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

D E C E M B E R 0 6 , 2 0 1 8

I N D I A

M E R C E R S I G N AT U R E

C O N C L AV E 2 0 1 8

R O A D M A P 2 0 2 5 |

P O W E R O F

W O R K F O R C E

R E I M A G I N E D

© MERCER 2018 2

K E Y N O T E A D D R E S S

R O A D M A P

2 0 2 5 : W E L C O M E &

O P E N I N G N O T E

A N I S H S A R K A R

C E O I n d i a

© MERCER 2018 3

K E Y N O T E A D D R E S S

R O A D M A P

2 0 2 5 : W H A T D O E S

T H E F U T U R E H A V E

I N S T O R E

D I L I P C H E N O Y

S e c r e t a r y

G e n e r a l

© MERCER 2018 4

T H E C E O

P E R S P E C T I V E : T H E

B U S I N E S S I M P A C T

S U R E S H

N A R A Y A N A N

C h a i r m a n & M D

INDUSTRIAL

REVOLUTION 4.0 HOW WILL IT SHAPE HR PRIORITIES OF TOMORROW?

By : Mr. Suresh Narayanan

Chairman & Managing Director, Nestlé India Ltd.

World’s

LARGEST

MEDIA

OWNER

develops

no content

World’s

LARGEST

TAXI

COMPANY

owns

no cabs

World’s

MOST

VALUABLE

RETAILER

keeps

no inventory

World’s

LARGEST ACCOMODATION

PROVIDER

owns

no hotels

World’s

LARGEST

SOFTWARE

DEVELOPMENT

PLATFORMS

develops

no apps

World’s

LARGEST

MOVIE HOUSE

owns

no cinemas

INDUSTRY 4.0 THE GAME CHANGERS

WHAT CHALLENGES DOES THIS THROW

FOR A PRODUCT BASED INDUSTRY LIKE OURS ?

RETAIL driven by DIGITAL

Product

Personalisation

Customised

Communication

Mining the Micro

Moment Bring Alive the Brand

WHAT WILL BE THE BUSINESS PRIORITIES OF

TOMORROW?

Source : The Economist Intelligence Unit Survey

RE-IMAGINE THE WORKPLACE OF TOMORROW

Increase in

Workforce

Digitization

Increase in

Demand for

Skilled

Talent

ROBOTICS ARTIFICIAL

INTELLIGENCE JOB ON DEMAND

Manual

Labour Mid-level

Clerical Jobs

Crowdsourced,

temporary labour

Factors that will shape employment arrangements of

tomorrow

HOW THIS WILL SHAPE WORKFORCE EXPECTATIONS?

‘HYPER-PERSONALIZATION’ in Managing Employee

Experiences

Through Emergence of HR-Marketeer

Strong association with the PURPOSE of the

Organization

Upgrade of POLICIES &

PRACTICES in tune with the time

CULTURE as a sub-set of

structures

USE OF AI in EMPLOYEE

INTERACTIONS

NBRACE

USE OF MOOC /

LEARNING JOURNEYS

SOCIAL SABBATICAL

INTERNATIONAL

COFFEE DAY

CREATING SHARED

VALUE

RESPECT

CHECK INS/3P/NOT

BOXED

EARLY

RESPONSIBILITIES/

RISE TOGETHER /FAIL

TO SUCCEED

PRE – POST MATERNITY

SANITATION/SANITARY

EARLY

RESPONSIBILITIES

WHERE SHOULD THE HR FOCUS LIE?

CULTURAL SHIFT to a

DIGITAL MINDSET

Adaptability to change

Work style

Organizational structure

Talent acquisition &

management

Employee engagement

Agility

Collaboration

Distributed

Digital & based on analytics

Total Employee Experiences

Leadership Styles Innovation + Fail to Succeed

HOW THIS WILL SHAPE WORKFORCE EXPECTATIONS?

A strong association with the PURPOSE of the Organization

Social Sabbatical

WHAT CHALLENGES DOES THIS THROW

FOR A PRODUCT BASED INDUSTRY LIKE OURS ?

RETAIL driven by DIGITAL

Product Personalisation Customised

Communication

Mining the Micro Moment Bring Alive the Brand

Product

Personalisation

Mining the Micro

Moment

© MERCER 2018 15

R E G I O N A L A S P E C T :

R E I M A G I N I N G T H E

W O R K F O R C E I N A N

A G E O F

D I S R U P T I O N

P U N E E T S W A N I

C a r e e r B u s i n e s s

L e a d e r ,

I n t e r n a t i o n a l

R e g i o n

Puneet Swani, Partner

Career Business Leader International Region

2018 India HR Conclave

Staying Ahead – Reimagining

the Workforce in the Age of

Disruption

© MERCER 2018 17

17

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

D O W N T O F I R E I N S U R A N C E O N I T

We cannot wait until there are massive dislocations in our society to prepare for

the Fourth Industrial Revolution

Robert J. Shiller | 2013 Nobel laureate in economics | Yale University professor

© MERCER 2018 18

“The Automation Jobless”, TIME Magazine

What worries many job experts is that automation may

prevent the economy from creating enough new

jobs…throughout industry, the trend has been to

bigger production with a smaller work force…many of

the losses in factory jobs have been countered by an

increase in the service industries or in office jobs. But

automation is beginning to move in and eliminate

office jobs, too.

© MERCER 2018 19

DISRUPTION

EXPONENTIAL

GROWTH

LINEAR

GROWTH

GR

OW

TH

T IME

W H A T I S D I S R U P T I O N ?

H A C K I N G G R O W T H

© MERCER 2018 20

W H AT D O E S “ W O R K F O R C E O F T H E F U T U R E ” M E A N T O Y O U ?

2 0 1 8 G L O B A L T A L E N T T R E N D S S T U D Y

C - S U I T E E X E C U T I V E S

© MERCER 2018 21

KEY SHIFTS AT WORK

© MERCER 2018 22

AN AGEING GLOBAL POPULATION… …WITH LIMITED DIGITAL SKILLS

Female Male

Younger

Older

% of

population

in

age

categories 1985

2025 of adults have no Information

and communication

technology (ICT) skills or only

very basic skills

56%

of workers possess advanced

cognitive skills enabling them

to evaluate problems and find

solutions using technology

34%

of those using software at

work every day do not have

the skills required to use

digital technologies effectively

>40%

W H A T I S C E R T A I N

T H E T A L E N T S U P P L Y S I D E

© MERCER 2018 23

1 Digitalization

• Digitalize transactional or repetitive tasks

• Optimize work allocation

• Increase workforce efficiency

2 Robotization

• Decrease the number and the gravity of

work accidents

• Enhance quality of service

• Improve productivity and efficiency

• Amplify impact of work and the reach of

humans

W H A T I S C E R T A I N

T H E T A L E N T D E M A N D S I D E

© MERCER 2018 24

45% of today’s

jobs are

automatable…

90%

35%

Today

10%

55%

45%

100%

~2025

55%

AUTOMATION IMPACT ON THE WORKFORCE

NUMBER OF JOBS, %

…AND THE NATURE OF WORK AND

COMPOSITION

… but only

up to 10% of

jobs are

actually

threatened

…

… and 35% of the

remaining jobs will

see their core tasks

change significantly

The changing

nature of work

…and of the

workforce

composition

Relational

Transact.

Expertise

~2025

Expertise

Relational

Transact.

Today

External

External

External

Internal

Internal

~2025

NATURE OF WORK COMPOSITION

Source: Oxford University, OCDE, France Stratégie, World Economic Forum, Mercer and Oliver Wyman analysis

35%

T H E G L O B A L D E M A N D S U P P L Y M I S M A T C H H A S L E D T O T R A D I T I O N A L J O B S B E I N G R E C O N F I G U R E D A N D N E W S K I L L S B E C O M I N G C R I T I C A L T O S U C C E S S

© MERCER 2018 25

As work becomes more information-based, exponential technologies can be

leveraged to execute tasks…

THREE SHIFTS ARE UNDERWAY

1. UNBUNDLING OF

WORK FROM JOBS

2. NEW WORK,

NEW SKILLS 3. HIGHER COGNITIVE

COMPLEXITY OF HUMAN WORK

…creating significant opportunities for productivity gains

and innovation in the enterprise.

Jobs are no longer the organizing

unit for work; rather, there is a

redistribution of tasks between

humans and machines, depending

on who is best suited to do the job

With the rise of new

technologies, we will see the

emergence of new roles

associated with the design,

development and maintenance of

new technologies

The human workforce of the

future will execute tasks

requiring higher cognitive and

emotive complexity, and

activities requiring the

application of general

intelligence

… W H I C H H A S S I G N I F I C A N T I M P L I C A T I O N S O N

H O W W O R K I S D O N E

© MERCER 2018 26

THE NEW TALENT

MODEL

© MERCER 2018 27

How can we translate our EVP into an Individual Value

Proposit ion?

ONLY 2 IN 5 EMPLOYES BELIEVE THEIR COMPANY HAS A

COMPELLING AND DIFFERENTATED VALUE PROPOSITION

G I G

E C O N O M Y

What can we

do to embrace

the rise of the

free agent?

F L E X I B L E

W O R K I N G

How do we create a

culture that enables

people to contribute

under flexible work

arrangements?

W O R K P L A C E

F O R M E

How can we meet

individuals

evolving health,

wealth and career

needs?

How can we

ensure our

proposition

resonates with

five

generations

C H A N G I N G

D E M O G R A P H I C S

T H E E M P L O Y M E N T D E A L N E E D S T O

S I G N I F I C A N T L Y C H A N G E …

© MERCER 2018 28

T H E S C A L E A N D R A T E O F C H A N G E M E A N S T R A D I T I O N A L W O R K F O R C E P L A N N I N G M U S T B E R E P L A C E D B Y A M O R E D Y N A M I C A P P R O A C H T O W O R K F O R C E T R A N S F O R M A T I O N

© MERCER 2018 29

Source: Mercer Research “Talent Ecosystems , Manage critical capabilities to gain a competitive edge – Considerations for business and HR leaders”

PARTNERSHIP TALENT Sourcing through partnerships will increase in importance as industry and capability barriers blur

CO-OPETITION Collaborating with competition will also increase, driven by economies of scale and speed to market

INTERNAL TALENT Internal talent will increasingly be supplemented through other types of talent, and will actively team with other talent types

FREELANCE TALENT Sourcing freelance talent will increase as large groups of the workforce will prefer to work independently

CROWDSOURCED TALENT Crowdsourcing will increase, especially where the “wisdom of the crowd“ will lead to more creative, innovative and faster solutions.

W H I C H O F T H E S E TA L E N T P O O L S A R E Y O U TA P P I N G I N T O T O D AY ?

L E V E R A G I N G T H E T A L E N T E C O S Y S T E M T O

O R C H E S T R A T E T O M O R R O W ’ S W O R K F O R C E

AGENDA FOR

TRANSFORMATION

© MERCER 2018 31

• Identify the business and industry

trends impacting the workforce

• Assess the impact of strategy on

the workforce design

• Assess the impacts across the

value chain

• Align leadership around the future

workforce vision

• Gain insight into the size and shape

of the current & future workforce in

terms of technology impact, and

skillsets

• Understand internal workforce

dynamics (e.g. drivers of outcomes)

• Identify potential talent gaps

• Evaluate and select the options for

addressing gaps

• Specify the strategies for delivering

the future workforce

• Define solutions that are practical

and can be driven by management

• Implement platforms to enable

automation of work and access to

external talent pools

2

3 4

1 WORKFORCE

FOR THE

FUTURE

What changes are impacting

my workforce and what do

they mean?

What does my current

workforce look like, and what

could it look like in the future?

How do we drive the

transformation forward? How do we get there?

Set the vision

and prepare

change

Map the

current and

forecast the

future

workforce

Determine and

design workforce

Strategies

Deliver the

transformation

• Establish transformation

governance

• Roll-out enabling technical

platforms

• Manage the implementation

• Continuously measure progress

ALIGN DEFINE

DESIGN DRIVE

SOURCING REWARDING DEVELOPING OUTPLACING

A G E N D A F O R T R A N S F O R M A T I O N

D E L I V E R I N G T H E W O R K F O R C E O F T H E F U T U R E

© MERCER 2018 32

Identify impact of automation on key jobs

Evaluate current and future supply of talent

Identify similarities between “adjacent” jobs and KSAs

Assess supply-demand gaps in terms of key jobs and KSAs

Translate existing critical jobs to KSAs (knowledge, skills, and

abilities) and gather further input on future needs

D E F I N E – W I T H I N S I G H T S A N D D A T A S C I E N C E

© MERCER 2018 33

Risk Management Analyst Survey Researcher Business Intelligence Analyst

Skills that require

more development

Measuring the degrees of

transportability of skills

across job families

E X A M P L E – B U I L D I N G T H E W O R K F O R C E F O R

T H E F U T U R E F R O M T H E W O R K F O R C E O F T O D A Y

© MERCER 2018 34

Our Systems Examples of MMC-Specific

Content Providers Open Resources

Technical Skills Soft Skills

Videos

E X A M P L E – C L O S I N G T H E G A P S T H R O U G H

U P S K I L L I N G A N D R E S K I L L I N G

© MERCER 2018 35

LEVERAGING THE

TALENT

ECOSYSTEM

PARTNERSHIP

TALENT

FREELANCE

TALENT

CROWD

SOURCED TALENT

CO-OPETITION

INTERNAL

TALENT

“WorkMarket is

helping us

transform our

store operations

across our 8,200

U.S. stores."

Charles Hughes

Director of IT Field

Services - Walgreens

R I S E O F T H E T A L E N T E C O S Y S T E M

© MERCER 2018 37

DISRUPTORS

Organizations that have

developed strategies

across all dimensions and

are seeing results in

many Workplaces built on intelligent applications

and innovative practices, which allow for

autonomy, experimentation and human-

machine collaboration

Purpose-driven vision and a culture that

rewards innovation, engagement,

collaboration, speed and comfort with failure

Workflows and metrics that are flexible and

scale learning across the enterprise, and are

designed with shorter feedback loop cycles

Organization design that moves tasks and

decisions closest to information, reduces

internal friction and enables cross-

functional collaboration and risk-taking

Skills and capabilities that enable

tomorrow’s workforce to operate in

the “augmented” and “human-in-the-

loop” future

Organizations that are

already exponential and are

future-ready in all

dimensions

ACCELERATORS

PRAGMATISTS

Organizations that are

selectively responding

to pain points across

some dimensions, but

do not have a unified

approach

Organizations that are

preoccupied with solving for

today’s challenges and have a

linear strategy for tomorrow

OPTIMIZERS

By assessing yourself against 5 key dimensions of tomorrow’s organizations, you can map your journey to lead through disruption

A G E N D A F O R T R A N S F O R M A T I O N

W H E R E D O W E S T A R T ?

© MERCER 2018 39

C H R O P A N E L :

R E B U I L D I N G T H E T A L E N T

E C O S Y S T E M

D E B O L I N A D U T T A

V i c e P r e s i d e n t H R &

C S R

R A V I P A R M E S H W A R

C H R O

U D A Y B U R R A

H R H e a d

© MERCER 2018 40

G AU R AV B AL

C o m p e n s a t i o n & B e n e f i t s L e a d e r , G E

E m p l o y e e W e l l n e s s – I n n o v a t i n g f o r

S u s t e n a n c e

TAN M AYA J AI N

F o u n d e r & C E O , i n F e e d o

G o i n g B e y o n d M e a s u r i n g E n g a g e m e n t

AM R I TA D AS

A s s o c i a t e V i c e P r e s i d e n t - To t a l R e w a r d s &

P e r f o r m a n c e , H C L

M a n a g i n g E x e c u t i v e C o m p e n s a t i o n D u r i n g

O r g a n i za t i o n a l C h a n g e

K AN WA L K AU L

D i r e c t o r - H u m a n R e s o u r c e s , R B S

Ta l e n t A s s e s s m e n t s – A D i g i t a l U p g r a d e

2

1

3

4

© MERCER 2018 41

T H E W E A L T H G A M E :

R E I M A G I N E

F I N A N C I A L

W E L L N E S S F O R

T H E A L G O R I T H M I C

A G E

N A R A Y A N

K R I S H N A M U R T H Y

F o r m e r E d i t o r -

O u t l o o k M o n e y

© MERCER 2018 42

• Dependence on mobile/technology

• Cars that drive themselves

• Platforms that anticipate our needs

• Robots capable of everything

• Machine learning

...... But you need money

A L G O R I T H M I C A G E

© MERCER 2018 43

• Gender

• Age

• Millennials/ GenX/ Y/ Z

• Ability

• Ethnicity

• Sexual Orientation

.....Work-life balance

W O R K P L A C E W O R K F O R C E

© MERCER 2018 44

• Cultural

• Socio-economic

• Want flexi-hours

• Part-time work

• Early retirement

W O R K P L A C E C H A L L E N G E S

© MERCER 2018 45

• Things are actually not different

• Income

• Expenses

• Savings

• Investments

• Financial Goals

• Don’t feel in control of their financial

situation

• Stressed about money

M O N E Y C O N C E R N S

© MERCER 2018 46

© MERCER 2018 47

• Focus on payouts – fixed, variable,

bonus, ESOPS

• Benefits – health, retirement,

conveniences

• Career development

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

© MERCER 2018 48

It’s not about the income, wealth or salary – it’s

about managing personal financial situations

and financial security.

F I N A N C I A L W E L L N E S S A N D W E L L B E I N G

© MERCER 2018 49

• Issues can be completely different from one

company to the next

• Disconnect between employers and employees

• Benefits strategies could vary within organizations

Tailor wellness programs to your companies’

workforce to drive productivity and

engagement

O N E S I Z E D O E S N O T F I T A L L

© MERCER 2018 50

• Seek early financial freedom

• Struggle to save

• Debt management

• Shorter working lives and longevity

• Job hopping

Y O U N G E R E M P L O Y E E S

© MERCER 2018 51

© MERCER 2018 52

• Higher financial commitments

• Not enough to retire

M I D D L E A G E E M P L O Y E E S

© MERCER 2018 53

• Old-age poverty

• Retirement concerns

• Healthcare costs

• Tax efficiency

P R E R E T I R E E S

© MERCER 2018 54

1. Focus on money management skills

2. Financial Education seminars

3. Employee Assistance Program (EAP) with a

financial component

4. Review and Assess effectiveness

5. Gamification of financial education

W H A T S H O U L D E M P L O Y E R S D O ?

© MERCER 2018 55

• Savings, investing and spending

• Understanding budgeting

• Cash-flow management

• Good and bad debt

1 . F O C U S O N M O N E Y M A N A G E M E N T A N D S K I L L S

© MERCER 2018 56

• Understanding money management

• Financial goal setting

• Income tax planning

• Retirement planning

• Any other relevant program

2 . F I N A N C I A L E D U C A T I O N S E M I N A R S

© MERCER 2018 57

• Employer subsidized financial advice

• Access to financial counsellors

• Tools and calculators to maintain financial

records

3 . E A P W I T H A F I N A N C I A L C O M P O N E N T

© MERCER 2018 58

• Interact with those using the services

to evaluate effectiveness

4 . R E V I E W A N D A S S E S S E F F E C T I V E N E S S

© MERCER 2018 59

• Higher literacy does not translate into

financial understanding and action

• Financial games instead of a presentation/

Talks

• Fingo/ quiz

5 . G A M I F I C A T I O N O F F I N A N C I A L W E L L N E S S

© MERCER 2018 60

© MERCER 2018 61

© MERCER 2018 62

“ H O T - O F F - T H E -

P R E S S ”

I N D I A R E W A R D S

T R E N D S - M E R C E R

R E S E A R C H

N A M I T A

B H A R A D W A J

P r i n c i p a l , I n d i a

P r o d u c t s L e a d e r

© MERCER 2018 63

I N D I A R E W A R D T R E N D S

“ C H A N G E , C H A N G E “ A G E N T S ” A N D C H A N G E “ E N A B L E R S ”

The “CHANGE”, “CHANGE "AGENTS” AND “ENABLERS”

The Country

Socio-political

transition and

economic

evolution

The Workforce

Changing landscape w.r.t. type

of jobs, attitudes and behaviors,

relevant reward and talent

management systems

The Individual

“What’s in it for me?”

HR

How does HR stay

relevant in this

changing talent

landscape?

© MERCER 2018 64

E M E R G I N G M A R K E T S P O S I T I O N E D F O R S T R O N G

G R O W T H

Source: 2018 Global Compensation Planning Report Figures in brackets indicate forecasted values for 2018

GDP

Unemployment

ASIA

MIDDLE

EAST

US

AFRICA

6.5% (4.8%▼)

10.9% (10.6%▼)

-0.1% (2.2%▲)

8.4% (8.4%)

4.8% (4.8%▲)

3.7% (3.6%▼)

2.3% (2.9%▲)

4.4% (3.9%▼)

3.8% (3.6%▼)

8.1% (7.9%▼)

WORLD GDP 3.8%

EUROPE

ASIA has:

Highest GDP

Lowest

unemployment

3.4% (3.2%▼)

8.6% (8.4%▼)

6.2% (8.1%▲)

INDIA

3.5% (3.5%▲)

© MERCER 2018 65

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%

Infl

ati

on

Ra

te

GDP Growth %

Year: 2018 (2019 F)

Source: April 2018 Global Compensation and Planning Report; 2018 TRS

JP: 2.3% (2.4%

▲)

CN: 6.7% (6.9%

▲) HK: 4% (4.1%

▲)

NZ: 3%

(3%)

ID: 8.2% (8.6%

▲)

MY: 5.5%

(5.5%)

PH: 8% (8.5%

▲)

SG: 4%

(4%)

TH: 5.5%

(5.5%)

VN: 8.9% (9%

▲)

IN: 10% (10%)

AU: 3%

(3%)

US: 2.9% (3% ▲)

Global GDP

Growth: 3.6%

APAC GDP

Growth: 4.8%

Legend

X-axis: GDP Growth Rate

Y-axis: Inflation Rate

: Salary Increase Rate

E C O N O M I C G R O W T H

C O M P A R I N G A C R O S S A S I A

TW: 4%

(4%)

LK: 8.5%

KR: 4.6% (4.7%

▲)

KH: 8%

(8%)

BD: 10%

(10%)

MM: 9% (10% ▲) PK: 10%

(10%)

Figures in brackets indicate forecasted values for 2019

© MERCER 2018 66

G R O W T H A G E N T S

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

77 58th 337

3

4 2

B i l l i o n

327

0 5 0 0

m i l l

1 9 5

7

1 8 3

9

5 4

I n d e x

1 4 2

7

Change

Most Competitive

Economy World Economic Forum’s global

competitiveness index for 2018

ER&D market

growth projections by FY22

MODICARE to cover 500 million of the

poorest Indians

Factory Activity in

November

expanded at the fastest pace this year

Ease of Doing

Business Ranking jumped by 23 positions

India’s Global

Consumption to increase by 2020

5.8%

© MERCER 2018 67

… A D D I T I O N A L L Y T H E R E A R E G L O B A L T R E N D S

I M P A C T I N G T O D A Y ’ S L A N D S C A P E

R E V E R S E

G L O C A L I Z A T I O N

( ? )

M A S S

C U S T O M I Z A T I O N

A C C E L E R A T E D

R E I N V E N T I O N

R E S K I L L I N G

W O R K F O R C E

• Rising

protectionism

• Changing business

regulations

• “Increasing

regional control”

• Age of personas

• Empowerment to shape

experiences

• People platform

• Personalized insights

• Change Agility

• Design Thinking

• Upskill for a digital era

• 4th Industrial revolution

– Artificial Intelligence,

Robotics

• Exponential

Technologies

• Pervasive Digitization

• Speed @ Scale

© MERCER 2018 68

I N D I A R E W A R D T R E N D S

“ C H A N G E , C H A N G E “ A G E N T S ” A N D C H A N G E “ E N A B L E R S ”

The “CHANGE”, “CHANGE "AGENTS” AND “ENABLERS”

The Country

Socio-political

transition and

economic evolution

The Workforce

Changing landscape w.r.t.

type of jobs, attitudes and

behaviors, relevant reward

and talent management

systems

The Individual

“What’s in it for

me?”

HR

How does HR stay

relevant in this

changing talent

landscape?

© MERCER 2018 69

T I M E O F A C T I O N , N O T A N T I C I P A T I O N

L I V I N G P A S T T H E I N F L E C T I O N P O I N T

Building awareness Getting organized Starting to accelerate

W H A T W E

K N O W

W H E R E W E A R E

A T

W H E R E W E A R E

H E A D I N G

• Multi-generational Workforce

• Cloud Technology

• 3D Printing & Advanced

Manufacturing

• The Internet of Things

• Rise of the

Free Agent

• Automation, Robotics

• AI & Machine

Learning

• Wearables

• Pay Equity

• Vocality of

the Female

voice

Predictive

Analytics

• AI adaptive systems

that anticipate

needs

TECHNOLOGY

DISRUPTIVE TECHNOLOGY

INTERACTIVE DATA LAYER

INFLECTION POINT

AUGMENTED HUMANITY

• Longevity

• AI Board Directors

BIG DATA MANAGEMENT

• Rise of the

Individual

• Personas

• Blockchain

• Virtual

Assistants

© MERCER 2018 70

I N D I A ‘ S T A L E N T M A R K E T P L A C E

8.1M Jobs per year are being created in

India Market

28 Yrs

Of the workforce in the non Technology Industry are emerging as specialists

2% Median Age

of the workforce in India

10% Increase in

female participation in workforce, GDP impact 700M by

2025

89%

Workforce dominated by

Millennials , Gen X and Baby Boobers at

Professionals and Para

Professionals

20%

Roles in their organization

which C-suite will cease to exist in 5

years

TAL E N T I M P E R AT I V E S AR E …

U P S K I L L I N G D I G I TAL C O M P E T E N C E

I N C R E AS I N G AC C E S S T O C O N T I N U O U S L E AR N I N G T H R O U G H M U LT I P L E P L AT F O R M S

© MERCER 2018 71 © MERCER 2017 © MERCER 2018

EXEC: 1% SSO, Chemical, Life

Sciences, Hi-tech

Hi-tech, Life Sciences, Manufacturing, Auto,

Consumer

MANAGEMENT: 17% Hi Tech, SSO

C H A N G E A G E N T , I M P A C T O N O R G A N I Z A T I O N

S T R U C T U R E

PARA PROFESSIONAL : 18%

LOWER THAN ALL-INDUSTRY

ALL-INDUSTRY

HIGHER THAN ALL-INDUSTRY

SSO, Chemical, Consumer,

Manufacturing, Auto PROFESSIONAL: 64%

Consumer, Manufacturing

Auto, Life Sciences, Consumer, Chemical, Manufacturing, Hi-tech

Life Sciences, Hi-tech

Chemical, Manufacturing, SSO

© MERCER 2018 72 © MERCER 2017 © MERCER 2018

EXEC

MANAGEMENT

S U S T A I N I N G T H E S T R U C T U R E

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

PARA PROFESSIONAL

PROFESSIONAL

56%

Of the

organizations

have increased

the headcount

for this year

59%

Of the

organizations

are looking at

increasing the

headcount for

next year

8.6%

8.1%

11.7%

8%

6.8%

8.6%

12.5%

9.4%

2017 ALL INDUSTRY ATTRITION 2018 (F) ALL INDUSTRY ATTRITION

Is it time

to relook

at our

traditional

way of

looking at

talent

sourcing?

B U Y

B U Y : B U I L D

BUY : BU I LD: BO RRO W

B U Y : B U I L D

© MERCER 2018 73

T A K I N G A G E N D E R V I E W

I N D U S T R Y S E G M E N T A T I O N

Source: India All Industry Total Remuneration Survey

Para Professional

Professional

Management

Executive

Human Resources Finance Marketing Engineering Manufacturing

Supply & Logistics Engineering

© MERCER 2018 74

S E I Z I N G T H E G R O W T H O P P O R T U N I T Y T H R O U G H

E M E R G I N G M E G A C I T I E S …

In the next 10

years, nearly

50% GDP

growth will come

from 440 growth

economy

cities…and growth

markets will be

home to 83% of the world’s

megacities

Indian cities score high on their ability to provide good

work, appropriate home conditions…

…to leverage the

opportunity, important to

understand what drive the

move (& leave) emerging

cities…

Therefore…

1. Critical to create a compelling

EVP

2. Address low-hanging fruit to

ensure staying power

3. Build IVP from the EVP for

different personas within the

organization

© MERCER 2018 75

C R I T I C A L R O L E S

W H A T H A S C H A N G E D ?

R&D

SALES

MARKETING

R&D

SALES

ENGINEERING

R&D

SALES

ENGINEERING

PRODUCT

MANAGEMENT

© MERCER 2018 76

I M P A C T O N S A L A R Y I N C R E A S E S ?

R A T I O N A L I Z A T I O N A C R O S S Y E A R S

Source: 2018 India All Industry Total Remuneration Survey

8.9%

10.0%

10.3%

10.0%

9.5%

10.6%

10.0%

10.0%

10.0%

8.0%

10.0%

10.0%

10.0%

8.9%

10.0%

10.0%

10.0%

10.0%

9.0%

10.0%

10.5%

10.3%

9.0%

10.6%

10.3%

10.0%

10.0%

Logistics

Manufacturing

Consumer

High Tech

SSO

Life Sciences

Chemical

Auto

All Industry

2019F 2018 2017

10.5%

10.5%

10.5%

10.0%

10.0%

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019 (F)

M E R I T I N C R E AS E

I N D U S T RY

© MERCER 2018 77

P A Y D I F F E R E N T I A L S A C R O S S I N D U S T R I E S T E L L S

I T S O W N S T O R Y O N S T R U C T U R E & P A Y

P H I L O S O P H Y …

53

47 47

52 52 52 54

57

30 32

35

30 32

27 29

27

19 21

19 18

16

20

15 16

0

10

20

30

40

50

60

All Ind Chemical Manufacturing Auto MLS Hi Tech SSO Consumer

MULTIPLE BETWEEN

ENTRY TO SUB-

FUNCTION HEAD

MULTIPLE BETWEEN

SUB-FUNCTION TO

FUNCTION HEAD

MULTIPLE

BETWEEN

FUNCTION

HEAD &

HEAD OF

ORG

Similar gaps but

different talent

environments &

priorities

Traditionally

lower starting

salaries

Double digit increases however will persist as the pay ratios from entry-level to senior leadership

continues to be very high – an outcome of low entry salaries & talent market continuing to be

volatile across the hierarchy

© MERCER 2018 78

8.30%

10.00%

11.00%

11.60%

15.00%

15.00%

22.00%

30.00%

TAR G E T

VARI ABLE

B O N U S – 2 0 1 8

V A R I A B I L I T Y I N C O M P E N S A T I O N C O N T I N U E S T O B E

I M P O R T A N T

ST

I as a

Perc

en

tag

e o

f G

uara

nte

ed

Cash

%(m

ed

ian

)

Source: 2018 India All Industry Total Remuneration Survey

EXEC

MGMT

MGT - SALES

MGT – NON SALES

PROF - SALES

PROF – NON SALES

LTI PREVALENCE

© MERCER 2018 79

B E N E F I T S R E M A I N K E Y D R I V E R S O F C H A N G E

To what extent do you agree that the following is a driving factor for benefits review and/or

change in your organization?

89%

81%

77%

77%

Source: Mercer APAC Benefits Snap Poll, 2018

Market Competition Cost Optimization Employer Brand Employee Feedback

© MERCER 2018 80

O F E M P L O Y E R S I N A S I A A R E R E V I E W I N G O R

C H A N G I N G T H E B E N E F I T S P A C K A G E T H I S Y E A R .

K E Y A R E A S O F C H A N G E O B S E R V E D I N

B E N E F I T S

Which employee benefits are you considering to review/ change?

44%

Health/ Medical

benefits

Insurance

benefits Flexible Benefits

Leave benefits Flexible Working

Arrangements

Innovative

benefits

Source: Mercer APAC Benefits Snap Poll, 2018

© MERCER 2018 81

I N N O V A T I V E B E N E F I T S

Source: Mercer Benefits Monitor TM

All 2018 data is from the latest release of MBM

A P A C

I N D I A

Employer Built

Housing

Special Wage for

Employee Parents

Autism Benefit

HIV Coverage

E Book Allowance Tele Health

Date Night

Sponsorship

Psychiatric Treatment

Vacation Leave for

Social Activities/ Long

Service Leaves

Fitness Devices

Crèche Facilities

Medical Insurance for

Retired Employees

Flu Vaccinations

Benefit Market Place

Pet Insurance

Fertility Treatment

Sabbatical Stem Cell Treatment

Botox Leave

Surrogacy

Benefits

© MERCER 2018 82

A L L I N A L L I N D I A N E M P L O Y E E S A R E L O O K I N G

F O R …

P E R M AN E N T

F L E X I B I L I T Y

79% of employees in India say they would consider working on

a contract basis

India leads global indicators on

“Compelling EVP”, and “Change

Agility”

D I G I TAL F R O M

I N S I D E O U T

89% employees in India want

opportunity to grow both personally and

professionally

C H AN G E AT

S P E E D

Only 73% of employees feel that their organizations understand their

unique interests and skills

P L AT F O R M F O R

TAL E N T

Thriving employees in India are 2x more likely to work for a company with a strong sense of purpose…

W O R K I N G W I T H

P U R P O S E

Source: 2018 Mercer Talent Trends Study - India

“Leaders should set clear

direction”

“Career promotion

opportunities” “More flexible work

options”

“Working with the best

and brightest”

“Opportunity to learn new

skills”

© MERCER 2018 83

P E R M A N E N T F L E X I B I L I T Y T H E E M P L O Y E E

E X P E R I E N C E

20% assess every job for its ability to be

done flexibly; most have ad-hoc arrangements

Only 3% of companies in India say they are Flex

leaders 83% of thriving individuals in India say

their company offers them flexible work

52% of all employees in India want

more flexibility

BUT…

58% have had a request for

flex turned down

35% are concerned that

flexibility will impact promotion

prospects

• What's working?

• Managing on results, not hours

(77%)

• Colleagues being positive (76%)

• Manager being supportive (75%)

• Ability to apply fairly to all employees

• Ability to measure and reward contribution

• Ability to manage career progression

• Impact on teamwork and face to face

collaboration

• Impact on results/outputs

98% of HR have

concerns

© MERCER 2018 84

L O O K I N G B E Y O N D B O R D E R S A S A L E V E R F O R

T A L E N T E N G A G E M E N T & D E V E L O P M E N T

Source: Mercer’s 2017-18 India & Global WIAPP Survey

64% 42%

N - 14 N - 412

India Global

M O B I L I T Y I N C R E A S I N G

Companies anticipating a rise in number of

long term assignments in coming two years

B E C O M I N G S T R AT E G I C … .

Companies anticipating increase in number of

strategic assignments

INDIA 50%

4 1 % International assignments for career

management / leadership development

. . . . A N D B E I N G U S E D A S A TA L E N T L E V E R

N – 59

India database

4 1 % Provide specific technical skills not

available locally

. . . . Leading to

1 . O F F E R I N G O P P O R T U N I T I E S T O M O R E Y O U N G A S S I G N E E S (70% companies anticipate

increase)

2 . F L E X I B I L I T Y O F B E N E F I T S & P O L I C I E S A S W E L L A S C O M P E N S AT I O N

A P P R O A C H to cater to diversity of assignees

© MERCER 2018 85

31% 21%

13% 8%

55%

54% 66% 65%

14% 25% 21% 27%

North East West South

HSC/ SSC ITI Diploma/ Graduate

C O N C E P T O F W O R K M E N H A S U N D E R G O N E S I G N I F I C A N T

C H A N G E

+ =

Unbundling of work from jobs

New work, new skills

Higher cognitive

complexity of human work

74%

40%

56%

Unionization continues to be a reality…tending

increasingly towards collaborative outcomes

Automation & enhancement of work profile needs higher

qualifications

Entry differs by industry type

Source: 2017-2018 Mercer Workmen Benchmarking Studies

82%

…WHICH IS LEADING TO CHANGE IN HOW WE WORK

© MERCER 2018 86

T O T A L R E W A R D S C H A N G I N G I N - L I N E W I T H

C H A N G I N G A S P I R A T I O N S & W A Y O F W O R K I N G …

Drivers of operators/workmen compensation

Note: Figures are for median Annual Guaranteed Cash Compensation, Differential is on overall India

Median Compensation Figures

12-14%

10-12%

9-11%

8-10%

5-12%

9-12%

15-

20%

5-8%

Salary increase across

regions comparable to

white collar increases

Pay premiums across regions (ITI

across experience)

…Additionally an increasing

emphasis on compensation

variability through

Performance Linked Bonus

Benefits moving

beyond the traditional

& focusing more on

employee

aspirations of

growth &

flexibility

Variable Pay 10%

Guaranteed Cash 90%

E X P E R I E N C E O F

O P E R A T O R S

E D U C A T I O N

Q U A L I F I C A T I O N S

L O C A T I O N

O F P L A N T

© MERCER 2018 87

I N D I A R E W A R D T R E N D S

“ C H A N G E , C H A N G E “ A G E N T S ” A N D C H A N G E “ E N A B L E R S ”

The “CHANGE”, “CHANGE "AGENTS” AND “ENABLERS”

The Country

Socio-political

transition and

economic

evolution

The Workforce

Changing landscape

w.r.t. type of jobs,

attitudes and behaviors,

relevant reward and

talent management

systems

The Individual

“What’s in it for

me?”

HR

How does HR

stay relevant

in this

changing

talent

landscape?

© MERCER 2018 88

W A Y S H I G H - P E R F O R M I N G H R O R G A N I Z A T I O N S

T H I N K D I F F E R E N T L Y A B O U T T O T A L R E W A R D S

3. Slightly less likely to segment their total rewards strategy to

differ program offerings by employee group

1. More likely to include elements beyond compensation and

health benefits in their total rewards definition — especially the

experiential elements

2. More likely to communicate holistically about total rewards

(and use more vehicles to get the message out)

4. More likely to use employee perspective and cost/affordability

studies to analyze their total rewards strategy

(in addition to external benchmarking)

5. More likely to measure the effectiveness of their total rewards

strategy, and use more metrics to do so

6. More likely to revisit total rewards strategies to align with

changes in the company strategy rather than to improve attraction

and retention

Source: 2018 Mercer Select Intelligence - Total Rewards Strategies in High¬-Performing HR Organizations

© MERCER 2018 89

“The future depends on what you do

today.” – MAHATMA GANDHI

© MERCER 2018 90

T H A N K Y O U N O T E

S H A N T H I N A R E S H

I n d i a B u s i n e s s

L e a d e r , C a r e e r &

R e g i o n a l P r a c t i c e

L e a d e r , W o r k f o r c e

R e w a r d s - A M E A