welcome to brighter

Global Talent Trends 2022

The rise of the
Relatable Organization
Pre-readings

2022, September 14th

A business of Marsh McLennan

The old model of work, working and the workplace is
no longer fit for purpose

Most Organizational 82% of

employees trust is up, employees
say the Pandemic paving the way trust their company
has driven them to for a different way to do the right thing
rethink their of doing things for society
priorities

Leading They are entering 33% of executives are

into genuine dialogue
organizations building more human-
with their people to
centric organizations
are coming off mute on design and co-create
what they believe in and the future of work
taking on the values
of their people

Welcome the rise of the Relatable Organization

© 2022 Mercer LLC, All Rights Reserved.
From the Latin Relata, that can be told. 2
The rise of Relatable Organizations
What do Relatable organizations do?

reset for work in deliver on build for harness

relevance partnership total well-being employability collective energy

Staying relevant means Create equitable, Nurture a healthy Close the skill-job gap by Unlock joy with a design
setting bold standards transparent and workforce with benefits moving to skills-based outlook based around
and goals that reflect the rewarding relationships. that matter and a talent models how humans want to
interests of all Establish new work social sustainable health that democratize and work. Maintain energy by
stakeholders and and contracts as the model. Ensure health and incentivize targeted marrying transformation
having the ability to turn operating model is wealth outcomes with a learning opportunities plans with your
empathy into redefined. Mitigate DEI whole person agenda. that build a talent experience agenda.
engagement and risks associated with new advantage. Support with redefining
flexibility into perpetual work models. HR.
adaptation.

© 2022 Mercer LLC, All Rights Reserved. 3

 Reset for Work in Deliver on Build for Harness
relevance partnership total employability collective
Build resilience by leading Create equitable, well-being Meet future work needs energy
Global Talent with values and an
adaptive design
transparent and
rewarding partnerships​
Nurture a healthy
with a skills-based
organization
Unlock potential with
workforce with ​ human-centered​ work
Trends 2022 benefits that matter​ environments​

Life sciences
99% of employees 78% of employees 31% of executives say 87% of employees 100% of organizations
expect their employer will only join a company their investment in health know what skills are planning
to pursue a if they can be remote/hybrid and well-being has delivered are needed for enterprise-wide
sustainability agenda a measurable return tomorrow transformation in 2022

94% of executives 87% of HR leaders 1 in 3 companies 86% of companies 29% of employees

are prioritizing setting are worried that remote are introducing mental are investing in say organizational
targets related to working will deteriorate or emotional well-being AI-powered skills complexity is a barrier
responsible work practices the culture strategies identification/valuation to transformation

Only 1 in 3 74% of executives 46% of employees 3 in 10 employees 1 in 4 HR leaders say

HR leaders have prioritized are concerned about fear for their are not convinced redesigning work to improve
putting sustainability at the promotion prospects future financial of the return for agility was a priority for
heart of the transformation for remote workers wellness reskilling 2021, but it was difficult to
agenda make progress

What are you doing to forge new ways of partnering that are increasingly Download the full Global Talent Trends Study at
© 2022 Mercer LLC, All Rights Reserved. relatable, sustainable and attuned to the ways people want to work? www.mercer.com/global-talent-trends 4
Building a better
employee experience
What is the Employee Experience

Employee
experience is the
intersection of an
employee’s
expectations, the
environment and
events that shape
their journey within
the organization.

© 2022 Mercer LLC, All Rights Reserved. 6

Five pillars shaping people risks
Health
& safety
Health and safety risks are a
threat to organizations, and
have a high potential to
disrupt business.
87%
Say health and safety is a
serious threat to business.
Implication: Invest in
benefits and other programs
that manage health risks and
meet high-priority employee
needs. This will increase
people and business
resilience.
© 2022 Mercer LLC, All Rights Reserved.
Governance
& financial
The management of
compensation, employee
benefit and retirement plans
is becoming increasingly
complex and difficult.
59%
Don’t have effective
governance for insurance
and benefits.
Implication: Advance best
practice governance for all
types of rewards. This will
avoid costly errors and
reputational damage.
Accelerated
digitization
Skills obsolescence, where
businesses struggle to
develop, acquire or retain the
skills for digital
transformation, is now a top
people risk.
1 in 2
Believe the c-suite views
accelerated digitization as
very important.
Implication: Design and
deliver benefits for people
with future-ready skills,
perhaps in roles that do not
yet exist.
Talent practices
The changing nature of work
is now the fifth biggest people
risk.
43%
Think their employee value
proposition needs
improving (or do not know
how effective it is).
Implication: Understand
what current and future
employees value most. Put
in place policies to support
new ways of working — or
risk losing valuable skills.
Environmental
& Social
Organizations are under
pressure from customers,
employees and investors to
address inequalities, remove
disparities and combat
climate change.
1 in 5
Do not have a plan in
place to advance equity,
diversity and inclusion.
Implication: Define
company values and targets
around ESG issues, and use
them as a lens to assess
current benefits, investments
and working conditions. .
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8

Motivation to
LEADERSHIP
Looking for a
new balance
“When I consider
the Future of Work,
I believe it will be
balanced; that work will 51%
be redesigned to
of employees
allow time for family,
hobbies, work, (top response) 1
health and learning.”

Motivation to
PERSONAL LIFE
© 2022 Mercer LLC, All Rights Reserved. 8
Leading organizations have an EVP not only segmented but
also customized
43% of Executives are
re-evaluating what is most
important to employees,
including revisiting the
foundations of the
employee value Purpose
proposition
Gen Z’s feel that remote
The #1 reason to invest in well-being, working has had a more negative
according to Executives, is to deliver a impact on their well-being
healthier, happier workforce (e.g., higher
Careers Well-being engagement and energy levels) Women are more likely to say
their work/life balance has
significantly deteriorated
89% of HR says improving Total 1 in 2 employees do not feel
Reward packages is a priority in 2022 financially secure for the future
42% of HR leaders plan to today—women and people in
healthcare/manufacturing/retail
individualize compensation and
Compensation Flexibility Benefits industries are most likely to
benefits for different groups
say this

Culture

Link well-being Ensure total well-being Align Total Rewards

© 2022 Mercer LLC, All Rights Reserved. to values programs are inclusive to your equity goals 9
Navigating an organization’s “energy grid” as work and life are
integrated in the new world of work
77% of employees trust their company to redesign
work experiences that bring out the best in them
Energy Sappers
• Weak target interaction model design (TIM) and inefficient internal
and external stakeholder / change management
• Limited input from BU/ markets / functions / Partners / Representative
• Lack of attention / action on diversity and equity matters in
hiring, acquisitions, well-being and internal pay / promotions
• Lack of diversity and complementary skills / experiences to
deliver outcomes
• Over-emphasis on either short-term or long-term objectives
• Ego-centered leadership and siloed-mentality gone unchecked –
more ‘takers’ than ‘connectors’
• Job security is shaken through poor messaging / coaching
• Lack of understanding of individual’s “sources of joy and energy”
• Job design allows little time to recharge and forward
think / create beyond current job
© 2022 Mercer LLC, All Rights Reserved.
It takes a multi-level perspective to harness the
energy of individuals, teams and the organization
Energy Multipliers
• Operating and interaction model (TOM & TIM) design that supports
Strategy/ value creation, supported by frictionless tech
governance • Networked partnerships with strong interface design / voice
level • Governance of career velocity and clarity around the impact of
AI/tech on skills, jobs & future employability
• Clear team purpose with metrics that support multi-stakeholder
success (total well-being and work)
Business
• Diverse teams with complementary skills aligned around a value
area/team proposition and ways of working (rhythm / practices)
level
• ‘Connectors’ are valued & supported to leverage networks inside &
outside of the organization
• Deep understanding of individual’s “sources of joy and energy”
(incl. motivation / purpose) in their own context
Individual • Action taken to align individual’s motivations / skills /contribution /
level passions to optimize their LifeX
• Leaders reward skills and help individuals make intentional choices
(incl. balance of ‘play’ time and work time)
10
New identities are emerging

Citizenship
Gender
Career
Generation
Parenthood

© 2022 Mercer LLC, All Rights Reserved. 11

What can you do to impact the experience?
Focus on the environment through the lens of your employees

Do I feel like I belong in this

Do I know what I’m supposed to
organization, and am I connected
do – and can I get it done easily?
to my team?
• Job / org design
• Leadership
• Service delivery
• Managers
• Operational processes
• Collaboration
• Technology
• Communication
• Engagement

Do I understand and
believe in where we are
headed - and can I make What’s in it for me – what
a difference? value do I get working here?
• Purpose • Comp & benefits
• Strategy • Career growth &
• Culture development
• Wellbeing support
• Financial wellness
• Purpose
© 2022 Mercer LLC, All Rights Reserved. 12
How to gather insights into the employee experience

Full-Census Pulse Digital Ex Preference Conjoint

Survey Surveys Focus Group insight Survey
Robust continuous listening Agile, targeted continuous Enable organizations to Used to understand broad Allow for data-driven
to understand employee listening with strategic crowdsource people insights employee preferences across decisions regarding what
experiences and employee research in a live, collective a large employee base. people say versus what they
perceptions. programs. conversation. do.

Every year for an Quarterly to track priorities Periodically as needed to Every 12 to 24 months Periodically to measure
organization-wide and/or on-demand for on- deep dive on a specific check in on total rewards the relative perceived
snapshot and to reset boarding, exit, role challenge. and benefits preferences. value of offerings as well
priorities. transition, etc. as to test for changes.

INSIGHT & ACTION PLANNING

Continuous process that combines expert consultative services, best practice know-how
and comparative benchmarks to develop insights that inform action plans.

© 2022 Mercer LLC, All Rights Reserved. 13

Attracting talents in the
era of relatable
organizations
(Employer branding)
Two main trends from market perspective are reshaping the Talent
Acquisition landscape in 2022 for all Organizations…
1. Increasing relevance of Talent Acquisition
topics in organizations
The topics Employer Branding, Recruitment Marketing
and Recruiting have experienced a boom in the last two
years and have become more visible – regardless of
country, region or industry.
2. Professionalization & differentiation of Talent
Acquisition services
• Following to the overall trend of a unique and tailored
consumer experience, candidates today also claim a
tailored candidate experience. A One-Size-Fits-All
approach in the recruiting process doesn’t fit anymore.

of companies report a 10+% growth for the upcoming 60%

years – results show an exposed position and increasing of companies seek a 70%
40% importance of Talent Acquisition TA process and of the global
#1
reason people
product workforce is made
change job is career
differentiation – up of passive
opportunity
leaving the “one- candidates
of executives anticipate industry disruption in the next 3 size-fits-all”
73% years and face high investments in Talent Attraction and
Acquisition strategies
• Tailored Talent Acquisition measures reshapes from:

of companies have realized they need a HR Strategy – Employer Value Proposition

60% and see Talent Acquisition as an integral part of HR and
people strategy Generic advertisement

© 2022 Mercer LLC, All Rights Reserved. 118

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9

…and Employer Branding has never been more critical to its

ability to attract and retain talent

Brand/reputation is the The sustainability agenda Advantages of companies with high

biggest reason that is growing in importance Employer Attractiveness compared to low
employees join a company, Employer Attractiveness
after job security
of employees expect
(up from #9 in 2020) 96% their company to pursue
a sustainability agenda
+19% +24% +18%
1 in 4 executives says
that their sustainability Company Innovative Employee
agenda today is driven performance strength satisfaction
by employee/candidate
demand

Thriving employees are

2x more likely to say +28% +23% -25%
that sustainability
strategies and goals
Company Employee Emotional
are a clear priority for
growth productivity exhaustion
their company’s
executive team

© 2022 Mercer LLC, All Rights Reserved. 19

0

Adapting one organization’s Employer Branding for the new world

of work means addressing a threefold perspective:

Creating staying power through a proposition with purpose:

• Providing meaningful and fulfilling work that matters
• Making employees proud to work for a company that makes a positive impact on
Purpose society through a compelling mission and vision

Creating a experience via employee segmentation:

• Supporting employees with their career journey
• Promoting customized physical, financial and emotional well-being
Careers Well-being initiatives

Providing a C&B offering:

• Paying fairly and competitively and rewarding contributions
• Providing with flexibility to make work “work” for employees
Compensation Flexibility Benefits • Designing programs to manage health and wealth

Culture
© 2022 Mercer LLC, All Rights Reserved. 20
Attracting and retaining talents is similar to Marketing and needs
to address different questions in order to be effective…
Employer
Employer branding and Recruiting and sourcing Relationship-
attractiveness and
personnel marketing process management
quality

Product management / CRM / Customer

Branding and marketing Sales / Distribution
product quality retention

What do I have to offer to be Which media and channels How do my processes and How do I stay in touch with
attractive for its target do I use to tell the story - and approaches need to be candidates? Ho do I build
groups? Which story do I how are the messages aligned in order to reach and keep connection with
tell? Where can I improve as packed? target groups who do not or talents?
an employer? not sufficiently apply?

# future-oriented employer # diversity is important to us # trusting work environment

Why should I work
here – and not with
the competition? # promoting involvement creativity # good work-life balance # company benefits

# close collaboration # competitive salaries # flexible working time models

© 2022 Mercer LLC, All Rights Reserved. 221
1
…with a clear and practical approach starting from Target Group
Segmentation and concluding with the Candidate Relationship

1. 2. 3. 4. 5.

Target Group Products & Roles: Candidate Persona: Sourcing & Candidate
Segmentation: Transparency & Understand the Marketing: Relationship
Key Functions as expertise target group Network Filling Management
focus

We segment positions to We move from a one-fits-all For each key function, we Based on the marketing Based on the marketing
define key functions with approach to a three-fold design a hypothetical personas we create personas, we maintain
strategic relevance to talent attraction product candidate profile to targeted messages, relationships with
business and low availability portfolio. On this basis we understand needs and marketing and sourcing candidates through
on the talent market. rework the Talent Attraction preferences of the target activities to attract relevant measures.
function. group. candidates.
© 2022 Mercer LLC, All Rights Reserved. 222
2
Two key attraction
levers: flexible and equal
work & environment
Standing out on diversity, equity & inclusion
To go from intention to action, focus on the underlying causes of inequity

2020 Now

12% measured the underlying 36% measure pay and promotion parity across Thriving employees are more likely
causes of inequities all minority groups, not just gender to say:
“My company is diverse” (1.3x)
98% of companies are planning at least one initiatives to increase DEI in 2022.
Here’s what they are doing: “My workforce reflects the communities
in which we operate” (1.5x)
Training for all employees on ensuring physical and psychological safety at work 38% “My workplace culture is diverse
Monitoring pay equity and taking steps to drive equitable behavior 33% and inclusive” (1.7x)
DEI
Creating equitable opportunities and pathways for a multi-generational workforce 33%
“Women and minority groups are
Having a zero-tolerance policy for managers who do not display inclusive behaviors 32% well-represented in higher leadership” (1.4x)
Supporting internal employee resource groups to improve outcomes for diverse groups 30%
“My company grows and develops
Providing clear KPIs around DEI goals for every manager 30% diverse leaders” (2x)
Integrating accessibility and inclusivity across virtual and physical workspaces 29%
Setting diversity targets at the Board and/or C-Suite level 29% How can we stand out?
Accounting for diverse circumstances in policies 29%
Maintaining a multi-year published DEI strategy for internal and external use 28% Do more Make allies
Including diversity aspects when considering supplier engagement 28% Fewer than 1 in 3 Male executives are
28% companies is less likely to see progress
Creating customized health benefits for different groups
implementing five on DEI, but also less
Embedding DEI measures and metrics into departmental goals 26% or more approaches likely to see the need for
Looking at the target's DEI metrics when considering an M&A opportunity 25% to increase DEI action
© 2022 Mercer LLC, All Rights Reserved. 25
© 2022 Mercer LLC, All Rights Reserved. 26
 Ranking HR priorities
in theformost
2022 (%) C-Suite’shave
top initiatives (%) Ranking
How aligned HR leaders innovative companies prioritized the
following for 2022,
Improving with
our workforce DEI topping the list:
planning
are HR and 1 to better inform buy/build/borrow
talent strategies
39 36 Investing in workforce upskilling/reskilling 1

Executives? 2
Designing talent processes around skills
(hiring, learning, succession) 37
Delivering on total well-being strategies
33 (mental, social, physical and financial) 2

Designing talent processes around skills

1 3 Addressing pay,
Improving our Total gender and other37equity gaps
Reward packages 31 (hiring, learning, succession) 3

Addressing pay, gender and other

4
equity gaps 37 31 Evolving our flexible working culture 4

2 Improving our Total Reward packages Improving our workforce planning

5 Rethinking compensation plans 36 31 to better inform buy/build/borrow 5
talent strategies
Delivering on new work standards
6
Improving our workforce planning36to better30inform
Investing in workforce upskilling/reskilling (e.g., living wage, gig/supply chain worker 6
3 protection, etc.)
buy/build/borrow talent strategies
Delivering on total well-being strategies
7
(mental, social, physical and financial) 36 30 Redesigning work to improve agility 7

4 8 Ensuring
Evolvinginclusive workforce
our flexible working culture listening
36 and 29
participation
Implementing job automation 8

9 Redesigning HR operations 36 27 Improving our Total Reward Packages 9

5 Tapping into non-local or non-traditional talent pools

Putting sustainability/ESG at the heart
10
of our transformation agenda 35 27 Rethinking compensation plans 10

© 2022 Mercer LLC, All Rights Reserved. 27

Flexible working is a critical lever for attracting and retaining
talent
How can hybrid work in the long term? Most organizations are responding
Employee
expectations:

Will only join or

stay with an
organization if
remote/hybrid
62%
working an
option #1 Better pay or benefits

Equal pay for

same job,
regardless of
location or
84%
#2 Better flexibility / work-life
balance Over 90% of
remote organizations are
planning to implement
Difficulty
disconnecting
66%
#3 More convenient location post-pandemic changes
from work when to flexible working
remote

Source: Mercer Inside Employees’ Minds Research, August 2021 Source: Mercer Flexible Working Policies and Practices Survey August 2021

© 2022 Mercer LLC, All Rights Reserved. 28

 What people want from work fundamentally has not changed; how
they want to engage with work has
Past Focus: Past Focus: Current Focus: Future Focus:
Retain Motivate Recover Energize

Loyalty contract Engagement contract Thrive contract Lifestyle contract

(transactional) (work and workplace centered) (whole person consideration) (LifeX – life experience)

Basic Needs: Psychological Needs: Well-Being Needs: Fulfilment Needs:

Pay, Benefits, Security Achievement, Camaraderie, Meaning Purpose, Equity, Impact Choice, Connection, Contribution

Human-led, Human-centered,
Workers are assets Employees are assets to be Technology enabled Partnership built
to be retained acquired and optimized People and machines work together People across the talent ecosystem
for maximum value creation partner to build sustainable systems

Pay and benefits Broader set of rewards (pay, benefits, Healthy experiences in Total rewards that include flexibility
for time and output career, experiences) in exchange for exchange for a commitment in return for broader choices and
organizational engagement to organizational renewal the promise of continued relevance

Employees don’t want to work

for you, they want you to work
with them.
© 2022 Mercer LLC, All Rights Reserved. 29
 The future of flexibility extends beyond remote working

where when how what who

location & infrastructure hours and scheduling scaling, technology job content and sharing alt. workforce, automation

Amir, engineer
“I collaborate with my
team a few days a week
at the office, but otherwise
work from home!”
James, operations Liz, accountant Shannon, legal Hannah, designer
“I work 40 hours a week, “I work 60 hours per week “I share my case load with “I work on demand on
but vary the days and during busy seasons, but another manager, and work projects that fit my interests
times I work to meet the scale back to 30 hours per a reduced schedule to meet across multiple employers.
needs of my family.” week the rest of the year.” my personal needs.” I’m my own boss!”

© 2022 Mercer LLC, All Rights Reserved. 30

The future of remote working is hybrid and
there are many different emerging models

Office Driven Flexibility Model

Remote First
Culture
Culture

Predominantly Distributed Hybrid Remote-First

Office-Based Model Model or Fully Remote
% of Employers / Example

18% 3% 71% 4%

Source: Mercer Flexible Working Policies and Practices August 2021; n=266 (note: 4% of organizations have not yet determined plans)

31

© 2022 Mercer LLC, All Rights Reserved. 31

Working together
(14 Sept)
 Macro-trends
1.
Mercer will share the main trends collected by the annual 3.
Global Talent Trends research, deepening some of the
success stories in the business community

Recordati’s HR community

14 September + The results of the working

groups will be shared
during the morning
session, in order to draw
2. Mercer will support Recordati's HR function to manage 3 break out up a road map to drive
sessions: the HR transformation in
• Employer Branding Recordati
• Employee Experience
• Equal and flexible work/ environmnet
to discuss Recordati Group's priorities, main enablers / blockers
Walk trough

© 2022 Mercer LLC, All Rights Reserved. 33

Appendix
Voices that make up this year’s study
10,910 employees, HR professionals, and executives from 13 industries and 16 geographies vocalize the
importance of learning to relate to one another in a changing time

930 C-Suite executives 41%: The

81%: The business
fundamental shift in
agenda and the
30% anticipate less than 3% revenue growth our business required
people agenda have
48% anticipate 3-9% growth a reset of work, the
never been more
22% anticipate10% or more growth workforce and the
intertwined
workplace

1,736 Senior HR professionals

53%: We are now
76% HR leader with working closer 76%: The pandemic
33% CHRO/CPO forced us to rethink
HR background with executives to
27% Exec/SVP/VP our HR model
23% HR leader with strategize on human
non-HR background 40% Other capital risk

8,244 Employee voices

78%: My company 81%: I feel at risk of
8% Gen Z
45% Remote empowers me to work
54% Gen Y burnout this year
30% Hybrid with minimal (up from 63% in 2020)
30% Gen X oversight
24% Onsite
7% Baby Boomers

© 2022 Mercer LLC, All Rights Reserved. 35

A business of Marsh McLennan