Health + Innovation

Blockchain in Healthcare & Wellness Benefits: Use Cases & Challenges for HR Professionals

16 August, 2019
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"HR should keep a pulse on the implications blockchain holds for delivering the employee experience with improved healthcare and other benefits."

There is a huge opportunity for blockchain to establish itself in the healthcare sector. Learn more about specific use cases that can help innovate how HR departments deliver healthcare & wellness benefits.

Blockchain technology is one of the most disruptive technologies on the market today, with multiple industries adopting it to optimize processes and innovate the way companies function. It has proven to be a game changer in the business arena and the global blockchain technology market is estimated to amass US$20 billion in revenue by 2024. Meanwhile, SAP reports that 71% of business leaders who are actively using blockchain believe it plays a key role in advancing technology and reestablishing industry standards. 

While blockchain has already been widely integrated in processes for supply chains, banking and cryptocurrency (e.g. Bitcoin), the healthcare industry has also been identified as one of the top industries likely to be disrupted. Blockchain technology could offer solutions to some of  healthcare’s greatest challenges, from securely managing patients’ medical data to tracking large databases of drugs through the supply chain or extracting healthcare data from clinical trials. As the technology advances and becomes more readily available, more healthcare organizations across the industry will be adopting blockchain solutions to redesign the global healthcare ecosystem. 

HR serves a critical function for the healthcare industry and is an intermediate between employees and one of the most valued aspects of life: their health. According to Bitfortune, 55% of healthcare applications will adopt blockchain platforms for commercial deployment by 2025. Meanwhile, adoption seems to be ramping up with multiple governments around the world announcing plans to invest in blockchain and encourage its implementation. For example, Singapore’s government has announced financial incentives to enterprises for adopting the technology.

Amid an evolving industry, it is imperative HR professionals stay current with how blockchain’s ledger technology is disrupting the healthcare industry. They should especially keep a pulse on the implications blockchain holds for delivering the employee experience with improved healthcare and other benefits.

Use cases: how blockchain can help HR transform in delivering healthcare & benefits
 

While the use of blockchain technology is still more commonly associated with payment functions, its disruption to HR will be profound and pervasive in coming years with many possible use cases across the functions of an HR department.

To prepare for the coming blockchain revolution, HR departments should focus on identifying problem areas and inefficient processes that could be addressed by the transparency, accuracy and speed that blockchain provides. The processes most primed for blockchain disruption are those that are burdensome and expensive with substantial data collection and third-party verification. For this reason, healthcare and benefits could be the ideal match for an HR department looking to adopt blockchain technology.

1.  Enhancing fraud prevention & cybersecurity for sensitive data in HR.

HR teams conduct some of the highest-volume financial transactions for an organization and handle sensitive employee data related to healthcare (as well as, banking, disciplinary records, performance records, expense reimbursement, and more).

Unfortunately, all of the data an HR department maintains is at risk of being exploited and, as more companies face data breaches, it is becoming increasingly important that proper measures are in place to maintain security and prevent fraud.

A company’s cyber risks largely emerge from an underlying lack of transparency and accuracy in its data systems. Because of its capacity for promoting transparency and accuracy, blockchain technology is being lauded as a solution for combating cybersecurity crime and protecting data. While blockchain’s popularity grows among large companies and companies that hold critical, sensitive data (for example, Lockheed Martin is trusting it to secure data), it is also being used by nonprofits to collect donations securely.

It is important to consider that blockchain technology can mitigate both internal fraud and external hacks of sensitive employee records. Access to the blockchain is limited and controlled—even those who have access are not able to modify the records. This limits both internal fraud and external hacks of sensitive employee records.

In the digital age, data is a major asset for a company. Blockchain essentially functions to decentralize data and places it across a large network of computer storage spaces to reduce the risk that a single hacking event could usurp all the data a company has. By using blockchain, HR departments can introduce a solid measure of security against cyber threats to protect their employees’ health information.

2.  Improving health insurance, health records & patient experience with ‘smart contracts.’

Much of blockchain’s power comes in the application of ‘smart contracts’, which many organizations are using to make payments to employees, contractors and vendors. In fact, it is reported that 45% of early adopters of blockchain are already implementing smart contracts within their organizations.

A smart contract codes a set of parameters using statements in ‘if this, then that” (IFTTT) language. These contracts are designed so that, once executed, the entire process is dictated by these codes. It is also made irreversible unless of course terms of a contract need to be updated. While smart contracts have many applications for HR functions in terms of payroll, there are some very important considerations HR departments should be aware of in terms of healthcare.

Smart contracts have the potential to be used for insurance, including how patients buy insurance. Through a smart contract, all details of an insuree’s policy could be stored in a patient profile. This profile would then be stored on the blockchain platform in a safe and secure ledger that is less prone to hacks than the databases currently used. 

Smart contracts could also impact the insurance claim process by eliminating the need for lengthy forms and time lags. If an insuree undergoes a medical procedure covered by the policy, a smart contract would be automatically triggered to transfer money from the insurance company’s account straight to the hospital or medical provider. The automation cuts out delays and hassles, allowing for correct payment of the medical service.

There are also numerous implications for electronic medical records, information and medical data sharing. Storing patient’s electronic health records (EHR) on secured ledgers, for example, would allow a patient to move easily from one hospital to another without having to fill out numerous forms. The blockchain network would safely store their records, allowing their new physician to access them without delay.

While hospitals and healthcare providers currently rely on a number of databases filled with patient data, these can be too centralized and restrictive for sharing potentially life-saving insights around the globe. If health records were to be kept in a smart contract stored on the blockchain, the data analytics would be available to hospitals, providers and research institutions everywhere. With widespread adoption of this healthcare blockchain technology, an individual could essentially walk into any hospital in the world for treatment and, with their private key, their health data would be accessible instantly.

3.  Offering better access to healthcare & other benefits.

Blockchain’s ‘smart contracts’ could also change how employees gain access to healthcare and benefits. Once the employer outlines the terms of employment prior to hiring, HR is charged with upholding the conditions in the contract. These terms include provisions that employees value in their employee experience, such as healthcare insurance, wellness programs or other benefits.

The current model of manually delivering benefits runs risks of errors and could get in the way of properly servicing employees. With blockchain, HR could seamlessly deliver upon these benefits by implementing smart contracts that automate the process. For example, if a company outlines that an employee’s benefits packages begins after a specific waiting period, the smart contract would be written to automate these benefits at the right time and in the right fashion.

Not only does blockchain have the potential to improve security and automation of benefits, it is possible for benefits to be more personalized to each individual employee. In today’s digital world, consumers are accustomed to enjoying personalized experiences and this trend of hyper-personalization is reaching the workplace. Through blockchain’s smart contracts, which could be integrated with artificial intelligence (AI) and IoT technology, companies would be able to empower employees with benefits packages and wellness programs that are tailored specifically for them and their evolving needs. These personalized packages could become a critical tool for enhancing the employee experience.

Challenges HR faces in implementing blockchain to deliver benefits
 

Blockchain is a quickly evolving technology with new applications and trends regularly emerging. Though it is becoming more widely adopted across a variety of industries, it is inevitable that first-time users will run into issues and challenges in implementing it. For HR departments, it is imperative to consider these challenges as they explore which processes might be impacted by blockchain.

1.  Data standardization & integration with legacy systems.

With blockchain being a new technology, protocols and standards for its application are not yet established. When the internet began to commercialize, it initially struggled without proper protocols. But over time, controls were implemented to allow for browser compatibility, cross-platform multimedia and better interconnectivity between servers. As more sectors adopt blockchain—especially healthcare which handles sensitive and personal data—ensuring that blockchains offer an industry-wide benefit will require widespread collaboration and standardization. For example, it will have to be determined when private, as opposed to public, if blockchains make sense. Otherwise, this could impact the security and functionality of blockchain technology.

All industries will have to get over a major hurdle when it comes to integrating blockchain solutions with legacy systems—or replacing legacy systems altogether. But the hurdle is especially high for HR and healthcare, which are often bound to specific legal regulations and already have very specific HR or healthcare systems in place that incorporate these parameters. Synching these systems or replacing them with blockchain technology could prove to be difficult.

2.  Adoption & incentives for participation.

Despite enthusiasm and a strong record of success, blockchain adoption has proven to be difficult for companies. Greenwich Associates surveyed companies that have implemented blockchain and 57% reported its integration has been harder than expected. In terms of scalability, 42% of respondents reported it as a major issue, 39% said it is a minor issue and 19% said it is no issue at all.

Much of the challenges are culture or people-related, rather than technical. For example, most people resist change and, if they do tolerate it, they generally prefer it to happen gradually and incrementally. The oppositions to change could be even more pronounced for those in HR, especially with employees across an organization resisting how healthcare and employee benefits—which are very personal—is administered. Some of the proposed uses for blockchain would result in systemic changes that rapidly transform the entire system.

Even if employees and management are open to change, HR still has work cut out in hiring, education and training. Blockchain will require companies to hire more research and analytical staff as well as offer training on how to properly implement it. But this is where HR thrives. By helping to cultivate a culture of digital transformation, HR departments can also guide companies on their blockchain journey.

3.  High costs of developing & operating blockchain technology.

The adoption of blockchain technology is likely to offer long-term benefits in regard to productivity, efficiency, timeliness, and reduced costs. However, one of the greatest obstacles to widespread adoption of blockchain is the high cost to initially install it. The software required to implement blockchain within an organization must typically be developed specifically for each individual company. This makes it expensive to obtain, whether hiring in-house or buying from a developer. Moreover, even after the blockchain software is developed, the company would also have to purchase specialized hardware to be used with it. 

In addition to the software development costs, companies must also find qualified personnel to operate the technology.  The blockchain space is new and growing so rapidly that the demand for professionals in the field outweighs the supply. This makes hiring qualified blockchain experts—either in-house or as consultants—quite costly.

Currently, it appears that the world’s largest corporations are the only ones benefiting from blockchain because they have the money, resources and data to spare. Furthermore, the technology itself seems too new and not yet fully understood for SMEs to adopt in droves.

However, this is all likely to change over time. The commercialization of the internet was gradual and in the early days it required companies who wanted to go online to put up a substantial amount of money upfront and invest in customized solutions. Eventually, as blockchain becomes more mainstream, it will also become much less expensive, more streamlined and more accessible to companies.

Blockchain is already demonstrating its potential to disrupt business as we know it. Because the HR department guards and manages large amounts of sensitive data that are critical to employees’ lives and how a company operates, it is likely that blockchain technology will be infused directly into the HR function to add transparency and trust to various processes.

Healthcare and benefits administration is one of the processes that blockchain technology is likely to directly transform. Though there are challenges in cost, scalability and perception to overcome, HR departments could potentially use blockchain technology to provide employees with greater access to more personalized benefits packages. Furthermore, as time is freed up by automated processing, HR departments will be able to turn their efforts to more value-adding activities such as building employee engagement and experience.

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Nancy Mann Jackson | 30 Jan 2020

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The new blockchain-based marketplace app for trading Indian coffee brings growers closer to their ultimate customers, helping them earn fair pay and provide reliable traceability that allows consumers to trace their coffee from bean to cup. For customers, the ability to track the journey of the product they are buying can build trust. From the business perspective, that traceability can result in faster and more accurate recalls, reducing risk of food poisoning. By using the online marketplace, growers no longer have to depend on intermediaries. They can interact directly with buyers and earn fair prices for their products. Exporters can also use the online marketplace to quickly find reliable suppliers and traceable coffee products to meet their needs. When the Indian Coffee Board, a division of the Ministry of Commerce and Industry, introduced the e-marketplace in March 2019, a group of about 20 coffee farmers, exporters, importers, roasters and retailers were already registered on the platform from India and abroad.1 From a user perspective, the platform is easy to use. Coffee farmers can log their product credentials, including their relevant certificates, growing location and elevation, details about the crop and other information. For each lot of coffee sold on the marketplace, the system creates a block. That block and its credentials are then stored on the blockchain throughout its journey and are unalterable, creating a record known as a blockchain ledger. A blockchain ledger is useful for all types of agricultural products because of its ability to record and update the status of crops — from planting and harvesting to storage and delivery. 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Another Chinese company uses ankle bracelets on chickens to record the details of each chicken's life using blockchain, providing assurance to consumers that the free-range chicken they're paying for is actually free-range.2 Analysts expect that the blockchain technology market for agriculture around the world will continue to escalate, growing 56.4% from 2018 to 2022.3 Blockchain marketplaces allow producers and buyers to view trade history, local prices and other information that allow them to negotiate prices with confidence. As food producers around the world continue adopting blockchain technology, they bring more efficiency to their supply chains, improving food safety and traceability, as well as profit margins and consumer trust. Clearly, blockchain can bring about positive change in a variety of ways, but adopting and implementing the technology is much easier said than done. In an industry like agriculture, blockchain will have to reshape a decades-old framework, and that won't happen overnight. It's up to leaders everywhere to understand the value of this technology and get their teams on board with implementing it to achieve that value — even if it means starting small. Sources: 1. "Coffee Board Activates Blockchain Based Marketplace in India." Press Information Bureau, 28 Mar. 2019, http://pib.nic.in/newsite/PrintRelease.aspx?relid=189586. 2. Peters, Adele. "In China, You Can Track Your Chicken On–You Guessed It–The Blockchain." Fast Company, 12 Jan. 2018, https://www.fastcompany.com/40515999/in-china-you-can-track-your-chicken-on-you-guessed-it-the-blockchain. 3. "Global Blockchain Technology Market in the Agriculture Sector 2018-2022." Global Banking & Finance Review, 26 Sep. 2018, https://www.globalbankingandfinance.com/global-blockchain-technology-market-in-the-agriculture-sector-2018-2022-market-to-grow-at-a-cagr-of-56-4-with-agriledger-full-profile-ibm-microsoft-ripe-technology-te-food-dominating-rese/.

Jackson Kam | 30 Jan 2020

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It's also ensuring that there is efficient infrastructure and local support in place.1 One sector that is particularly thriving under this new spirit is insurtech. For example: ZhongAn Online, a digital insurer backed by Ping An, Tencent and Alibaba, has launched a Software as a Service (SaaS) platform for insurance companies, giving them rapid access to ZhongAn's accumulated data on medical claims, medical insurance directories, drug prescriptions and local hospital information across the country.2 Another insurtech example is the partnership between Rui Xin Insurance Technology and China Lending, which aims to help the insurance company develop its own consumer financial platform offering China Lending's products. The two companies will also collaborate to develop more insurance products and attract more customers on both of their platforms.3 These insurtech partnerships exemplify how China is now setting the stage for experimental collaboration and innovation that challenges the status quo. Taking a Cue From Chinese Unicorns   Across many sectors, thousands of Chinese startups are disrupting industries — and stealing customers from established companies — by developing innovative business models to sell even more innovative products.4 Indeed, China has 120 successful startups, more than half of the 234 unicorns globally.5 Chinese startups are excelling because they can quickly reach scale in the large market, and they can tap a growing talent pool, particularly professionals with PhDs — twice as many as those in the U.S. They are also exhibiting a higher risk tolerance that's enabling them to conduct "fearless experimentation" to push out new products as fast as possible. With the rise of digital disruption, these unicorns are eager to take big risks and put their country back on the map as an innovator.5 How Multinationals Can Leverage This Energy   Hengyuan Zhu, associate professor and deputy chair in the Department of Innovation, Entrepreneurship and Strategy at Tsinghua University, believes that startups are successful because they are practicing "contextualized innovation." This entails collaborating with local customers within the country to make sure products meet the specific demands of those localities — and multinational companies operating in China should take a cue.6 "If they want to be successful, multinational companies will have to give more decision-making power to their local branches in China," Zhu said. "They need to do this so that they can leverage global resources, integrate into the innovation system and innovate in China for Chinese customers." An innovative workplace culture must be counterbalanced for organizations to be successful. For instance, organizations need to be willing to experiment but in a highly disciplined manner. Carefully taking this line of thought into consideration in all aspects of the workplace will ensure the success and application of a productive, innovative culture. Dealing with 996: An Unhealthy Work-Life Balance   There is a rising backlash occurring in the Chinese tech community, particularly among startups, that centers on what is known as "996.ICU." The name comes from the typical work schedule for Chinese programmers: 9 a.m. to 9 p.m., six days a week.7 Some startups are forcing their workers to abide by this schedule, either explicitly or by demanding certain KPIs in an unreasonable amount of time. Others are encouraging these schedules by appealing to long-held beliefs within the Chinese culture. For example, Alibaba founder Jack Ma has stated, "No company should or can force employees into working 996 . . . But young people need to understand that happiness comes from hard work. I don't defend 996, but I pay my respect to hard workers!"7 These sentiments are contrary to what the majority of polled Chinese workers shared during the Global Talent Trends 2019 study — that the foremost condition that would help them thrive in the workplace is the ability to manage their work-life balance. This also ranks ahead of their desire to have opportunities to learn new skills and technologies and have a fun work environment. Multinationals considering investment in Chinese startups or taking cues from unicorns may consider adopting many of the attributes of those successfully innovating while fostering a healthier work-life balance for Chinese workers — which can ultimately benefit the organization's bottom line, as well. Sources: 1. Jun, Zie. "Whole-of-society effort drives technology development in China," Global Times, 25 Jun. 2019, http://www.globaltimes.cn/content/1155732.shtml. 2. Fintech News Hong Kong. "ZhongAn Technology Launches AI-Powered Data Platform for China's Insurance Industry," Fintech News, 14 Aug. 2018, http://fintechnews.hk/6308/insurtech/zhongan-technology-saas-insurance-data/. 3. China Lending Corporation. "China Lending Forges Strategic Partnership with Rui Xin Insurance Technology to Develop Online Financial Services Platform," PR Newswire, 15 Jul. 2019, https://www.prnewswire.com/news-releases/china-lending-forges-strategic-partnership-with-rui-xin-insurance-technology-to-develop-online-financial-services-platform-300884622.html. 4. Greeven, Mark J; Yip, George S. and Wei, Wei. "Understanding China's Next Wave of Innovation," MIT Sloan Management Review, 7 Feb. 2019, https://sloanreview.mit.edu/article/understanding-chinas-next-wave-of-innovation/. 5. Nheu, Christopher. "The Secret Behind How Chinese Startups are Winning," Startup Grind, 1 May 2018, https://medium.com/startup-grind/the-secret-behind-how-chinese-startups-are-winning-44876b196626. 6. Zhu, Hengyuan and Euchner, Jim. "The Evolution of China's Innovation Capability," Research-Technology Management, 10 May 2018, http://china.enrichcentres.eu/sharedResources/users/4807/The%20Evolution%20of%20China%20s%20Innovation%20Capability.pdf. 7. Liao, Rita. "China's startup ecosystem is hitting back at demand-working hours," TechCrunch, Apr. 2019, https://techcrunch.com/2019/04/12/china-996/.

Andre Maxnuk | 30 Jan 2020

The megacity will define economic growth in the coming years. Citing Monterrey and Guadalajara, Mexico, as examples, these emerging centers of business and commerce are positioned to grow quickly and possibly outpace traditional capitals of commerce. They also have the potential to learn from the mistakes of traditional big cities and engineer smart, long-term, sustainable growth. Urbanization is developing at such a rate that nearly half (47 percent) of GDP growth will come from 443 growth economy cities between 2010 and 2025, as Mercer's People First report notes. These cities are also on a trajectory to amass 1 billion new consumers and, between now and 2030, will significantly change the way people live and work. How Urbanization Changes Local Economies   While widespread adoption of the internet and interconnected technologies was predicted to enable people to live and work anywhere, it's actually had the opposite effect. Instead, more people have been drawn into cities for work. Innovative workers are seeking one another to collaborate in developing new industries in today's rapidly evolving global economy. They want an environment in which they can be more productive and more creative with like-minded peers. As all these bright minds flock to growing metropolitan areas, cities have become the crucible of collaboration. Take Guadalajara, for instance. The city's technology industry traces its roots back to the 1960s, when high-tech foreign companies looking for cheap labor moved manufacturing operations there. These companies included Kodak, Motorola, IBM, Hewlett-Packard and Siemens. Yet, when many of those operations moved to Asia in the early 2000s, the city still found a way to persevere as a hub for technology. As Andrew Selee from the Smithsonian Institution notes, "Guadalajara reinvented itself as a major center for research and development, programming, design and other high-skilled tech occupations, building on the foundation that had been laid years earlier."1 Guadalajara's highly trained engineers "inverted the model," designing components in Mexico and having them manufactured in Asia, as one engineer told Selee. Today, many Silicon Valley–based tech companies maintain research, development and programming facilities in Guadalajara, and the city — now known for its engineering talent and creativity — is home to a wide range of technology startups. How Cities Can Prepare and Respond   Rapid growth in jobs and economic opportunities is positive yet challenging for cities such as Guadalajara, also known as "Mexico's Silicon Valley." The city's population has grown to include more than 8 million people and is now the second biggest metropolitan area in Mexico, just behind Mexico City.2 The population is expected to expand even more (over 15%) in the next decade. It is also the third largest economy in Mexico, with a GDP of $81 billion.3 Comparatively, Monterrey has a population of 5 million and is the third largest metropolitan area in Mexico.2 Monterrey's population is also expected to increase over 16% in the next decade. Its GDP is valued at $123 billion — making it the highest GDP per capita city in Mexico and the second highest in Latin America.3 Both Guadalajara and Monterrey will continue to grow and expand, as will their workforces, so it will be vital to understand what today's and tomorrow's employees want. New residents don't just bring creativity and an interest in collaborating with other like-minded individuals; they also bring needs for healthcare, education, recreation, infrastructure and security. In order to keep bright individuals in the city, contributing to the growing economy, an emerging megacity must be able to provide the environment and services those individuals and their families want for a satisfying life. While business leaders often assume that a good salary will motivate people to move to a city and stay there, human and social factors are actually more important for the workers making those decisions. To attract and keep people, a city must create an environment for them to thrive across multiple dimensions, focusing on what matters most to them. Most cities, despite their rapid economic growth, are not doing a great job meeting the needs of the people who live there, which creates tension between what people value and what a city is able to deliver. Mercer found a 30+ point gap between workers' quality-of-life expectations and how a city is meeting them. To reverse that trend, city leaders must understand their importance for future economic growth and adopt a new outlook that includes these three components: 1.  Focus on people first. As technology continues to enable people to work smarter and make faster decisions, jobs will continue to change. Technology, automation and digitization will make work more efficient, but unique human capabilities will propel growing cities. If the people needed to operate and manage artificial intelligence don't want to live in a city, all the automation won't matter. Cities — as well as employers — must focus on the value of human qualities and skills and how to help those humans find satisfaction. 2.  Understand what people want. More than a good job and a good salary, people want a high quality of life. That includes the ability to feel safe and access good schools for their children, quality healthcare, recreation, clean air and water, and other lifestyle factors. Companies may be able to attract top employees, but cities must focus on providing the environment and lifestyle that will keep those employees. 3.  Prioritize partnerships. Most cities have big challenges to overcome to provide the quality of life that people want. No single entity can solve systemic problems, so public-private partnerships are crucial to address macro issues and gaps, such as in infrastructure, as well as safety and housing, and overcome challenges before they become exacerbated. Public-private partnerships are essential for cities, businesses and people to succeed. Increased urbanization and the blossom of new megacities will send waves throughout the global economy in the years to come. But to foster positive growth and innovation, successful megacities must acknowledge and act upon the wants and needs of those skilled workers who will call these cities home. Sources: 1. Selee, Andrew. "How Guadalajara Reinvented Itself as a Technology Hub," The Smithsonian Institution. 12 Jun. 2018, https://www.smithsonianmag.com/innovation/how-guadalajara-reinvented-itself-technology-hub-180969314/#kc531GtO4OwhOKDi.99. 2. "World Urbanization Prospects 2018," United Nations, https://population.un.org/wup/DataQuery/. 3. Berube, Alan; Trujillo, Jesus L.; Ran, Tao; Parilla, Joseph. "Global Metro Monitor report," Brookings, 22 Jan. 2015, https://www.brookings.edu/research/global-metro-monitor/.

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Lewis Garrad | 30 Jan 2020

Employee engagement has become a critical topic for HR over the last 10 years as leaders have become convinced by two fundamental management ideas: having the best talent is essential to the future success of any organization, and having a highly engaged workforce is the most effective route to mobilize that talent to deliver what is needed. The result is that many organizations now invest in programs to boost engagement — mostly via an annual employee feedback survey. Yet, many organizations struggle to improve engagement and productivity in their workforce — no matter how much attention leaders and HR teams pay. Organizational inertia (or "drag") is a widespread phenomenon impacting progress on multiple levels.1 Most organizations find that people prefer to maintain the status quo rather than push for real change. This has led many HR leaders to explore what factors create more relevant and meaningful employee engagement. 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Carefully planned careers end up becoming irrelevant as talent demands shift. This is a really challenging topic. Even educators in schools and universities struggle with this problem — what jobs and future careers are available to students now and in the future? Constant social, technological and economic changes make this question impossible to answer. Businesses have the best opportunity to help with this challenge — but it requires a shift in focus from jobs to skills. If organizations can move from thinking of jobs as a list of functions to a bundle of adaptable skills that provide value to customers, then we can start to understand where the valuable and transferable skills are in the business. Making this shift also helps leaders talk to employees in a different way about career progression. Using technology, we can help people see the valuable skills they have, the skills that are decreasing in value and skills they need to stay relevant. Technology can also use individual engagement data to help advise employees which experiences excite them and coach them in a direction that will be the best fit for their personality. In addition to technical skills, organizations also need to think about talent for leadership. Maximizing leadership potential is a topic that many organizations care about but that few do well. As the volume of people data increases, helping people build stronger self-awareness is critical, so those who are best fit for people leadership roles can focus on developing the necessary capabilities. The Benefits of Building a More Holistic Employee Value Proposition   Work needs to be elevated from a list of tasks to be completed and instead viewed as a set of actions that have both personal meaning and commercial value. This shift isn't possible unless the HR function starts to think of the employee value proposition in a vastly different way. The most effective value propositions appreciate the whole employee experience rather than just the narrow "economic" role that work plays. It's relatively easy to make a living but it's hard to do work worth doing. A compelling employee value proposition makes an effort to do both. This means thinking past the transactional elements of the employee (pay and benefits) to incorporate more future-oriented elements of the relationships — the opportunity to innovate and create, experience a sense of sustainable wellbeing and develop new skills. The Value of Thriving at Work   Currently, many engagement programs are focused on answering how to get employees to do more for the organization. But the question that should be asked is, "How can the organization and the employee create a shared future together, using technology to create a healthier and more productive experience?" This changes the relationship dynamic and starts to value the contribution people make in a much broader way. HR leaders should look at building tools that help improve employee self-awareness, connecting what employees think about their work and how they behave in a powerful way. In summary, employee survey programs have been failing for years, in part because they have been so narrowly focused on outcomes, like an "engagement index." As technology starts to democratize the way we use employee feedback data, there is an opportunity to use it in a more two-way fashion to coach both individuals and managers. Keeping improved personal experience at the heart of innovations in employee surveys and feedback can help HR leaders make better decisions in adopting tools that will really work. For more information connect with us here: https://www.mercer.com/what-we-do/workforce-and-careers/talent-strategy/allegro-pulse-survey-platform.html Sources: 1. Garton, Eric. "Your Organization Wastes Time: Here's How to Fix It." Harvard Business Review, 13 Mar. 2017, https://hbr.org/2017/03/your-organization-wastes-time-heres-how-to-fix-it. 2. Young, Henry R.; Glerum, David R.; Wang, Wei; Joseph, Dana L. "Who Are the Most Engaged at Work? A Meta‐Analysis of Personality and Employee Engagement." Wiley Online Library, 23 Jul. 2018, https://onlinelibrary.wiley.com/doi/10.1002/job.2303. 3. Goler, Lori; Gale, Janelle; Harrington, Brynn; Grant, Adam. "Why People Really Quit Their Jobs." Harvard Business Review, 11 Jan. 2018, https://hbr.org/2018/01/why-people-really-quit-their-jobs.

Nancy Mann Jackson | 30 Jan 2020

Blockchain technology is not just for high-tech industries; it's gradually becoming an important part of even the most traditional professions, including agriculture. For example, India's Ministry of Commerce and Industry recently announced a blockchain-based e-marketplace for coffee producers. The marketplace is helping bridge the gap between coffee growers and buyers, allowing farmers to drastically increase their income. This initiative reflects a global trend of merging technological advances with agriculture. Blockchain Is Boosting India's Coffee Producers   Coffee produced in India is a premium product, produced by farmers who grow their beans under shade, hand pick them and dry them in the sun. The coffee is sold at premium prices around the world, but the farmers receive only a small portion of the profits, because there are many layers of buying and selling between the grower and the final consumer. The new blockchain-based marketplace app for trading Indian coffee brings growers closer to their ultimate customers, helping them earn fair pay and provide reliable traceability that allows consumers to trace their coffee from bean to cup. For customers, the ability to track the journey of the product they are buying can build trust. From the business perspective, that traceability can result in faster and more accurate recalls, reducing risk of food poisoning. By using the online marketplace, growers no longer have to depend on intermediaries. They can interact directly with buyers and earn fair prices for their products. Exporters can also use the online marketplace to quickly find reliable suppliers and traceable coffee products to meet their needs. When the Indian Coffee Board, a division of the Ministry of Commerce and Industry, introduced the e-marketplace in March 2019, a group of about 20 coffee farmers, exporters, importers, roasters and retailers were already registered on the platform from India and abroad.1 From a user perspective, the platform is easy to use. Coffee farmers can log their product credentials, including their relevant certificates, growing location and elevation, details about the crop and other information. For each lot of coffee sold on the marketplace, the system creates a block. That block and its credentials are then stored on the blockchain throughout its journey and are unalterable, creating a record known as a blockchain ledger. A blockchain ledger is useful for all types of agricultural products because of its ability to record and update the status of crops — from planting and harvesting to storage and delivery. A secure, immutable ledger ensures that large agricultural operators never lose a load and that consumers can access the history and details of their food's background. Agricultural Uses of Blockchain Are Expanding Globally   India isn't the only place where the benefits of blockchain technology are having a positive impact on agriculture. France and Ethiopia have also instituted blockchain marketplaces for coffee, and similar marketplaces are operating or under development around the world for other crops and agricultural products. In China, for instance, e-commerce platform JD.com traces the production, selling and delivery process for beef raised in Inner Mongolia and purchased by customers in Beijing, Shanghai and Guangzhou. By scanning a QR code, a consumer or retailer can see the size and age of the cow, its diet, when it was slaughtered, when the meat was packaged and what the results of the food safety tests were. Another Chinese company uses ankle bracelets on chickens to record the details of each chicken's life using blockchain, providing assurance to consumers that the free-range chicken they're paying for is actually free-range.2 Analysts expect that the blockchain technology market for agriculture around the world will continue to escalate, growing 56.4% from 2018 to 2022.3 Blockchain marketplaces allow producers and buyers to view trade history, local prices and other information that allow them to negotiate prices with confidence. As food producers around the world continue adopting blockchain technology, they bring more efficiency to their supply chains, improving food safety and traceability, as well as profit margins and consumer trust. Clearly, blockchain can bring about positive change in a variety of ways, but adopting and implementing the technology is much easier said than done. In an industry like agriculture, blockchain will have to reshape a decades-old framework, and that won't happen overnight. It's up to leaders everywhere to understand the value of this technology and get their teams on board with implementing it to achieve that value — even if it means starting small. Sources: 1. "Coffee Board Activates Blockchain Based Marketplace in India." Press Information Bureau, 28 Mar. 2019, http://pib.nic.in/newsite/PrintRelease.aspx?relid=189586. 2. Peters, Adele. "In China, You Can Track Your Chicken On–You Guessed It–The Blockchain." Fast Company, 12 Jan. 2018, https://www.fastcompany.com/40515999/in-china-you-can-track-your-chicken-on-you-guessed-it-the-blockchain. 3. "Global Blockchain Technology Market in the Agriculture Sector 2018-2022." Global Banking & Finance Review, 26 Sep. 2018, https://www.globalbankingandfinance.com/global-blockchain-technology-market-in-the-agriculture-sector-2018-2022-market-to-grow-at-a-cagr-of-56-4-with-agriledger-full-profile-ibm-microsoft-ripe-technology-te-food-dominating-rese/.

Jackson Kam | 30 Jan 2020

China is fostering a culture of innovation throughout its society — but most notably in its startup businesses. Multinationals can take advantage of this increased energy by investing in Chinese startups or taking a cue from how the successful ones — the "unicorns" — are meeting the demands of a growing Chinese consumer base. Multinationals must also be mindful of what Chinese workers desire most from employers, which is the ability to have a healthy work-life balance, according to Mercer's Global Talent Trends 2019 study. Currently, this is a very real challenge for employees working at tech startups. Developing a Culture of Innovation   To foster this culture of innovation within its industries, the Chinese government is making it easier for entrepreneurs to experiment and grow by implementing more "benign" business regulations. It's also ensuring that there is efficient infrastructure and local support in place.1 One sector that is particularly thriving under this new spirit is insurtech. For example: ZhongAn Online, a digital insurer backed by Ping An, Tencent and Alibaba, has launched a Software as a Service (SaaS) platform for insurance companies, giving them rapid access to ZhongAn's accumulated data on medical claims, medical insurance directories, drug prescriptions and local hospital information across the country.2 Another insurtech example is the partnership between Rui Xin Insurance Technology and China Lending, which aims to help the insurance company develop its own consumer financial platform offering China Lending's products. The two companies will also collaborate to develop more insurance products and attract more customers on both of their platforms.3 These insurtech partnerships exemplify how China is now setting the stage for experimental collaboration and innovation that challenges the status quo. Taking a Cue From Chinese Unicorns   Across many sectors, thousands of Chinese startups are disrupting industries — and stealing customers from established companies — by developing innovative business models to sell even more innovative products.4 Indeed, China has 120 successful startups, more than half of the 234 unicorns globally.5 Chinese startups are excelling because they can quickly reach scale in the large market, and they can tap a growing talent pool, particularly professionals with PhDs — twice as many as those in the U.S. They are also exhibiting a higher risk tolerance that's enabling them to conduct "fearless experimentation" to push out new products as fast as possible. With the rise of digital disruption, these unicorns are eager to take big risks and put their country back on the map as an innovator.5 How Multinationals Can Leverage This Energy   Hengyuan Zhu, associate professor and deputy chair in the Department of Innovation, Entrepreneurship and Strategy at Tsinghua University, believes that startups are successful because they are practicing "contextualized innovation." This entails collaborating with local customers within the country to make sure products meet the specific demands of those localities — and multinational companies operating in China should take a cue.6 "If they want to be successful, multinational companies will have to give more decision-making power to their local branches in China," Zhu said. "They need to do this so that they can leverage global resources, integrate into the innovation system and innovate in China for Chinese customers." An innovative workplace culture must be counterbalanced for organizations to be successful. For instance, organizations need to be willing to experiment but in a highly disciplined manner. Carefully taking this line of thought into consideration in all aspects of the workplace will ensure the success and application of a productive, innovative culture. Dealing with 996: An Unhealthy Work-Life Balance   There is a rising backlash occurring in the Chinese tech community, particularly among startups, that centers on what is known as "996.ICU." The name comes from the typical work schedule for Chinese programmers: 9 a.m. to 9 p.m., six days a week.7 Some startups are forcing their workers to abide by this schedule, either explicitly or by demanding certain KPIs in an unreasonable amount of time. Others are encouraging these schedules by appealing to long-held beliefs within the Chinese culture. For example, Alibaba founder Jack Ma has stated, "No company should or can force employees into working 996 . . . But young people need to understand that happiness comes from hard work. I don't defend 996, but I pay my respect to hard workers!"7 These sentiments are contrary to what the majority of polled Chinese workers shared during the Global Talent Trends 2019 study — that the foremost condition that would help them thrive in the workplace is the ability to manage their work-life balance. This also ranks ahead of their desire to have opportunities to learn new skills and technologies and have a fun work environment. Multinationals considering investment in Chinese startups or taking cues from unicorns may consider adopting many of the attributes of those successfully innovating while fostering a healthier work-life balance for Chinese workers — which can ultimately benefit the organization's bottom line, as well. Sources: 1. Jun, Zie. "Whole-of-society effort drives technology development in China," Global Times, 25 Jun. 2019, http://www.globaltimes.cn/content/1155732.shtml. 2. Fintech News Hong Kong. "ZhongAn Technology Launches AI-Powered Data Platform for China's Insurance Industry," Fintech News, 14 Aug. 2018, http://fintechnews.hk/6308/insurtech/zhongan-technology-saas-insurance-data/. 3. China Lending Corporation. "China Lending Forges Strategic Partnership with Rui Xin Insurance Technology to Develop Online Financial Services Platform," PR Newswire, 15 Jul. 2019, https://www.prnewswire.com/news-releases/china-lending-forges-strategic-partnership-with-rui-xin-insurance-technology-to-develop-online-financial-services-platform-300884622.html. 4. Greeven, Mark J; Yip, George S. and Wei, Wei. "Understanding China's Next Wave of Innovation," MIT Sloan Management Review, 7 Feb. 2019, https://sloanreview.mit.edu/article/understanding-chinas-next-wave-of-innovation/. 5. Nheu, Christopher. "The Secret Behind How Chinese Startups are Winning," Startup Grind, 1 May 2018, https://medium.com/startup-grind/the-secret-behind-how-chinese-startups-are-winning-44876b196626. 6. Zhu, Hengyuan and Euchner, Jim. "The Evolution of China's Innovation Capability," Research-Technology Management, 10 May 2018, http://china.enrichcentres.eu/sharedResources/users/4807/The%20Evolution%20of%20China%20s%20Innovation%20Capability.pdf. 7. Liao, Rita. "China's startup ecosystem is hitting back at demand-working hours," TechCrunch, Apr. 2019, https://techcrunch.com/2019/04/12/china-996/.

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