B U I L D I N G A B E T T E R E M P L O Y E E E X P E R I E N C EB E N E F I T B I T E S S E R I E S

J A N U A R Y 2 0 2 0

J E N N I F E R B A G L E Y | P R I N C I P A LT O D D L A M B R U G O | P R I N C I P A L

2Copyright © 2020 Mercer (US) Inc. All rights reserved.

“Every business will bea software business”

Satya Nadella, March 2015

Aligning Work to Future Value

Building Brand Resonance

Curating the Work Environment

Delivering Talent-Led Change

E X P E R I E N C E I S T H E N E W C O M P E T I T I V E A D V A N T A G E

Source: Mercer 2019 Global Talent Trends

of leaders expect the role of AI, automation and robotics to increase significantly in the next two years

83%

of organizations are in the midst of transformation

97%

Copyright © 2020 Mercer

Services’ value added as a percent of GDP

Source: World Bank national accounts data, and OECD National Accounts data files https://data.worldbank.org/indicator

UNITED STATESGLOBAL

65% 77%

Source: 1McKinsey, 2017; 2Gartner, 2018

4

consumer spending outpaced spending on goods1

4x

of competitive advantage is based on the experience they provide to customers2

67%

“ F UT U R E O F W O R K ” I S N O W E X P L O S I O N O FT H E S E RV I C E E C O N O M Y E X P E R I E NC E S A R E K I N G

S T R AT E G I C C O N F U S I O N30% of employees do not have a clear sense of where their organization is headed1

I N E F F I C I E N T O P E R AT I O N S37% are held up by bureaucracy when trying to get their work done1

I N C R E A S I N G E X I T S39% of US leaders concerned with excessive turnover; 25% globally2

FA I L E D T R A N S F O RM AT I O N70% of transformation initiatives fail, costing businesses a staggering $900B1

S TA G N A NT P R O D U CT I V I T YGlobal productivity is anticipated to be only 2% for 2019, just up from 1.9% in 20182

TA L E NT S H O R TA G E S0.5% labor supply growth rate over the next 10 years3

BUSINESSIMPACT

LOST & OVERWHELMED

O R G A N I ZAT IO N S M U S T P U T T H E I R PEOPLE AT THE CENTER OF GRAVITYTO DELIVER ON THEIR BUSINESS STRATEGY

E M P L O Y E E S H A V E B E E N L E F T B E H I N D I N T R A N S F O R M A T I O N

Source: 1Mercer Sirota norms, ~5mm employees2 Mercer Global Talent Trends 2019

Source: 1HBR, 20192Conference Board3Bureau of Labor Statistics

3Copyright © 2020 Mercer

6Copyright © 2020 Mercer

T H E W A Y F O R W A R D R E Q U I R E S A C H A N G E I N T H E W A Y W E I N V E S T I N P E O P L E

6

Basic Needs: Pay, Benefits, Security

Workers are assets to be retained

Pay and benefits for time and output

L O YA LT Y C O N T R A C T( 2 0 T H C E N T U R Y )

Psychological Needs:Achievement, Camaraderie, Equity

Employees are assets to be acquired and optimized

Broader set of rewards (pay, benefits, career, experiences) in exchange for organizational engagement

E N G A G E M E N T C O N T R A C T( T O D AY )

Growth Needs: Purpose, Meaning, Thriving, Impact

Human-Led, Technology EnabledPeople and machines together for maximum value creation

Rewarding experience in exchange for a wide range of contributions

E X P E R I E N C E C O N T R A C T( T H E N E W C H A P T E R )

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Y O U R P E O P L E A R E T H E A N S W E R

I N C R E A S E DE N G A G E ME NT

TECHNOLOGY INVESTMENT PEOPLE INVESTMENT

SUSTAINABLE GROWTH

2x I N N O VAT I O N

4xM O R E P R O F I TA B LE

2xC U S TO M E R S AT I S FA C T I O N

E N H A N C E D B R A N D

5Copyright © 2020 Mercer

W H AT I S E M P L O Y E E E X P E R I E N C E ?

T H E E M P L O Y E E E X P E R I E N C E I S T H E I N T E R S E CT IO N O F A N E M P L O Y E E ’ S E XP E C TAT I O N S , T H E I R E N V I R O NM E NT A N D T H E E V E N T S T H AT S H A P E T H E I R J O U R N E Y W I T H I N A N O R G A NI Z AT I O N

E V E N T SA sequence of moments in an

employee’s journey, both scripted and unscripted

E N V I R O N M E N TThe touchpoints, shaped by

interactions within the organization

E M P L O Y E EMy expectations, shaped by who I am and what I value

C U LT U R E , P E O P L E & L E A D E R S , W O R K ,

P R O G R A M S & P R O C E S S E S ,

W O R K P L A C E / T E C H

L I F E E V E N T S , C A R E E R E V E N T S ,

O R G A N I Z AT I O N E V E N T S

E M P L O Y E E E X P E R I E N C E

H O W W E T H I N K A B O U T E M P L O Y E E E X P E R I E N C E

7Copyright © 2020 Mercer

E M P L O Y E E S A T T H E H E A R T O F D E S I G N

S A R A H

“I’m focused on building my career and balancing life with my family”

P R O D U C T M A R K E T E R

JOIN XYZ CO. Assigned to my team and first project!

ENROLLEDIN BENEFITSThat tooka while to figure out!

AMAZING OFFSITEThis company is going amazing places!

NEW OPPORTUNITYLooking forward to applying my skills to a new role

I’M LOSTUgh! Can’t find what I need to get my job done

NAVIGATING MY CAREERWow, I really have a wealth of opportunities within my own company!

HAVE A CHILDConfused by the leave policy

RETURNED TO WORKStressful and overwhelmed

CUSTOMER FOCUSEDUnderstand the diverse wants, needs and pain points of your customers – your employees

UNDERSTAND THE END TO END JOURNEYNavigating the experience through the lens of an employee breaks down silos within HR, and across Functions

DESIGN FOR THE TARGETED INTERACTIONImpactful experiences (moments that matter) require punctuation with personalized human touch, while other experiences can be simplified and automated

E M P L O Y E E S A T T H E H E A R T O F D E S I G N

CO-CREATE SOLUTIONSBring employees and leaders to the drafting table to innovate and design together

W H A T T Y P E O F E X P E R I E N C E S D O P E O P L E C R A V E ?

EFFICIENTProvide me with a frictionless work environment

EMPATHETICSupport me with caring for myself and what matters in my life

EMBRACINGMake me feel like I belong and can bring my whole self to work

ENRICHINGHelp me learn, grow and have an impact with the work that I do

12Copyright © 2020 Mercer

E M P L O Y E E E X P E R I E N C E R E Q U I R E S A S H I F T I N M I N D S E T

T O A C T I O N T H I S C H A N G E W E N E E D T O G O …

F R O M

Doing things because others are doing it

Focusing on a single program or process & optimizing it

Taking a Traditional design process (slow, siloed and not transparent)

T OEliminating pain points in the experience

Reshaping the experience and the targeted interaction you want to have… both human AND digital

Co-creating and iterating with employees to drive speed and innovation

… W H I C H W I L L R E S H A P E T H E W A Y H R O P E R A T E S I N T H E F U T U R E9Copyright © 2020 Mercer

M A X I M I Z I N GT H E I M PA C TO F E M P L O Y E E E X P E R I E N C E

ITERATIVE, CO-CREATION PROCESS TO DRIVE MEASURABLE CHANGE

HUMAN-LED DESIGN ENHANCES THE EMPLOYEE EXPERIENCE

A N E W W A Y O F W O R K I N G

ANALYZE DEFINE

IDEATE

PRIORITIZE

VALIDATE PLAN

EMPATHIZE MEASURE

Define the right problem

Design the right solution

DEPLOY

Activate for maximum impact

Identify critical gaps in the current employee

experience

Design solutions to address gaps and

enhance the experience

Deliver solutions to employees and measure the

impact of the change

12Copyright © 2020 Mercer

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