03/30/2020 Mercer’s annual report, Global Talent Trends 2020, reveals that leading companies are putting the focus on protecting the health, financial well-being and career aspirations of their employees. The reasons for this tenure are clear: to face with greater solvency the consequences derived from the health and economic crisis of COVID-19, the need to boost the performance of its employees during the foreseeable economic recession and prepare them for the labor market of the future dominated by artificial intelligence and automation of processes. Given that 63% of those responsible for human resources foresee a stagnation of salaries, companies will have to incorporate other incentives to overcome the uncertain times ahead.
In this fifth edition, the study focuses on “winning through empathy” and ensures that companies with a strategy to improve the health and well-being of their employees can be up to four times more productive. This is because Employee engagement, fueled by your career prospects at a corporation that watches out for your well-being, exponentially increases your job performance. That is why he concludes that it is time to plan a prosperous future, promote training and integrate new technologies. In short, it is about improving the employee experience to boost their performance, and with it their bottom line, in a particularly difficult context.
“The results of this year’s study make it clear that transforming resource function human is a key component to create a solid and sustainable organization”Explains Juan Vicente Martínez, Career area leader at Mercer. “For companies it is key to find the balance between economy and empathy in all decisions that concern people, and even more after the uncertainty caused by the global pandemic ”.
The report reflects the work practices of more than 7,300 respondents, including managers, human resources managers and employees of companies in 16 countries dedicated to nine different sectors. Respondents have answered questions related to automation and artificial intelligence, diversity and longevity, reconfiguring work dynamics, and the role of human resources teams in all of this context.
Based on the data obtained, Mercer has identified four key trends that will shape the future of human capital strategies in the coming years.
Trend 1: Improve employee experience
Focusing the human capital strategy on creating a relevant experience for the professional career of its employees has become the number one priority of those responsible for human resources. They understand that professionals need to be inspired and encouraged to increase their bottom line. Thus, more than half of the companies surveyed are reorganizing their processes to focus on people.
Corporations need workers motivated by change, more flexible and eager to learn new skills. Not creating the right environment can lead to the flight of an increasingly necessary talent.
Y While there is some skepticism towards improving the employee experience – only 27% see a return on this investment – 48% of organizations consider taking care of the health and well-being of their employees as a primary factor. That said, the majority (71%) have not yet implemented strategies in this regard.
In any case, it is clear that personnel departments must abandon their traditional administrative function and become a strategic direction, key to promoting the attraction, retention and creation of talent, as well as to designing stimulating work environments.
Trend 2: Ensure a prosperous future
It is no longer enough to meet the criteria of shareholders and investors, but the interests of all the actors involved must also be taken into account. Managers are more aware that the success of their organization depends on how they incorporate environmental, social and good governance (ESG) factors. to be more sustainable and aligned with the social conscience.
However, despite the fact that 85% of companies agree with this new model and 68% have already incorporated this purpose in their agenda, only 35% of companies affirm that they have incorporated ESG factors.
Regarding their future employment, 72% of older employees affirm their intention to work beyond retirement age, something that will reduce job opportunities for Generation X workers. Companies will need strategies to manage job longevity and create value for younger employees.
Trend 3: Boost learning
The global transformation of the economy and work processes is causing a comprehensive review of the capabilities that companies require. But 40% of organizations still do not know with certainty what specific skills are needed to face the 21st century world of work..
On the other hand, 78% of employees claim to be prepared to learn new skills and abilities to improve their productivity, although 34% confess that they do not have the time necessary to carry them out. This contrasts with one fact: more than 60% of those responsible for human resources have not yet invested in a strategy for training and retraining the workforce.
Trend 4: Integrate intuition and science
The application of artificial intelligence and predictive analysis tools is increasingly necessary to design strategies for attracting talent and detecting skills. Since 2016 the use of these mechanisms has quadrupled, going from 10% to 39% today. However, their full potential is not yet exploited in the area of template management: only 43% of organizations use them to identify which employees will leave the company or retire (41%). Even more rare are those who use them to evaluate their salary strategy (18%) or to weigh between acquiring, training or outsourcing the necessary talent (15%).
On the other hand, 62% of companies already use surveys to probe the commitment of their employees. The remaining third is in the process of implementing them during 2020.
Although it is true that robots outperform people in tasks related to data processing, the human factor is still necessary in human resources to verify the good sense of analysis and ensure that all decisions are based on ethics.