Not Peer Reviewed

DELIVERING SKILLS OF
THE FUTURE FOR
INDONESIA 4.0

Mercer Annual Forum 2019

Bill Johnston
President Director – Mercer Indonesia
The digitization of an enterprise is unlikely to deliver competitive
advantage, unless it is accompanied by corresponding
“Humanization”

When we are thinking digitally, working flexibly and being

rewarded uniquely, we will unlock growth in the Human Age
 K E Y G L O B A L TA L E N T T R E N D S 2 0 1 9

Aligning Work to Building Brand Curating the Work Delivering Talent-

Future Value Resonance Environment Led Change
THRIVING IN AN AGE OF DISRUPTION

THRIVING THRIVING THRIVING

O R G A N I Z AT I O N WORKFORCE INDIVIDUAL

Success Redefined Diverse and Adaptive Growing and Contributing

Resilient and Agile Inclusive and Growth Focused Empowered and Connected

Positive Societal Impact Committed to Wellbeing Healthy and Energized

psychological, physical,
financial

Copyright © 2019 PT Mercer Indonesia. All rights reserved. 4

 M O V I N G F R O M B U Y, B U I L D , B O R R O W T O
“BELONGING”
From EVP to TVP
D E F I N E T H E TA L E N T E X P E R I E N C E P R O P O S I T I O N T H AT W I L L M A K E T H E
R I G H T TA L E N T W A N T T O J O I N , S TAY, A N D D E L I V E R T H E I R B E S T

Thriving employees are 3x

times more likely to work for a
company with a strong sense of
75%
Create staying power through a U N I Q U E proposition with purpose
purpose…
• Connect me to our company’s mission and vision
• Provide me with meaningful and fulfilling work
Have health & well-being as a PURPOSE • Help me feel like I belong here
14% talent management priority
this year
DIFFERENTIATED = PERSONALIZATION
• Support me with my career journey
• Provide me with flexibility to “make work work” for me
CAREERS WELLBEING • Help me manage my physical, financial and emotional well being

Provide a COMPETITIVE compensation and benefits

offering
• Pay me fair and competitively
• Reward my contributions
COMPENSATION BENEFITS
• Provide programs to manage my health and wealth
ASIAN EMPLOYEES ARE LOOKING FOR MORE

CO M P E N SAT I O N I S H EA LT H A N D ST E E R I N G WO R RY I N G MAKING
ST IL L K IN G W E L L N ES S MY CAREER ABOUT WO R K
MONEY “ WO R K ”

#1 way to 53% want 1 in 3 do not 13 hours per 56% want

positively more focus feel month per more flexible
impact me at on health empowered in employee options and
work and wellness their careers spent worrying 77% would
at work work on
contract basis

Source: Mercer 2017 Global Talent Trends Report

G E T T I N G TA L E N T R I G H T W I L L B E E S S E N T I A L T O
A C H I E V E I N D O N E S I A’ S E C O N O M I C A M B I T I O N S
 ~50 million of
the workforce
needs to up-skill
 I N D O N E S I A H A S S E T 1 0 N AT I O N A L
PRIORITIES FOR “MAKING INDONESIA 4.0”

1 Reform
ReformMaterial
MaterialFlow
Flow 6 Attract Foreign Investments
• Enhance domestic upstream material production; e.g. 50% of • Engage top global manufacturers with attractive offer and
petrochemical is imported accelerate technology transfer

2 Redesign
Redesign Industrial Zones
Industrial Zones 7 Upgrade
Upgrade Human
Human Capital
Capital
• Build a single nationwide industry zoning roadmap; resolve • Redesign education curriculum under 4IR era
zoning inconsistency challenges • Create professional talent mobility program

3 Embrace
Embracesustainability
sustainability 8 Establish
EstablishInnovation
InnovationEcosystem
Ecosystem
• Grab opportunities under global sustainability trend; e.g. • Enhance R&D centers by government, private sector and
EV, biofuel, renewables universities

4 Empower
Empower SMEs
SMEs 9 Incentivize
Incentivize Technology Investment
Technology Investment
• Empower 3.7 million SMEs1 by technologies; e.g. build SME e- • Introduce tax exemption/subsidies for technology
commerce, technology bank adoption and support funding

5 Build
Build Nationwide DigitalInfrastructure
Nationwide Digital Infrastructure 10 Reoptimize
ReoptimizeRegulations
Regulations& &Policies
Policies
• Advance network and digital platform; e.g. 4G to 5G, Fiber • Build more coherent policies/regulations by
speed 1Gbps, Data center and Cloud cross-ministry collaborations
Source: Ministry of Industry, A.T. Kearney
RECENT CEO FORUM
S U M M A R Y O F K E Y TA K E A W AY S
T H E F U T U R E O F W O R K A N D I M PA C T O N T E P

The Future of Work will see a change in the way we work, impacting organizations and how
1 they attract, engage and reward talent
Workforce structures are changing, with a mix of different (technology-assisted)
2 employment models and an ever-growing contingent workforce that has differentiated
needs
Organizational setups have to adopt agile collaboration models that will consist of a
3 network of teams working together depending on objective and skills needed
With the shortening of innovation cycles, a (constant) shift in skills is expected, changing
4 traditional career frameworks and making Learning & Development a key element of an
employer proposition
Employers will shift their value proposition to a talent experience proposition to cover the
5 needs of all its internal and external talent who expect fulfilling careers with a purpose
Total Rewards will place less emphasis on actual cash compensation (up to an amount to
6 sustain a certain lifestyle) and will take on a more holistic view on benefits that focuses on
personalized career paths, Well Being and experiences.
KEYS TO WINNING THE FUTURE

— — — —
GROWTH A SHIFT IN A WORKPLACE THE QUEST
BY DESIGN W H AT W E FOR ME FOR INSIGHT
— VA LU E — —
—

THE FUTURE OF HR
W E A R E PA S T T H E T E C H N O L O G Y I N F L E C T I O N
POINT

W H AT W E K N O W W H E R E W E A R E AT WHERE WE ARE HEADING

INFLECTION POINT

• Cloud Technology • Automation, Robotics • Blockchain INTERACTIVE

• 3D Printing & Advanced • AI & Machine Learning • Virtual DATA LAYER
Manufacturing • Wearables Assistants
BIG DATA MANAGEMENT AUGMENTED
• The Internet of Things HUMANITY
Predictive Analytics
DISRUPTIVE TECHNOLOGY • AI Board Directors

• AI adaptive systems
• Rise of the
• Pay Equity that anticipate needs
• Rise of the Individual
Free Agent • Vocality of the • Personas
• Multi-generational
Workforce • Longevity Female voice

Building awareness Getting organized Starting to accelerate