

+3.2%

-3.4%

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C O N F I R M A T I O N O F T H R I V E D I M E N S I O N S

Confidence in the Future

I would stay at my Organization

Willingness to Recommend

Confidence and

Advocacy

My organization responds effectively to changes in the business environment.

I trust senior leadership.

My work gives me a feeling of personal accomplishment.

There is a climate of trust within my organization.

I like the possible career paths for me at my organization.

My organization takes a genuine interest in the well-being of communities in which it does business.

Societal Impact

Trusting Environment

Career Paths

Agility

Contribution

Trust

Job Enthusiasm

Key Drivers Rank Ordered by Statistical Impact

79%explained

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E N E R G Y A N D A U T H E N T I C I T Y D R I V E C O M M I T M E N T

ENERGIZEDDE-ENERGIZED

HIGHAUTHENTICITY

LOWAUTHENTICITY

IMPACT ON SATISFACTION & COMMITMENT

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A N E W M A N D A T E : T H R I V I N G I N A N A G E O F D I S R U P T I O N

T H R I V I N GW O R K F O R C E

Diverse and AdaptiveInclusive and Growth Focused

Committed to Wellbeingpsychological, physical,

financial

T H R I V I N GO R G A N I Z AT I O N

Success Redefined Resilient and Agile

Positive Societal Impact

T H R I V I N GI N D I V I D U A L

Growing and ContributingEmpowered and Connected

Healthy and Energized

Where will you focus your efforts this year?

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

(a) Designing agile work structures

(b) Hiring for an ‘adaptive’ mindset

(c) Ensuring pay/promotion equity

(d) Improving health & well being

(e) Enabling flexible working

Poll Results

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4 S T E P S T O G E T S T A R T E D

WORKENVIRONMENT

DATA-DRIVENMINDSET

PEOPLESTRATEGY

VALUEPROPOSITION

CRAFTA FUTURE-FOCUSEDPEOPLE STRATEGY

CREATE A THRIVING

WORK ENVIRONMENT

CURATEA COMPELLING

VALUE PROPOSITION

CULTIVATE A LAB

MINDSET

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ARE WE HEADING IN THE SAME DIRECTION?.

P E O P L E S T R A T E G Y

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W H A T ’ S C H A N G E D

ENVI

RON

MEN

T

SK ILLSETSTABLE RAPIDLYCHANGING

RAPIDLYCHANGING

TRADITIONAL WORKFORCE PLANNING

Short-Med term planningExisting talent structureSize & Capacity focus

AGILE WORKFORCE TRANSFORMATION

Med-long term planningFuture work model

Integrated people planning

P E O P L E S T R A T E G Y

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O N E C O M P A N Y ’ S S T O R Y

P E O P L E S T R A T E G Y

External factorsDigital disruptionNew competitors

!

Swift downfallafter sustained performance

Negativeearnings

Risingdebt

Perception of disarray

Tanking stock price

HUMANELEMENTMISSING

New products/servicesMarketing campaign

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WELLBEINGPERF. MNGMT & PAY

STRUCTURE

DESIGNSOLUTIONS

DETERMINESTRATEGY

DRIVEPERFORMANCE

ORG CAPABILITIES

WORK MODEL & CAPACITY

SKILLS & KNOWHOW

LEADERSHIP& CULTURE

W H A T D I D W E L E A R N

DEFINEFUTURE

ALIGNVISION

Design Future Focussed HR Processes Take an integrated approach

Design Solutions For Real PeopleInvest in change management

P E O P L E S T R A T E G Y

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O N L Y2 I N 5

E M P L O Y E E S S AY T H E I R

C O M PA N Y H A S

A C O M P E L L I N G D I F F E R E N T I AT E D

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

E M P L O Y E E V A L U E P R O P O S I T I O N

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A W O R K P L A C E F O R M E

Give me a chance to contribute to a greater purpose

97%

of employees want to be recognized and rewarded fora wider range of contributions

C O M P E N S A T I O N B E N E F I T S

C A R E E R S W E L L B E I N G

P U R P O S E

CONTRACTUAL

E X P E R I E N T I A L

E M O T I O N A L

A tale of two workforces

FLEXWORKERS

COREWORKERSBENEFITS

CAREER

TRAINING

INCENTIVES

SECURITY

CULTURE

COMMUNITY

FLEXIBILITY

CONVENIENCE

MOBILITY

VARIETY

SELF-SERVICE

TRANSACTIONAL

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F R E EA G E N T S T A R T E R L O N G - T E R M

L O Y A LM A N A G E R I A L

C O R EF R E E

A G E N T S T A R T E RU R B A N A M B I T I O N S

Translate your EVP into an IVPUse personas. Take relevant action

Use Technology to Stay ConnectedListen and learn

S T R I V E RS A M P L E P E R S O N A S

I N T E R E S T SE M P L O Y E ED E M O G R A P H I C S

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

P R E F E R E N C E S

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

Age: 30’s

Service: 4 year average

Pay: 100K

Lifestyle: Suburban, married

Cares: Their future, smart about how to perform, connected all the time, want help in getting ahead and balancing career and life

92%B A S E PAY C O M P E T I T I V E

16% P R O M OT E D I N L A S T 2 Y E A R S

45%H AV E D E P E N D A N T C H I L D R E N

E M P L O Y E E V A L U E P R O P O S I T I O N

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FINDING: Those who feel they can drive their career forward were 8x more likely to feel energized at work

SHOW ME THE WAY: In a career ambiguous future, helping employees to feel empowered to drive their career forward is a smart strategy

W O R K E N V I R O N M E N T

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© MERCER 2016 27W O R K E N V I R O N M E N T

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

Enables quick decision making (e.g. through simplified approval chains) 63%

25%

Understands my unique interests & skills to help me find the best job match 63%

22%

Focuses on my health & wellness 69%34%

Actively supports innovation 73%37%

Promotes collaborative working 75%42%

Provides me with coaching and development 69%29%

Fosters an inclusive work culture 68%33%

Encourages internal mobility 65%29%

Rewards a range of contribution(beyond just financial and activity metrics) 64%

25%

Offers me flexible work options 67%35%

© MERCER 2016 28W O R K E N V I R O N M E N T

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

Enables quick decision making (e.g. through simplified approval chains) 63%

25%

Understands my unique interests & skills to help me find the best job match 63%

22%

Focuses on my health & wellness 69%34%

Actively supports innovation 73%37%

Promotes collaborative working 75%42%

Provides me with coaching and development 69%29%

Fosters an inclusive work culture 68%33%

Encourages internal mobility 65%29%

Rewards a range of contribution(beyond just financial and activity metrics) 64%

25%

Offers me flexible work options 67%35%

Career empowered employees were twice as likely to

rate their company as Thriving

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C R E A T E A T H R I V I N G W O R K E N V I R O N M E N T

W O R K E N V I R O N M E N T

Prioritize Career Pathing & CoachingStay on the pulse with employee feedback

Simplify the Employee ExperienceEmbrace technology that enhances interactions

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Where do most people have their creative insights/aha moments?

(a)At work

(b)Over

breakfast

(c)In the

shower

(d) Traveling to/from

the office

L A B M I N D S E T STUDY BY KAUFMAN 2014

Poll Results

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R E S P O N S I V E & I N N O V A T I V E W O R K E N V I R O N M E N T

D A T A - D R I V E N M I N D S E T

!

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I T ’ S A M I N D S E T N O T A T E C H T H I N G

L A B M I N D S E TL A B M I N D S E T

Invest in InnovationCreate appetite for experimentation

Leverage Data for InsightCommit to behaviour change

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© MERCER 2016 33EVOLVING TO MEET THE NEEDS OF TOMORROW’S CUSTOMERS

A N E W M A N D A T E : T H R I V I N G I N A N A G E O F D I S R U P T I O N

T H R I V I N GW O R K F O R C EDiverse and Adaptive

Inclusive and Growth FocusedCommitted to Wellbeing

T H R I V I N GO R G A N I Z AT I O N

Success Redefined Resilient and Agile

Positive Societal Impact

T H R I V I N GI N D I V I D U A L

Growing and ContributingEmpowered and Connected

Healthy and Energized

© MERCER 2016 34

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E N G A G I N G : C O N N E C T W I T H M E A S A N I N D I V I D U A L

“I’m confident”I have what I need to do my job

and I know where to find people/information to help

me take action

“I get it”It’s simple. This experience feels as

modern and familiar as the consumer tools/sites I already use

“I feel appreciated”I know how to contribute and I

can see the value of working here -both now and in the future

CONSUMER GRADE EXPERIENCE

PRIVATE AND SECURE DATA

E N A B L E D B Y A D I G I TA L P L AT F O R MCONVERSATIONAL SYSTEMS

RELEVANTCONTENT

C R E A T E A T H R I V I N G W O R K E N V I R O N M E N TE M P O W E R I N G :

S U P P O R T M E D O M Y J O B S M A R T L Y

W O R K E N V I R O N M E N T

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Where do most people have their creative insights/aha moments?

(a)at work

(b)over

breakfast

(c)in the

shower

(d) traveling to/from

the office

L A B M I N D S E T STUDY BY KAUFMAN 2014