Mercer 2019 global talent trends

Part 2 - RESPONSE TO MERCER REPORT, 2019 Global Talent

Trends (20%)

Students will read the Mercer Report, 2019 Global Talent Trends and answer questions.

Part 2: Mercer Report

Students will read Mercer’s Report: 2019 GLOBAL TALENT TRENDS and answer the following questions:

1. Page 2, Figure 2, TOP HUMAN CAPITAL RISKS. According to the article, which three human capital risks do you think are impacting most enterprises in China? Why do you think these three human capital risks might be occurring?

2. List two other human resource issues that might be impacting employees at their workplace.

3. Page 11, MICROSOFT| EXPERIMENTS IN A PLATFORM FOR TALENT, what did Microsoft do to embrace a worker-friendly approach? Explain if you think enterprises should consider

Microsoft’s approach. .

4. Page 22, Figure 13, CURATION TRANSLATES NOISE INTO CONTEXT, “What helps employees thrive at work?” Regarding “what is important to employees” what are the differences and

similarities between Canada, China, Germany, and Globally? List two reasons why employees’

opinion might be different based on the country they live in.

5. Page 37, would you describe your current employer as a traditionalist, a change agent, or a

revolutionizer? Explain.

6. In your own words, what does the term “strategic human resource management” mean to you?

Answers to the Mercer Report will be typed, singled spaced, approximately 4 to 5 pages. Please ensure your answers are thorough. No title page is required. (15% for the answers; 5% for grammar, spelling, etc.)

G L O B A L TA L E N T T R E N D S 2 0 1 9

CONNECTIVITY IN THE HUMAN AGE

Copyright 2019 Mercer. All rights reserved.

Scenarios abound about the future of work and the implications for individuals, companies, and societies. Technological advances, government policies, and employee expectations are reshaping what we know as work, while the pace of change continues to accelerate. As artificial intelligence (AI) and automation infuse into everyday life, the opportunities for how people will work and live are significant. But how do we stay ahead? In an age defined by the intersection of artificial and human intelligence, it is more vital than ever that we focus on achieving an equitable, productive, and sustainable future for all.

ANTICIPATING A SURGE IN WORKFORCE DISRUPTION

Technology transformation • Financial Services • Life Sciences • Healthcare

Threat of new competition • Consumer Goods • Energy • Technology • Retail

Rising customer expectations • Automotive • Insurance

F I G U R E 1 . T O P D R I V E R S O F D I S R U P T I O N B Y I N D U S T R Y

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

F I G U R E 2 . T O P H U M A N C A P I TA L R I S K S

Inadequate diversity*

40%

Thin leadership pipeline*

38%

Excessive time to fill open positions*

52% Low or declining employee engagement*

43%

Ineffective hiring decisions*

35%

Lagging productivity

31%

Slow decision making*

30%

In this year’s study, 73% of executives predict significant industry disruption in the next three years — up from 26% in 2018. This sharp shift in perception about the future business environment applies across geographies and industries, although it is most pronounced in the Life Sciences, Consumer Goods, and Energy sectors (Figure 1). More than half of executives expect AI and automation to replace one in five of their organization’s current jobs. But this is only half the story, as AI and automation will also create 58 million net new jobs by 2022, according to estimates from the World Economic Forum. This unprecedented shake-up demands new workforce strategies to stay ahead.

Amid the prediction of disruption lies confidence: Four out of five executives believe their company can lead disruption in their industry, and nearly all are taking action to prepare for the future of work. As organizations ready themselves, there are significant human capital risks — from the inability to close the skills gap to low engagement — that can slow the progress of transformation (Figure 2).

*Top concerns for high-growth companies *Top concerns for moderate-growth companies

1

There are mixed opinions about this year’s business climate. Buoyed by pro-business policies, some predict the world is on the cusp of significant economic opportunity — with technological advances and innovation promising greater productivity and more balanced lives. At the same time, there is mounting concern that unresolved geopolitical tensions will dampen global growth.

Business leaders worry most about the relentless march of competitors (traditional and new) and the shifting opportunities offered by technology. Concerns around talent migration and corporate responsibility to address societal issues have increased significantly since last year. Add to that cybersecurity risks and changing business regulations, and companies are facing pressure on multiple fronts (Figure 3).

E C O N O M I C P R E S S U R E S M O U N T I N G

0%

10%

20%

30%

40%

50%

Executives are more concerned this year about these five areas

Concern about cybersecurity remains high

2018 2019

Ta len

t m igr

ati on

Re gio

na liza

tio n/

on sh

or ing

Co mp

an ies

’ re sp

on sib

ilit y

for so

cie tal

iss ue

s

Co ns

um er

int ere

st

in e thi

ca l p

ro du

cts

Inc rea

se d b

or de

r

co ntr

ol/ reg

ula tio

n

Cy be

rse cu

rit y

Im mig

rat ion

po lic

ies

Inc rea

se d s

tre ng

th

of em

erg ing

m ark

ets

Ch an

ge s in

bu sin

es s/

tax re

gu lat

ion s

Ch an

ge s in

lab or

reg ula

tio ns

It is precisely during these times of change that employees look to their employers for direction and inspiration. Job security is one of the top three reasons people joined their company and the main reason they stay. As organizations move from anticipating the future of work to actively preparing for it, they can bring people along on the journey by upholding the values individuals admire, actively managing the change process, and remembering that it is people who make transformations stick.

In the Human Age1, the most significant threats to successful organizational transformations are rooted in human capital risk, including the stress triggered by individuals feeling a lack of control in the face of uncertainty.2 Yet only one in three executives rates their company’s ability to mitigate people risks as “very effective.” This perception may be based on a lack of focus — only 29% of HR leaders strongly agree that their business executives prioritize human capital risks.

H U M A N C A P I TA L R I S K S L O O M I N G

1An era dictated more than ever before by human behavior and one that will be defined by rapid human evolution 2World Economic Forum, in partnership with Marsh & McLennan Companies and Zurich Insurance Group. (2019). The Global Risks Report 2019. Available at: https://www.weforum.org/reports/the-global-risks-report-2019

F I G U R E 3 . E M E R G I N G S O C I O E C O N O M I C F O R C E S

2

T H I S Y E A R ’ S S T U D Y

We received input from more than

7,300 respondents including

C-suite executives

HR leaders

employees

across

geographies

and

industry sectors

FOUR KEY TRENDS FOR 2019

800+

1,600+

4,800+

16

9

T R E N D O N E : A L I G N I N G W O R K T O F U T U R E VA L U E Unlock growth in the new world of work by redesigning jobs and moving people to where future value will be created

T R E N D T W O : B U I L D I N G B R A N D R E S O N A N C E Listen carefully and learn from data to create a brand proposition that attracts the talent you want

T R E N D T H R E E : C U R AT I N G T H E W O R K E X P E R I E N C E Make work simple, intuitive, and digitally enabled to help your people grow and thrive

TR EN D FO U R: D ELI V ER I N G TA LENT- LED C H A N G E Inspire a growth mindset by redesigning structures, workflows, and talent strategies around your people

This year's Global Talent Trends Study examines differences among organizations — for example, how do high-growth companies differ from those with modest revenue growth? How do organizations just beginning their digital journeys compare to those farther along? Based on this analysis, we identified four trends that leading companies are pursuing in 2019.

Employees are seeking more purpose, inspiration, and connectivity this year. In the modern workplace, success is a team effort and depends on every person’s ability to develop connections within and outside the company. In fact, thriving employees are twice as likely to describe their role as “relationship focused” and their work environment as “collaborative.” When this networked model is at its best, a collective sense of inspiration flows throughout, transferring the shock waves of disruption into sparks of brilliance.

3

4

A L I G N I N G W O R K TO FU T U R E VA LU E Unlock growth in the new world of work by redesigning jobs and moving people to where future value will be created The world of work continues to change at speed, and advances in technology will continue to stretch what is possible. In light of these rapid changes, an agile culture remains a critical organizational competency. Yet agility alone doesn’t guarantee success. A continued emphasis on productivity and incremental reactions to the current business environment are two mindsets that keep businesses treading water rather than swimming in the fast lane. The transformations that will help organizations swiftly and confidently embrace the future involve plotting a path to what customers will value tomorrow. One way companies are

forging ahead is by creating integrated people strategies that pay attention to today’s needs, while tipping the balance in favor of investing for tomorrow.

5

Nearly every company in this year’s survey is actively embracing change. In fact, 99% of companies are taking action to prepare for the future of work (Figure 5). But HR silos such as talent acquisition, compensation and benefits, mobility, and learning — often with their own priorities — can create a fractured employee experience and distance the people agenda from emerging business needs. An integrated people strategy anchored in the organization’s priorities can close that distance and help drive value in shifting times.

While the business planning horizon may be

S TA B I L I T Y T O E N A B L E A G I L I T Y

I N T E G R AT E D P E O P L E S T R AT E G Y

In the last few years, organizations have turned to restructuring to drive value. In fact, over 90% of companies were planning organizational redesigns in 2017 and 2018.3 Major redesign efforts, however, often lead to short-term performance volatility and do not guarantee a return. Nearly one-third (30%) of companies believe they are able to change at speed, up from 18% in 2018 (Figure 4), but as companies move toward flatter work structures and more agile work cultures, the advantages of restructuring diminish. Leading firms are now aligning their change efforts to a few anchor points where they believe future value

3Mercer. (2017). Mercer Global Talent Trends: Empowerment in a Disrupted World and Mercer. (2018). Mercer Global Talent Trends: Unlocking Growth in the Human Age

4High-growth companies self-reported revenue growth of 10% or more in the last three years, while modest-growth companies self-reported revenue growth of 5% or less during the same period.

30% Nearly 2x more confident than last year!

FIGURE 4. MORE COMPANIES THAN EVER BELIEVE T H E Y H A V E T H E A B I L I T Y T O C H A N G E @ S P E E D

shortening, the time it takes to develop strategic competencies and specialized skills is not. An integrated people strategy is critical and accounts for the time it takes to build the leadership, culture, competencies, and skills needed for future competitive advantage. Taking a long-term view of people needs to inform short-term decisions can help rally the organization around a few strategic bets. These may include moving people to business areas with greater return, experimenting with new technology, moving an office closer to vital talent pools, or investing in non-traditional talent by creating new pathways into skilled jobs. High-growth companies are four times more likely to have an integrated people strategy in place.4

will be generated — be it through new products or service lines, new strategic partners, or critical new competencies. The move to more team and project work is an enabler of this trend.

People need to be inspired by their company’s direction and remain committed to the organization during workplace changes. This means putting a few stakes in the ground and aligning resources to enable focused execution. Having clarity on the actions that companies can take today that will deliver enhanced value is key to leading through change.

F I G U R E 5 . 9 9 % O F C O M PA N I E S A R E TA K I N G A C T I O N T O P R E PA R E F O R T H E F U T U R E O F W O R K 52%Identify gap between current and required skills supply 51%Develop a future-focused people strategy

48%Adapt skill requirements to new technologies & business objectives 45%Revise the workforce plan to close skills gaps 45%Identify how employees may support or disrupt changes

43%Redesign jobs 1%None of the above

6 A L I G N I N G W O R K T O F U T U R E V A L U E

B U I L D , B U Y, B O R R O W , O R B O T

2 in 5

Despite discussions around AI and automation enabling jobs to be deconstructed into individual tasks, or the move away from role structures to skill taxonomies, the fact is there will always be “jobs to be done.” Optimizing for the new world of work requires understanding: What tasks are repetitive, strategic, necessary year-round, or project-based? How can jobs be more clearly defined to reflect team roles and still give employees freedom to contribute? By freeing up resources, organizations can rethink how they deploy people accordingly, especially because the jobs that remain will likely require different levels of labor intensity and cognitive maturity.5 Executives in high-performing companies are twice as likely to say that job redesign makes a sizable difference to business performance.6

Workforce planning that simply puts new types of workers into old job boxes is insufficient. A fresh take on jobs — based on an analysis of where tasks overlap, which activities are future-critical, and which will become obsolete — is vital to aligning work to future value. Leading companies are evaluating automation opportunity in various jobs, typically starting with those that directly impact customers, those with significant optimization potential, and those that build future skills. The trick is working out the magnitude of change for a given role or job family and deciding the organization’s appetite for that change.

R E D E F I N I N G T H E “J O B S T O B E D O N E ”

While HR leaders continue to focus on building talent from within, automation also figures heavily in their plans this year (Figure 6) — especially in Brazil, India, and Japan, where over 70% of companies intend to increase automation. Yet only one-third of companies currently use talent analytics to determine the impact of build, buy, borrow, or bot decisions on performance outcomes. Across the board, the challenge for organizations is to derive the talent insights they need from the data available.

65%#1

I see the CHRO role moving to more of a COO of the talent supply chain. We’re giving the CEO insights into the inventory of specific talent domains, how we plan to increase or decrease inventories. [This requires] agility, to optimize my workforce to look different in 18 months, or to take responsibility for reskilling.

~ Kelley Steven-Waiss, EVP CHRO, HERE Technologies

Executives believe the highest ROI on talent investment will

come from redesigning jobs to better deliver value.

The majority of employees across all regions and industries

want a clearly defined job description.

But only 43% of HR leaders are redesigning jobs to prepare for the

future of work.

5Mercer, and Oliver Wyman. (2018). Delivering The Workforce For The Future. Available at: https://www.mercer.com/our-thinking/career/delivering-the-workforce- for-the-future.html

6High-performing companies self-reported that they exceeded performance goals during the last three years.

Build

Buy

Borrow

Automate

44%

53%

60%

84%

FI G U R E 6 . T H R E E I N F I V E COMPANIES PL AN T O A U T O M AT E M O R E I N 2 0 1 9 In 2019, we will increase our spending in…

7A L I G N I N G W O R K T O F U T U R E V A L U E

HUMAN CAPITAL RISKS Too much redesign and reorganization leave employees reeling, feeling directionless and ultimately unproductive. It can also cause a heightened sense of isolation, a perceived lack of support from peers, and a decrease in energy levels.

T H E S H I F T I N G S H A P E O F W O R K

7Mercer, and Oliver Wyman. (2018). The Twin Threats of Aging and Automation. Available at: https://www.mercer.com/our-thinking/career/the- twin-threats-of-aging-and-automation.html

It’s not just jobs that are changing, but who does the work. To date, there has been more chatter than adoption when it comes to the gig economy, but executives remain bullish on the concept. In fact, 79% of executives expect that contingent and freelance workers will substantially replace full-time employees in the coming years — and predictions vary by industry (Figure 7).

A “platform for talent” mindset (an emerging trend in last year’s study) is increasingly prevalent. Experiments in how to intelligently match skill supply with work demand are underway across industries and, for some, extend beyond matching their own talent to job opportunities to include those in industry consortia.

The use of contingent workers is rising, especially for transferable skills such as project management and UX design. This is enabling investment in and retention of core workers who are engaged in higher value work and those related to intellectual capital. To support this move, companies are creating a new lexicon for jobs and skill requirements to develop the building blocks for future roles. At the same time, companies are investing in technology platforms, internal gig marketplaces, and contingent talent agencies to make it easier to find top talent — both inside and outside the company.

With the potential for increased job displacement on the horizon, technology platforms that connect companies to former employees and future candidates can help tap into those who: • Have in-demand industry skills or know-how,

but have been displaced • Need to temporarily leave the workplace but

still want to keep their skills up to date to ease re-entry

• Are nearing retirement and want project-based or part-time work

Focusing on older workers has become more urgent because this population is acutely vulnerable to automation — older workers tend to be concentrated in jobs where at least 50% of the tasks can be automated.7 And with 75% of employees intending to keep working post- retirement age, and five generations working side-by-side, it has never been more important for businesses and society to think creatively about how to leverage experienced workers.

T H E S H I F T I N G S H A P E O F W O R K

FIGURE 7. CONTINGENT/FREELANCE WORKERS WILL SUBSTANTIALLY REPLACE FULL-TIME EMPLOYMENT ( % A G R E E)

Automotive Consumer

Goods Life

Sciences Insurance

Tech Financial Services Energy Healthcare Retail

97% 96% 90% 86% 83% 80% 77% 59% 50%

8 A L I G N I N G W O R K T O F U T U R E V A L U E

The skills gap is a critical risk to successful redesign, restructure, and redeployment. Especially when talent is scarce, people development becomes key to organizational competitiveness and sustainability. Thus, it’s not surprising that upskilling and reskilling have moved up the executive agenda from ninth to third position this year — and has risen to the number one spot for the Insurance sector. The median investment in reskilling is 1,000 USD per person, with companies in China and in the Retail industry investing the most (median 2,000 USD for both). The focus is on employee-directed and hands-on learning as well as more formal reskilling programs for target populations (Figure 8). But to deliver what executives want, HR must shift its mindset or risk a self-fulfilling prophecy: HR leaders say the main barrier to reskilling is the concern that reskilled talent will leave the firm.

N E W J O B S , N E W S K I L L S

Redefining performance metrics and rewards is a critical part of aligning work to future value. Aligning executive plans to transformation goals and long-term incentives can help to ensure a focus on future success, while innovation awards or modern recognition programs can incentivize change for non-executives. In fact, offering more diverse rewards and compensation is this year's number one rewards priority. To truly align the business, investments in rewards should reflect a company’s strategic focus, and this could mean a step away from market norms in pivotal areas.

T H E N E E D F O R S T R AT E G I C R E W A R D S

59% 55% 50%

Employee- directed learning

Formal reskilling programs

Informal hands-on learning

of employees see it as primarily their responsibility

(rather than their company’s) to keep their skills up to date

83% E M PLOY E E S A R E E AG E R TO LE A R N FI G U R E 8 .

TO P R E S K I LL I N G A PPROAC H E S U S E D BY H R

The big question is, have you built a workforce that is adaptive and operationally nimble enough to capitalize on unpredictable market trends? — Jeff Wald, WorkMarket

9A L I G N I N G W O R K T O F U T U R E V A L U E

Prudential | Making Automation Work Analyzing activity data to identify work patterns unlocks automation’s potential

The insurance sector was one of the first to benefit from robotic process automation (RPA), and Prudential has been rapidly adopting new technologies into both its front and back office systems. At first, there was not a strong impetus for workforce transformation, but when a headcount analysis showed that the company was not fully realizing its anticipated RPA savings, leaders decided it was time to take action. Prudential used detailed task activity data to determine how to free up resources and work in a more flexible and dynamic way. Starting with key jobs to be done, they used an activity survey and employee interviews to quickly identify what work was being done and by whom. The results, along with value mapping, provided the data needed to inform future work designs and enabled HR to suggest where resources could evolve into future roles. Ultimately, Prudential optimized its work model in line with value creation and created the capacity to build for future skills.

10 A L I G N I N G W O R K T O F U T U R E V A L U E

Microsoft | Experiments in a Platform for Talent Rethinking legacy talent frameworks is a large undertaking, but a crucial one to manage Microsoft’s expanded workforce of full-time employees, vendors, and gig workers. They have embraced a worker-friendly approach and tested their hypotheses in a series of controlled experiments.

Defining a Talent (not Job) Architecture

• Skills-led and people-focused: Viewing organizational capability through the lens of work to be done and the associated skills needed, matching with employee capabilities rather than years of experience in a particular job

• Adaptive: Defining the dimensions of how skills can flex and be quickly connected to both work and individuals

• Scalable: Identifying the tasks required for small projects or carving out entire parts of current roles to free up time for employees to take on responsibilities and fill critical skill gaps

Piloting to Answer the Tough Questions

• Gig mindset: Building an internal marketplace for managers to search existing employee profiles to fill critical needs and for employees to find opportunities to apply expertise and gain new skills and experiences

• Flexible work: Recognizing the impact of flexibility on health, wellness, productivity, and performance – shifting from an alternative-work- arrangements mindset to one that embraces flexibility as the norm

• Employee experience: Assessing the downstream impact of talent sharing on skill-based compensation, performance management, learning & development, and other HR processes

• Expanded workforce: Using freelance talent pools on different types of projects to access additional expertise and increase speed and agility

Thinking Through the Future Implications

• Role of managers: Answering the question, “What will be expected of managers going forward, and what is their role in enabling employee growth and development?”

• Diversity: Defining how to manage a fluid workforce that comes together to form diverse, constantly changing teams with mixed skill sets and different backgrounds

By adopting a growth mindset, Microsoft is stepping thoughtfully and strategically into the future of work, setting the

ground rules for their platform-for- talent approach, and building a

business case for change.

11A L I G N I N G W O R K T O F U T U R E V A L U E

B U I L D I N G B R A N D R E S O N A N C E Listen carefully and learn from data to create a brand proposition that attracts the talent you want

12

Attracting top talent, and continuing to attract them after they are on board, remains a priority this year. What has changed is employee perceptions about what makes a top employer. Job seekers care as much about the way the

company conducts business, as they do about the business it is in. Employees are active investors in the companies they choose to work with, so organizations must build a brand that affirms the soundness of that investment. Window-

dressing perks and slick portals are not enough; more important is how

the brand is infused into day- to-day practices and whether

companies stand up for the values they put forth.

13

In a talent economy, employee pride has become an issue of business strategy. Brand matters because employees today have a more intimate relationship with their organization. Employees freely display their work on sites like LinkedIn and Maimai in China, retweet their company’s latest achievements, and wear their company brand like a badge of honor. This blending of work and social identities means that negative press about one’s company becomes personal. A company's desirability is no longer only the purview of employer review sites like Glassdoor; employees' collective voice on matters of culture, equity, and ethics are now mainstream news.

Given this increased visibility into their inner workings, organizations are focusing not only on being a great place to be, but also to be from. Over a third (38%) of executives (nearly double last year) see taking on more responsibility for societal issues as something that will impact their organization in the next two years. The power of the collective voice can amplify the brand — and employees are willing, reporting that they feel a greater sense of belonging to their company than to their profession, function, team, or boss (Figure 9).

T H E P O W E R O F T H E C O L L E C T I V E V O I C E

In this transparent environment, HR is as much a custodian of the brand as the marketing department. In fact, many companies are borrowing from their consumer brand, and leveraging techniques such as design thinking and conjoint analysis, to augment their employer brand. For example, MasterCard extended its Priceless campaign into its employee value proposition (EVP) by showcasing priceless career experiences. And Red Bull launched a Give Wings to Your Career initiative to help individuals discover and leverage their strengths — everyone who plays the Wingfinder online game becomes part of the company’s candidate pool.

The easiest way to sell the organization on the need for change, to drive adoption, and to just do the right thing, is to be authentic. At Patagonia, anything that smells inauthentic gets spit out immediately.

~ Chris Mason, Head of Talent Management, Compensation & Workforce Analytics, Patagonia

F I G U R E 9 . W H E R E D O Y O U F E E L T H E G R E AT E S T S E N S E O F P R O F E S S I O N A L B E L O N G I N G ?

To your company To a profession

To a function 14% 13%

21% 17%

13% 12%

5% 4%

To your department

To an industry To your coworkers

To your client(s) To your manager

What’s behind the rise of the collective voice?

• Low unemployment

• Social media-led transparency and accountability

• Employees’ willingness to point out when actions stray from company values

• Legislation around pay equity and fair pay

14 B U I L D I N G B R A N D R E S O N A N C E

F I G U R E 1 0 . W H Y D I D E M P L O Y E E S J O I N T H E I R C O M P A N Y ?

The easiest way to sell the organization on the need for change, to drive adoption, and to just do the right thing, is to be authentic. At Patagonia, anything that smells inauthentic gets spit out immediately.

Job security

Convenient location

Meaningful work

Interesting/ varied work

Competitive pay

Flexible hours

Health benefits

Gen Y Gen X Baby Boomer

Professional development

Time offFun work environment

Advancement opportunities

GENER ATION

Job security

Convenient location

Meaningful work

Individual contributor

All managerial levels

Interesting/ varied work

Competitive pay

Flexible hours

Health benefits

Professional development

Time offFun work environment

Advancement opportunities

LE V E L

Male Female

Job security

Convenient location

Meaningful work

Interesting/ varied work

Competitive pay

Flexible hours

Health benefits

Professional development

Time offFun work environment

Advancement opportunities

G E N D E R

With two in five employees planning to leave their organization in the next 12 months and 97% of C-suite executives predicting an increase in competition for talent during the same period, the traditional mantra of “attract and retain” is being replaced with “attract and continually attract.” What appeals to potential employees can vary greatly, yet only one in four HR leaders uses analytics to understand why people choose to join their company. Gathering insights into how the value proposition is resonating can help shape messaging to candidates.

Across gender, generation, and job level, there are clear differences in motivation for joining a particular company (Figure 10). Women value health benefits and flexible schedules more than men do. Those in managerial roles seek professional development and opportunities for meaningful work, while individual contributors value job security above all else. Compensation is less important for Generation Y but is a key driver for Baby Boomers. To personalize their value proposition, companies have begun using personas to identify what matters most to target populations and to operationalize their total rewards program for distinct groups.

One thing that nearly all workforce segments agree on is the growing importance of adaptive work schedules. Fifty-four percent of employees said managing their work/life balance is one of the top five things their company can do to help them thrive at work (compared to 40% in 2018 and 26% in 2017). This sentiment is also reflected in 82% of employees saying that they would be willing to consider working on a freelance basis. This figure is even higher in Mexico (94%), China (93%), Hong Kong (92%), and the Middle East (92%). Yet developing a strategy to attract and retain gig workers is near the bottom of the list of HR priorities for 2019.

C R A F T A C O M P E L L I N G V A L U E P R O P O S I T I O N

15B U I L D I N G B R A N D R E S O N A N C E

One way to build a sustainable talent pipeline is to ensure that the talent value proposition (TVP) resonates with different workforce segments. More than two-thirds (68%) of high-growth organizations say they differentiate their TVP for various groups, such as contingent workers. Less than half (47%) of modest-growth companies do the same. Attracting candidates through a differentiated value proposition is critical, but equally important is selecting the right candidates to join the company, in particular, assessing for future potential (Figure 11). HR’s biggest pain points with talent acquisition are a lack of predictive analytics, manual processes, and poor candidate experience. The latter has important ripple effects: 78% of thriving employees say they

A company’s total rewards philosophy is another area where brand values can shine through. Yet only one in three organizations believes their benefits strategy aligns with their overall people strategy.9 As new roles are created and existing roles change with automation and AI, it becomes more difficult to keep up with employee pay expectations and market values. This year, companies have shown renewed interest in job evaluation, which helps them to scientifically assess where roles fit within existing hierarchies. They are also drawing on a range of pay data — cloud, crowd, and expert — to stay current. Perhaps because of this data, HR is more aligned

T H E S C I E N C E O F AT T R A C T I O N

I N N O V AT E W I T H D I F F E R E N T I AT E D R E W A R D S

F I G U R E 1 2 . W O R K F O R C E R E W A R D S P R I O R I T I E S ( T O P 7 )

36%Offering more diverse rewards

35%Driving pay for performance

32%Creating a plan to reward for high-demand skills 32%Offering career moves/experiences as rewards 32%Implementing skill-based pay

31%Ensuring equity by pay band level

30%Increasing transparency into compensation

F I G U R E 1 1 . W H A T D O H I R I N G M A N A G E R S R E A L LY WA N T TO K N O W A B O U T A C A N D I DAT E B E F O R E M A K I N G A H I R I N G D E S I S I O N ?

M O ST I M PO RTA NT

LE A ST I M PO RTA NT

Potential for higher levels

Technical skills for current role

Learning agility

Personality & motivation aligned to business challenges

Fit with organizational culture

Prior experience in similar role

had a positive hiring experience, compared to 30% of non-thriving employees. And it can have a lasting impact — those who have a positive first month on the job are more likely to be engaged, committed, and high-performing two years later.8

with what employees are asking for this year (Figure 12) — both HR and employees agree that offering a wider variety of incentives and differentiating rewards for high performers will make a difference. Companies are rethinking pay for performance in light of the need to become more transparent and deliver on pay equity. Given the challenge of new skills and stagnating wage growth, one-third of HR leaders (and nearly half in the Life Sciences sector) are also innovating with rewards for high-demand skills. Leading firms are focusing on the overall pay experience and expanding the focus beyond base pay to include career growth, incentives, and recognition.

8The Engagement Institute — The Conference Board, Deloitte Consulting LLP, Mercer | Sirota, ROI Institute, and The Culture Works. (2018). DNA of Engagement: Moments That Matter Throughout the Employee Lifecycle. Available at: https://www.conference-board.org/dna-engagement2018/