Career

Diversity & Inclusion Trends: Emerging Innovations to Watch

12 August, 2019
  • Sophia Powe

    Editor-in-Chief of Voice on Growth, International Region at Mercer

article-img
"HR can help companies leverage D&I to reimagine people management and elevate brand-loyalty among employees, customers and investors."

Learn about the latest diversity & inclusion trends emerging in 2019.

Promoting diversity and inclusion (D&I) in the workplace is a critical element of talent management as it cultivates employee engagement and enhances the employee experience. In an inclusive culture, team members feel valued, respected and accepted as individuals—and are therefore encouraged to fully participate and contribute as their authentic, unique selves. A diverse staff provides companies with different perspectives and new skills that infuse company culture with innovation and creativity, which are key to thriving in digital transformation.

Cultural evolution, emerging markets, advancing technology, generational differences, widespread immigration and a widening skills gap are contributing to an increasingly complex corporate environment that challenges old processes and necessitates new ways of building a workforce.

These forces—while presenting challenges for HR leaders in recruiting, developing and retaining top talent—also open doors. Innovation comes from all corners of the globe. Strong D&I improves a company’s performance because it opens new talent pools and expands points of view and experiences. Businesses that do not recruit from diverse talent pools are at risk of missing out on qualified candidates and incurring higher recruitment costs.

Why Diversity & Inclusions Matters
 

D&I progress not only helps organizations fill positions with qualified candidates more efficiently—it also raises the employer brand, which is becoming increasingly important for attracting the right talent. According to research from Glassdoor, 67% of active job seekers said a diverse workforce is important when considering job offers and 57% of employees think their companies should be more diverse.

Having a diverse, multilingual workforce from varying ethnic backgrounds can also be helpful for companies that want to expand or improve operations in new markets locally, regionally, nationally and internationally. As millions of new internet users sign online each year for the first time, companies have an unprecedented opportunity to communicate and captivate new customers and draw in talent. D&I can help accomplish this, as diverse companies are 70% more likely to capture new markets

A large-scale shift toward diversity and inclusion workplace policies can make waves around the world. For example, the World Economic Forum has projected that correcting gender segregation in employment and developing women’s entrepreneurship could increase productivity globally by as much as 16%.

Trending Now: Diversity & Inclusion
 

The compelling business case for D&I means that more companies will adopt stronger policies and become more adept at integrating a myriad of individuals into one cohesive workforce. D&I will therefore become the norm rather than the exception.

Keeping a strong pulse on the D&I trends emerging in the workplace can help a company stay a beat ahead of the competition and prepare for the future of work.

1.  Deploying artificial intelligence (AI) technology to remove unconscious bias.

Unconscious bias has become a hot topic of the D&I conversation in HR, as companies make strides toward becoming more diverse and inclusive. Companies cannot afford to ignore implicit bias for it has serious consequences on the employee experience, whether in hiring/recruitment, employee feedback, performance reviews, or development. The Center for Talent Innovation found that employees at large companies who perceive bias are:

·  Three times as likely to plan to leave their employers within the year.

·  More than twice as likely to have withheld ideas or solutions in the past  six months at work.

·  Five times as likely to speak about their company in a negative manner on social media.

Even if a company commits itself to fully eliminating unconscious bias, it still proves to be difficult because these predispositions operate automatically and act without us even knowing it. All humans, whether we notice it or not, engage in unconscious bias to some degree. It’s often involuntary and rooted in the brain. Furthermore, there are far too many biases to manually remove them from our decision-making processes.

Because unconscious bias is an ingrained human trait, some experts suggest that the best way to overcome it is via non-human solutions—such as artificial intelligence (AI). A notable feature of AI in HR technology is its potential to mitigate the effects unconscious bias companies face in the hiring and development process. With AI, candidates are sourced, screened and filtered through large quantities of data. The programs combine data points and use algorithms to identify who will likely be the best candidate. These data points are looked at objectively, completely removing the biases, assumptions and oversight that humans are naturally hindered by.

AI for human resource systems can be also programmed to automatically ignore a candidate’s demographic information, such as gender, race and age. It can take a step beyond protecting the basic demographic information and disregard other details that may indicate racial or socioeconomic status, such as school names and zip codes.

When it comes to assessment and development, L&D programs can be strengthened with machine learning to identify high-potential employees with the skills and qualifications the company needs. Strikingly, it has been found that the employees ranked highest by the machine learning software aren’t usually those on the promotion track. Instead these high potential employees may exhibit qualities such as introversion that find them being overlooked when undergoing traditional methods of assessment.

2.  Using data to assess D&I climate, identify focus areas & quantify the success of initiatives.

Among the challenges for implementing D&I initiatives are knowing where to begin, how to focus efforts and how to measure success. When seeking a buy-in from leadership for a diversity program, it is important that the HR department sets out a strategy for quantifying its ROI. To satisfy this, many companies are now turning to data-driven ways of assessing the D&I climate, focusing efforts and determining if an initiative was successful.

Before implementing any D&I initiative, the company’s starting condition—its current D&I environment—should be diagnosed. D&I is a vast realm so narrowing down focus areas can help a company in implementing or improving practices. The diagnosis can help identify focus areas and drive diversity initiatives forward in a tailored way that will fill the company’s distinct gaps.

To gather useful D&I data, some companies conduct regular employee engagement surveys, asking questions that focus on company culture and inclusion. From the onset, these surveys, especially when done consistently, can serve as a barometer of the company’s D&I culture since it is based on first-hand feedback directly from employees.

It is also key to evaluate employee data, such as turnover rates, promotion and salary. Some sample metrics that can be used to assess D&I practices include for each employee: the velocity of mobility (which is the length of time it takes to hire, promote and move up within the company), pathways for employees, percentage of diverse employees with mentors, results of mentorship in terms of career progression and employee engagement. This data can help uncover systemic issues like a gender pay gap. Companies can also look across employee reviews online, such as on Glassdoor, or conduct a social media audit to detect if there is any evidence of bias. 

After all key areas for improvement have been identified, there must be organizational consensus on how to measure changes. Some companies rely on retention and attrition rates of different groups as an indicator for success. When implementing D&I training, it is helpful to perform employee surveys both prior and after to gauging the program’s success.

Storing data from evaluations and all D&I initiatives can help measure changes along the way. The end goal of a more inclusive, diverse team is of course central to D&I but there should also be methods of measuring success along the journey. Each company is different and there will never be a one-size-fits-all approach to D&I but consistent data collection can help companies implement, modify and quantify their success.

3.  Increased leadership accountability & support for D&I programs.

Corporate leadership is recognizing that a solid D&I strategy is not merely a “nice-to-have” add-on carried out solely by the HR department but is instead a business imperative in today’s competitive landscape. Among the best practices for D&I implementation are executive buy-in and a strategic emphasis on D&I as a valued competitive advantage. Some companies are taking it a step further and modifying the structure of an organization’s leadership to enrich its approach to D&I.

In a top down approach, some companies are making headway on D&I by creating an executive role in the form of a chief diversity and inclusion officer. The D&I executive can outline goals, establish targets, identify key improvement areas and then lead the organization through the steps of meeting goals. While this person interfaces with all areas of the organization in various capacities, the D&I’s department takes ownership and spearheads D&I initiatives.

An employee-led grassroots approach forms a decentralized company-wide D&I council that draws on feedback directly from employees. While it still requires executive buy-in, the council’s reach is distributed through the entire workforce. The council appoints representatives from various departments or segments of a company and meets regularly to improve the company’s D&I culture as it pertains to recruitment, engagement and development.

Some companies might opt for a hybrid approach to D&I leadership, which would involve appointing a D&I-specific executive and a D&I council. Instead of being solely led by employees, the D&I council is supported by the HR department and guided by representation from both the D&I executive and employees. Initiatives are cooperatively strategized and outlined by the D&I executive, HR and employees. The three groups agree upon how initiatives will be spearheaded and what role each group will play in their execution.

4.  Interview standardization will continue & reduce bias.

Inconsistent recruitment practices will yield inconsistent (or, even worse, illegal) hiring results and may also open floodgates for unconscious bias in hiring processes. For quality and compliance, HR should have policies in place that ensure the hiring process is standardized from the time they list the job all the way through to when the hired employee steps in the door (or signs online if they’re remote) for their first day of work. Establishing and implementing hiring best practices provides a company’s recruiters with control and guidance for hiring. This type of standardization enhances transparency, allows for a fair comparison of candidates and reduces the risk of violating applicable labor laws. It also helps promote a company’s E&D profile.

Striving for behavioral interviewing methods is an ideal strategy because a person’s behavior is an indication of future performance, especially when it comes to soft skills. According to research from LinkedIn, 57% of HR professionals struggle to assess candidates’ soft skills while 80% report that soft skills are increasingly important to company success. This makes sense because soft skills are one area where automation and AI cannot fully compete with humans.

Many companies want the initial introduction with a candidate to be as blind as possible. This might mean starting out with a phone interview, which will eliminate visually-based unconscious bias upfront. Some companies are taking it a step further to accomplish the “blind interview,” using voice modulation apps for technical interviews so the interviewer won’t know the candidate’s gender or be able to pick up on any accent that might distinguish background attributes of the candidate.

Behavioral interviewing seeks to uncover how an individual will react in critical job situations and can potentially provide more insight about a candidate’s qualification for the job than what is written on their resume or what you hear when you ask a candidate about their professional background. These questions could start with, “What would you do in…” or, “Tell me about a time when you…”

Using an example of a customer service representative interview, the interviewer might present prospective candidates with a hypothetical customer situation and have them explain their approach to addressing it.  

Asking the typical behavioral interviewing questions reduces the risk of legal or ethical pitfalls in the interview questions. Formally planning and asking all candidates the same questions saves time and prevents duplicate questions from being asked by multiple interviewers (unless intentionally done, so as to confirm consistency in the candidate’s response). This brings up another key point of having multiple people interview each candidate when possible. Engaging multiple interviewers can help overcome unconscious bias in interviews and offer a wider perspective for determining a candidate’s standing.

However, even behavioral interview questions can be answered untruthfully by candidates. Pre-employment assessments can validate or negate the data derived from an interview. There are many options available to companies for hiring assessment tools that quantify and use objective, impartial data to evaluate candidates. Results from pre-employment assessments can provide an accurate snapshot of a candidate's strengths and weaknesses. The results can even be input to create hiring benchmarks that candidates can be compared to.

5.  Diversity & inclusion will be embraced across products & services for customers.

D&I has gone mainstream. In the age of customer-centricity, there is mounting pressure on companies across industries to launch inclusive products and solutions that meet the needs of all customers. The 2019 World Economic Forum Annual Meeting identified ‘empathy for the end-user’ as a key competitive advantage for succeeding in the digital age. In the age of digital transformation, companies will have to become more accessible to wider customer bases—and invoke messages and values that resonate with audiences across cultural and geographic boundaries. 

According to LinkedIn, nearly half of employers said that they emphasize the importance of diversity to better represent their customers. This number is likely to grow as customers, who are increasingly accustomed to personalized products and services, will expect D&I to be embedded in the customer experience. Meanwhile, 70% of millennials are more likely to choose one brand over another brand if that brand demonstrates D&I in terms of its promotions and offers.

As an industry that has been spearheading corporate D&I efforts for years, HR has deep expertise and can play a prominent role in leading the customer experience transformation. As companies look to amplify their market-relevance, HR departments will be charged with strategically staffing companies in ways that enrich the D&I profile and foster greater connections with customers.

The moral case for building fairer and more inclusive workplaces is clear: people matter and organizations have an ethical and legal obligation to ensure their people management strategies do not disadvantage any groups. But equally important, D&I has evolved from being an HR-led initiative to being one that is reverberated to all corners of a company as a key business strategy.

As global unemployment reaches its lowest point in 40 years and we enter an employment economy, the hiring landscape is only becoming more competitive. In this landscape, D&I is fast becoming one of the most powerful tools a business has. By keeping pace, HR can help companies leverage D&I to reimagine people management and elevate brand-loyalty among employees, customers and investors. 

more in innovation

Wejdan Alosaimi | 17 Oct 2019

For many decades, Saudi Arabia — as a nation, culture and economic force — has been inextricably tied to oil exports and the energy industry. However, a bold new vision, named Saudi Vision 2030, aims to wean the country off its dependencies on fossil fuels through the creation of sweeping new reforms and policies. This vision looks to modernize Saudi Arabia, both as a domestic society and a global financial powerhouse. The Power of Embracing Change   In 2016, Crown Prince Mohammad bin Salman bin Abdulaziz Al-Saud led the unveiling of the Saudi Vision 2030 initiative, which detailed the nation's unprecedented and extraordinary commitment to emerge as a leader in a rapidly evolving world. As oil prices continue to react to new economic realities and regional political forces shape the roles and objectives of nations throughout the Middle East, Saudi Arabia's decision to proactively embrace change could have extraordinary foreign and domestic ramifications. With a population of more than 33.4 million people and a median age of 25, Saudi Arabia faces a future filled with significant challenges and opportunities.1 Saudi Vision 2030 is a road map for how the nation will empower its millions of young citizens to work and thrive in a globalized world that increasingly views petroleum as an outdated and harmful source of energy. A shift in long-established revenue resources and economic paradigms requires a fundamental shift in local workforce skill sets and proficiencies with modern technologies. As other nations are slow to adjust to climate change and other geo-economic shifts, Saudi Arabia is poised to exemplify to the rest of the world how governments can leverage policy reform to enhance the lives of people both inside and outside the country's borders.2 Accommodating a Complex Global Economy   Saudi Vision 2030 will have a profound impact on rapidly growing economies, such as India, that seek to leverage digital transformation while implementing innovative domestic and workforce policies. In fact, the fate of Saudi Arabia and India are becoming increasingly intertwined, as India — unlike many western economies — requires more oil to empower its robust economic rise. Industrialized markets, in areas such as Europe and the United States, are seeking greener alternatives and more electric vehicles for transportation demands, but India remains heavily dependent on fossil fuels. By 2040, India will need to process up to 10 million barrels of crude oil every day to support its expanding economy and progressively urbanized populations.3 Saudi Arabia, a nation that already has a few notable government policies elevating the standard of living for its citizens (such as offering free college education to all citizens), is further internationalizing its economy by prioritizing privatization. The 2030 plan encourages financial institutions to promote private sector growth, marking a significant development in how the country is aligning its domestic workforces to compete in a globalized economy. The focus on increasing privatization and other non-oil industries — such as construction, finance, healthcare, retail and religious tourism — will create new opportunities for Saudi businesses and entrepreneurs.4 Creating a Future Through Indigenous Resources   Saudi Vision 2030 addresses many of the local, cultural challenges facing the nation, such as the role of women in the workforce and society, the impact of digital transformation and automation, and the need to modernize the sensibilities of Saudi businesses. Allowing women to drive and granting them greater access to economic prosperity — with the goal of increasing women's participation in the workforce from 22% to 30% — has generated positive responses with global investors. The 2030 plan also prioritizes domestic issues and the overall health of its citizens, with the stated objective of raising the average life expectancy from 74 to 80 years and aggressively promoting daily exercise and healthier lifestyles for all Saudi citizens.5 The Saudi government also seeks to bring its society into the digital age by implementing more e-government services that will connect citizens to resources through smartphones, data-centric operations and other technologies. This push will also drive human capital out of government jobs and into the private sector. According to the Mercer Global Talent Trends 2019 report, companies in countries such as India, Brazil, and Japan will experience a 70% increase in automation, boosting their need — like Saudi Arabia — to find new roles and professional development opportunities for workers. The 2030 plan offers an ambitious vision for the nation's indigenous resources. Empowering women and integrating modern technologies throughout its economy and government are just part of this comprehensive strategy. By inviting the global economy to invest in its progressive financial mechanisms and bolster tourism through campaigns highlighting the nation's history, Saudi Arabia is poised to lead its people, and the world, into a future forever defined by a new, modern view of the future. Will it work? The world will know in 2030. Sources: 1. Kingdom of Saudi Arabia. "Saudi Census: The Total Population." General Authority for Statistics, Accessed 11 July 2019,https://www.stats.gov.sa/en/node. 2. Mohammed bin Salman bin Abdulaziz Al-Saud. "Vision 2030." Vision 2030, 9 May. 2019, https://vision2030.gov.sa/en. 3. Critchlow, Andrew. "India is too important for oil titan Saudi to ignore." S&P Global Platts, 6 Mar. 2019, https://blogs.platts.com/2019/03/06/india-important-oil-saudi/. 4. Nuruzzaman, Mohammed. "Saudi Arabia's 'Vision 2030': Will It Save Or Sink the Middle East?" E-International Relations, 10 Jul. 2018, https://www.e-ir.info/2018/07/10/saudi-arabias-vision-2030-will-it-save-or-sink-the-middle-east/. 5. "Saudi Arabia Vision — Goals and Objectives." GO-Gulf, 14 Jul. 2016,https://www.go-gulf.com/blog/saudi-arabia-vision-2030/.

Varun Khosla | 03 Oct 2019

For decades, any conversation involving startups and executive compensation conjured images of Silicon Valley and shiny office buildings full of technology virtuosos working for innovative companies striving to be the next billion-dollar unicorn. Now, a new era of global startups is taking root in previously unexpected regions around the world. In fact, recent research reveals that $893 million was invested in 366 startups throughout the Middle East and North Africa. That number represents a $214 million increase from 2017, which saw $679 million in startup investments.1 Similarly, startups are increasing in Southeast Asia, largely driven by "SEA turtles" — locally born residents who studied and worked overseas (mostly in the West, in places like Silicon Valley) and are returning home to launch their own startup companies. The region has experienced a major inflection point, with VC investors in Southeast Asia investing over $7.8 billion across 327 deals.2 There's one key component all these startups need, however: leadership. But attracting and retaining executive-level talent and management teams can be a major challenge for these burgeoning startup hotbeds, especially when it comes to compensation. Corporate Investors Are Changing Executive Compensation   Many of the world's most recognizable startups were launched by charismatic, individual founding partners, such as Jeff Bezos, Jack Ma and Mark Zuckerberg. However, the rise of these luminaries and their compelling stories do not mirror the new era of startups blossoming around the world. In the Middle East and North Africa (MENA), for example, investment companies are providing the initial financial backing needed to launch startups. These investment companies are there from day one to ensure the startups have the capital needed to secure subsequent rounds of funding. Additionally, the executives of these startups are not the original founders and, therefore, desire different compensation models to secure their continued loyalty, creativity and commitment. Acquiring top C-level talent for startups can be a daunting task, as the risk level is high for businesses that do not have a proven track record — or any record at all. Traditionally, western-based startups have fashioned executive compensation packages around medium- to long-term benchmarks predicated on the company's expected growth, but triangulating growth models, investment strategies and executive payment packages can be a complicated and tenuous proposition. Since most global startups today are built around investment companies instead of inspirational individual founders, these companies must be diligent when determining how or how much to pay the executives — who can ultimately mean the difference between success and failure. How Much Should Executive Compensation Be?   Investment companies naturally want to maximize their profits, which means they want to retain as much equity in the startup and as many shares of the startup as possible. Every dollar, share of stock or option paid to startup executives is money the investment companies surrender to operational costs. However, low-balling startup executives or opting to hire those who aren't as skilled or experienced also comes with the risk of undermining the startup's ability to compete, grow and drive revenue. Financial arrangements that provide management with a potential share of equity (or shadow equity) require careful thought and consideration. An executive compensation plan must act as an incentive and retention device for startup executives while delivering a fair return to investors and shareholders who have funded the company. Investors and shareholders must decide how much dilution of equity they are willing to accept to provide an appropriate equity pool for the management team. This is why many companies decide to execute a scaled approach that decreases the size of the equity pool with each round of funding to accommodate the increasing value of the company. This type of program impacts the dilution of equity and can allow for more creative compensation strategies — particularly when dealing with more sophisticated startups, such as in the pharma and fintech industries, which require the talent and knowledge of more accomplished professionals and leaders. Investment companies can offer either share options, which give employees the right to buy or sell stock at a designated time and price, or full-value shares, which offer employees actual ownership in the company. Both contribute to the dilution of equity, but options typically contribute more to the equity dilution than full shares. For example, an equity pool comprised of options may amount to 15% to 20% of a company's capital, while a pool comprised of shares may amount to as little as 3% to 5%. This indicates the same amount of long-term incentive awards paid in options will lead to higher equity dilution than awarding full shares. Investment companies must determine which strategy best suits their objectives. When to Pay Executives and Management   Should investors pay their executives and management teams only after they have received a return on their investments? Or should executive compensation be based on employees performing their jobs to the best of their abilities, regardless of the outcomes — which are often determined by external economic forces beyond their control. Many startups now implement the former strategy, believing that benchmarks for returns on investments motivate executives and provide them with the extra incentive to do everything possible to create shareholder value. In fact, in a majority of cases, long-term incentive plans only pay out when investors receive a return. Alternately, some startups choose to compensate executives and management based on specific, mutually agreed upon corporate goals and objectives. Compensation can then be provided as cash or shares, though there may be restrictions on when those shares can be sold or vested or whether they come in the form of options or full-value shares. Startups are popping up all over the world, ushering in a new frontier of ideas and innovation, as well as investors and executives who will create the next generation of future unicorns. As new trends continue to emerge for how executives in these startups are compensated, global startups will need to review their options with scrutiny to attract the best executive talent while maximizing returns for investors. Sources: 1. "2018 MENA Venture Investment Summary." MAGNiTT, January 2019,https://magnitt.com/research/2018-mena-venture-investment-summary. 2. Maulia, Erwida. "Southeast Asian 'turtles' return home to hatch tech startups." Nikkei Asian Review, 22 May 2019,https://asia.nikkei.com/Spotlight/Cover-Story/Southeast-Asian-turtles-return-home-to-hatch-tech-startups.

Jackson Kam | 05 Sep 2019

Over the past few years, China has emerged as a powerhouse in the increasingly digitized, e-commerce-driven world. Its digital economy accounted for 38.2% of its GDP growth in the first half of 2018,1 and it also happens to be home to 9 of the top 20 internet companies in the world, including the search engine Baidu, e-commerce behemoth Alibaba and internet services provider Tencent.2 China's success can serve as a lesson for companies and economies around the world that are pushing to remain relevant and keep a competitive edge. Policy Initiatives Help Drive Digitization   One driver behind China's success is the government's focus on shifting to a digital economy. In 2015, China's State Council, the highest organ of state administration, issued a report called "Made in China 2025." The document outlines its strategy for transforming China's manufacturing base through digital innovation. Its strategic goals include greatly increasing manufacturing digitization and "informationization." For instance, within the category of integrating IT and industrialization, the report lists a goal of increasing broadband penetration from 37% in 2013 to 82% by 2025.4 That said, the initiatives outlined have also prompted concern among policymakers across the globe.5 Some fear that an industrial policy directed by the government will include financial assistance to Chinese companies, creating an uneven global playing field. Some also worry about China's investments in foreign technology firms. At the same time, the goals and strategies outlined in the report signal that China's leadership intends to focus on ensuring the country is prepared for an increasingly digital world. Investments Are Bringing the Digital Future Into Focus   To that end, investments in research and development from Chinese companies, research institutes and the government have skyrocketed. Since 2000, it's gone from about $40 billion to $443 billion, just shy of the $484 billion invested within the U.S., according to data from the Organization for Economic Co-operation and Development.6 China is also working to minimize any digital divide between citizens in its major cities and more remote areas. Several provinces have developed plans to digitize their economies. For example, the province of Guizhou plans to grow its digital economy by 20% annually.7 The World Economic Forum also explains that, in what are known as Taobao villages, at least 10% of households run online stores for Taobao, which is the shopping site for e-commerce behemoth Alibaba. Across one such village, this generates e-commerce revenues of at least $1.6 million, and more than 1,000 of these villages dot the Chinese countryside.8 Along with financial investment, policies that enable technology companies to thrive are essential to an economy's digital transformation and success in an e-commerce world. This includes an educational model that helps students develop critical-thinking and problem-solving skills, as well as digital literacy. Moreover, education shouldn't stop once students graduate — instead, it needs to continue through training programs that help those employed stay abreast of advancing technology. Robust capital markets, solid protection for intellectual property and mechanisms to prevent and detect corruption are additional requirements for a strong, innovative technology sector. Collaboration between private and public sectors, such as programs that nurture new businesses, also contributes to a thriving digital environment. Start with Your Employees to Build a Digital Workforce   Businesses, as well as governments, can prepare for a growing digital environment and remain relevant and competitive. Somewhat surprisingly, it makes sense to focus on the workforce first and then the technology. Employees can make or break even the most advanced technology solutions. Here are three requirements for an innovative work culture: 1.  Means: This refers to the tools and authority employees need to conceive an idea, establish the right team, build the business case, and develop and test it. 2.  Motive: Organizations provide motivation by encouraging employees to think beyond their immediate job function and even take risks within a predefined framework. They can also enable them to participate, perhaps through a bonus, in any financial upside resulting from their work. 3.  Opportunity: Employees need time, tools and space for brainstorming and innovation. Agility is also key to an innovative digital workplace. Employees should feel confident collaborating with colleagues across functions and sharing ideas without encountering undue criticism. A solid budget for training will also ensure employees obtain the skills they need to contribute to their employers' success on an ongoing basis. Invest in Technology to Keep Pace with Innovation   Of course, technology plays a vital role in digital success. Constraints, such as inadequate network capabilities and legacy applications that can't integrate with new systems, have impacted the digital transformation activities for three quarters of brands, according to a survey by manufacturing services company Jabil. Fortunately, 99% are investing in new technology to replace outdated platforms that hinder their operations.9 China's rise as a digital power is the result of planning, investment and work — and both companies and countries can learn from their digital efforts and e-commerce successes. Sources: 1 China Academy of Information and Communications Technology (CAICT) under the Ministry of Industry and Information Technology (MIIT), Xinhua News, December 23, 2018,http://www.xinhuanet.com/english/2018-12/23/c_137693489.htm. 2 Heimburg, Fabian von, "Here are 3 lessons Europe can learn from China's flourishing start-ups," World Economic Forum, September 15, 2018,https://www.weforum.org/agenda/2018/09/3-lessons-europe-can-learn-from-china-flourishing-start-up-ecosystem/. 3 World Payments Report 2018," Capgemini and BNP Paribas Services, https://worldpaymentsreport.com/non-cash-payments-volume/. 4 State Council of China, "Made in China 2025," IoT One, July 7, 2015,http://www.cittadellascienza.it/cina/wp-content/uploads/2017/02/IoT-ONE-Made-in-China-2025.pdf. 5 The Made in China 2025 Initiative: Economic Implications for the United States," Congressional Research Service, August 29, 2018,The Made in China 2025 Initiative: Economic Implications for the United States," Congressional Research Service, August 29, 2018,https://fas.org/sgp/crs/row/IF10964.pdf. 6Gross domestic spending on R&D," Organization for Economic Co-operation and Development (OCED), accessed on April 1, 2019,https://data.oecd.org/rd/gross-domestic-spending-on-r-d.htm.https://data.oecd.org/rd/gross-domestic-spending-on-r-d.htm. 7CAICT under MIIT, "China's digital economy surges 18.9%, drives growth," China Daily, July 20, 2017,http://www.chinadaily.com.cn/business/2017-07/20/content_30179729.htm. 8Wenway, Winston Ma, "China's mobile economy, explained," World Economic Forum, June 26, 2017,https://www.weforum.org/agenda/2017/06/china-mobile-economy-explained. 9Digital Transformation Strategies: How are They Changing?" Jabil,https://www.jabil.com/insights/blog-main/how-are-digital-transformation-strategies-changing.html.

More from Voice on Growth

Juliane Gruethner | 31 Oct 2019

International project assignments are one of the current hot topics in global mobility management. A quick poll in conjunction with our Expatriate Management Conference in 2018 showed that, in an increasing number of organizations, the mobility function is responsible for the administration of international project assignments. Nearly 90% of the responding mobility managers confirmed that their organizations have international project assignments, and 80% of respondents are responsible for their administration. With this trend, new challenges are emerging. Let's take a look. Challenge 1: Common Understanding of Terminology   There does not seem to be a common definition of an international project assignment. Mercer's poll showed that about 40% of the responding businesses define an international project assignment as simply an international assignment to a project, regardless of its duration, while 60% specified a period of time. Some organizations also differentiate between project assignments for an external client and internal projects. Apart from the lack of clear definitions, most businesses (73%) do not have any formal policy or regulations for their international project assignments. If they exist, they often overlap with those for traditional long- or short-term assignments. No matter how you approach international project assignments, make sure that your company has a precise definition and corresponding guidelines in place that allow for consistent handling and fair treatment of all internationally mobile employees. For this discussion, we define international project assignments as assignments to client projects abroad, whereas assignments to projects abroad within one organization are called international assignments. Challenge 2: Fair and Equal Treatment   Determining an individual compensation package for an international project assignment differs from traditional forms of international assignment compensation. Some employees may have been hired especially or exclusively for project work. Others are assigned to work on international projects based on short- or long-term assignments or commuter packages. Those differences can lead to inconsistencies in compensation between the assignees — depending on where they come from and how their project assignment is defined in the home country. Clear internal regulations differentiating target groups and assignment types increase the transparency of the mobility program and ultimately increase its acceptance among employees. Challenge 3: Determining the Return on Investment   In Mercer's 2017 Worldwide Survey of International Assignment Policies and Practices, the majority of respondents stated that a business case is required for an international assignment (62%) and that they prepare corresponding cost estimates (96%). However, only 43% track the actual costs against budgeted costs, and only 2% have defined how the return on investment (ROI) of an international assignment is quantified. It is often linked to a mid- to long-term perspective and not easily expressed in pure economic figures. That said, it is possible to track success by means of faster promotions or higher retention rates of expatriates. The ROI of international project assignments, in contrast, is easier to measure. Actual costs can be compared to the original estimate and the price paid by the client. This transparency leads to higher cost pressure, which calls for a greater flexibility with respect to the applicability of existing internal rules and regulations to be able to offer projects at a competitive price. In conclusion, the short-term business value (winning and conducting the project in a profitable manner) and the mid- to long-term value of international assignments (for example, filling a skills gap in the host location or employee development) have to be balanced diligently, which can be achieved by a thoroughly segmented international assignment policy. Challenge 4: Management of Large Numbers of International Project Assignments   Depending on the industry sector, the number of international project assignments in an organization can be extremely high. One of the respondents in the conference poll indicated that they handle about 23,000 international project assignments per year. Therefore, the resources needed in the mobility function will have to be increased or resources reallocated once mobility takes over the responsibility for international project assignments. You should also review the service delivery model, as well as individual procedures, and if necessary, adapt them to enhance the efficiency and effectiveness of the international project assignment administration. Using the right technology can also help streamline processes and make a large number of international project assignments manageable. Challenge 5: Deployment to Unknown Places   International project assignments take place not only in the company's regular assignment destinations but also in new locations at client sites. The company, therefore, may not have any resources in or knowledge about the location. Client resources or external vendors can be used to obtain necessary information or perform necessary services, such as immigration or payroll. In addition, if employees perform services in hardship locations, their safety and security need to be considered. Challenge 6: A Matter of Compliance   When it comes to international project assignments, mobility is regularly asked to deliver results even faster than for traditional international assignments, because requirements tend to come up or change at short notice. However, compliance is as complex as for any other international assignments and needs to be evaluated individually. This is true for external as well as internal compliance issues. Although compliance is regarded as one of the most important aspects by many mobility managers, we have seen that compliance is just the tip of the iceberg, and the list of challenges presented in this first part of the article is not exhaustive. We continue our considerations with the companies' duty of care and possible solutions in part 2  of this article. If you'd like to learn more, click here to get in touch with a Mercer consultant.

Alice Harkness | 31 Oct 2019

Benefits have traditionally been provided on a "one-size-fits-all" model, meaning some employees gain greater value than others. Today, employees increasingly expect more personalized benefits that allow them to flex and utilize benefits depending on their particular needs and life stage. This allows employees to feel they are being treated equally, independent of circumstances (i.e., single or married). It's time to break the mold with a "non-traditional" approach that may include well-being incentives, opt-in/out insurance coverage and a design that allows individuals to claim parents' expenses or pet care expenses. Forward-thinking companies are on this journey already, but many aren't, as HR departments overestimate employee's satisfaction with the status quo. Why? They're afraid to ask. The risk of not asking can result in investing valuable budget on unused or underutilized benefits. Get to Know Your Employees Better   Don't be afraid to ask the tough questions. Gather feedback through engagement "spot" surveys or focus groups on what employees like and dislike in current offerings or what else would be beneficial. While it may be impossible to implement everything, it's a great opportunity to engage. Employees may not know what they need. Use data analytics to better understand what types of benefits (especially health) are being used the most and what's essential. Are people reporting that they want more well-being incentives, yet no one is taking advantage of your discounted gym membership offering? By combining qualitative and quantitative data, you can identify gaps. Sometimes, that gap is not on the offer itself but rather the communication around it. Communication Is Key   We often hear from HR, "Our employees have good knowledge of their benefits; we communicate them every year." This is not enough. Effective communication is key. Employees are time-poor with little patience for reviewing the fine print of policies. Why not get feedback on their preferred channels of communication? Find simple ways to communicate regularly, focusing on different benefit offerings. This can include infographics, interactive landing pages, videos or simply shorter, bite-sized information. Don't forget to tell employees why certain benefits are important — they don't always know! Flexible Doesn't Always Equate to $$$   Providing personalized benefits can be costly, but it doesn't have to be. It's about taking your current budget and creatively investing in employees in a way that resonates. Another benefit is confidence in knowing your investment is being used. Companies who invest the time in designing benefits that resonate with employees — throwing out the traditional approach by embracing new ways of more personalized thinking — will see a greater return on investment and a happier, more engaged workforce.

Wejdan Alosaimi | 17 Oct 2019

For many decades, Saudi Arabia — as a nation, culture and economic force — has been inextricably tied to oil exports and the energy industry. However, a bold new vision, named Saudi Vision 2030, aims to wean the country off its dependencies on fossil fuels through the creation of sweeping new reforms and policies. This vision looks to modernize Saudi Arabia, both as a domestic society and a global financial powerhouse. The Power of Embracing Change   In 2016, Crown Prince Mohammad bin Salman bin Abdulaziz Al-Saud led the unveiling of the Saudi Vision 2030 initiative, which detailed the nation's unprecedented and extraordinary commitment to emerge as a leader in a rapidly evolving world. As oil prices continue to react to new economic realities and regional political forces shape the roles and objectives of nations throughout the Middle East, Saudi Arabia's decision to proactively embrace change could have extraordinary foreign and domestic ramifications. With a population of more than 33.4 million people and a median age of 25, Saudi Arabia faces a future filled with significant challenges and opportunities.1 Saudi Vision 2030 is a road map for how the nation will empower its millions of young citizens to work and thrive in a globalized world that increasingly views petroleum as an outdated and harmful source of energy. A shift in long-established revenue resources and economic paradigms requires a fundamental shift in local workforce skill sets and proficiencies with modern technologies. As other nations are slow to adjust to climate change and other geo-economic shifts, Saudi Arabia is poised to exemplify to the rest of the world how governments can leverage policy reform to enhance the lives of people both inside and outside the country's borders.2 Accommodating a Complex Global Economy   Saudi Vision 2030 will have a profound impact on rapidly growing economies, such as India, that seek to leverage digital transformation while implementing innovative domestic and workforce policies. In fact, the fate of Saudi Arabia and India are becoming increasingly intertwined, as India — unlike many western economies — requires more oil to empower its robust economic rise. Industrialized markets, in areas such as Europe and the United States, are seeking greener alternatives and more electric vehicles for transportation demands, but India remains heavily dependent on fossil fuels. By 2040, India will need to process up to 10 million barrels of crude oil every day to support its expanding economy and progressively urbanized populations.3 Saudi Arabia, a nation that already has a few notable government policies elevating the standard of living for its citizens (such as offering free college education to all citizens), is further internationalizing its economy by prioritizing privatization. The 2030 plan encourages financial institutions to promote private sector growth, marking a significant development in how the country is aligning its domestic workforces to compete in a globalized economy. The focus on increasing privatization and other non-oil industries — such as construction, finance, healthcare, retail and religious tourism — will create new opportunities for Saudi businesses and entrepreneurs.4 Creating a Future Through Indigenous Resources   Saudi Vision 2030 addresses many of the local, cultural challenges facing the nation, such as the role of women in the workforce and society, the impact of digital transformation and automation, and the need to modernize the sensibilities of Saudi businesses. Allowing women to drive and granting them greater access to economic prosperity — with the goal of increasing women's participation in the workforce from 22% to 30% — has generated positive responses with global investors. The 2030 plan also prioritizes domestic issues and the overall health of its citizens, with the stated objective of raising the average life expectancy from 74 to 80 years and aggressively promoting daily exercise and healthier lifestyles for all Saudi citizens.5 The Saudi government also seeks to bring its society into the digital age by implementing more e-government services that will connect citizens to resources through smartphones, data-centric operations and other technologies. This push will also drive human capital out of government jobs and into the private sector. According to the Mercer Global Talent Trends 2019 report, companies in countries such as India, Brazil, and Japan will experience a 70% increase in automation, boosting their need — like Saudi Arabia — to find new roles and professional development opportunities for workers. The 2030 plan offers an ambitious vision for the nation's indigenous resources. Empowering women and integrating modern technologies throughout its economy and government are just part of this comprehensive strategy. By inviting the global economy to invest in its progressive financial mechanisms and bolster tourism through campaigns highlighting the nation's history, Saudi Arabia is poised to lead its people, and the world, into a future forever defined by a new, modern view of the future. Will it work? The world will know in 2030. Sources: 1. Kingdom of Saudi Arabia. "Saudi Census: The Total Population." General Authority for Statistics, Accessed 11 July 2019,https://www.stats.gov.sa/en/node. 2. Mohammed bin Salman bin Abdulaziz Al-Saud. "Vision 2030." Vision 2030, 9 May. 2019, https://vision2030.gov.sa/en. 3. Critchlow, Andrew. "India is too important for oil titan Saudi to ignore." S&P Global Platts, 6 Mar. 2019, https://blogs.platts.com/2019/03/06/india-important-oil-saudi/. 4. Nuruzzaman, Mohammed. "Saudi Arabia's 'Vision 2030': Will It Save Or Sink the Middle East?" E-International Relations, 10 Jul. 2018, https://www.e-ir.info/2018/07/10/saudi-arabias-vision-2030-will-it-save-or-sink-the-middle-east/. 5. "Saudi Arabia Vision — Goals and Objectives." GO-Gulf, 14 Jul. 2016,https://www.go-gulf.com/blog/saudi-arabia-vision-2030/.

back_to_top