HR Trends: Learn What's Shaping The Human Resources Space

22 July, 2019
"While new HR technology trends and evolving values are disrupting talent management and changing how companies operate, the workforce is still people-centered."

Learn about fascinating HR trends that are emerging in the human resources space in 2019 and beyond.

We live in the age of disruption, guided by emerging technologies, public policy developments and shifting cultural values. While every industry, job and organization races to keep pace with rapid changes, the human resources industry is on the front line of responding to movements in how we live and work. HR professionals, armed by new technology amid a deluge of innovation, are charged with implementing solutions across all phases of talent management while also agilely accommodating the evolving expectations of employees and job seekers.

According to Mercer’s Global Talent Trends 2019 report, a staggering 73% of HR leaders predict significant industry disruption in the next three years—up from just 26% in 2018. For example, more than half of the HR departments surveyed believe that artificial intelligence automation (AI) will replace one in five of their organization’s current jobs. However, AI and automation will also create 58 million net new jobs by 2022, according to estimates from the World Economic Forum, which will keep recruiters and hiring managers busy for years to come.

The unprecedented restructuring of the workplace—powered by smart technology—presents boundless opportunities for the HR industry, well into the future. But the shifting workplace and a widening skills gap also demand that a company’s HR team aptly respond to emerging trends to stay ahead of the curve. Organizations that fail to implement new workforce strategies will fall behind the competition when it comes to talent management and meeting human capital needs.

The following HR trends are impacting companies of all sizes across various industries and represent tremendous opportunities for HR leaders to adapt, plan and strategize for the future of work:

1.    Organizations are increasing their employee engagement spending to create experiential workplaces.

Employee engagement—the level of emotional connection, involvement and commitment that an employee has with their organization—is a critical tool for maintaining a healthy bottom line. Dedication and enthusiasm grow when employees feel valued and empowered in the workplace. In turn, employee engagement also increases employee retention, enhances performance and maximizes productivity.

Companies suffer when employee engagement is low and unfortunately many companies currently suffer from poor engagement. As Gallup reports, only 13% of over 31 million respondents worldwide are truly engaged at work. HR professionals are observing the problem with 43% reporting low or declining employee engagement as a top concern for their organization, according to Mercer’s Global Talent Trends 2019 report.

It is expected that organizations will respond to these concerns by ramping up efforts to boost employee engagement. More specifically, these efforts will be aimed at redesigning the employee experience. Organizations will strive to create a company culture that people want to contribute to and be an integral part of each workday—not just a place where they report to so they can receive a paycheck. Some examples of this effort might include regular pulse surveys and transparency reports, employee-centric events, experiential onboarding programs, rewards programs, thank you cards, employee-led teaching sessions, wellness programs, social media campaigns, personal coaching, and stay interviews to retain top talent.

The added investment in employee engagement will likely pay off for companies, as experiential organizations have more than four times the average profit and more than two times the average revenue.

2.    Organizations are leveraging artificial intelligence (AI) technology to eliminate unconscious bias.

While many companies want to remove unconscious bias from the hiring process, it proves to be difficult because these predispositions operate automatically and act without our awareness. Furthermore, there are far too many biases to manually remove them from our decision-making processes.

Unconscious bias is an ingrained human trait and some experts therefore suggest that the best way to overcome biases is via non-human solutions. A notable feature of AI is its potential to mitigate the effects of unconscious bias in the hiring 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 susceptible to.

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

AI offers the opportunity for human resource professionals to cross-check results with the processes in place, identifying where unconscious bias may exist. Unlike traditional methods, the results of AI can be tested and validated by creating a profile based on actual credentials of successful employees, providing hard data that either validates or disputes beliefs about what qualifications to search for in candidates.

3.    More companies will use virtual reality-based sexual harassment training.

Though training programs are widely in place to address sexual harassment, it still remains a pervasive problem in the workplace. Historically, sexual harassment has been viewed by companies through a legal and risk mitigation lens. With many companies still drawing from content that focuses on how to avoid litigation, they are not being prescribed actual strategies to prevent harassment in the first place.

But some companies are now employing virtual reality (VR) programs to prevent workplace incidents, placing employees directly in training scenarios that unfold depending on how the user reacts. By mimicking conversations, VR-based programs invoke a deeper sense of empathy and make employees more acutely aware of social cues beyond just what they’re saying to another employee—such as eye contact, body language and personal space.

VR is an effective sexual harassment prevention tool—more so than the traditional videos, presentations or handouts—because it allows employees to learn under the same conditions they would be in if the situation were to actually occur in the workplace. As more personal stories of harassment are shared and society takes measures to address the epidemic of sexual harassment in the workplace, it is likely that more companies will update their approach and adopt immersive VR-based programs.

4.    Companies are implementing remote-friendly work arrangements that enhance engagement.

To compete with the gig economy and respond to demands for work-life balance, more employers are taking a cue from startups to offer flexible work arrangements, including flextime and telecommuting options. As coworking spaces grow in popularity and millennials and Gen Z become more prominent in the workplace, organizations are pushed to recognize the value of hiring remote workers. Flextime arrangements are also seen as a means of accommodating rising demand for work-life balance.

It is clear that the demand for flexible working is increasing year on year. Worker demand for remote working capability has reached 75%, up from 70% in 2017.

The benefits of a remote workforce go beyond just higher employee satisfaction and well-being though. It has been found that remote workers can be more productive, healthier and help companies reduce costs. Furthermore, it allows companies to draw from a larger pool of prospective employees to attract the world’s best talent.

Upcoming trends in remote work will find companies addressing some of the engagement and IT challenges that arise when your employees are logging in from locations around the globe. Companies will explore specialized technology regulations, onboarding, training, engagement, wellness initiatives, and events aimed at engaging the remote workforce.

5.    Learning and development (L&D) is becoming more personalized.

The golden age of choice, flexibility and control is upon us. As consumers, we are accustomed to enjoying personalized experiences based on our unique needs. For example, we can customize our news feeds to show us the updates and specific topics we want to see. Netflix recommends programming we may be interested in, based on our previous activity.

Historically, HR practices have focused on standardizing L&D for a company, offering “one-size-fits-all” solutions that put the company’s needs as the starting point. But, going hand in hand with the need for higher employee engagement, the traditional approaches to L&D are no longer cutting it in the new workplace. The expectations for training programs have advanced from simple content tutorials to adaptive machine learning experiences that are tailored to the unique needs, levels, functions, preferences, and interests of each individual employee.

Companies that adopt personalized L&D tools will save money in the long run, turn out more productive employees and make processes more effective. This is because personalization detects behavior patterns and reveals correlations in such behavior among employees. As similarities and parts start to be identified, employees can then be segmented accordingly. Through this segmentation, HR leaders are able to effectively deliver relevant L&D content that meets the individual needs and goals of each team member.

6.    Companies are using people analytics to improve processes.

For years, people analytics was considered just a small part of the HR function. But companies today are using people analytics as a critical business instrument that can be applied at every level of an organization, ranging from the recruiting process all the way to talent management.

When it comes to performance management, people analytics helps remove the human bias that often comes with evaluations. It also allows for an evaluation of both the process and outcome, which can help HR teams separate variables (such as luck) from real skill. Overall, people analytics can help paint a more clear, structured and honest picture of an organization’s performance.

When it comes to staffing, people analytics can increase the chances of finding the right people for the right jobs. It can also be useful for building employee engagement and satisfaction, as it cultivates data about employees’ attitudes and moods. It can also facilitate collaboration within an organization, providing insights about how well certain people and groups work together.

As staffing, collaboration and performance processes are improved, people analytics can then be leveraged to help the HR team uncover employee behavior patterns, track employee development within the company and monitor employee engagement.

7.    The employer brand is becoming a critical recruitment and retention tool.

In today’s competitive hiring landscape, the HR department is being tasked with marketing the company to recruits and employees. People are increasingly wanting to work for a company whose values align with their own. In an international Glassdoor study, 77% of workers said they would consider a company's culture before applying and millennials reported that they care more about work culture than salary. Meanwhile, applicants and employees also have access to more information than ever before. For example, numerous websites allow for employees to write about the company culture and social media can allow for partners and customers to share experiences.

The employer brand is therefore becoming an important tool for HR, often deciding if an applicant will say yes to a job offer or whether a current employee will stay long term. Applicants are coming to interviews not just aware of an employer’s advertising campaigns and brand communications. They also readily read up on the company’s charitable giving and the way it treats employees. Meanwhile, current employees are more conscious of the company’s corporate social responsibility activities and the way it treats partners and contractors. If values don’t align, a company could miss out on prospective talent and lose valuable employees.

8.    Robotics and autonomous (HR technology) agents are saving valuable time.

Within the realm of AI, many companies are incorporating chatbots and apps into their HR systems. This can provide immediate and consistent answers to common questions related to holiday leave, compensation, benefits, company policies and legal rights.

As self-service platforms, the bots and apps free up time for both employees and employers while still delivering the right information at the right time. This HR technology also allows the team to focus on more urgent questions and complex issues that require special attention.

9.    Nudge-based technologies are facilitating work flow.

HR technology is being implemented to suggest behaviors for employees and improve workflow. For example, a software program can monitor employee activity at a computer workstation and, after a certain amount of time, send a message to the employee that it might be time to take a break. Technology can also analyze data from e-mail, calendars and internal collaboration systems to measure a manager’s productivity and provide suggestions for how they might be able to improve their team’s performance. It can also let them know how much time they spent with each of their direct reports or how many emails were exchanged ahead of a project.

Nudge-based technologies can also be used in lieu of repetitive communication from the HR department. For example, automatic reminders can be sent to managers to fill out performance evaluations.

10.    The skills gap can only be closed by hiring lifelong learners and offering constant reskilling.

Gone are the days of vertical careers, fixed titles and detailed job descriptions. The workforce is shifting from fixed job titles and detailed job descriptions to ever-revolving roles. It doesn’t matter how talented or motivated new hires fresh out of university are—nor what stellar technology training they’ve received. At the current pace of technology growth, chances are that many of these technical skills will be obsolete within a few short years.

It is therefore no longer enough to hire for the skills in demand today. Companies need to focus on hiring lifelong learners who have the ability to constantly learn new skills and navigate technology that might not even yet exist. This often requires a deeper assessment of a candidate’s soft skills and personality, not just their past history. To help delve into these traits—which do not often appear on a candidate’s resume—some organizations are implementing virtual reality, automated simulations and gaming tools in their recruiting. These HR technologies can help them observe how a candidate handles unfamiliar situations in real-time and how effectively they absorb new information to troubleshoot nebulous problems.

Because many of the skills of tomorrow don’t even exist yet, employers won’t be able to always adequately recruit for them. Some companies are looking inward to develop these skills within their current workforce, providing current employees with constant access to training and offering them meaningful incentives to continuously reskill.

While technology demands new skills and experiences from workers, the hiring landscape is also becoming more competitive for employers. These compound trends can make it difficult for HR teams to keep up with hiring needs. Instead of constantly hiring for new skills and restructuring staff, HR departments can help fill the widening skills by ensuring that lifelong learning becomes an embedded part of company culture.

The future of HR innovation presents both challenges and opportunities for companies around the globe as they compete for top talent. While new HR technology trends and evolving values are disrupting talent management and profoundly changing how companies operate, the workforce is still people-centered. As companies look to adopt new workforce strategies, the successful ones will look at these bourgeoning trends through the lens of the human experience to identify what will best inspire and innovate.


Bart Hermans | 19 Sep 2019

Addressing human capital risk early and in a clear and methodical way is fundamental to driving deal value in M&A transactions. Prime examples of people risks that can severely undermine deals and destroy value are poorly executed integrations, failure to consider culture and organizational fit, inability to retain top talent, and lack of clarity in employee communications. High-performing HR M&A teams combat these common risks by developing an HR M&A playbook that establishes a common approach to initiating and managing transactions. While every team’s HR M&A playbook is different, there are key elements that should exist in all playbooks. First, the playbook must be a practical, how-to guide. HR M&A playbooks have traditionally served as a comprehensive encyclopedia, complete with process maps for each HR workstream and every possible deal scenario. While these playbooks have great content, when a deal comes in, the HR team has a difficult time using them, and as a result, the playbooks are often thrown to the side. In order for a playbook to be effective, it must be used. Your HR M&A playbook must provide enough guidance for the HR team to do their job effectively while avoiding information overload. The HR team must also be able to adapt the playbook for any deal scenario. It’s a difficult balance to strike. Second, the playbook must define HR’s role throughout the deal life cycle. To maximize deal value, HR must operate as a strategic partner and be able to clearly articulate where they fit in the deal context and how their involvement mitigates risk and achieves deal objectives. A well-defined playbook helps both new and experienced members of the HR deal team understand the role they play, and enables them to quickly start working through deal-specific issues. Clearly delineated tasks and established decision-making parameters also inspire confidence in team members and ensure HR alignment with other business teams, including finance, legal and IT. Throughout the transaction, structured collaboration across the organization is vital to prevent teams from making crucial decisions in isolation. In this environment, HR can execute faster and immediately add value to the deal — which is the ultimate goal. Third, the playbook must include due diligence. All too often HR is engaged on the deal just before or at close, which prevents them from conducting thorough due diligence. This is compounded by today’s sellers’ market, where buyers face shortened due diligence periods and, increasingly, a lack of data from the seller. By not engaging HR early, companies are taking on unnecessary risk that could materially impact the deal price, integration strategy and timelines and could even result in a “no-go” decision or diminished synergies. Common HR issues uncovered during due diligence include Change-In-Control triggers in executive agreements, high-cost severance commitments, retention risks, significant cultural gaps, underfunded defined benefit pensions, and compensation and employee benefit plan compliance issues. An effective M&A playbook not only includes due diligence tools to ensure the right data is requested and red flags are identified quickly, but also builds the business case for why Corporate Development should engage HR early on. Fourth, the playbook should outline your preferred integration approach. While every deal is different and exceptions are common, it is important to align with your HR and business leadership team on your preferred integration approach (or different approaches for common deal types) upfront. As part of this process, you agree on the ideal integration outcomes by workstream; understand the timing, budget and resource requirements to adopt this approach; and establish an approval process for exceptions or deviations. With your approach outlined, when a deal comes in, you have a starting point, can quickly review each workstream, determine if the deal thesis requires an exception and, if so, follow the established approval process to obtain the exception, and move forward with execution. This will significantly accelerate the deal execution and contribute to the synergy realization. The integration strategy must be designed to achieve the results articulated in the deal thesis. While the M&A vision often belongs to the CEO, HR owns the execution from a people perspective. Your preferred HR integration approach should be rooted in your business strategy and address all people-related aspects of the deal. Your integration approach should be set up to achieve: ·  A clearly articulated go-forward operating model and organization structure ·  Consistently defined roles, responsibilities and decision rights ·  A company culture that supports go-forward business objectives ·  A plan to identify and retain critical talent ·  A plan to objectively identify roles and individuals for release (as needed) ·  A rewards structure aligned with business priorities ·  A unified and consistent communications plan to socialize changes across departments ·  Resources to support cross-training and employee acclimation ·  Continuity of fundamental HR functions, such as payroll and benefits administration Fifth, your playbook should include project management tools. Project management throughout the M&A transaction is vital. Setting milestones and success metrics, documenting key activities, and ensuring their timely completion are required to meet pre- and post-acquisition financial goals. Robust activity list templates are a central component of any playbook. These tools offer a starting point for each HR workstream to develop a comprehensive project plan guided by the company’s particular deal outcomes. These tools can be leveraged to ensure key steps are taken and to track results achieved along the way, such as early synergy savings. An agile playbook is ever-evolving. At the end of each deal, it is incumbent upon the HR Project Management Office to conduct a postmortem and incorporate any new best practice learnings into the playbook. Last, a playbook is only as good as the team implementing it, so it is critical to spend the time upfront training the HR team on how to use the playbook and when it makes sense to enlist external advisors to supplement the team to address specific M&A issues. A well-executed M&A transaction keeps your most valuable asset — people — at the center. Given the significant people risks associated with deals, HR M&A readiness is a business imperative, and that begins with the ability to inform and orchestrate value-driven change. Anticipating deals, preparing for them early, building internal systems and leaning on external expertise equip the HR team to be a valued member of the deal team. By investing in an agile M&A playbook, companies can position their HR team to effectively support the business in all future transactions, engage the workforce and help deliver business results for both the short and long term. For further information, visit our M&A website at

Fiona Dunsire | 05 Sep 2019

The markets across Latin America, the Middle East, Africa and Asia are some of the most exciting in the world, amid a backdrop of economic growth and changes in demographics, investment markets and regulations. Mercer's Growth Markets Asset Allocation Trends: Evolving Landscape report examined retirement plans in 14 of these markets, with a look at current investment positions and changes over the past five years. The study included retirement fund assets of almost $5 trillion across markets in the Southern and Eastern hemispheres. These areas offer exciting potential for asset owners, managers and investors, as almost 70% of global growth now comes from these economies, according to the World Bank. We are also seeing a rapid expansion of the middle class, creating different patterns of consumption and savings. In addition, half of the top 50 global institutional investors are located in these markets.1 The Global Investment Landscape Is Becoming More Robust   Because the economies of Latin America, the Middle East, Africa and Asia are large and growing, with a rising share of wealth being held by individuals, they are of particular interest to investors around the world. These markets are also becoming increasingly open to foreign investors. At the same time, regulatory changes within these regions are allowing domestic investors to invest more broadly and outside their home markets. All these developments translate into a more open and robust investment landscape, with increasing opportunities for investors across the globe. The pension and savings systems in these regions are also undergoing reform, with the same trend toward increasing individual responsibility for retirement savings as seen in Western countries. Overall, we are seeing a shift to defined contribution (DC) plans at the expense of defined benefit (DB) plans across both corporate and government-sponsored schemes. These changes further emphasize the need to deliver effective investment solutions to meet future savings needs and ensure trust in the systems. 3 Ways Investors Are Responding   Investors and plan managers are responding to the changing environment in three key ways: 1.  More investors are putting money in equities. In the past five years, equity allocations rose approximately 8%, from 32% to 40%. For investors in many jurisdictions, the shift was intended to increase expected returns on the portfolio. Investors across the world face challenges amid an increasingly competitive investment landscape and a low return environment. Adding equities to the portfolio mix should offer greater return expectations over time. 2.  Market liberalization is enabling more diversified portfolios, through increased exposure to foreign assets at the expense of domestic assets. On average, foreign exposure in retirement plans increased from 45% of the overall equity portfolio to 49% in the past five years. Investors sought greater geographic diversification, especially in Colombia, Japan, South Korea, Malaysia and Taiwan. In some countries, such as Brazil, Colombia, Peru and South Africa, recent changes in legislation now allow increased foreign asset exposure. In Japan, the Government Pension Investment Fund has seen a move to more foreign equities at the expense of domestic equities in recent years. The shift to foreign assets was also present in fixed income, with the proportion of foreign allocations rising from 16% to 23%, in part due to less attractive local interest rates, as well as a search for increased diversification. Significant home biases remain; however, we expect this trend to continue as regulatory changes support broader global investment. 3.  Investors are showing slightly more interest in alternative investments. More investors are including alternatives in their portfolios, and Mercer expects that trend to continue on an upward trajectory. Among those investors who provided details on their alternatives asset allocations, more than 70% of the average allocations went to property and infrastructure, and approximately 20% went to private equity. Changing regulations have made alternatives more attractive for investors in some areas. For instance, in Chile, a 2017 reform to the investment regime passed, allowing pension managers to invest in alternatives up to 10%, though specific limits vary by portfolio. The main objective of this enhancement is to boost returns and ultimately retirement incomes. As investors seek to diversify their portfolios and seek return enhancement, we expect alternatives exposure to continue to grow over time. We hope investors use our report's findings as an opportunity to review their own portfolio and determine where they can improve their asset allocation to achieve even better investment outcomes. To learn more, download the full report here. Sources: Top 1,000 Global Institutional Investors." Investment & Pensions Europe, 2016.

David Anderson | 22 Aug 2019

The smart city. The connected city. The intelligent city. The agile city. The data-driven city. The integrated city. The blockchain-powered city. The sustainable city. The future-proof city. There is no shortage of vision, aspiration and genius when it comes to today's cities. Still, they must attract foreign direct investment, along with blue-chip firms, start-ups and top talent, and have access to the best technology to drive growth. But growth in the world's GDP won't come from the same old sources. It will follow the fortunes of tomorrow's most competitively smart cities, many of which are overlooked urban areas with opportunities to leapfrog established megacities that were once the de facto homes to the world's most successful employees and businesses. Through investment in information and communication technologies that enhance the quality and performance of urban services, such as energy and mobility, these smart cities are competing for the highly skilled workers who will sustain their organizations and ensure growth. The Questions Facing Employers and Talent   Deciding where to work, live and raise their families, these employees prioritize the human and societal factors cited in Mercer's recent study, People First: Driving Growth in Emerging Megacities. Workers were asked to rank 20 decision-making factors by importance against four vital pillars: human, health, money and work. When deciding which city to live and work in, respondents ranked human factors — such as overall life satisfaction, safety and security, environmental considerations and proximity to friends and family — as the most important. The study also looks at how some of the fastest-growing global cities, from Kolkata, India, to Lagos, Nigeria, grow economically, attract people, enable new residents to thrive and lay a path toward a better life for its citizens. From these insights, city leaders and policy makers around the world can glean valuable lessons on what is not only needed to sustain but also power growth. Indeed, in an increasingly urbanized world, where highly skilled talent is scarce, employers and cities are asking important existential questions: ·  What makes professionals move to and stay in a particular city? ·  How can employers and cities retain talented workers with the high-level skills demanded by rising start-ups, upcoming unicorns and global brands in emerging hot spots? ·  What, exactly, do productive employees want from an employer and home city? The answers may lie in how well the world's emerging megacities prioritize their transformation from urban afterthoughts to global power players. Thus, it's helpful to take a comparative look at a sampling of cities that show serious potential to succeed and sustain their success over the long term. What they have in common is a commitment to regional superiority of opportunity and resources, to establishing themselves, in their way, as versions of Silicon Valley — where tomorrow's most highly skilled talent can thrive, building purposeful lives amid the evolution of artificial intelligence and advanced technology. From 'Cyberabad' to Other Contenders   A prime example of an emerging megacity is Hyderabad, the capital of India's southern state, Telangana. With a population of eight million, Hyderabad is the sixth most populous urban agglomeration of India and is popularly known as Cyberabad — the "Silicon Valley of India" — for its growing reputation as a global hub for information technology. (Megacities are defined as having populations of 10 million or more; the cities discussed in this article have either reached that milestone or are projected to.) Along with IT, though, Hyderabad is experiencing growth in the automotive industry and pharmaceuticals, as well as its traditional agricultural base. With extensive investment in digital and property infrastructure, the city is upgrading itself to host IT companies, especially via the development of its HITEC City, a township with state-of-the-art tech facilities for American IT giants. Retail has thrived, as well, as international and national brands open stores in the city. By contrast, the somewhat larger city of Chennai (a 2017 population of 9 million and a $59 billion GDP as of 2014) is known as the "Detroit of India" and leads the nation's automotive industry, but growth in software services, medical tourism, financial services and hardware manufacturing (along with petrochemicals and textiles) also add to its economic depth. It's also a major exporter of IT and business process outsourcing services. For sheer economic scale, the emerging megacities of China are impressive. With a 2014 GDP of $234 billion and a 2017 population of 14 million, Chengdu is Western China's No. 1 metropolitan area, and it thrives with emerging industries — notably an energy conservation and environmental protection industry that makes it an attractive destination for skilled workers. Indeed, the emphasis on "new energy" industries (in materials, hybrid and electric automobiles and IT) is propelling Chengdu. Meanwhile, China's second largest eastern city, Nanjing (with a 2014 GDP of $203 billion and a 2017 population of seven million) is dominated by service industries, led by financial services, culture and tourism. IT, environmental protection, new energy and smart power grids are becoming additional pillars of Nanjing, and a wealth of multinational firms have been establishing research centers there. Nanjing's unemployment rate has been below China's national average for several years. From Kenya to Jalisco   While China and India may dominate the scale of emerging economies, other geographies are very much on the emerging megacity map. Nairobi is not only the capital and largest city in Kenya; it is also on track for population growth from four million in 2017 to 10 million by 2030. Home to more than 100 international organizations, such as the United Nations Environmental Programme and The World Bank, as well as regional headquarters for major manufacturing and IT corporations, Nairobi shares its agricultural preeminence with a foothold in today's and tomorrow's economy. Likewise, Guadalajara (a 2014 GDP of $81 billion; 2017 population of five million) is more than the capital and largest city of Mexico's Jalisco state. It's known as the "Mexican Silicon Valley," according to the Financial Times, and is considered the city with the highest investment attraction potential in Mexico. It's the sort of social/cultural center — with an International Film Festival and International Book Fair — that strongly complements the growth of high-tech industry, chemical and electronic manufacturing, making it a hemispheric magnet for talent. These cities each make their case for talent in their own ways, creating an environment for highly skilled employees to thrive across multiple dimensions. This requires putting people first and focusing on what matters most to them. Mercer's Emerging Megacities study shows that employers often misunderstand what motivates people to move to a city and remain there: Human and societal factors are more important than money and work factors. For emerging megacities, the model of Silicon Valley may be a potent aspirational strategy, but in each case, they must prove themselves as places to live—today and tomorrow. Originally published in BRINK News.

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Abdulaziz Alajlan | 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, 2. Mohammed bin Salman bin Abdulaziz Al-Saud. "Vision 2030." Vision 2030, 9 May. 2019, 3. Critchlow, Andrew. "India is too important for oil titan Saudi to ignore." S&P Global Platts, 6 Mar. 2019, 4. Nuruzzaman, Mohammed. "Saudi Arabia's 'Vision 2030': Will It Save Or Sink the Middle East?" E-International Relations, 10 Jul. 2018, 5. "Saudi Arabia Vision — Goals and Objectives." GO-Gulf, 14 Jul. 2016,

Patrick Hyland, PhD | 17 Oct 2019

Feeling stressed by your management responsibilities? If so, you're not alone. In our latest norms, we found that just 67% of leaders and managers think the level of stress they experience at work is manageable; the other third was unsure or overwhelmed. A similar percentage said they struggle to maintain work-life balance. Just half of leaders and managers feel they have enough time to do a quality job, and only 48% feel they can detach from work. These results suggest that anywhere from a third to a half of leaders and managers are struggling to cope with the challenges of their job. When confronted with statistics like these, some just shrug and sigh: "Stress is part of the job, isn't it?" Based on a growing body of research, that's a dangerously defeatist perspective. Aside from the health risks associated with stress, there are a number of dysfunctional workplace dynamics that can emerge when leaders feel rundown, exhausted or emotionally drained. Barbara Fredrickson, Ph.D., for example, has found that negative emotions can trap people in a flight, fight or freeze mindset that limits their ability to think creatively and develop innovative solutions. Janne Skakon and colleagues1 have found that the way leaders cope with their stress trickles down, impacting their employees' own work experience and stress levels. And at Mercer|Sirota, we've found that overwhelmed managers are significantly less likely to recognize and praise their direct reports. If you're chronically stressed at work, it's time to stop buying into the myth that leaders and managers must be selfless martyrs. You're putting your own health and well-being, along with your team's effectiveness and engagement, at risk. Instead of working yourself to exhaustion, start developing a self-care strategy to manage the demands of your job. Here are four steps to consider: 1. Recognize the Warning Signs   Burnout — a state of physical, mental and emotional exhaustion often accompanied by self-doubt and cynicism — is a serious issue. Researchers have found prolonged periods of burnout can lead to a number of physical and mental health problems, including depression, anxiety, heart disease, high cholesterol, stroke and type 2 diabetes. Burnout can manifest itself in a number of ways, including increased irritability, decreased motivation, changes in eating or sleeping habits, or unexplainable aches and pains. 2. Rest and Recover   If you find you are experiencing burnout, you need to take immediate steps to get help. Start by telling someone what you are experiencing. Tell your boss, an HR business partner or a colleague. If you don't feel comfortable telling someone at work, then (a) realize you may be working in a toxic organization2 that is not healthy for you and (b) be sure to tell your family, friends or your doctor. If you remain silent, your exhaustion could lead to isolation and compound your problems. After you have shared your concerns, start finding ways to detach from work. Stop checking email the moment you wake up. Skip unnecessary meetings. Lighten your load. Take a mental health day. If you can reduce your hours or take a vacation, do so. Find ways to rest and reset so you can recover. 3. Reflect and Reorient   After you've gained some distance from your experience, it's time to start identifying the factors that led to your burnout. Start by reflecting on the timeline of events. When did your stress levels first start to rise? What was going on at work? Outside of work? Have you had this experience before, or is this the first time you've experienced burnout? Next, reflect on the nature of your stress. As you've probably heard, stress is not always bad. Researchers have found that challenge stress — the stress associated with achieving an important goal — is positively related to job satisfaction. Hindrance stress — the stress associated with barriers that prevent us from getting work done — is negatively related with job satisfaction. If you've had a burnout experience, you've probably been dealing with a lot of hindrance stress. With that in mind, think about the way work gets done in your organization. Some experts argue that burnout is the result of working in a dysfunctional organization. Finally, consider your own personality, values and attitudes toward work, your organization and your job. Researchers have found that people with certain personality traits are more prone to burnout.3 Through these reflections, your goal is to learn from your experience and gain insights that will prevent future episodes of burnout. 4. Rebuild a More Resilient You   If you have gone through burnout, the good news is this: you can use this experience to become a stronger, wiser and more resilient person. But that will require intentional effort on your part and a commitment to practicing self-care. As you design your own self-care plan, realize that multiple pathways exist. Start by rethinking your approach to your job; you will probably need to change some of your workday habits. Your physical health is critical: researchers have found that leaders and managers are more effective when they are eating right, sleeping well and getting exercise. Your mental perspective is also important: Stanford psychologist Alia Crum has argued that stress can be good for leaders if they know how to manage it. Be sure to consider your emotional response to the vicissitudes of work and life: research suggests that psychological flexibility and emotional agility can make you a more effective leader.4 And as you build your self-care plan, be sure to take a holistic approach, considering all aspects of who you are and what's important to you: research shows that your spiritual life — those aspects of your life that provide a sense of meaning, purpose and coherence — can help increase your resilience. As you consider these four steps, remember this: if you're not taking care of yourself, you're not going to be able to take care of your team — at least not for the long haul. At some point, your patience, your health, your energy, or your effectiveness is going to give. Without some type of self-care strategy, you're doing yourself — and the people who depend on you — a disservice. Sources: 1. Skakon, Janne; Nielsen, Karina; Borg, Vilhelm; Guzman, Jaime. "Are Leaders' Well-being, Behaviours and Style Associated with the Affective Well-being of Their Employees? A Systematic Review of Three Decades of Research." An International Journal of Work, Health & Organisations, Volume 24, Issue 2, 2010, 2. Appelbaum, Steven and Roy-Girard, David. "Toxins in the Workplace: Affect on Organizations and Employees." Corporate Governance International Journal of Business in Society, 2007, 3. Scott, Elizabeth. "Traits and Attitudes That Increase Burnout Risk." Very Well Mind, May 20, 2019, 4. Kashdana, Todd B. and Rottenberg, Jonathan. "Psychological Flexibility as a Fundamental Aspect of Health." Elsevier, Volume 30, Issue 7, November 2010,

Dr. Avneet Kaur | 03 Oct 2019

The use of on-site clinics has been growing in recent years, with businesses realizing the potential for giving access to quality and timely care to contribute to an increase in productivity, reduce absenteeism and improve employee health. But, are you reaping the full benefits of your on-site clinics? Or, are you just focused on meeting legislative requirements? There are three key things you can do to unlock the full potential of your on-site clinics. In a recent Worksite Medical Clinics Survey, employers with on-site clinics saw a return on investment (ROI) of 1.5 or higher. If you're not seeing similar returns, it may be because your on-site clinic isn't moving beyond basic requirements. Create a Patient-centered Clinic   Ensure the services offered by the clinic are suited to your employees. This will eliminate unnecessary spend on under-utilized services and steer you toward investments that will bring a greater sense of satisfaction, positive health outcomes for your employees and, consequently, a positive impact on your bottom line. Understand what your employee population looks like — in terms of age, gender and nature of work — as this will play a large role in understanding what type of health and social care services, as well as specialists, are needed. In addition to demographic information, it's critical to understand the health needs of your employees — for instance, which common illnesses are prevalent and need to be better managed and which key lifestyle risks need to be averted through education or preventative services. Communicate the Value   The adage of "if you build it, they will come" might not be the best way to yield the desired ROI in this case. It's important to shape communications around services offered on-site by highlighting the value they bring to employees: convenience and easy access to care, coordination and orientation toward quality providers, early detection of illnesses, etc. Effective communication will bring increased utilization and early detection, maximizing your investment as an employer while also contributing to the well-being of your employees. On-site Clinic: The Wellness Hub   When on-site clinics are designed and managed correctly, there's a high return for both employer and employee. Well-designed clinics can play a real gatekeeping role, coordinating employee pathways toward high quality providers and wellness vendors. They can also directly provide prevention and employee education services, which are key to avoid acute and costly care events. At Mercer, we help clients implement the 4-C model of effective on-site clinic management. This extends the value of your clinic from meeting legislative requirements to allowing employers to deliver quality health services that focus on value to the employee. To maximize your on-site clinic, reach out to us today.

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