H E A L T H W E A L T H C A R E E R
D E C E M B E R 0 6 , 2 0 1 8
I N D I A
M E R C E R S I G N AT U R E
C O N C L AV E 2 0 1 8
R O A D M A P 2 0 2 5 |
P O W E R O F
W O R K F O R C E
R E I M A G I N E D
© MERCER 2018 2
K E Y N O T E A D D R E S S
R O A D M A P
2 0 2 5 : W E L C O M E &
O P E N I N G N O T E
A N I S H S A R K A R
C E O I n d i a
© MERCER 2018 3
K E Y N O T E A D D R E S S
R O A D M A P
2 0 2 5 : W H A T D O E S
T H E F U T U R E H A V E
I N S T O R E
D I L I P C H E N O Y
S e c r e t a r y
G e n e r a l
© MERCER 2018 4
T H E C E O
P E R S P E C T I V E : T H E
B U S I N E S S I M P A C T
S U R E S H
N A R A Y A N A N
C h a i r m a n & M D
INDUSTRIAL
REVOLUTION 4.0 HOW WILL IT SHAPE HR PRIORITIES OF TOMORROW?
By : Mr. Suresh Narayanan
Chairman & Managing Director, Nestlé India Ltd.
World’s
LARGEST
MEDIA
OWNER
develops
no content
World’s
LARGEST
TAXI
COMPANY
owns
no cabs
World’s
MOST
VALUABLE
RETAILER
keeps
no inventory
World’s
LARGEST ACCOMODATION
PROVIDER
owns
no hotels
World’s
LARGEST
SOFTWARE
DEVELOPMENT
PLATFORMS
develops
no apps
World’s
LARGEST
MOVIE HOUSE
owns
no cinemas
INDUSTRY 4.0 THE GAME CHANGERS
WHAT CHALLENGES DOES THIS THROW
FOR A PRODUCT BASED INDUSTRY LIKE OURS ?
RETAIL driven by DIGITAL
Product
Personalisation
Customised
Communication
Mining the Micro
Moment Bring Alive the Brand
WHAT WILL BE THE BUSINESS PRIORITIES OF
TOMORROW?
Source : The Economist Intelligence Unit Survey
RE-IMAGINE THE WORKPLACE OF TOMORROW
Increase in
Workforce
Digitization
Increase in
Demand for
Skilled
Talent
ROBOTICS ARTIFICIAL
INTELLIGENCE JOB ON DEMAND
Manual
Labour Mid-level
Clerical Jobs
Crowdsourced,
temporary labour
Factors that will shape employment arrangements of
tomorrow
HOW THIS WILL SHAPE WORKFORCE EXPECTATIONS?
‘HYPER-PERSONALIZATION’ in Managing Employee
Experiences
Through Emergence of HR-Marketeer
Strong association with the PURPOSE of the
Organization
Upgrade of POLICIES &
PRACTICES in tune with the time
CULTURE as a sub-set of
structures
USE OF AI in EMPLOYEE
INTERACTIONS
NBRACE
USE OF MOOC /
LEARNING JOURNEYS
SOCIAL SABBATICAL
INTERNATIONAL
COFFEE DAY
CREATING SHARED
VALUE
RESPECT
CHECK INS/3P/NOT
BOXED
EARLY
RESPONSIBILITIES/
RISE TOGETHER /FAIL
TO SUCCEED
PRE – POST MATERNITY
SANITATION/SANITARY
EARLY
RESPONSIBILITIES
WHERE SHOULD THE HR FOCUS LIE?
CULTURAL SHIFT to a
DIGITAL MINDSET
Adaptability to change
Work style
Organizational structure
Talent acquisition &
management
Employee engagement
Agility
Collaboration
Distributed
Digital & based on analytics
Total Employee Experiences
Leadership Styles Innovation + Fail to Succeed
HOW THIS WILL SHAPE WORKFORCE EXPECTATIONS?
A strong association with the PURPOSE of the Organization
Social Sabbatical
WHAT CHALLENGES DOES THIS THROW
FOR A PRODUCT BASED INDUSTRY LIKE OURS ?
RETAIL driven by DIGITAL
Product Personalisation Customised
Communication
Mining the Micro Moment Bring Alive the Brand
Product
Personalisation
Mining the Micro
Moment
© MERCER 2018 15
R E G I O N A L A S P E C T :
R E I M A G I N I N G T H E
W O R K F O R C E I N A N
A G E O F
D I S R U P T I O N
P U N E E T S W A N I
C a r e e r B u s i n e s s
L e a d e r ,
I n t e r n a t i o n a l
R e g i o n
Puneet Swani, Partner
Career Business Leader International Region
2018 India HR Conclave
Staying Ahead – Reimagining
the Workforce in the Age of
Disruption
© MERCER 2018 17
17
Y O U C A N N O T W A I T U N T I L A H O U S E B U R N S
D O W N T O F I R E I N S U R A N C E O N I T
We cannot wait until there are massive dislocations in our society to prepare for
the Fourth Industrial Revolution
Robert J. Shiller | 2013 Nobel laureate in economics | Yale University professor
© MERCER 2018 18
“The Automation Jobless”, TIME Magazine
What worries many job experts is that automation may
prevent the economy from creating enough new
jobs…throughout industry, the trend has been to
bigger production with a smaller work force…many of
the losses in factory jobs have been countered by an
increase in the service industries or in office jobs. But
automation is beginning to move in and eliminate
office jobs, too.
© MERCER 2018 19
DISRUPTION
EXPONENTIAL
GROWTH
LINEAR
GROWTH
GR
OW
TH
T IME
W H A T I S D I S R U P T I O N ?
H A C K I N G G R O W T H
© MERCER 2018 20
W H AT D O E S “ W O R K F O R C E O F T H E F U T U R E ” M E A N T O Y O U ?
2 0 1 8 G L O B A L T A L E N T T R E N D S S T U D Y
C - S U I T E E X E C U T I V E S
© MERCER 2018 21
KEY SHIFTS AT WORK
© MERCER 2018 22
AN AGEING GLOBAL POPULATION… …WITH LIMITED DIGITAL SKILLS
Female Male
Younger
Older
% of
population
in
age
categories 1985
2025 of adults have no Information
and communication
technology (ICT) skills or only
very basic skills
56%
of workers possess advanced
cognitive skills enabling them
to evaluate problems and find
solutions using technology
34%
of those using software at
work every day do not have
the skills required to use
digital technologies effectively
>40%
W H A T I S C E R T A I N
T H E T A L E N T S U P P L Y S I D E
© MERCER 2018 23
1 Digitalization
• Digitalize transactional or repetitive tasks
• Optimize work allocation
• Increase workforce efficiency
2 Robotization
• Decrease the number and the gravity of
work accidents
• Enhance quality of service
• Improve productivity and efficiency
• Amplify impact of work and the reach of
humans
W H A T I S C E R T A I N
T H E T A L E N T D E M A N D S I D E
© MERCER 2018 24
45% of today’s
jobs are
automatable…
90%
35%
Today
10%
55%
45%
100%
~2025
55%
AUTOMATION IMPACT ON THE WORKFORCE
NUMBER OF JOBS, %
…AND THE NATURE OF WORK AND
COMPOSITION
… but only
up to 10% of
jobs are
actually
threatened
…
… and 35% of the
remaining jobs will
see their core tasks
change significantly
The changing
nature of work
…and of the
workforce
composition
Relational
Transact.
Expertise
~2025
Expertise
Relational
Transact.
Today
External
External
External
Internal
Internal
~2025
NATURE OF WORK COMPOSITION
Source: Oxford University, OCDE, France Stratégie, World Economic Forum, Mercer and Oliver Wyman analysis
35%
T H E G L O B A L D E M A N D S U P P L Y M I S M A T C H H A S L E D T O T R A D I T I O N A L J O B S B E I N G R E C O N F I G U R E D A N D N E W S K I L L S B E C O M I N G C R I T I C A L T O S U C C E S S
© MERCER 2018 25
As work becomes more information-based, exponential technologies can be
leveraged to execute tasks…
THREE SHIFTS ARE UNDERWAY
1. UNBUNDLING OF
WORK FROM JOBS
2. NEW WORK,
NEW SKILLS 3. HIGHER COGNITIVE
COMPLEXITY OF HUMAN WORK
…creating significant opportunities for productivity gains
and innovation in the enterprise.
Jobs are no longer the organizing
unit for work; rather, there is a
redistribution of tasks between
humans and machines, depending
on who is best suited to do the job
With the rise of new
technologies, we will see the
emergence of new roles
associated with the design,
development and maintenance of
new technologies
The human workforce of the
future will execute tasks
requiring higher cognitive and
emotive complexity, and
activities requiring the
application of general
intelligence
… W H I C H H A S S I G N I F I C A N T I M P L I C A T I O N S O N
H O W W O R K I S D O N E
© MERCER 2018 26
THE NEW TALENT
MODEL
© MERCER 2018 27
How can we translate our EVP into an Individual Value
Proposit ion?
ONLY 2 IN 5 EMPLOYES BELIEVE THEIR COMPANY HAS A
COMPELLING AND DIFFERENTATED VALUE PROPOSITION
G I G
E C O N O M Y
What can we
do to embrace
the rise of the
free agent?
F L E X I B L E
W O R K I N G
How do we create a
culture that enables
people to contribute
under flexible work
arrangements?
W O R K P L A C E
F O R M E
How can we meet
individuals
evolving health,
wealth and career
needs?
How can we
ensure our
proposition
resonates with
five
generations
C H A N G I N G
D E M O G R A P H I C S
T H E E M P L O Y M E N T D E A L N E E D S T O
S I G N I F I C A N T L Y C H A N G E …
© MERCER 2018 28
T H E S C A L E A N D R A T E O F C H A N G E M E A N S T R A D I T I O N A L W O R K F O R C E P L A N N I N G M U S T B E R E P L A C E D B Y A M O R E D Y N A M I C A P P R O A C H T O W O R K F O R C E T R A N S F O R M A T I O N
© MERCER 2018 29
Source: Mercer Research “Talent Ecosystems , Manage critical capabilities to gain a competitive edge – Considerations for business and HR leaders”
PARTNERSHIP TALENT Sourcing through partnerships will increase in importance as industry and capability barriers blur
CO-OPETITION Collaborating with competition will also increase, driven by economies of scale and speed to market
INTERNAL TALENT Internal talent will increasingly be supplemented through other types of talent, and will actively team with other talent types
FREELANCE TALENT Sourcing freelance talent will increase as large groups of the workforce will prefer to work independently
CROWDSOURCED TALENT Crowdsourcing will increase, especially where the “wisdom of the crowd“ will lead to more creative, innovative and faster solutions.
W H I C H O F T H E S E TA L E N T P O O L S A R E Y O U TA P P I N G I N T O T O D AY ?
L E V E R A G I N G T H E T A L E N T E C O S Y S T E M T O
O R C H E S T R A T E T O M O R R O W ’ S W O R K F O R C E
AGENDA FOR
TRANSFORMATION
© MERCER 2018 31
• Identify the business and industry
trends impacting the workforce
• Assess the impact of strategy on
the workforce design
• Assess the impacts across the
value chain
• Align leadership around the future
workforce vision
• Gain insight into the size and shape
of the current & future workforce in
terms of technology impact, and
skillsets
• Understand internal workforce
dynamics (e.g. drivers of outcomes)
• Identify potential talent gaps
• Evaluate and select the options for
addressing gaps
• Specify the strategies for delivering
the future workforce
• Define solutions that are practical
and can be driven by management
• Implement platforms to enable
automation of work and access to
external talent pools
2
3 4
1 WORKFORCE
FOR THE
FUTURE
What changes are impacting
my workforce and what do
they mean?
What does my current
workforce look like, and what
could it look like in the future?
How do we drive the
transformation forward? How do we get there?
Set the vision
and prepare
change
Map the
current and
forecast the
future
workforce
Determine and
design workforce
Strategies
Deliver the
transformation
• Establish transformation
governance
• Roll-out enabling technical
platforms
• Manage the implementation
• Continuously measure progress
ALIGN DEFINE
DESIGN DRIVE
SOURCING REWARDING DEVELOPING OUTPLACING
A G E N D A F O R T R A N S F O R M A T I O N
D E L I V E R I N G T H E W O R K F O R C E O F T H E F U T U R E
© MERCER 2018 32
Identify impact of automation on key jobs
Evaluate current and future supply of talent
Identify similarities between “adjacent” jobs and KSAs
Assess supply-demand gaps in terms of key jobs and KSAs
Translate existing critical jobs to KSAs (knowledge, skills, and
abilities) and gather further input on future needs
D E F I N E – W I T H I N S I G H T S A N D D A T A S C I E N C E
© MERCER 2018 33
Risk Management Analyst Survey Researcher Business Intelligence Analyst
Skills that require
more development
Measuring the degrees of
transportability of skills
across job families
E X A M P L E – B U I L D I N G T H E W O R K F O R C E F O R
T H E F U T U R E F R O M T H E W O R K F O R C E O F T O D A Y
© MERCER 2018 34
Our Systems Examples of MMC-Specific
Content Providers Open Resources
Technical Skills Soft Skills
Videos
E X A M P L E – C L O S I N G T H E G A P S T H R O U G H
U P S K I L L I N G A N D R E S K I L L I N G
© MERCER 2018 35
LEVERAGING THE
TALENT
ECOSYSTEM
PARTNERSHIP
TALENT
FREELANCE
TALENT
CROWD
SOURCED TALENT
CO-OPETITION
INTERNAL
TALENT
“WorkMarket is
helping us
transform our
store operations
across our 8,200
U.S. stores."
Charles Hughes
Director of IT Field
Services - Walgreens
R I S E O F T H E T A L E N T E C O S Y S T E M
© MERCER 2018 37
DISRUPTORS
Organizations that have
developed strategies
across all dimensions and
are seeing results in
many Workplaces built on intelligent applications
and innovative practices, which allow for
autonomy, experimentation and human-
machine collaboration
Purpose-driven vision and a culture that
rewards innovation, engagement,
collaboration, speed and comfort with failure
Workflows and metrics that are flexible and
scale learning across the enterprise, and are
designed with shorter feedback loop cycles
Organization design that moves tasks and
decisions closest to information, reduces
internal friction and enables cross-
functional collaboration and risk-taking
Skills and capabilities that enable
tomorrow’s workforce to operate in
the “augmented” and “human-in-the-
loop” future
Organizations that are
already exponential and are
future-ready in all
dimensions
ACCELERATORS
PRAGMATISTS
Organizations that are
selectively responding
to pain points across
some dimensions, but
do not have a unified
approach
Organizations that are
preoccupied with solving for
today’s challenges and have a
linear strategy for tomorrow
OPTIMIZERS
By assessing yourself against 5 key dimensions of tomorrow’s organizations, you can map your journey to lead through disruption
A G E N D A F O R T R A N S F O R M A T I O N
W H E R E D O W E S T A R T ?
© MERCER 2018 39
C H R O P A N E L :
R E B U I L D I N G T H E T A L E N T
E C O S Y S T E M
D E B O L I N A D U T T A
V i c e P r e s i d e n t H R &
C S R
R A V I P A R M E S H W A R
C H R O
U D A Y B U R R A
H R H e a d
© MERCER 2018 40
G AU R AV B AL
C o m p e n s a t i o n & B e n e f i t s L e a d e r , G E
E m p l o y e e W e l l n e s s – I n n o v a t i n g f o r
S u s t e n a n c e
TAN M AYA J AI N
F o u n d e r & C E O , i n F e e d o
G o i n g B e y o n d M e a s u r i n g E n g a g e m e n t
AM R I TA D AS
A s s o c i a t e V i c e P r e s i d e n t - To t a l R e w a r d s &
P e r f o r m a n c e , H C L
M a n a g i n g E x e c u t i v e C o m p e n s a t i o n D u r i n g
O r g a n i za t i o n a l C h a n g e
K AN WA L K AU L
D i r e c t o r - H u m a n R e s o u r c e s , R B S
Ta l e n t A s s e s s m e n t s – A D i g i t a l U p g r a d e
2
1
3
4
© MERCER 2018 41
T H E W E A L T H G A M E :
R E I M A G I N E
F I N A N C I A L
W E L L N E S S F O R
T H E A L G O R I T H M I C
A G E
N A R A Y A N
K R I S H N A M U R T H Y
F o r m e r E d i t o r -
O u t l o o k M o n e y
© MERCER 2018 42
• Dependence on mobile/technology
• Cars that drive themselves
• Platforms that anticipate our needs
• Robots capable of everything
• Machine learning
...... But you need money
A L G O R I T H M I C A G E
© MERCER 2018 43
• Gender
• Age
• Millennials/ GenX/ Y/ Z
• Ability
• Ethnicity
• Sexual Orientation
.....Work-life balance
W O R K P L A C E W O R K F O R C E
© MERCER 2018 44
• Cultural
• Socio-economic
• Want flexi-hours
• Part-time work
• Early retirement
W O R K P L A C E C H A L L E N G E S
© MERCER 2018 45
• Things are actually not different
• Income
• Expenses
• Savings
• Investments
• Financial Goals
• Don’t feel in control of their financial
situation
• Stressed about money
M O N E Y C O N C E R N S
© MERCER 2018 46
© MERCER 2018 47
• Focus on payouts – fixed, variable,
bonus, ESOPS
• Benefits – health, retirement,
conveniences
• Career development
C U R R E N T C O M P E N S A T I O N B E N E F I T P R O G R A M
© MERCER 2018 48
It’s not about the income, wealth or salary – it’s
about managing personal financial situations
and financial security.
F I N A N C I A L W E L L N E S S A N D W E L L B E I N G
© MERCER 2018 49
• Issues can be completely different from one
company to the next
• Disconnect between employers and employees
• Benefits strategies could vary within organizations
Tailor wellness programs to your companies’
workforce to drive productivity and
engagement
O N E S I Z E D O E S N O T F I T A L L
© MERCER 2018 50
• Seek early financial freedom
• Struggle to save
• Debt management
• Shorter working lives and longevity
• Job hopping
Y O U N G E R E M P L O Y E E S
© MERCER 2018 51
© MERCER 2018 52
• Higher financial commitments
• Not enough to retire
M I D D L E A G E E M P L O Y E E S
© MERCER 2018 53
• Old-age poverty
• Retirement concerns
• Healthcare costs
• Tax efficiency
P R E R E T I R E E S
© MERCER 2018 54
1. Focus on money management skills
2. Financial Education seminars
3. Employee Assistance Program (EAP) with a
financial component
4. Review and Assess effectiveness
5. Gamification of financial education
W H A T S H O U L D E M P L O Y E R S D O ?
© MERCER 2018 55
• Savings, investing and spending
• Understanding budgeting
• Cash-flow management
• Good and bad debt
1 . F O C U S O N M O N E Y M A N A G E M E N T A N D S K I L L S
© MERCER 2018 56
• Understanding money management
• Financial goal setting
• Income tax planning
• Retirement planning
• Any other relevant program
2 . F I N A N C I A L E D U C A T I O N S E M I N A R S
© MERCER 2018 57
• Employer subsidized financial advice
• Access to financial counsellors
• Tools and calculators to maintain financial
records
3 . E A P W I T H A F I N A N C I A L C O M P O N E N T
© MERCER 2018 58
• Interact with those using the services
to evaluate effectiveness
4 . R E V I E W A N D A S S E S S E F F E C T I V E N E S S
© MERCER 2018 59
• Higher literacy does not translate into
financial understanding and action
• Financial games instead of a presentation/
Talks
• Fingo/ quiz
5 . G A M I F I C A T I O N O F F I N A N C I A L W E L L N E S S
© MERCER 2018 60
© MERCER 2018 61
© MERCER 2018 62
“ H O T - O F F - T H E -
P R E S S ”
I N D I A R E W A R D S
T R E N D S - M E R C E R
R E S E A R C H
N A M I T A
B H A R A D W A J
P r i n c i p a l , I n d i a
P r o d u c t s L e a d e r
© MERCER 2018 63
I N D I A R E W A R D T R E N D S
“ C H A N G E , C H A N G E “ A G E N T S ” A N D C H A N G E “ E N A B L E R S ”
The “CHANGE”, “CHANGE "AGENTS” AND “ENABLERS”
The Country
Socio-political
transition and
economic
evolution
The Workforce
Changing landscape w.r.t. type
of jobs, attitudes and behaviors,
relevant reward and talent
management systems
The Individual
“What’s in it for me?”
HR
How does HR stay
relevant in this
changing talent
landscape?
© MERCER 2018 64
E M E R G I N G M A R K E T S P O S I T I O N E D F O R S T R O N G
G R O W T H
Source: 2018 Global Compensation Planning Report Figures in brackets indicate forecasted values for 2018
GDP
Unemployment
ASIA
MIDDLE
EAST
US
AFRICA
6.5% (4.8%▼)
10.9% (10.6%▼)
-0.1% (2.2%▲)
8.4% (8.4%)
4.8% (4.8%▲)
3.7% (3.6%▼)
2.3% (2.9%▲)
4.4% (3.9%▼)
3.8% (3.6%▼)
8.1% (7.9%▼)
WORLD GDP 3.8%
EUROPE
ASIA has:
Highest GDP
Lowest
unemployment
3.4% (3.2%▼)
8.6% (8.4%▼)
6.2% (8.1%▲)
INDIA
3.5% (3.5%▲)
© MERCER 2018 65
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%
Infl
ati
on
Ra
te
GDP Growth %
Year: 2018 (2019 F)
Source: April 2018 Global Compensation and Planning Report; 2018 TRS
JP: 2.3% (2.4%
▲)
CN: 6.7% (6.9%
▲) HK: 4% (4.1%
▲)
NZ: 3%
(3%)
ID: 8.2% (8.6%
▲)
MY: 5.5%
(5.5%)
PH: 8% (8.5%
▲)
SG: 4%
(4%)
TH: 5.5%
(5.5%)
VN: 8.9% (9%
▲)
IN: 10% (10%)
AU: 3%
(3%)
US: 2.9% (3% ▲)
Global GDP
Growth: 3.6%
APAC GDP
Growth: 4.8%
Legend
X-axis: GDP Growth Rate
Y-axis: Inflation Rate
: Salary Increase Rate
E C O N O M I C G R O W T H
C O M P A R I N G A C R O S S A S I A
TW: 4%
(4%)
LK: 8.5%
KR: 4.6% (4.7%
▲)
KH: 8%
(8%)
BD: 10%
(10%)
MM: 9% (10% ▲) PK: 10%
(10%)
Figures in brackets indicate forecasted values for 2019
© MERCER 2018 66
G R O W T H A G E N T S
W H A T I S D R I V I N G T H E E C O N O M Y
77 58th 337
3
4 2
B i l l i o n
327
0 5 0 0
m i l l
1 9 5
7
1 8 3
9
5 4
I n d e x
1 4 2
7
Change
Most Competitive
Economy World Economic Forum’s global
competitiveness index for 2018
ER&D market
growth projections by FY22
MODICARE to cover 500 million of the
poorest Indians
Factory Activity in
November
expanded at the fastest pace this year
Ease of Doing
Business Ranking jumped by 23 positions
India’s Global
Consumption to increase by 2020
5.8%
© MERCER 2018 67
… A D D I T I O N A L L Y T H E R E A R E G L O B A L T R E N D S
I M P A C T I N G T O D A Y ’ S L A N D S C A P E
R E V E R S E
G L O C A L I Z A T I O N
( ? )
M A S S
C U S T O M I Z A T I O N
A C C E L E R A T E D
R E I N V E N T I O N
R E S K I L L I N G
W O R K F O R C E
• Rising
protectionism
• Changing business
regulations
• “Increasing
regional control”
• Age of personas
• Empowerment to shape
experiences
• People platform
• Personalized insights
• Change Agility
• Design Thinking
• Upskill for a digital era
• 4th Industrial revolution
– Artificial Intelligence,
Robotics
• Exponential
Technologies
• Pervasive Digitization
• Speed @ Scale
© MERCER 2018 68
I N D I A R E W A R D T R E N D S
“ C H A N G E , C H A N G E “ A G E N T S ” A N D C H A N G E “ E N A B L E R S ”
The “CHANGE”, “CHANGE "AGENTS” AND “ENABLERS”
The Country
Socio-political
transition and
economic evolution
The Workforce
Changing landscape w.r.t.
type of jobs, attitudes and
behaviors, relevant reward
and talent management
systems
The Individual
“What’s in it for
me?”
HR
How does HR stay
relevant in this
changing talent
landscape?
© MERCER 2018 69
T I M E O F A C T I O N , N O T A N T I C I P A T I O N
L I V I N G P A S T T H E I N F L E C T I O N P O I N T
Building awareness Getting organized Starting to accelerate
W H A T W E
K N O W
W H E R E W E A R E
A T
W H E R E W E A R E
H E A D I N G
• Multi-generational Workforce
• Cloud Technology
• 3D Printing & Advanced
Manufacturing
• The Internet of Things
• Rise of the
Free Agent
• Automation, Robotics
• AI & Machine
Learning
• Wearables
• Pay Equity
• Vocality of
the Female
voice
Predictive
Analytics
• AI adaptive systems
that anticipate
needs
TECHNOLOGY
DISRUPTIVE TECHNOLOGY
INTERACTIVE DATA LAYER
INFLECTION POINT
AUGMENTED HUMANITY
• Longevity
• AI Board Directors
BIG DATA MANAGEMENT
• Rise of the
Individual
• Personas
• Blockchain
• Virtual
Assistants
© MERCER 2018 70
I N D I A ‘ S T A L E N T M A R K E T P L A C E
8.1M Jobs per year are being created in
India Market
28 Yrs
Of the workforce in the non Technology Industry are emerging as specialists
2% Median Age
of the workforce in India
10% Increase in
female participation in workforce, GDP impact 700M by
2025
89%
Workforce dominated by
Millennials , Gen X and Baby Boobers at
Professionals and Para
Professionals
20%
Roles in their organization
which C-suite will cease to exist in 5
years
TAL E N T I M P E R AT I V E S AR E …
U P S K I L L I N G D I G I TAL C O M P E T E N C E
I N C R E AS I N G AC C E S S T O C O N T I N U O U S L E AR N I N G T H R O U G H M U LT I P L E P L AT F O R M S
© MERCER 2018 71 © MERCER 2017 © MERCER 2018
EXEC: 1% SSO, Chemical, Life
Sciences, Hi-tech
Hi-tech, Life Sciences, Manufacturing, Auto,
Consumer
MANAGEMENT: 17% Hi Tech, SSO
C H A N G E A G E N T , I M P A C T O N O R G A N I Z A T I O N
S T R U C T U R E
PARA PROFESSIONAL : 18%
LOWER THAN ALL-INDUSTRY
ALL-INDUSTRY
HIGHER THAN ALL-INDUSTRY
SSO, Chemical, Consumer,
Manufacturing, Auto PROFESSIONAL: 64%
Consumer, Manufacturing
Auto, Life Sciences, Consumer, Chemical, Manufacturing, Hi-tech
Life Sciences, Hi-tech
Chemical, Manufacturing, SSO
© MERCER 2018 72 © MERCER 2017 © MERCER 2018
EXEC
MANAGEMENT
S U S T A I N I N G T H E S T R U C T U R E
T A L E N T S O U R C I N G
PARA PROFESSIONAL
PROFESSIONAL
56%
Of the
organizations
have increased
the headcount
for this year
59%
Of the
organizations
are looking at
increasing the
headcount for
next year
8.6%
8.1%
11.7%
8%
6.8%
8.6%
12.5%
9.4%
2017 ALL INDUSTRY ATTRITION 2018 (F) ALL INDUSTRY ATTRITION
Is it time
to relook
at our
traditional
way of
looking at
talent
sourcing?
B U Y
B U Y : B U I L D
BUY : BU I LD: BO RRO W
B U Y : B U I L D
© MERCER 2018 73
T A K I N G A G E N D E R V I E W
I N D U S T R Y S E G M E N T A T I O N
Source: India All Industry Total Remuneration Survey
Para Professional
Professional
Management
Executive
Human Resources Finance Marketing Engineering Manufacturing
Supply & Logistics Engineering
© MERCER 2018 74
S E I Z I N G T H E G R O W T H O P P O R T U N I T Y T H R O U G H
E M E R G I N G M E G A C I T I E S …
In the next 10
years, nearly
50% GDP
growth will come
from 440 growth
economy
cities…and growth
markets will be
home to 83% of the world’s
megacities
Indian cities score high on their ability to provide good
work, appropriate home conditions…
…to leverage the
opportunity, important to
understand what drive the
move (& leave) emerging
cities…
Therefore…
1. Critical to create a compelling
EVP
2. Address low-hanging fruit to
ensure staying power
3. Build IVP from the EVP for
different personas within the
organization
© MERCER 2018 75
C R I T I C A L R O L E S
W H A T H A S C H A N G E D ?
R&D
SALES
MARKETING
R&D
SALES
ENGINEERING
R&D
SALES
ENGINEERING
PRODUCT
MANAGEMENT
© MERCER 2018 76
I M P A C T O N S A L A R Y I N C R E A S E S ?
R A T I O N A L I Z A T I O N A C R O S S Y E A R S
Source: 2018 India All Industry Total Remuneration Survey
8.9%
10.0%
10.3%
10.0%
9.5%
10.6%
10.0%
10.0%
10.0%
8.0%
10.0%
10.0%
10.0%
8.9%
10.0%
10.0%
10.0%
10.0%
9.0%
10.0%
10.5%
10.3%
9.0%
10.6%
10.3%
10.0%
10.0%
Logistics
Manufacturing
Consumer
High Tech
SSO
Life Sciences
Chemical
Auto
All Industry
2019F 2018 2017
10.5%
10.5%
10.5%
10.0%
10.0%
FY 2015
FY 2016
FY 2017
FY 2018
FY 2019 (F)
M E R I T I N C R E AS E
I N D U S T RY
© MERCER 2018 77
P A Y D I F F E R E N T I A L S A C R O S S I N D U S T R I E S T E L L S
I T S O W N S T O R Y O N S T R U C T U R E & P A Y
P H I L O S O P H Y …
53
47 47
52 52 52 54
57
30 32
35
30 32
27 29
27
19 21
19 18
16
20
15 16
0
10
20
30
40
50
60
All Ind Chemical Manufacturing Auto MLS Hi Tech SSO Consumer
MULTIPLE BETWEEN
ENTRY TO SUB-
FUNCTION HEAD
MULTIPLE BETWEEN
SUB-FUNCTION TO
FUNCTION HEAD
MULTIPLE
BETWEEN
FUNCTION
HEAD &
HEAD OF
ORG
Similar gaps but
different talent
environments &
priorities
Traditionally
lower starting
salaries
Double digit increases however will persist as the pay ratios from entry-level to senior leadership
continues to be very high – an outcome of low entry salaries & talent market continuing to be
volatile across the hierarchy
© MERCER 2018 78
8.30%
10.00%
11.00%
11.60%
15.00%
15.00%
22.00%
30.00%
TAR G E T
VARI ABLE
B O N U S – 2 0 1 8
V A R I A B I L I T Y I N C O M P E N S A T I O N C O N T I N U E S T O B E
I M P O R T A N T
ST
I as a
Perc
en
tag
e o
f G
uara
nte
ed
Cash
%(m
ed
ian
)
Source: 2018 India All Industry Total Remuneration Survey
EXEC
MGMT
MGT - SALES
MGT – NON SALES
PROF - SALES
PROF – NON SALES
LTI PREVALENCE
© MERCER 2018 79
B E N E F I T S R E M A I N K E Y D R I V E R S O F C H A N G E
To what extent do you agree that the following is a driving factor for benefits review and/or
change in your organization?
89%
81%
77%
77%
Source: Mercer APAC Benefits Snap Poll, 2018
Market Competition Cost Optimization Employer Brand Employee Feedback
© MERCER 2018 80
O F E M P L O Y E R S I N A S I A A R E R E V I E W I N G O R
C H A N G I N G T H E B E N E F I T S P A C K A G E T H I S Y E A R .
K E Y A R E A S O F C H A N G E O B S E R V E D I N
B E N E F I T S
Which employee benefits are you considering to review/ change?
44%
Health/ Medical
benefits
Insurance
benefits Flexible Benefits
Leave benefits Flexible Working
Arrangements
Innovative
benefits
Source: Mercer APAC Benefits Snap Poll, 2018
© MERCER 2018 81
I N N O V A T I V E B E N E F I T S
Source: Mercer Benefits Monitor TM
All 2018 data is from the latest release of MBM
A P A C
I N D I A
Employer Built
Housing
Special Wage for
Employee Parents
Autism Benefit
HIV Coverage
E Book Allowance Tele Health
Date Night
Sponsorship
Psychiatric Treatment
Vacation Leave for
Social Activities/ Long
Service Leaves
Fitness Devices
Crèche Facilities
Medical Insurance for
Retired Employees
Flu Vaccinations
Benefit Market Place
Pet Insurance
Fertility Treatment
Sabbatical Stem Cell Treatment
Botox Leave
Surrogacy
Benefits
© MERCER 2018 82
A L L I N A L L I N D I A N E M P L O Y E E S A R E L O O K I N G
F O R …
P E R M AN E N T
F L E X I B I L I T Y
79% of employees in India say they would consider working on
a contract basis
India leads global indicators on
“Compelling EVP”, and “Change
Agility”
D I G I TAL F R O M
I N S I D E O U T
89% employees in India want
opportunity to grow both personally and
professionally
C H AN G E AT
S P E E D
Only 73% of employees feel that their organizations understand their
unique interests and skills
P L AT F O R M F O R
TAL E N T
Thriving employees in India are 2x more likely to work for a company with a strong sense of purpose…
W O R K I N G W I T H
P U R P O S E
Source: 2018 Mercer Talent Trends Study - India
“Leaders should set clear
direction”
“Career promotion
opportunities” “More flexible work
options”
“Working with the best
and brightest”
“Opportunity to learn new
skills”
© MERCER 2018 83
P E R M A N E N T F L E X I B I L I T Y T H E E M P L O Y E E
E X P E R I E N C E
20% assess every job for its ability to be
done flexibly; most have ad-hoc arrangements
Only 3% of companies in India say they are Flex
leaders 83% of thriving individuals in India say
their company offers them flexible work
52% of all employees in India want
more flexibility
BUT…
58% have had a request for
flex turned down
35% are concerned that
flexibility will impact promotion
prospects
• What's working?
• Managing on results, not hours
(77%)
• Colleagues being positive (76%)
• Manager being supportive (75%)
• Ability to apply fairly to all employees
• Ability to measure and reward contribution
• Ability to manage career progression
• Impact on teamwork and face to face
collaboration
• Impact on results/outputs
98% of HR have
concerns
© MERCER 2018 84
L O O K I N G B E Y O N D B O R D E R S A S A L E V E R F O R
T A L E N T E N G A G E M E N T & D E V E L O P M E N T
Source: Mercer’s 2017-18 India & Global WIAPP Survey
64% 42%
N - 14 N - 412
India Global
M O B I L I T Y I N C R E A S I N G
Companies anticipating a rise in number of
long term assignments in coming two years
B E C O M I N G S T R AT E G I C … .
Companies anticipating increase in number of
strategic assignments
INDIA 50%
4 1 % International assignments for career
management / leadership development
. . . . A N D B E I N G U S E D A S A TA L E N T L E V E R
N – 59
India database
4 1 % Provide specific technical skills not
available locally
. . . . Leading to
1 . O F F E R I N G O P P O R T U N I T I E S T O M O R E Y O U N G A S S I G N E E S (70% companies anticipate
increase)
2 . F L E X I B I L I T Y O F B E N E F I T S & P O L I C I E S A S W E L L A S C O M P E N S AT I O N
A P P R O A C H to cater to diversity of assignees
© MERCER 2018 85
31% 21%
13% 8%
55%
54% 66% 65%
14% 25% 21% 27%
North East West South
HSC/ SSC ITI Diploma/ Graduate
C O N C E P T O F W O R K M E N H A S U N D E R G O N E S I G N I F I C A N T
C H A N G E
+ =
Unbundling of work from jobs
New work, new skills
Higher cognitive
complexity of human work
74%
40%
56%
Unionization continues to be a reality…tending
increasingly towards collaborative outcomes
Automation & enhancement of work profile needs higher
qualifications
Entry differs by industry type
Source: 2017-2018 Mercer Workmen Benchmarking Studies
82%
…WHICH IS LEADING TO CHANGE IN HOW WE WORK
© MERCER 2018 86
T O T A L R E W A R D S C H A N G I N G I N - L I N E W I T H
C H A N G I N G A S P I R A T I O N S & W A Y O F W O R K I N G …
Drivers of operators/workmen compensation
Note: Figures are for median Annual Guaranteed Cash Compensation, Differential is on overall India
Median Compensation Figures
12-14%
10-12%
9-11%
8-10%
5-12%
9-12%
15-
20%
5-8%
Salary increase across
regions comparable to
white collar increases
Pay premiums across regions (ITI
across experience)
…Additionally an increasing
emphasis on compensation
variability through
Performance Linked Bonus
Benefits moving
beyond the traditional
& focusing more on
employee
aspirations of
growth &
flexibility
Variable Pay 10%
Guaranteed Cash 90%
E X P E R I E N C E O F
O P E R A T O R S
E D U C A T I O N
Q U A L I F I C A T I O N S
L O C A T I O N
O F P L A N T
© MERCER 2018 87
I N D I A R E W A R D T R E N D S
“ C H A N G E , C H A N G E “ A G E N T S ” A N D C H A N G E “ E N A B L E R S ”
The “CHANGE”, “CHANGE "AGENTS” AND “ENABLERS”
The Country
Socio-political
transition and
economic
evolution
The Workforce
Changing landscape
w.r.t. type of jobs,
attitudes and behaviors,
relevant reward and
talent management
systems
The Individual
“What’s in it for
me?”
HR
How does HR
stay relevant
in this
changing
talent
landscape?
© MERCER 2018 88
W A Y S H I G H - P E R F O R M I N G H R O R G A N I Z A T I O N S
T H I N K D I F F E R E N T L Y A B O U T T O T A L R E W A R D S
3. Slightly less likely to segment their total rewards strategy to
differ program offerings by employee group
1. More likely to include elements beyond compensation and
health benefits in their total rewards definition — especially the
experiential elements
2. More likely to communicate holistically about total rewards
(and use more vehicles to get the message out)
4. More likely to use employee perspective and cost/affordability
studies to analyze their total rewards strategy
(in addition to external benchmarking)
5. More likely to measure the effectiveness of their total rewards
strategy, and use more metrics to do so
6. More likely to revisit total rewards strategies to align with
changes in the company strategy rather than to improve attraction
and retention
Source: 2018 Mercer Select Intelligence - Total Rewards Strategies in High¬-Performing HR Organizations
© MERCER 2018 89
“The future depends on what you do
today.” – MAHATMA GANDHI
© MERCER 2018 90
T H A N K Y O U N O T E
S H A N T H I N A R E S H
I n d i a B u s i n e s s
L e a d e r , C a r e e r &
R e g i o n a l P r a c t i c e
L e a d e r , W o r k f o r c e
R e w a r d s - A M E A
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