H E A L T H W E A L T H C A R E E R

W H E N P E O P L E T H R I V E , B U S I N E S S E S T H R I V E

C R A F T A S P I R A T I O N A L & M E A N I N G F U L C A R E E R S

JEN SAUNDERS People & Digital

MARK MCGOWAN Reward & Talent

© MERCER 2018 1

IT STARTS WITH YOUR PEOPLE STRATEGY: RECORDING AVAILABLE

CURATE A DISTINCTIVE EMPLOYEE VALUE PROPOSITION: RECORDING AVAILABLE

CARE FOR PHYSICAL, MENTAL AND FINANCIAL WELLBEING: RECORDING AVAILABLE

CRAFT ASPIRATIONAL AND MEANINGFUL CAREERS: TODAY

CULTIVATE A LAB MINDSET WITH ANALYTICS AND INNOVATION: 25 APR 2018

DEVELOP INSPIRING, AGILE AND INCLUSIVE LEADERS: RECORDING AVAILABLE

PEOPLE STRATEGY

VALUE PROPOSITION

WORK ENVIRONMENT

DATA-DRIVEN MINDSET

W E L C O M E T O T H E W E B I N A R S E R I E S

© MERCER 2018 2

D I S R U P T I O N I S S T E A L I N G T H E H E A D L I N E S

Technology advances such as AI, robotics, and 3D printing are disrupting industries and redefining value chains

2

© MERCER 2018 3

T H E S E C H A N G E S A R E R A I S I N G C R I T I C A L Q U E S T I O N S

— E M P L O Y E E

—

— H R —

— B U S I N E S S L E A D E R S

—

S T R AT E G Y

C A PA B I L I T I E S

L E A D E R S H I P & C U LT U R E

TA L E N T M A N AG E M E N T

E V P / TOTA L R E WA R D S

E N G AG E M E N T & E M P O W E R M E N T

C A R E E R A S P I R AT I O N S

W O R K & L I F E D E M A N D S

S AV I N G S & R E T I R E M E N T

How can we attract & retain

tomorrow’s workforce?

How can we build for an

unknown future?

What does career success

mean in today’s world?

© MERCER 2018 4

M E R C E R T H R I V E R E S E A R C H

52% “My organisation is committed

to creating an environment where employees are able to

Thrive”

48% “My organisation is not yet

committed to creating an environment

where employees are able to Thrive”

800+ PA RT I C I PA N T S 57 CO U N T R I E S 26 I N D U S T R I E S

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C A R E E R & D E V E L O P M E N T O P P O R T U N I T I E S R A N K T O P

TOP 10 GLOBAL THEMES IN TERMS OF WHAT MADE A DIFFERENCE IN TERMS OF THRIVING

Career & development opportunities

Learning opportunities

Fair assessments

Flatter structures

Equity in pay and rewards

Enablers for efficiency

Positive working environment

Analytics driven actions

Employee involvement

Connected/purposeful leaders

Asia EU LatAm NA Global

© MERCER 2018 6

W H Y C A R E E R S M A T T E R : T H R I V E R E S E A R C H

Confidence and

Advocacy

My organisation responds effectively to changes in the business environment.

I trust senior leadership.

My work gives me a feeling of personal accomplishment.

There is a climate of trust within my organisation.

I like the possible career paths for me at my organisation.

My organisation takes a genuine interest in the well-being of communities in which it does business.

Societal Impact

Trusting Environment

Career Paths

Agility

Contribution

Trust

Key Drivers Rank Ordered by Statistical Impact

79% explained

© MERCER 2018 7

W H Y C A R E E R S M A T T E R : T H R I V E R E S E A R C H

ENERGISED DE-ENERGISED

HIGH AUTHENTICITY

LOW AUTHENTICITY

IMPACT ON SATISFACTION & COMMITMENT

© MERCER 2018 8

W H AT I S A N A S P I R AT I O N A L & M E A N I N G F U L C A R E E R ?

8

© MERCER 2018 9

C A R E E R M A N A G E M E N T H A S C H A N G E D

1990-2000 2010-2020 2000-2010

© MERCER 2018 10

E R A O F T H E I N D I V I D U A L

HR’s role is to pave the way for individuals to more fully participate in driving business success. This does not negate the role as manager as coach.

C L I M AT E O F R E AL - T I M E P O S T I N G S

F O C U S O N T H E F U T U R E , N O T T H E P AS T

“ O N E S I Z E F I T S O N E ” C AR E E R S

M O V E AW AY F R O M S T AT I C P R O C E S S E S

© MERCER 2018 11

S O H O W D O Y O U C R A F T A S P I R AT I O N A L & M E A N I N G F U L C A R E E R S ?

© MERCER 2018 12

C A R E E R F R A M E W O R K S – W H A T A R E T H E Y F O R ?

TRANSPARENCY

VELOCITY

KNOW OUR TALENT

GROW OUR TALENT

FLOW OUR TALENT

CONTROL

UNDERSTAND OPPORTUNITIES

CAREER DIRECTION

UNDERSTAND OPPORTUNITIES

CAREER DIRECTION

RIGHT SPEED

CAPABILITIES VISIBILITY

BEST TALENT

FILL TALENT PIPELINE

© MERCER 2018 13

Business leaders can understand, allocate & communicate career opportunities HR tech can share & analyse workforce data Employees get the information they need to take control The business can plan better for future disruptions

C A R E E R F R A M E W O R K S – W H A T A R E T H E Y F O R ?

© MERCER 2018 14

W H E R E D O Y O U S I T ?

VERTICAL CAREER LADDERS

LIMITED VIEW OF CAREERS

CLEAR OPPORTUNITIES

NON-LINEAR CAREERS

INTEGRATED INTO

BUSINESS PLANNING

CONSUMER GRADE EXPERIENCE IN

CAREER PLANNING

PROACTIVE MANAGEMENT OF CAREERS ACROSS

BUSINESS

HOW DO YOUR

EMPLOYEES AND THE

BUSINESS EXPERIENCE

CAREERS TODAY?

• Job title and potential profession to a line manager role. Payslips received monthly

• Central spreadsheet of jobs and pay

• View of all roles within organisation.

• Sporadic grading structure

• Job description, understanding of position within organisation.

• Personal development programme in place

• Opportunities for vertical career progression

• Total reward statements

• Clear sight of career options within JF and level-based competencies.

• Understand what is required to progress through and across the business.

• Training & development enables non-linear progression

• Analytics function on-premises

• Globally consistent grading structure linked to market data

• Clear talent management process and succession planning for key roles

• Portal providing line of sight to career opportunities

• Interactive and gamified to engage and empower the employee to plan their career

• Fully integrated with performance management and training & development

• Global Job architecture and job family-based pay

• Career-orientated levels • Competencies catalogue

Organizationally aligned with JF integration

• Integrated into T&D • SaaS • Defined analytics

function (predictive)

JOBS NOT CAREERS

NO CENTRAL OVERSIGHT

OF CAREERS

MATURITY

Employee has

Business has

Employee has

Business has

Employee has

Business has

Employee has

Business has

S O H O W D O Y O U B U I L D A C A R E E R F R A M E W O R K ?

15

© MERCER 2018 16

T H E B U I L D I N G B L O C K S

Job levelling structure Job family

structure and definitions

Workforce analytics

Core and functional competencies

Role profiles

Career streams

Competency assessment

Job catalogue

Employee communication tool

Career paths Alignment with Talent

and Reward programmes

© MERCER 2018 17

IMPROVING YOUR JOB AND COMPENSATION STRUCTURE THROUGH ANALYTICS

Provides a static analysis of jobs, levels, pay, and flow of employees that adds significant insight into potential pain points within the organisation.

Easily and accurately examine TALENT FLOWS (upward, outward and inward moves) and VELOCITY (speed) using analytics to determine the right shape of the organisation.

The ideal shape will focus on building critical talent and eliminating choke points and blockers.

I D E N T I F Y I N G T H E C A R E E R A R C H I T E C T U R E B L U E - P R I N T

© MERCER 2018 18

I D E N T I F Y I N G T H E S T R A T E G I C A R C H I T E C T U R E

JOB FAMILIES/SUB-FAMILIES

Generally recognised major professional area, often requiring a unique set of skills.

Most career development occurs within a job family.

JOB

A specific point in a career journey, characterised by a combination of career level, career stream, and sub-family. Each job has a unique blend of competencies.

JOB LEVELS

The hierarchical position of a job within a career stream.

Recognises incremental changes in job scope and responsibilities.

Consistent across disciplines.

CAREER STREAMS

Career type within the organisation, characterised by unique responsibilities.

WHAT is expected of me?

HOW can I get there?

A Role Profile describes the expectations and requirements for a given job.

How many RUNGS are there in the career ladder here?

What are the DUALTRACKS (technical/managerial)?

Where else can I go in this Organisation? What other FUNCTIONS exist?

What are the ROLE Expectations?

© MERCER 2018 19

E N A B L I N G C A R E E R P L A N N I N G

IMPORTANT

PREVALENT

Regular career conversations with manager

Career portal

Future-focused training content

Onboarding for success

Transparent pay

Clearly defined skills for advancement

Best-in-class L&D tools and technology

Rotational programs

Peer coaching

Lateral movement

Career centre

Career coach

T Y P E O F C A R E E R S U P P O R T M O S T S O U G H T A F T E R B Y E M P L O Y E E S

WORK FUNCTIONS C

AR

EE

R

STA

GE

S

“How am I doing now?”

“What are the expectations of roles

I’m interested in?”

“How do I get to where I want to go?”

“Where can I move?”

© MERCER 2018 20

I N T E G R A T I N G W I T H R E W A R D

61 – 63

IPE Position Class

Ranges Pay Linkages

Base Pay Broad Bands w/Reference Points

LTI STI

50%

40%

35%

45%

40%

25%

20%

15%

5%

10%

7%

30%

2%

Career Framework

58 – 60

56 – 57

54 – 55

52 – 53

50 – 51

48 – 49

46 – 47

44 – 45

42 – 43

E3

E2

E1

M4

M3

M2

M1

P6

P5

P4

P3

P2

P1

S3

S2

S1

S4

Illustrative

Support Professional Management

Career Streams

Executive

© MERCER 2018 21

W H A T D O E S G O O D L O O K L I K E ?

© MERCER 2018 22

W H A T D O E S G R E A T L O O K L I K E ?

© MERCER 2018 23

R E A S O N S T O I N V E S T

1. Stronger employee

engagement

2. Improved business outcomes

3. More precise

talent investments

4. Increased customer

satisfaction

5. Improved resource alignment

6. Greater agility

7. Reduced

costs

8. More

strategic talent

management

© MERCER 2018 24

W H A T Y O U C A N D O

1 . I D E N T I F Y 2 . D E S I G N 3 . AL I G N M E N T 4 . C O M M U N I C AT I O N

Understand the current and desired future state of

careers

Clarify key expectations of employees and the

business with regard to career levels and

competencies

Ensure alignment with talent and reward

processes

Deliver career tools to provide transparency and control to your employees

TYPICAL TOOLS: 1. Career philosophy 2. Career architecture

blueprint — levels/tracks/job families/core competencies

TYPICAL TOOLS: 1. Career-level guide 2. Detailed core

competencies with proficiency indicators

3. Technical competencies by job family

4. Mapped example career pathways and/or destination role profiles

TYPICAL TOOLS: 1. Integration of the career

framework with rewards, performance management, selection and retention, succession management, and workforce planning

2. HR policy and guidelines

TYPICAL TOOLS: 1. Define and deliver the

employee experience 2. Provide the tools and

support for managers to support and enable the career framework

© MERCER 2018 25

Q U E S T I O N S ?

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© MERCER 2018 26

W E A R E H E R E T O H E L P Y O U T H R I V E

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