HOT TOPICS SUMMIT 2017
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1 HOT TOPICS SUMMIT 2017
2 Presenter: Mark Sham Suits & Sneakers
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8 INTEGRATED CIRCUITS 1958: 2 Transistors 1971: Intel : Nvidia s GPU Transistor Count: Gate Process Length: Speed: Cost of transistor: 2 1/2 inch 2,300 transistors 10,000 nanometers 740KHz ( GHz) $1 (1968) 7.1 billion transistors 28 nanometers 7 GHz $
9 HARD DRIVES 5mb - $120, mb - $99 128gb - $99
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23 Presenter: Kulshaan Singh Mercer Singapore
24 Presenter: Anne-Magriet Schoeman Mercer SA
25 H E A L T H W E A L T H C A R E E R C H A N G I N G W O R L D O F W O R K A N D F U T U R E O F J O B S M E R C E R G L O B A L T A L E N T T R E N D S S T U D Y I N S I G H T S F R O M W E F E M P O W E R M E N T I N A D I S R U P T E D W O R L D
26 T H E F U T U R E O F J O B S R E P O R T : RESEARCH PROFILE G L O B A L O R G A N I Z AT I O N S 13 MILLION EMPLOYEES 1 5 M A J O R D E V E L O P E D A N D D E V E L O P I N G E C O N O M I E S D E E P C O V E R A G E O F A S E A N, A U S T R A L I A, B R A Z I L, I N D I A, I TA LY, J A PA N, M E X I C O, S O U T H A F R I C A, T U R K E Y, U K, A N D U S T I M E H O R I Z O N : T O INDUSTRIES D I R E C T I N P U T F R O M C H R O S A N D C H I E F S T R AT E G Y O F F I C E R S MERCER 2017
27 Digitalization, business model disruption, automation, and AI are accelerating the evolution of work while the nature of a worker is experiencing its own revolution What can we expect in 2017? MERCER 2017
28 I M P E N D I N G W O R K P L A C E D I S R U P T I O N A U T O M A T I O N / R O B O T I C S M A C H I N E L E A R N I N G G L O B A L I Z A T I O N 3 D P R I N T I N G D I G I T A L I Z A T I O N MERCER 2017
29 H O W S I G N I F I C A N T I S T H E T H R E A T O F A U T O M A T I O N? E M P L O Y M E N T O U T L O O K A C R O S S J O B F A M I L I E S JOBS CHANGE IN THOUSANDS, D E C L I N E G R O W T H Office and Administrative -4, Business and Financial Operations Manufacturing and Production Construction and Extraction Arts, Design, Entertainment, Sports and Media -1, Management +405 Computer and Mathematical +339 Architecture and Engineering Legal Sales and Related Business and Financial Operations Education and Training Source: MERCER Future 2017 of Jobs Report, World Economic Forum
30 H O W S I G N I F I C A N T I S T H E T H R E A T O F A U T O M A T I O N? J O B F A M I L I E S I N D E C L I N E A N D O N T H E R I S E Significant job growth will offset significant job loss leaving an overall flat employment landscape Source: MERCER Future 2017 of Jobs Report, World Economic Forum
31 A R E T O D A Y S S K I L L S R A P I D L Y B E C O M I N G E X T I N C T? D I S R U P T I O N A C R O S S C O U N T R I E S A N D I N D U S T R I E S O F C O R E S K I L L S W I L L C H A N G E B E T W E E N A N D Average Disruption 43% Financial Services & Investors 42% Basic & Infrastructure 39% Mobility 35% Information & Communication Technology 33% Professional Services 30% Energy 30% Consumer 29% Health 27% Media, Entertainment & Information 48% Italy 48% India 42% China 41% Turkey 39% South Africa 39% Germany 38% France 37% Mexico 31% Brazil 29% United States 28% United Kingdom 27% Australia 25% Japan 21% Gulf Cooperation Council 19% ASEAN MERCER 2017
32 I N T R O D U C I N G M E R C E R L I T E R A C Y C O M P E T E N C I E S A N D S K I L L S S T U D E N T S R E Q U I R E 1 6 S K I L L S F O R T H E 2 1 ST C E N T U R Y 21 ST 01 C E N T U R Y S K I L L S 03 FOUNDATIONAL LITERACIES How students apply core skills to everyday tasks 1. Literacy MERCER Numeracy 3. Scientific literacy 4. ICT literacy 5. Financial literacy 6. Cultural and civic literacy 02 COMPETENCIES How students approach complex challenges 7. Critical thinking/problem solving 8. Creativity 9. Communication 10.Collaboration L I F E L O N G L E A R N I N G CHARACTER QUALITIES How students approach their changing environment 11.Curiosity 12.Initiative 13.Persistence/grit 14.Adaptability 15.Leadership 16.Social and cultural awareness
33 I N T R O D U C I N G M E R C E R L E A R N I N G S T R A T E G I E S A V A R I E T Y O F G E N E R A L A N D T A R G E T E D L E A R N I N G S T R A T E G I E S F O S T E R S O C I A L A N D E M O T I O N A L S K I L L S C H A R A C T E R Q U A L I T I E S Social and cultural awareness Foster greater respect and tolerance for others Encourage empathy Forster cultural self-awareness Leadership Foster the ability to negotiate Encourage empathy Adaptability Foster the ability to process emotions Practise both flexibility and structure Persistence/grit Build in opportunities to learn from failure Initiative Provide long-term, engaging projects Build confidence in the ability to succeed Provide autonomy to make choices Curiosity Encourage questions/guessing Provide autonomy to make choices Instil sufficient knowledge to MERCER 2017 ask questions and innovative Evoke contradiction H O W T O T E A C H A L L S K I L L S Encourage play-based learning Break down learning into smaller, coordinated pieces Create a safe environment for learning Develop a growth mindset Foster nurturing relationships Allow time to focus Foster reflective reasoning and analysis Offer appropriate praise Guide a child s discovery of topics Help children take advantage of their personality and strengths Provide appropriate challenges Offer engaged caregiving Provide clear learning objectives targeting explicit skills Use a hands on approach C O M P E T E N C I E S Critical thinking/problem solving Give constructive feedback Creativity Offer opportunities to build and innovative Provide autonomy to make choices Communication Create a language-rich environment Collaboration Foster greater respect and tolerance for others Provide opportunity for group work
34 I N T R O D U C I N G M E R C E R T O P 1 0 S K I L L S F O R I N I N Complex problem solving 2. Critical thinking 3. Creativity 4. People management 5. Coordinating with others 6. Emotional Intelligence 7. Judgment and decision making 8. Service orientation 9. Negotiation 10. Cognitive flexibility 1. Complex problem solving 2. Coordinating with others 3. People management 4. Critical thinking 5. Negotiation 6. Quality control 7. Service orientation 8. Judgment and decision making 9. Active listening 10. Creativity MERCER Source: Future 2017of Jobs Report, World Economic Forum
35 A N E W S O C I O - D E M O G R A P H I C S T R U C T U R E L O N G E V I T Y M U L T I C U L T U R A L I S M A D V A N C E S I N F E R T I L I T Y R I S E O F T H E F R E E A G E N T D I G I T A L S O C I A L W O R L D MERCER 2017
36 R E S P O N D I N G T O T H E N E W W O R L D O R D E R FUTURE OF JOBS FUTURE OF TALENT AN EMPOWERED WORKFORCE Help me plan for an unknown future, while mitigating expense risk Give me a clear path to promotion and help me thrive at work MERCER 2017
37 M E R C E R T A L E N T T R E N D S : K E Y F I N D I N G S GROWTH BY DESIGN A SHIFT IN WHAT WE VALUE A WORKPLACE FOR ME THE QUEST FOR INSIGHT A T T R A C T I N G & R E T A I N I N G T O M O R R O W S T A L E N T B U I L D I N G F O R A N U N K N O W N F U T U R E C U L T I V A T I N G A T H R I V I N G W O R K F O R C E MERCER 2017
38 MERCER 2017 What does it mean for South Africa
39 G R O W T H B Y D E S I G N ORG. REDESIGN BEING PROPOSED C-suite: How are you planning to change your organization design over the next two years? 41% 33% 31% 31% 93% Moving support functions to shared services Flattening the organization structure Decentralizing authority Eliminating roles, functions, departments of executives are planning a redesign in the next 2 years Greater efficiency WHAT IS DRIVING THIS CHANGE? Increased agility Greater customer intimacy Reduced costs Increased innovation MERCER 2017
40 G R O W T H B Y D E S I G N : W H A T D O E S T H I S M E A N F O R J O B S? IMPLICATIONS FOR THE FUTURE OF JOBS HR: How do you anticipate jobs changing in the next 3 years? 50% of companies plan to change their job evaluation method this year in response to the changing workplace High value jobs focused on design and innovation Broader span of control for management More focus on sales & delivery, less on management Salaried workforce will be confined to management HOW COMPANIES ARE REDEFINING THE LANDSCAPE 1. Establishing a consistent job architecture aligned with the new structure 2. Evaluating who can do jobs (employee, contingent, robotics, algorithms) 3. Increasing differentiation in the leadership roles that exist 4. Using science to value emerging roles and define reward eligibility 5. Quantifying work in terms of experiences with jobs as anchor points MERCER 2017
41 A S H I F T I N W H AT W E VA L U E 2016 focus on learning 2017 pay and opportunity for promotion A COMPELLING CAREER PROPOSITION RESPONSIBLE LEADERSHIP PAY DISCLOSURE & TRANSPARENCY UNCERTAINTY AND VOLATILITY FORCES OF CHANGE MERCER 2017
42 M A C R O T R E N D S I M P A C T I N G T H E W O R L D O F W O R K WHAT ARE EXECUTIVES GLOBALLY MOST CONCERNED ABOUT? FORECAST OF TALENT SUPPLY (SOUTH AFRICA) Change in labor regulations Talent scarcity Technology at work Aging workforce D I S R U P T I O N O N T H E H O R I Z O N Strength of emerging market economies Change in border control Sufficient/ Oversupply Undersupply Unlike HR in South Africa, Executives globally see the leadership shortfall acutely making this the No.1 talent skill gap HR Leadership Administration IT/Technology Core Operations / Service Delivery Logistics Sales MERCER 2017
43 A S H I F T I N W H AT W E VA L U E 97% of employees in South Africa want to be recognized and rewarded for a wider range of contributions 90% of companies in South Africa plan to make changes to increase transparency of executive pay W H AT W O U L D M A K E A P O S I T I V E I M PA C T O N Y O U R W O R K S I T U AT I O N? 1. Opportunity to get promoted 2. Leaders who set clear direction 3. Compensation that is fair & market competitive 4. Working with the best & brightest 5. Career path information 6. Transparency on pay calculations 7. More flexible work options MERCER 2017
44 A S H I F T I N W H AT W E VA L U E W H AT E M P L O Y E E S W A N T I N S O U T H A F R I C A W H AT ' S H A P P E N I N G W I T H P E R F O R M A N C E M A N A G E M E N T I N S O U T H A F R I C A? 89% 88% 86% Changes to goal cascade or calibration Introduction of continuous feedback T O R AT E O R N O T T O R AT E 37% of companies eliminated ratings last year Shift of focus to careers and future contribution About 40% added or removed forced rankings in 2016, but 49% of those are planning to reverse their decision in 2017 Just 8% have disconnected base salary adjustments with performance metrics
45 A W O R K P L A C E F O R M E VOICE OF THE EMPLOYEE: Help me invest in myself CARING FOR MY HEALTH 66% of employees in South Africa want their company to focus more on their health and wellness STEERING MY CAREER Over 1 in 3 employees in South Africa do not feel empowered to create their own career success at work BALANCING MY WORK/LIFE 73% in South Africa want their company to offer more flexible work options Me, Inc. MANAGING MY MONEY Mercer research shows that employees spend 13 hours per month worrying about money matters at work Technology enables individualized choice without adding an undue administrative burden for HR MERCER 2017
46 A W O R K P L A C E F O R M E : P E R S O N A L I Z A T I O N Employees are seeking ways to make work work for their individual circumstances No.1 asks from employees Offer more flexible work options Canada, Japan, USA Enable quick decision making Australia and Germany Understand my unique interests & skills India, Italy, South Africa, UK S O U T H A F R I C A E M P L O Y E E P R I O R I T I E S Actively support innovation China and Mexico HEALTH 45% WEALTH 33% CAREER 22% Focus on my health and wellness Brazil, France, Hong Kong, Singapore People who felt that they could not achieve their own career success at work want their organization to take more time to get to know their skill sets
47 A W O R K P L A C E F O R M E : F L E X I B I L I T Y FLEXIBLE WORK ARRANGEMENTS IN SOUTH AFRICA POLICY AD HOC CORE EVP 66% 24% 36% FLEXIBILITY IN PRACTICE 1 in 3 requested 1 in 2 concerned but turned down about promotion Top 6 Employees want more time off 4-day work week Additional paid holidays Paid holiday trips Unlimited paid vacation Staggard pay Summer Fridays WHAT WOULD MAKE YOU WORK FOR ONE COMPANY OVER ANOTHER? 25% Fitness facilities 20% Others Well being services 8% Recreation 19% facilities Financial advice 74% of employees in South Africa would consider working on a contract basis
48 T H E Q U E S T F O R I N S I G H T USE OF HR ANALYTICS IN SOUTH AFRICA MISMATCH IN TALENT ANALYTICS (GLOBAL) LESS POWERFUL Analytics not used MERCER 2017 More opportunity for progress Stage 1 Basic reporting & trend analytics STRATEGIC VALUE Stage 2 Benchmarki ng and correlations with business metrics MORE POWERFUL Stage 3 Cause/effect analysis of key workforce outcomes Stage 4 Predictive analytics Key drivers of engagement Reasons to leave/stay Team performance Effective training Who is likely to leave Risk of burnout Why EXEC Most valuable Join used Only 27% of executives report that their HR delivers actionable analytics for business leader decision making HR Analytics
49 T H E Q U E S T F O R I N S I G H T TALENT DATA Companies in South Africa are using the following tools to understand their talent (% currently using or planning to in 2017) 92% 94% Personality assessments Cognitive/ability assessments 95% Online assessment for culture fit 81% Virtual assessment centers 74% Game-based assessments INNOVATIONS In the quest to open up the pipeline, games and tools to source qualified talent or speed up the sifting process have exploded Over 60% use innovative learning methods such as games, mobile enabled apps and virtual tools to support training and development initiatives Social Data Network Analysis Cluster Analysis MERCER 2017
50 CAREER STAGES I M P O R T A N C E O F C L E A R C A R E E R P A T H S How am I doing now? How do I get to where I want to go? Where can I move? WORK FUNCTIONS What are the expectations of roles I m interested in? C A R E E R S U P P O R T M O S T S O U G H T B Y E M P L O Y E E S I N S O U T H A F R I C A IMPORTANT Career coach Career center Transparent pay Best-in-class L&D tools and technology Peer coaching Clearly defined skills for advancement Lateral movement Regular career conversations with manager Career portal Onboarding for success Rotational programs Future-focused training content PREVALENT
51 W H A T M A K E S A D I S T I N C T I V E E V P I N S O U T H A F R I C A? Benefits Pay/Rewards Leadership Culture People Brand recognition Flexibility Diversity & Work/life fit Business model Corporate Purpose driven Healthy Empl HR 0% 10% 20% 30% 40% 50% 60%
52 T A P I N T O T H E E N T I R E T A L E N T P O O L A N D F O C U S O N T O M O R R O W S S K I L L S E T S MOST IN-DEMAND SKILLS IN SOUTH AFRICA FOR 2017 ENTREPRENEURSHIP DIGITAL LEADERSHIP INNOVATION GLOBAL MINDSET PREDICTIVE ANALYTICS SOCIAL MEDIA OUTSIDE TALENT MIGHT OFFER THE BEST OPPORTUNITY TO ADDRESS THE SKILLS GAP HR believes managers are well equipped to manage contingent workers today MANAGING TALENT IN A DISRUPTED WORLD (GLOBAL) Only 20% of C-suite executives are confident in their organization s ability to reskill displaced workers 39% are confident in their ability to redeploy talent internally 44% are confident in their ability to fill newly vacant positions with the right external talent Today only 34% of companies globally are confident in their set up to provide outplacement services to displaced workers
53 W H A T I S A N E N E R G I Z E D E M P L O Y E E? On a normal day, how energized do you feel at work in your current role? (Global) Global average: Energized: 66% Less energized: 34% South Africa average: Energized: 57% Less energized: 43% 1 Not energized at all Completely energized
54 M E R C E R I S H E L P I N G C L I E N T S T O T H R I V E I N C H A N G E J O U R N E Y I N T H E D I G I T A L W O R L D Enter workforce using Mercer Match On-board to company s Workday platform (implemented by Mercer) Enroll in health and wealth benefits on Thomsons Online Beneftis Schedule appointment with doctor, visit and pay using Mercer-provided health apps Manage wealth using Mercer s Financial Wellness platforms Sign up for Mercer PeoplePro and continue to serve clients on a flexible schedule Retire & collect pension (optimized through employer s use of Mercer s consulting services) Transition career using Mercer Outplacement Services Get married, have a baby, make benefit changes through Thomsons Get promoted, build a lattice career using Mercer Career View
55 Copyright 2017 Mercer LLC. All rights reserved A HB
56 Presenters: Anne Cabot-Alletzhauser and Ayabonga Cawe Alexander Forbes
57 A changing world
58 Africa s exposure to the future of jobs and capacity to adapt Capacity (0-1 scale) The current quality and breadth of work force s post-basic education Spread of latest technologies and diversification of local labour markets
59 Quality of Africa s education systems
60 Economic activity, unemployment and inactivity among Africa s working-age population
61 What is systems entrepreneurship?
62 What is systems entrepreneurship? Fundamentally, and on a large scale, changing the way a majority of relevant players solve a big social challenge such that a critical mass of people affected by that problem substantially benefits.
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69 Growth initiatives National minimum wage Elimination of labour broker Youth unemployment SMME Skills development
70 A changing world
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72 Our new HR strategy Scrap graduate internship programme Onboarding 30- year-old creative entrepreneurs Delinking pay with age Delaying retirement Mid-career break options Lifelong consumers not lifelong employees Rehiring senior managers in junior roles Individual curation of learning and development schemes Source: THYL PLC
73 BREAK
74 Presenters: Anne Cabot-Alletzhauser and Ayabonga Cawe Alexander Forbes
75 Building blocks Data analytics Customised benefit structure Well-being programme Skills development on-going education
76 Polices to meet family obligations Family and personal protection benefits Lifestyle and aspirational benefits Family and personal improvements benefits Financial well-being benefits Second-life benefits Health and physical well-being benefits
77 Presenter: John Anderson Alexander Forbes
78 What s going on? Financial pressures Sandwich generation Aging parents and young-adult children at home Individual responsibility following move from DB to DC Household debt 74.4% of income in 2016 Household savings rate of -0.3% of GDP in Q Cost of living growth escalating (housing, food, education, healthcare, transportation) Changing landscape future of work
79 The impact to the employer s bottom line Paper by Greg Ward published by the Society of Actuaries in 2017 showed that when financial wellness improves by just 10%, the projected annual savings for a large employer (1 000 people or more) are as follows: 2% 9% 10% 19% 60% $443,413 Garnishments because of debt problems $1,950,000 Delayed retirement $2,250,000 Turnover $4,264,396 Absenteeism $13,575,000 Healthcare Annual savings $
80 What can employers and funds do? Inside employees minds 100% 80% 60% 40% 20% Mercer Financial Wellness Index High Medium to high Medium Low to medium Low Higher levels of financial wellness are associated with higher levels of financial courage 0% Low Medium High Mercer Financial Courage Index Source: Mercer s 2017 Inside Employees Minds Survey
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86 Solutions that improve financial well-being Learning and investing in human capital Money management and access to debt counselling Additional support to improve financial courage Access to savings for short-term needs
87 Solutions that improve financial well-being Access to retirement funding Contribution defaults One size fits all Auto-escalation Access to risk benefit defaults One size fits all Lifecycle structures Investment defaults One size fits all and smoothing of returns Goals-based lifestage Individualised arrangements Preservation defaults Annuity defaults
88 Solutions that improve financial well-being Medical aid coverage Absenteeism and disability management
89 Implementing your strategy Our customised service model revolves around the needs of your members Your fund consultant works with a dedicated team to support this strategy. The team includes a financial well-being adviser, educator and shortterm risk adviser to provide your members with holistic financial advice and solutions.
90 Presenter: Mark Sham Suits & Sneakers
91 FOREVER EDUCATED OR ELSE!
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96 THE TALENT-POWERED ORGANISATION The key factor in determining the success of any organisation is its ability to use human talent to discover it, develop it, deploy it, motivate and energise it.
97 Education is the act or process of researching the future.
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102 The future doesn t care how you became an expert
103 THANK YOU
F U T U R E O F W O R K
H E A L T H W E A L T H C A R E E R F U T U R E O F W O R K Milan Taylor Partner, Mercer G E O P O L I T I C A L V O L AT I L I T Y G L O B A L T R E N D N O T J U S T U S What is on our employees minds?
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