-
- Global - English
-
- Argentina - Spanish
-
- Austria - German
-
- Belgium - English
-
- Brazil - Portuguese
-
- Canada - English
-
- Canada - French
-
- Chile - Spanish
-
- Colombia - Spanish
-
- Denmark - Danish
-
- Finland - English
-
- France - French
-
- Germany - German
-
- Hong Kong SAR - English
-
- India - English
-
- Indonesia - Indonesian
-
- Ireland - English
-
- Italy - Italian
-
- Japan - Japanese
-
- Jordan - English
-
- Malaysia - English
-
- Mexico - Spanish
-
- Netherlands - Dutch
-
- New Zealand - English
-
- Norway - Norwegian
-
- Oman - English
-
- People’s Republic of China - Chinese
-
- Peru - Spanish
-
- Philippines - English
-
- Poland - Polish
-
- Portugal - Portuguese
-
- Saudi Arabia - English
-
- Singapore - English
-
- South Africa - English
-
- South Korea - Korean
-
- Spain - Spanish
-
- Sweden - Swedish
-
- Switzerland - English
-
- Taiwan - Chinese
-
- Thailand - Thai
-
- Turkiye - Turkish
-
- United Arab Emirates - English
-
- United Kingdom - English
-
- United States - English

Making work 'work'
-
Meet your host:Cynthia CottrellWorkforce Solutions Leader, Pacific
In this podcast, Mercer thought leaders, industry experts and business visionaries share big ideas and best practices to help you transform your organisation, build great workplaces and shape a more equitable and sustainable future – a future where work ‘works’ for everyone.
Making work ‘work’ is a podcast from Mercer Workforce Solutions.
Latest episodes
[MUSIC PLAYING]
Is work working for your people and organization? In this podcast, Mercer thought leaders, industry experts, and business visionaries share big ideas and best practices to help you build great workplaces and a future where work works for everyone. Making Work "Work" is a podcast for Mercer Workforce Solutions.
Welcome to Making Work "Work." I'm Andrew Lafontaine, partner at Mercer Workforce Solutions. Today, we're going to talk about one of the top drivers of talent attraction and retention. And to no surprise, it is all about salaries and benefits. We will share key findings from the recently released Mercer Total Remuneration Survey and Australian Benefits Review, yes, I know, a very long title, but we'll dive into that in a little while, along with our perspective on what organizations should prioritize to motivate their people and attract talent they need in 2025 and beyond.
Now, we all that in the early post-pandemic years, the job market was absolutely booming. Pay rises were there for everybody, and many positions soared as workers switched jobs for better pay, that elusive work-life balance, and trying to find their purpose. However, our data shows now that the situation is changing, hiring is slowing, turnover has declined, and organizations are adjusting their budgets in a market that seems to be shifting in favor of employers, and we have recently seen that with some of the announcements by some very large organizations around returning to the office.
To explore this topic, let me welcome our guests and dive straight into it. Nithya Abram, general market leader at Digital & Insights, welcome to the show.
Hello, Andrew. Hello, everyone.
And I've also got Don Barrera, client engagement manager at Digital & Insights. Thanks for joining us today, Don.
Thanks, Andrew. It's a pleasure to be here.
OK, so let's get straight into it, guys. So what is the Mercer Total Remuneration Survey telling us about what's happening across Australia and were you at all surprised by any of the findings?
Absolutely, it's really interesting to see how the power dynamics are shifting towards employers. So according to the survey that was released in October, which gathered insights from over 1,200 Australian organizations, employers are planning to budget a bit less for raises next year. Now when we look at the overall budgets, that is the salary budgets for 2024, which includes your performance, merit-based budgets, adjustments for promotions and cost of living increases, they've remained stable at 4%, just like last year. And interestingly, the payroll budgets are forecasted to stay at 4% for 2025 as well.
But what caught me off guard was that last year, employers were forecasting a 3.5% merit budget for 2024, yet the actual merit budget figures this year exceeded that forecast, coming in at 3.8% Now, while it might seem like it's just 0.3% point increase, it's actually the highest we've seen in the last decade. Now, what do you think drove that? This unexpected increase in adjustments were largely due to the challenges businesses faced in attracting and retaining talent, and many organizations had to offer higher wages just to stay competitive.
And with the rising cost of living, how many of us have felt that squeeze, right? So many employers are stepping up to adjust salaries to help their employees manage those extra expenses. Doesn't that reflect a real commitment to employee well-being, especially in a tightening labor market? However, as we look ahead, there's a noticeable shift. Now, with employee turnover settling back to the pre-pandemic levels and the demand for new hires starting to cool off, budgets are also stabilizing. So for next year, employers are looking to allocate 3.6% of their compensation budgets for merit salary increases for current employees.
Nithya, you mentioned the cost of living there, and as we know, the cost of living is on the front-- I was going to say the front news papers, but nobody buys a paper anymore, we all scroll online-- but there's no doubt that that's impacting everybody. And I suppose that impacts people's situation in terms of staying and in their current job. And you talked a little bit about that, mentioning that employee turnover. Let's just focus on that issue for a moment.
So not too long ago, the headlines revolved around the Great Resignation and the talent shortages that were forcing salaries in many roles and industries to increase. Recently, there's been a decline in job vacancies, which basically means that there are fewer opportunities for employees to jump ship. And we've also seen that people staying put, maybe they're quiet quitting or not, but they are definitely staying put. So what's Mercer's data saying about the current state of the employment market?
Great question, Andrew. Right now, employees are really seeking job stability, especially with everything going on in the world. Now, it's no surprise they're less likely to seek new opportunities. We've seen a significant drop in the employee turnover. Now, it peaked at just over 21% in 2022, but fell to just over 18% last year. That's more in line with what we saw pre-pandemic. What a relief, right? Now, for the first half of 2024, though, we are looking at an average turnover rate of just under 11%. With the hiring market slowing down, I think we will continue to see this downward trend in turnover.
As workers prioritize security in their roles, organizations are realizing that keeping employees is becoming more important than just hiring new ones. Interestingly, employers are feeling more confident about managing turnover, with nearly 2/3 saying that they feel in control now, which is up from 55% last year. Now that's the highest confidence we've seen in four years. It's nice to see that kind of optimism, but there's still a lot of uncertainty out there, especially with inflation, high interest rates and overall economy as we look ahead to 2025.
Now, with retention getting stronger, the urgency to bring in new talent has lessened, and organizations are now focusing more on managing costs and optimizing their existing workforce instead of aggressively hiring. And our survey also shows that hiring intentions have been declining year over year since 2022, hitting a low this year, with only one in four employers planning to add new staff in 2025. Plus a record 30% are still unsure about their hiring plans. It makes you wonder how this will all play out.
So overall, the labor market is rebalancing with vacancies now at 2.2%, the lowest we've ever seen in over three years. And while employees feel more in control of turnover, we have to remember that market dynamics can change quickly. It is crucial for organizations to develop and engage their key talent to thrive in this competitive landscape. And let's not forget, fair pay is also becoming a top priority for employees when it comes to staying in their current roles. It's fascinating how much the landscape has changed.
Yeah, look, I don't think there's any doubt that it's a very complex landscape at the moment, and that balance between-- the balance of power, let's call it, between employees and employees is shifting, because I think we've seen, as I said, quite a few large organizations emboldened to be a bit more directive around their return to work. And if we go back four or five years, there was definitely a concern that if organizations did that, people would resign. We've now got this movement called the Great Retention. We do love our phrases in corporate, that we the. Great Retention.
But the danger in this Great Retention is that we might be holding on to people who aren't engaged, who-- and then that's part of the, I think, the hybrid challenge is that, do we have a lot of people who are sitting at home who potentially aren't engaged, but staying because the labor market is shifting. Don, what's the data showing us around employees-- employers, I should say, in motivating and inspiring employees, how employees are thinking about this, and what are the key messages that those listening should know?
Yeah, well, a big surprise that we observed was we were putting these reports together this year was that even during a challenging cost of living crisis, the data showed that just under half of surveyed Australian employees would actually forego that 10% pay rise in exchange for well-being benefits, increased contributions to retirement programs. And then we also saw that 34% stated that they would do it for fully flexible or compressed working hours. So we know that benefits play an important role in retention and engagement and creating that thriving workforce, but we also know that employees are tired, they're stressed out, and they're at risk of burnout.
So the reasons for burnout may vary, but almost one in three employees tell that they're at that risk due to financial strain. And in the APR data, it suggests that employees are looking to their employers for support in times of crisis. This year, we saw many organizations start to recognize employees, maybe under this financial strain, as 29% of organizations now offer financial wellness programs. And although that doesn't actually seem like a significant prevalence, it's worth noting that, compared to last year, that's an 11% point increase.
So this trend shows that more companies recognize the importance of offering financial advice and support through education sessions to their employees. And some of these sessions might include financial management advice, planning for retirement, or just simply helping them understand and implement insurance to protect their income. Providing information for long-term financial planning and offering targeted financial education to specific demographics or groups within the workforce would help alleviate their financial concerns.
Yeah, it's an interesting thread there. Even though people are stating that their biggest concerns have to do with financial pressures and increasing cost of living, they're looking at their employers to help ease these concerns for their futures, and not just for right now.
That's right. Yeah, these employee benefits and HR practices can help energize employees who have chosen to stay within the workforce. And we're starting to see signs of that, employers are listening to those employees that do.
Let's just drill down on that one a little bit around the flexible work and what the ABR, so the Australian Benefit Review data, is actually telling us. Because you can't have a conversation today about flexible work and hybrid working, four-day work weeks, you mentioned that 34% of employees say they would forgo a pay rise for fully flexible or compressed working hours, so that's obviously still a very big factor since the pandemic, around how employees think about where they work, how they work, et cetera.
So what is the data telling us about the whole flexible work? Has that been shifting? Is dynamics and that being shifted as well in this last 12 months? Don and Nithya?
Yeah, look, the data is showing us that flexibility is still king and it's still relevant. In fact, two of the top three observed benefits in the Australian market today have to do with flexibility. So when referring to flexible work or flexibility, it's important to distinguish between the flexibility of space and the flexibility of time. And at times, some employees are afforded the combination of both.
Now, when it comes to the flexibility of space, the APR data shows that the vast majority of organizations still offer the option for telecommuting or working from home. And what's interesting about this is that the pandemic didn't really catapult this into one of the most prevalent benefits today. In fact, in 2019, 81% were already offering the option to work from home, and it's just been growing steadily since to 89% this year. So I know that there's been a lot of media push about mandating employees back into the office full time, but it's also important to note that there's been some other large organizations pushing to keep offering hybrid and work from home opportunities to their employees, as long as those employees remain productive.
The APR data shows that only one in three organizations currently have a formal return to office policy or strategy in place. And for those that do have that, the return to office policy or strategy, the mandate employees to come into the office just three days a week.
Now, shifting back, when it comes to the flexibility of time, there's no surprise that flexitime remains the most commonly available to employees, and we may start to see this shift in the next couple of years. And I guess only time will tell whether or not we're going to see exactly the same way that we're seeing it today.
But what I found most fascinating about this year's data is that we're seeing some more unusual, flexible arrangements emerge as a way to differentiate their employee value proposition. So, of course, we heard about it a lot last year, there's the four day weeks, where you can work four days instead of five with no loss to your pay. And it's quite slow to pick up, but it has steadily increased year on year. And of course, there's also the compressed working year where employees can work an equivalent of 48 weeks in 40 weeks.
But the most interesting one that we saw this year, actually, was one organization reported experimenting with an unusual retention incentive. This company provides the employees the option to work four years at 80% salary and take the fifth year as leave, while still being paid that pro-rata amount. So I think maybe the key takeaway that we see when it comes to flexible work and flexibility is that it is a vehicle to use to achieve work life balance, which still continues to be a key focus for both employees and employers today.
Yeah, I was going to say, Don, I think that's a really important point. You highlighted the difference between maybe some of the headlines we see around the push to return to office. But that is a fascinating one about the 80% of salary over that four year period and taking the fifth year as leave, and we might have to ask Mercer whether that's an option for us.
Yeah, absolutely.
Let's shift gears a little bit and get back to a topic that's closest to my heart, and let's talk about pay. What have you seen around, Nithya, the incentives, and how could these be used for employee retention, given what's going on at the moment?
Absolutely. So when it comes to pay and incentives, we're really seeing a shift in how organizations approach employee retention. Now it's not just about salary anymore, it's about creating a comprehensive package that truly resonates with employees. Now, incentives can take many forms, bonuses, profit sharing, or even non-monetary rewards, like extra time off or professional development opportunities. And these strategies can be powerful tools for keeping employees engaged and motivated.
For instance, performance-based bonuses not only reward hard work, but also align employees' goals with the company's success. It's a win-win, right? So while organizations focused on attracting top talent for critical business areas in 2023 and were willing to pay a premium, we're now seeing new higher pay rates drop this year. And the data suggests that salary budgets for 2025 will shift towards retaining and developing existing employees. It's interesting how priorities are evolving.
We also saw increased momentum in the short term incentives in 2024. So these incentives are widely offered across all career streams. Typically, actual payouts are less than targets, but this year, we're seeing actual bonus payouts much closer to the targets across most career levels. For example, directors received about 90% of their target bonus, which is up from 79% in 2023, while managers received 86% of their target, compared to just 80% the previous year.
So this positive trend raises an interesting question. Are employers are increasingly using performance based bonuses to retain top talent? And let's not overlook the importance of fair pay. Employees are placing a higher priority on equitable compensation, and organizations that prioritize transparency and fairness in their pay structures are likely to see improved retention rates, and it's all about making employees feel valued and appreciated for their contributions.
So in a nutshell, leveraging a mix of financial and non-financial incentives can significantly help organizations retain their top talent. And it's about creating a culture where your employees feel supported and motivated to grow with the company.
Yeah, and I think, Nithya, the challenge that organizations will continue to face is for different employees that trade off between pay, variable pay, performance-based pay versus flexibility is never going to be a one size fits all for employees, and that's where organizations are going to have to try and have as a flexible remuneration structure as possible to try and really meet as many needs as they can. But that's going to be an ongoing challenge for them.
I wouldn't mind asking the following question to both of you, yourself and Don, because I don't think we can have a conversation about any of this without touching on one of my favorite topics in AI and in productivity, because I think when we talk about retention and performance, AI has now become an area that most organizations, if not all organizations, are working through the impacts. Definitely, employees are expecting their organizations to ensure their skills remain relevant to protect their future employability. We've got half of-- 53% of Australian employees trusting their organizations will teach them the skills they'll need if their job changes as a result of AI or automation.
So it's a really big area of focus, but also a really big area of concern for many employees. What are we seeing in the data, Don?
Yeah, so the ABR actually found that 60% of organizations now have learning and development programs available for the whole organization. And so as AI technologies become increasingly sophisticated, there's that glaring concern of the potential that automation will take over certain job functions that has traditionally been carried out by people. One of the fascinating things about AI is that, as you mentioned, is the capability to sift through massive amounts of data and tackle complex tasks at lightning speed. And although this is great, it does make us pause and think about the role of human skills and expertise in the workplace. Are we at risk of undervaluing what people are bringing to the table?
But on the flip side, there are actually there are quite a few of us here at Mercer that share an optimistic sentiment about AI and how it can open up a world of opportunities for boosting efficiency and productivity.
Absolutely.
But it's not just a matter of jumping on that AI bandwagon. Organizations need to approach this transition with care, and it's essential for them to actively invest in reskilling and upskilling their workforce. After all, as technology evolves, so too should the skills of the people who use it. In this way, we can ensure that everyone is equipped to thrive in this increasingly automated world.
But let's talk about where the budgets for learning and development are actually being spent. According to the latest ABR report, 89% of organizations are directing their budgets towards leadership development. And the second was selected option was people management skills. But what's most interesting is that when we look at the biggest shifts over the last three years, the most significant increases in investment have been in areas like digital dexterity and collaboration skills. So this shouldn't be really surprising to us, because in an era where automation is on the rise and flexibility remains the most sought after benefit, it's essential to equip people with the skills they need to thrive.
After all, ensuring that employees are digitally savvy and able to collaborate is key to maintaining business continuity and employee productivity.
Yeah, those are excellent insights, Don. And in fact, Mercer's 2024 Global Talent Trends report revealed that half of the survey respondents are focusing on gaining a clear understanding of their employees skills and development needs. And this is a foundational step. It's crucial for identifying areas where additional training or upskilling is required. And what else are organizations doing here?
Well, I see many organizations are also implementing reskilling and upskilling programs, with nearly half actively preparing their employees to transition into new roles by providing the necessary training and support, which is fantastic, as it's vital for employees to have opportunities to grow and to adapt. And additionally, organizations are also nudging their employees to pursue training based on their job or skill aspirations. And this personalized approach helps individuals align their learning with their career goals, ensuring they acquire the right skills for future success.
And I also saw that 38% of the organizations plan to be more intentional in mapping, learning pathways, skills acquisition, and future job opportunities. So the strategic focus not only helps employees understand potential career paths, but also equips them with skills needed for those roles.
Thanks, Don. I think we've really had some fantastic insights into what's been going on here. What I'd love to do is maybe close with some really practical steps organizations can take. So, Don, I want to start with you. What are some of the practical strategies you recommend for organizations to attract and retain the talent they need in 2025 and beyond, based on all the data that we've got through the insights, we've been able to work with organizations, what would you be saying to organizations right now?
Yeah, look, it may seem simple, but simply ask and then listen. It's worth engaging with your people, whether that's through one-on-ones with line managers or through engagement surveys, to understand what their people need. But essentially, all you want to do is to understand what will motivate them and will keep them happy and productive, it all comes back down to that productivity.
Now, that's a great insight. And what about yourself, Nithya?
Yeah, I totally have to agree with that. And look, engaging with employees is crucial because the information we gather from them really helps us identify gaps and areas for improvement in our AVP. So one important step is to benchmark against industry standards. Organizations should compare their offerings with those of other companies in the industry to ensure they stay competitive and relevant. And this helps them understand where they stand and what adjustments they might need to make.
And so the next step is to tailor their offerings based on the insights they gain. So by customizing both financial and non-financial benefits, organizations can better meet the diverse needs of their workforce, ensuring that the AVP truly resonates with employees at all levels and makes them feel valued and understood. And so when employees see say that their specific needs and preferences are being considered, it fosters a stronger connection to the organization and enhances overall satisfaction and retention.
Thank you, both Nithya and Don, for sharing those insights today. Look, that this is an ever changing landscape of talent and retention and attraction for organizations, but also the way employees think about what their careers look like. It's clear that the job market continues to evolve. Organizations must be proactive in adapting their employee value propositions. It's probably more important now than it ever has been, not only to attract, but also to retain that top talent.
We know that focusing on fair compensation, flexible work arrangements, and support for employee well-being are all critical. Companies can create an environment where their workforce feels valued and engaged in 2025 and beyond, but they really need to think about all the different things that we've touched on today in a much more integrated strategy for their employees. Nithya, thank you very much for your time.
My pleasure, Andrew. Thanks for having me.
And Don, thank you very much as well.
Thanks, Andrew. It's been an absolute pleasure.
I'm Andrew Lafontaine. Thanks for listening to Making Work "Work" from Mercer Workforce Solutions, and we'll see you next time.
[MUSIC PLAYING]
I hope you enjoyed today's podcast, and thank you for listening. Please subscribe to keep up to date with our latest episodes. And if you have any questions, get in touch with us via our website at mercer.com.au.
The views and opinions expressed by the podcast speakers are solely their own and do not represent the opinion of Mercer. This content is general information only, and it should not be relied upon or used as a substitute for professional advice. This content has been produced by Mercer Consulting Australia Proprietary Limited. Mercer is a registered trademark of Mercer Australia Proprietary Limited.
Episode 20: Salary and benefits trends 2025: The tide is turning in favour of employers
Host:
Partner, Workforce Solutions, Mercer
Guest:
Don Barrera, Client Engagement Manager, Digital & Insights, Mercer Pacific
Drawing insights from the latest releases of Mercer’s Total Remuneration Survey (TRS) and Australian Benefits Review (ABR), this episode highlights a shift in job market dynamics, where salary budgets are stabilising and employers are regaining power as hiring slows and turnover rates decline.
Tune in to hear more about:
- Shifting power dynamics: Why employers are regaining control in the job market and what they are doing to keep their people engaged and motivated.
- Salary budget forecasts: Employers plan a 3.6% allocation for merit raises in 2025, down from 3.8% in 2024.
- Employee benefits: Flexibility is key, with 89% of organisations offering flexible work arrangements. Some are now being creative in their approach to flexibility.
- Incentives for retention: Organisations are focusing on comprehensive compensation packages, including performance-based bonuses.
- Upskilling and development: 60% of organisations are now offering learning and development for the entire company. Learn what training topics are trending.
Episode 19: HR: From personnel department to leaders in AI activation
Host:
Partner, Workforce Solutions, Mercer
Guest:
In this episode, Andrew Lafontaine, Partner and Workforce Solutions leader at Mercer, and Shane O'Neill, host of the HR Community Podcast, talk about Andrew’s 25-year career journey from teaching degree graduate to his current role as Partner for Mercer Pacific. The conversation focuses on how the HR industry has evolved, its challenges, opportunities and innovations.
Tune in to learn more about:
- The evolving role of HR: how HR is transitioning from being an administrative function to strategic partners that drive business outcomes.
- Human insights matter: the critical role of consultants in providing ethical guidance, cultural insights, and change management expertise that AI cannot replicate.
- Why HR professionals must become digital natives, leveraging AI tools to enhance decision-making and improve organisational efficiency.
- Strategies for creating tailored employee experiences that address mental health, diversity, and work-life balance in today’s workforce.
This conversation was originally published on the HR Community Podcast: https://thehrcommunitypodcast.buzzsprout.com/
Episode 18: From automation to augmentation: Sharing the productivity gains from AI
Host:
Workforce Solutions Leader, Pacific
Guest:
The goal of AI is not to replace workers but to create a new constellation of jobs and skills. In this episode, Cynthia and Ravin, discuss the importance of organisations understanding how AI can substitute, augment, and transform work and being intentional in their approach to AI to ensure its ethical implementation.
They highlight the value of designing work in a way that democratises access to AI and allows for the productivity gains from AI to be shared equitably with employees.
By leading with the work, being adaptable and becoming AI fluent, business and HR leaders can navigate the transformative era of AI and create a work environment that harnesses the full potential of employees while prioritising their well-being and growth.
“Leaders should educate themselves and their workforce about AI, its potential, and how it can transform work.” Ravin Jesuthasan, Global Transformation Leader, Mercer
“As an optimist, I believe in the power of technology to augment human performance. I see AI as a tool that can unlock sustainable performance, with humans at the forefront.” Cynthia Cottrell, Workforce Solutions Leader, Mercer Pacific
Tune in to learn more about:
- The new opportunities and jobs created by AI and the potential talent gaps
- Being proactive in preparing for the future by educating the workforce about AI, experimenting with AI tools within safe zones and incorporating AI into work design
- The role of HR leaders in driving the upskilling and reskilling to efforts to adapt to the changes brought about by AI
- Democratising access to AI and ensuring that the productivity gains are shared equitably.
Episode 17: Test, learn, adapt: Skills-powered transformation at Arcadis
Host:
Workforce Solutions Leader, Pacific
Guest:
Global Capability & Workforce Readiness Director at Arcadis
Imagine a company where every employee, regardless of their location, has equal access to learning opportunities, career growth and experiences. A company where the ability to solve client problems and deliver a differentiated service is amplified by the diverse expertise and perspectives of a connected global network of skilled employees.
Join us in this episode as we dive into the world of skills-powered organisations (SPOs) with Amy Baxendale, Global Capability & Workforce Readiness Director at Arcadis. With 36,000 employees in over 30 countries, Arcadis embarked on their journey to become a SPO nearly two years ago. Amy, who is spearheading this transformation, shares the valuable lessons she has learned along the way and the secrets behind their transformation journey.
Insights for HR leaders in this episode
- Importance of skills in the future of work and benefits of skills-powered model
- Key challenges and considerations when implementing a skills-powered approach, such as ensuring privacy and data protection, integrating with existing technology and effectively managing change
- Importance of collaboration between the organisation, technology partners and change management
- Conditions for a successful journey, including strong leadership support and stakeholder engagement
- Test and learn phases and the need for flexibility and continuous adaptation
- Effective strategies for driving change and facilitating communication throughout the transformation process
- Practical suggestions for organisations considering a similar transition.
Ready to unlock the power of skills in your organisation? Tune in now and take the first step towards your transformation today.
Episode 16: Transferable skills: What can a former rugby captain and an artist teach organisations?
Host:
Senior Associate, Workforce Transformation, Mercer Pacific
Guests:
Dean Mumm
National Manager, Corporate Sport, Marsh Australia
Georgina Lee
Principal, Employee Experience & Culture, Mercer Pacific
In a world where technology is advancing at an unprecedented pace, the demand for skilled talent is reaching critical levels. As HR leaders and practitioners, it's crucial to address these skills shortages and find innovative ways to retain and develop top talent.
In this episode we delve into the career journeys of a former rugby captain and a talented artist. Through their unique experiences and unconventional paths, we uncover valuable insights that will inspire you to reimagine your talent model, skills development program, and employee value proposition.
Discover how transferable skills can bridge the gap between industries and roles and unlock untapped potential within your organisation.
Episode 15: Get ready for workforce 2.0 - Global talent trends 2024
Host:
Workforce Solutions Leader, Pacific
Organisations in every industry are looking for ways to increase productivity. But rising levels of employee burnout and a decline in trust show the potential cost. Could AI be the answer?
We had over 12,000 C-suite executives, HR directors, employees and investors contribute to our Global Talent Trends 2024 study and we their input helped us uncover four trends that are shaping the people agenda this year:
- Human-centric productivity (3:32)
- Equitable work practices (10:40)
- Ready and resilient workforces (20:55)
- Digital-first culture (30:19)
We explored each of these trends in a recent webinar attended by over 400 HR and business leaders. You can listen to the insights here or watch the replay.
“To ensure that the Australian workforce truly benefits from the gains of AI, we have to shift the productivity discussion from doing more with less to doing work with less effort.” Cynthia Cottrell,
Workforce Solutions Leader, Mercer Pacific
Episode 14: Understanding the Gender Pay Gap: Insights and Strategies for HR leaders
Host:
Principal Transformation Consultant, Mercer
Guests:
Lang Ip
Principal, Workforce Analytics, Mercer
Anne Le Blanc
Senior Principal, Diversity, Equity and Inclusion Lead, Mercer
Do you want to build more confidence around your organisation’s pay decisions? In this episode, Mercer Workforce Solutions leaders discuss the factors contributing to the gender pay gap and share practical interventions to help close it.
They explore an always-on approach to diversity and inclusion which promotes a more inclusive and equitable workplace. The conversation covers:
- Challenging the notion that workforce composition and diversity in senior management positions are the sole solutions to closing pay gaps.
- The role of data and workforce analytics in identifying and addressing pay disparities.
- Ongoing monitoring of pay gaps to ensure progress and prevent the gaps from resurfacing.
- Tackling the challenge of rectifying past inequities.
- Leveraging AI to reduce bias and create a fair and equitable environment for all.
- How talent marketplaces can help provide a level playing field for all employees.
Tune in and take a step towards closing the gender pay gap.
In this episode, Mercer’s Paul Hennessy, Australian Sales Leader and Dean Tulloch, Leadership & Talent Practice Leader discuss the links between effective leadership and organisational success. They explore the leadership behaviours that bring out the best in teams and the need to set clear expectations to build a stable foundation for collaboration.
The discussion also delves into the challenges of succession planning and offers insights into how organisations can plan a smooth transition of leadership. They also cover the importance of having the right people and organisational design to execute strategies successfully.
The conversation further highlights the role of cultivating a culture of transformation and the need for consistency in implementing change initiatives.
These insights will provide valuable guidance for leaders and organisations striving for growth and success.
Topics covered:
- Leadership behaviours that bring out the best in teams;
- The importance of working with diverse teams;
- Addressing the challenges of succession planning;
- The need for the right people and organisational design to execute strategies;
- Culture transformation and the importance of consistency in implementing change.
To end the first season of Making Work ‘Work’, we revisit the question posed in the first episode: How do we make work lovable? Join our podcast host and leader for Mercer Workforce Solutions in the Pacific, Cynthia Cottrell, and Andrew Lafontaine, a Partner in the transformation business as they unpack the year.
They discuss the concept of flexibility in the workplace, the challenges and tensions that come with it, and how to create a positive work experience for all employees.
They also talk about the impact of the pandemic on work dynamics and the need for organisations to design jobs that work well in a hybrid work set up. The conversation also covers the issue of burnout and disengagement in the workforce, with a focus on the importance of creating a supportive and inclusive work environments.
They conclude by exploring a skills-first approach in creating lovable jobs and career pathways within organisations, highlighting the benefits for both employees and employers in terms of career development and strategic workforce planning.
Tune in to discover ways to make work more enjoyable and fulfilling for your people in 2024.
Creating Lovable Work in 2024 - Reflections from season 1 of Making Work ‘Work’
-
03:00 - A flexible mindset to when, where and how we workAndrew Lafontaine, Partner, Strategy & Growth, Workforce Solutions, Mercer New Zealand is placing his big bet on a flexibility reset. He says this requires trade-offs and incentives. A live poll of webinar participants found 85% would sign up for a four-day week even if it required them to be in the office three days a week – and Andrew says that’s the sort of mindset shift that’s needed to encourage in-person collaboration and innovation.
-
11:12 - Culture is key to unlocking positive employee experienceMay Lee, Employee Experience and Culture Leader, Mercer Pacific, has highlighted the importance of effectively managing the risks that come with new ways of working and ensuring equal access to flexibility across various roles. It is crucial to recognise that many workers often lack the privilege of choosing their work location and schedule. Therefore, the employee value proposition should strive to establish a culture rooted in trust by implementing a consistent and fair approach.
-
18:40 - The new shape of work requires new approaches to rewardsChi Tran, Head of Market Insights and Data, Pacific, says a new approach to rewards is inevitable. Greater cost scrutiny, talent turnover issues and changes to gender pay disclosure next year in Australia will impact total remuneration practices. Retention will be a focus, which means prioritising employee benefits around career paths, reskilling and upskilling.
-
26:17 - Organisations will accelerate a shift to skillsThe big bet for Anne Le Blanc, Senior Principal, Workforce Solutions, Mercer Pacific, is on solving the talent shortage by building skills from within. One of the top challenges for companies is lack of workforce capability and skills development is a cost-effective way to grow the skills internally as well as being a lever for retention.
-
36:10 - AI will be the best employee you hire in your HR team in 2024Jared Cameron, Principal Digital HR and Technology, Mercer New Zealand, said that in just 12 months, generative AI has become part of everyday work for many organisations and highlighted that the use cases for AI in HR go well beyond efficiency gains from writing job descriptions. As we dial up the complexity of what AI can do, he sees potential for more personalised learning and better insights into employee experience. But to leverage AI companies will need a strong foundation with data on talent skills, careers and job architecture.
-
44:49 - The audience makes their bet
-
50:40 - Questions from the audience
[MUSIC PLAYING]
Is work working for your people and organization? In this podcast, Mercer thought leaders, industry experts and business visionaries share big ideas and best practices to help you build great workplaces and a future where work works for everyone. Making Work 'Work' is a podcast for Mercer Workforce Solutions.
Welcome to Making Work 'Work.' I'm Cynthia Cottrell. Today, we're going to explore a workforce challenge that is near and dear to my heart. And it represents the life's work of my guest today.
The topic, women in STEM. Where are they? And why aren't there more of us? So Australia's STEM-skilled workforce has a disproportionate underrepresentation of women compared to other industries.
Only 15% of Australia's STEM-skilled workforce are women, whereas, the broader Australian workforce has close to 50% female participation. So this is a problem, especially since tech jobs have grown at four times the rate of other jobs since the mid 1980s. Now one in 14 working Australians are in a tech job with more software engineers than plumbers, hairdressers, or baristas, according to a recent report issued by the Tech Council of Australia.
With ChatGPT, hyperdigitalization of everyday home and work processes, low-code, or no-code tools that can work from your phone, it's clear that whether you are directly in a STEM role or not, most of us will need to become STEM oriented in one way or another. So the good news, the number of women enrolling in university STEM courses has increased by 24% between 2015 and 2020 compared with a 9% increase among men. So we are seeing the right trajectory of building the pipeline of females who could go on to take STEM-qualified jobs. But will this be enough to truly change the game?
As a mom of two precocious girls, I am particularly keen to see the acceleration of females taking on STEM roles. I do realize my daughters are fortunate and that they have two parents who have degrees in engineering, so STEM talk is pretty normal in our household. But I know this is not the case for many girls who are often in the minority as it relates to their studies, their interests, or their hobbies in STEM, which is why Mercer is working with Tech Girls Movement Foundation to sponsor key initiatives and programs focused on developing future female STEM leaders.
Techgirls' vision is to see a society in which girls confidently lead in STEM entrepreneurship and contribute to their community and the economy. And today, we are speaking with the founder of the Tech Girls Movement Foundation, Jenine Beekhuyzen. Jenine, welcome to the podcast.
Thank you, Cynthia. I love the story about your family. And I'm putting your girls on the list of our recruits for next year.
Oh, please do. Yes, absolutely. I'll let them know. So hey, Jenine, tell us a bit more about your background. What attracted you to the field of STEM careers? And what drove you to create the Tech Girls Movement 10 years ago?
Thanks, Cynthia. I think you've touched on it in your intro in that you are an incredible role model for your girls, regardless of if you realize it. And the fact that-- I mean, yes, you may be very fortunate, and your girls are fortunate. But they can see you doing these incredible things, solving problems that are important.
And if you can't see it, you can't be it in my experience. So having those role models, having mentors, having people to show pathways that we may not have seen otherwise are really important. So I love that you touched on that in your intro.
And so fortunately, I've had many role models and mentors who've paved the way for me to be here. And I wouldn't be here without them. And certainly, I have technical skills. I have abilities to hopefully solve problems in our communities and encourage a community of young people to do the same. But certainly, I have a-- building on the back of other people in front of me who have changed the world and shaped the world with technology.
And as you talk about so many interesting technologies in the world today, how can we use them for-- how can we use technology for good? And that's really what Techgirls is about. It's about using technology for good, finding problems in our community we want to solve, encouraging young people to be empowered and be courageous to go and bravely solve problems where maybe others haven't done before them. And we're here to support them. And we have a community of amazing technology people.
That's awesome, Jenine. And I love that saying that you can't be what you can't see. I'm going to reveal my age a little bit.
But when I was going through my engineering degree more than 25 years ago, I was one of only three in my graduating class in my major in systems engineering. And I do remember feeling isolated at times and certainly not amongst a lot of other females that I could confide in and/or discuss how I was feeling as I was going through my studies. But I was able to push on, and I did have a wonderful network of family and friends who supported me.
And I think as you talk about the vision of Techgirls and what it means to provide that kind of support, and encouragement, and confidence-- there's a confidence factor here, isn't there, Jenine? --about what it means to pursue a field where you are often the minority as a female. It'll be great to hear a little bit more about what the types of activities and support are that are offered through Techgirls and how you are finding this impactful.
Thanks, Cynthia. I love that. And I think confidence comes from a number of things. I think it comes from not just being aware of I can use technology to solve problems, but having hands-on digital skills.
And if we think about statistics-- and my background is a researcher, so everything I do is based in research, and numbers, and evidence. And the UN tells us that women and girls are being left behind in terms of digital skills. And they're not engaging in where we need them to be. And they should be part of creating solutions for the future, and they're just not there for many different reasons.
So what Techgirls is really designed to do is firstly to give girls choices in life to say, well, let's get some digital skills, which I believe are very much aligned with English literacy, and math literacy, and digital literacy. And we need these skills as basic human skills that we all need to survive in everyday life. And so let's get those skills.
And then let's build some confidence around them. Let's get some hands-on learning and build some skills so that we can be confident, and hopefully, take it to the next level and be a little bit brave to use them in a place we may not have used them before. But it's about empowering all of us and not just girls, but all of us to use technology in a way that's good for everyone.
Yeah. As we step back a little bit and just think about why this is so important now-- I just talked about what it was like 25 years or so ago. And you've talked a little bit about your early career interest in STEM. And here we are still talking about this today as an urgent need, a critical need for the future of the workforce, particularly, females in STEM.
I was reading a study-- or a result that came out in a report released just a few months ago that stated that if AI was behind a lot of the hiring today, they would actually-- AI would actually hire more women than if humans are sitting at the recruitment end. So you can kind of feel in a statement like that. It sounds great. But at the same time, who is building that technology? And how is that really helping us create a more diverse workforce? What are your thoughts on how this world of AI and who is behind building these very powerful platforms, how that will also shape the future of the workforce in society?
I love that you're exploring that, that exciting new place where we are, Cynthia. And if we can take that in two parts, I think-- firstly, I've been researching the lack of women in technology and broadly STEM for 24 years now. So I was very fortunate I had a couple of role models myself who were academics who were looking at the lack of women in tech back in 1997. So there were certainly pioneers in this space.
So they recognized the s of women walking across the stage graduating in the information technology degrees at Griffith University. And so I fortunately joined their research team and have been studying it ever since. And I guess, that brings us to where we are today.
But funnily enough, not much has changed in almost 25 years in terms of the purpose of why I do what I do and why this is important. So I was studying AI back in 1998 as part of my undergraduate degree, so this stuff isn't new in some ways. And I guess, back then, there were even concerns of, who are we leaving behind? And what does AI have the capability of bringing forward and also-- yeah, marginalizing. And I guess, often in the AI space, marginalized voices are further marginalized.
And I love the study that you quoted. And I did actually look that up before we had this conversation today because much of the narrative before today and pointing out of that story has been that CVs are generally processed by AI by the biggest companies. They're generally programmed by, dare I say, middle-aged white men, but the majority. And therefore, they're using words that men usually wouldn't use in their CVs.
So I have certainly read studies where women are actually left out of that recruitment process because of the AI. So I'd love to explore that further. And I think if that's possible, I love that.
But that's not what we've seen so far. So that certainly has prompted me from a really long time ago to do what I do because I think these technologies have an ability to leave populations out. And I don't think that's useful for us to build useful digital futures for everyone.
I think of something quite tangible every day. In fact, I use my phone for probably more purposes other than talking through it, so probably spending a bit too much time from the screen. But talking about the way technology and platforms are built and not having enough diversity behind that, I think about my phone and the fact that, to this day, I can't hold it in one hand and swipe from left to right because I can't actually reached my finger across the width of the screen.
That might suggest that whomever designed it has much bigger hands than me and likely much bigger hands than most women who are holding that phone. And so you can only imagine what would the world be like if we had more diversity, more diverse thinking in the design of these platforms, again, whether it be your phone, or certainly, these very powerful platforms that are making decisions about hiring, about selecting, about inferring knowledge. So I think the why is pretty much right in front of us every day, isn't it, Jenine?
Absolutely. I love that example. And some of the-- I'm not sure if you know. One of the most interesting example-- and I'm sure people are not really proud of it.
But when we started using our phones to take videos, the videos would always be of a certain orientation. And it would always default to a certain orientation. And that was because it didn't actually allow for people with left hands-- left-handed people, I should say.
Left hands. Left hands. We all have left hands, but sorry, left-handed people. And so I guess, that concept of we just-- there's diversity in so many different parts. It's not around just gender specifically, but so many ways that we can tap into all of our awesomeness.
Yeah, that's a really good point. Coming back against the impact of Techgirls, this is the 10-year anniversary of the foundation. So lots of girls have passed through the program. And as you say, they can start the program as early as age six. Is that right?
Correct. We generally start it at eight. But we've had seven-year-olds say, can we be in the program? And they've built apps to look for animals in their local community and track them, so certainly.
The research tells us that girls opt out as young as six out of STEM. And that's why we're open from that age. But certainly, we run workshops as young as we can to open the possibilities for young people that technology can be used for good.
And so let's talk a little bit about the impact over the years. It'd be wonderful just to hear some stories from you. What a great job have, to be able to get up every morning and young woman by woman be able to shape their thinking about STEM and in careers. It'd be wonderful just to hear a little bit more about the program you run and the impact it's had.
Absolutely. I guess, we started-- so we launched 10 years ago, International Women's Day 2014. And it was really, for me, about turning research into practice. We know what the problem is. We know why we don't have enough women in the technology space and more broadly in the STEM space. What can we practically do to change that?
So I designed a program called Techgirls to essentially address that problem. And it's really around lack of visible female role models and then also, what do people in technology do? So we know what a doctor does. We know what a lawyer does. But what does a technologist do?
And even myself on a day-to-day basis, I'm not sure what most of us do because we make up all of these names for creative things that we do. But certainly, there's a lot of space for finding out what people and what the possibilities are for careers in this space. So we created a campaign called Tech Girls Are Superheroes, which is a series of books that profile women in technology as superhero characters who changed the world.
And so I'd love to throw it out there to you, Cynthia. And you don't have to answer right now. But what is your superpower? And your superpower is not about being awesome at everything. But what is that one thing that makes you different, that makes you amazing, and helps you bring your awesomeness to life?
And I know for myself, it's I'm really good at bringing people together. I have this great ability to bring people together. But I guess, on the funnier side, when I talk to young people, I often say it's about my smile because there's something powerful.
And it's almost physically impossible if you smile at someone for them to frown at you. So if you're in a challenging time, smile at them and see how it goes. But I think it's about, how do you bring your best self to the world?
And for me in STEM and in technology, it was about, how do I engage young people in a place where they don't feel welcome, they don't feel comfortable? So let's bring your superpower. And you might not feel imposter syndrome. You might not feel 100% like you're worthy of being that person or that place. But bring it to that, and give it a try.
And I love when I talk to young people and I say, could you do x technically? And they go, no, no, no, I couldn't do that. And I say, well, if you could do it as a superhero, how would you do it? And they give you 10 ways they could do it.
And it's this amazing thing when we're someone else or we have a piece of jewelry, or a piece of a pair of shoes, or whatever it is to bring our best selves forward. And so that's really what Techgirls is about. It's about engaging young people to find their best selves, to realize that STEM is for them. And we talk a lot about STEM plus X.
So what is your X factor? What do you love about the world? Is it animals? Is it health care? Is it the environment? What is it, and how do you bring STEM to that?
And STEM is in everything that we do. So if we can do STEM plus X and find a way for young people to be engaged-- and that's what we do in our programs. So we've done it through our books in terms of role models and finding ways to have careers. We've done that through our competition of 12 weeks.
Find a problem in your community. Solve it. And we have mentors to help you. And it's really about finding your awesome and knowing that you have something really important to contribute to the world.
Just as you said, I was thinking through how I would answer that question of what my superpower is. And I think my superpower is not too dissimilar to yours. I have this laugh that is pretty discernible, I've been told, in a crowd. But it's energy-giving, I like to say. So I think my superpower is giving energy to others and just doing that through a positive view on life and on ways to approach problems.
And I think one thing that I've really enjoyed about our work with Techgirls and one of the programs you run is the competitions. And what a neat way to bring out the innovation, and the ideas, and the solving of problems through STEM techniques that these young girls pursue as part of the program. I know that when we had a chance to host nearly 100 school-aged girls in our offices here at Mercer where we talked about problem sets from right across the industry, I was absolutely knocked off my feet by the practical, innovative, creative ways that these girls approached the problems that my business thinks about all the time.
And sometimes it is that ability to give confidence to these girls that they have something to say about these things, that they can approach these problems in a way that may be very, very different from the way that we look at them in the corporate sense or even from the adults' perspective. And I think that those competitions that you run are really neat way to apply STEM and to do it in a fun way. I mean, who doesn't like to win an award?
[LAUGHTER]
I agree. I agree. And I think it's almost the cherry on the top in a way. And I think just the concept of competing, I love it.
And I think Australia is particularly-- we like competing. There's a thing about us against others. And there's something about when the girls get in the room together at the end for the showcase, they realize there are a whole bunch of other girls like them.
But otherwise, they're like, yeah, let's give it a go. Let's give it our best shot. And let's try to do the best thing we can possibly do.
So I think the competition is a great motivator. And it's not about giving awards to everyone. But it's about recognizing-- yeah, I mean, awesomeness where it is and the most innovative ideas.
Speaking of the impact this program has had on girls and what they take from it as they move on in their education and beyond, I've got a really fun story I'd like to play for you. And this is actually a story from one of your Techgirls alumni. So let's go ahead and roll tape.
[AUDIO PLAYBACK]
- I competed in the Techgirls competition when I was in year nine. My app that I created was called Vocabulary Voyages. And it gamified studying for the NAPLAN test.
I had absolutely no knowledge of coding or the technology world before the competition. After I did the competition, I decided to study computer science at university. And probably without the competition, I wouldn't have gone down that path.
Today, I'm a software engineer at Atlassian. I also run a business on the side with my partner. And we create custom websites and technology as well as apps. So I'm still continuing on my app development journey.
[END PLAYBACK]
I love hearing Kyra's story. It never gets old. Kyra is one of our many alumni who have shown that, again, if you can't see it, you can't be it.
And I love her story so much that it wasn't a pathway she had ever considered in STEM. It was something that she was-- did it as part of her schoolwork, did an incredible job. Her school certainly supported her in that. And she always wanted to be a doctor. And then she found her way to be a computer scientist.
And I think what didn't come out in the interview was the many awards that Kyra has run-- has won, sorry, as part of her undergraduate and other degrees going forward, and how she's contributed to breast cancer technology and detection, and made incredible advances in that space for how we use technology in a place where it's really important for women particularly. So I love Kyra's story. And I think we can all learn so much from her.
Well, she's working at a pretty top notch company in Atlassian, so I expect that we'll be seeing a lot of Kyra for years to come. But speaking of Kyra and others like her that have gone through your program, what would be your recommendations to organizations who want to try and hire a Kyra or even nurture that spirit of innovation that she exhibited in her time at Techgirls?
That's a great question, Cynthia. And I think it comes back to what you were talking about before about giving young people a voice and recognizing that they can contribute really useful ideas to how we shape our products and our services going forward. And we often just think of young people on their phones all the time. They don't have anything useful to say. And I think that's really shortsighted.
I think, how can we use the technology they have in their hand every day to actually help us to solve real-world problems? And that's what we do at Techgirls. So for us, I guess, number one is let's just do the gender pay gap.
Let's just fix that. That's a pretty easy thing to level the playing field to get women to actively and equally contribute in our STEM industries. I think that's the easy one.
--having an open mind about the opportunities where women can contribute. And we often think, well, women should be in an admin role. Or they're not capable of management roles or whatever stereotype we bring to those lenses.
But certainly, it's about focusing on the women we have. How do we retain them? How do we promote them? And how do we keep them? And how do we provide opportunities for young people to come into our workforce and provide value and views on the way that we do things every day?
And as you say, with your experiences with your Techgirls program with your partners, it's so easy to miss what's right in front of us. And we have these resources. We have these amazing young people. We have these problems. Let's bring them all together and do what we can.
Well, you shared a really practical tip with me last week that I've already started to apply here at Mercer. I don't know if you want to elaborate on it. But it's the concept of inviting the opportunity. And I would love for you to just talk about that because I think there'll be a lot of listeners today who are going to find great use and resource that type of activity in their organization.
OK, so a bit of background was I went to a conference pre-COVID. I was in China. And I happened to meet up with a computer science professor from the US.
And she was talking about her students. And she asked her students, so why are you studying computer science? And so 80% of the males in the room said, I'm studying computer science because I'm good at it.
And then she asked the females in the room, why are you studying computer science? And they said, because I was invited to. And so breaking that down, what does that mean?
So the women who were studying the computer science degree were basically told, you should study this degree because you would be good at it. It's not necessarily something you would innately think that you would want to do or follow that pathway. But you would be good at it. Funnily enough, they were. And so I think there's something really powerful in that.
And anytime I say this, I see all these heads in the audience nodding because I think it's a thing where, how many times women that are listening today, they get invited to do something? That's why they did it, not just because they thought, I will do that because I'm good at it. So it's a barrier we need to get over, but certainly, something-- it's not silly. It's just the way that it is.
But how can we find people in our organization where we should put women forward? Let's give them the opportunity to speak in meetings. Let's invite them to a lunch. Let's find ways to include them in ways we hadn't thought about before.
And I love that you're doing that, Cynthia. I think that's such a powerful thing as a leader to find people that we're, again, leaving behind. And how can we give them a tiny bit of spotlight that they probably don't want, to be honest? But that's the only way we learn and move forward.
It sounds so simple, but there is a psychology behind inviting someone, as opposed to nominating them, as opposed to recommending them. The invitation just to a wedding, or a birthday party, or to a career is your choice. But someone's recognized you. Somebody wants you there. And we're waiting for your response.
So ladies out there, we're waiting for your response. We want to see more of you in STEM. And we can't wait to have you join us. So Jenine, thank you, though, for joining us today. Your experience and insights will surely help many of our listeners today as they work towards making their workforces more diverse, more equitable, and certainly, more inclusive for the next generation.
Thank you. I have goosebumps as you're talking. So thank you so much for the great work you're doing in this space at Mercer and beyond in your family and in your community. And I invite everyone to join the Techgirls community and make a good difference in the world.
Great. Thanks, Jenine. So I'm Cynthia Cottrell. Thanks for listening to Making Work 'Work' from Mercer Workforce Solutions. See you next time.
I hope you enjoyed today's podcast. And thank you for listening. Please subscribe to keep up to date with our latest episodes. And if you have any questions, get in touch with us via our website at mercer.com.au
[MUSIC PLAYING]
Episode 10: From tech trends to HR transformation: HR in the age of AI
Guest:
Leader for Digital HR and Technology Advisory practice, Mercer Pacific
In this interview, Cynthia Cottrell welcomes David Guazzarotto, Leader for our Digital HR and Technology Advisory practice, and an authority on digital transformation for the workforce and reimagining HR for the digital age. They discuss the landscape of HR transformation, particularly in the context of generative AI and technology advancements. The conversation centres on the impact and immense potential that technology offers HR and the workforce.
Five key takeaways from the interview:
- Opportunities and challenges for HR in the age on generative AI: Nearly 75% of surveyed companies by the World Economic Forum are expected to adopt generative AI. Mercer's global Talent Trend study also highlights that executives' top priorities include redesigning work for agility which will require them to re-design their HR function.
- Human-centric approach: David emphasises the importance of being "digital" rather than just "doing digital." HR should focus on understanding the needs of employees and aligning technology to enhance their experience and productivity.
- Redefining work: Around 60% of current jobs didn't exist in the 1940s, showcasing the need for reskilling and adaptation to new roles. HR's role is to lead organisations through this change and identify critical future skills for the digital age.
- Transformation challenges: Around 80% of HR tech projects fail to achieve intended ROI or solve business problems. David emphasises that organisations should focus on problem-solving rather than adopting technology for its own sake.
- Strategic intent: David's recommendations for organisations include starting with a people-centric approach, embracing digital transformation as a cultural shift, and taking intentional steps toward technology adoption aligned with the organisation's strategic agenda.
-
“You can't just do digital, you can't just have technology be an adjunct to what we do, we shouldn't throw it over the fence to our IT folks, we should really own it and understand how we can use the technology to drive and help us be a great strategic function that HR could and should be.”- David Guazzarotto, Leader for Digital HR and Technology Advisory practice, Mercer Pacific
-
"80% of projects in the HR Tech space fail. We need to get better at that. And the only way we're going to do that is to stop pushing the technology at everything. I think the opportunity for us and what I like personally working with clients is to help them really understand what is their strategic agenda?"- David Guazzarotto, Leader for Digital HR and Technology Advisory practice, Mercer Pacific
-
"This is an amazing opportunity for HR to help the organisation think about work differently and bridge that gap between what it means to do work in this new era of AI."- Cynthia Cottrell, Partner and Workforce Solutions Leader, Mercer Pacific
[MUSIC PLAYING]
Is work working for your people and organization? In this podcast, Mercer thought leaders, industry experts and business visionaries share big ideas and best practices to help you build great workplaces and a future where work works for everyone. Making Work 'Work' is a podcast for Mercer Workforce Solutions.
Welcome to Making Work 'Work.' I'm Cynthia Cottrell. Today, we're going to explore a workforce challenge that is near and dear to my heart. And it represents the life's work of my guest today.
The topic, women in STEM. Where are they? And why aren't there more of us? So Australia's STEM-skilled workforce has a disproportionate underrepresentation of women compared to other industries.
Only 15% of Australia's STEM-skilled workforce are women, whereas, the broader Australian workforce has close to 50% female participation. So this is a problem, especially since tech jobs have grown at four times the rate of other jobs since the mid 1980s. Now one in 14 working Australians are in a tech job with more software engineers than plumbers, hairdressers, or baristas, according to a recent report issued by the Tech Council of Australia.
With ChatGPT, hyperdigitalization of everyday home and work processes, low-code, or no-code tools that can work from your phone, it's clear that whether you are directly in a STEM role or not, most of us will need to become STEM oriented in one way or another. So the good news, the number of women enrolling in university STEM courses has increased by 24% between 2015 and 2020 compared with a 9% increase among men. So we are seeing the right trajectory of building the pipeline of females who could go on to take STEM-qualified jobs. But will this be enough to truly change the game?
As a mom of two precocious girls, I am particularly keen to see the acceleration of females taking on STEM roles. I do realize my daughters are fortunate and that they have two parents who have degrees in engineering, so STEM talk is pretty normal in our household. But I know this is not the case for many girls who are often in the minority as it relates to their studies, their interests, or their hobbies in STEM, which is why Mercer is working with Tech Girls Movement Foundation to sponsor key initiatives and programs focused on developing future female STEM leaders.
Techgirls' vision is to see a society in which girls confidently lead in STEM entrepreneurship and contribute to their community and the economy. And today, we are speaking with the founder of the Tech Girls Movement Foundation, Jenine Beekhuyzen. Jenine, welcome to the podcast.
Thank you, Cynthia. I love the story about your family. And I'm putting your girls on the list of our recruits for next year.
Oh, please do. Yes, absolutely. I'll let them know. So hey, Jenine, tell us a bit more about your background. What attracted you to the field of STEM careers? And what drove you to create the Tech Girls Movement 10 years ago?
Thanks, Cynthia. I think you've touched on it in your intro in that you are an incredible role model for your girls, regardless of if you realize it. And the fact that-- I mean, yes, you may be very fortunate, and your girls are fortunate. But they can see you doing these incredible things, solving problems that are important.
And if you can't see it, you can't be it in my experience. So having those role models, having mentors, having people to show pathways that we may not have seen otherwise are really important. So I love that you touched on that in your intro.
And so fortunately, I've had many role models and mentors who've paved the way for me to be here. And I wouldn't be here without them. And certainly, I have technical skills. I have abilities to hopefully solve problems in our communities and encourage a community of young people to do the same. But certainly, I have a-- building on the back of other people in front of me who have changed the world and shaped the world with technology.
And as you talk about so many interesting technologies in the world today, how can we use them for-- how can we use technology for good? And that's really what Techgirls is about. It's about using technology for good, finding problems in our community we want to solve, encouraging young people to be empowered and be courageous to go and bravely solve problems where maybe others haven't done before them. And we're here to support them. And we have a community of amazing technology people.
That's awesome, Jenine. And I love that saying that you can't be what you can't see. I'm going to reveal my age a little bit.
But when I was going through my engineering degree more than 25 years ago, I was one of only three in my graduating class in my major in systems engineering. And I do remember feeling isolated at times and certainly not amongst a lot of other females that I could confide in and/or discuss how I was feeling as I was going through my studies. But I was able to push on, and I did have a wonderful network of family and friends who supported me.
And I think as you talk about the vision of Techgirls and what it means to provide that kind of support, and encouragement, and confidence-- there's a confidence factor here, isn't there, Jenine? --about what it means to pursue a field where you are often the minority as a female. It'll be great to hear a little bit more about what the types of activities and support are that are offered through Techgirls and how you are finding this impactful.
Thanks, Cynthia. I love that. And I think confidence comes from a number of things. I think it comes from not just being aware of I can use technology to solve problems, but having hands-on digital skills.
And if we think about statistics-- and my background is a researcher, so everything I do is based in research, and numbers, and evidence. And the UN tells us that women and girls are being left behind in terms of digital skills. And they're not engaging in where we need them to be. And they should be part of creating solutions for the future, and they're just not there for many different reasons.
So what Techgirls is really designed to do is firstly to give girls choices in life to say, well, let's get some digital skills, which I believe are very much aligned with English literacy, and math literacy, and digital literacy. And we need these skills as basic human skills that we all need to survive in everyday life. And so let's get those skills.
And then let's build some confidence around them. Let's get some hands-on learning and build some skills so that we can be confident, and hopefully, take it to the next level and be a little bit brave to use them in a place we may not have used them before. But it's about empowering all of us and not just girls, but all of us to use technology in a way that's good for everyone.
Yeah. As we step back a little bit and just think about why this is so important now-- I just talked about what it was like 25 years or so ago. And you've talked a little bit about your early career interest in STEM. And here we are still talking about this today as an urgent need, a critical need for the future of the workforce, particularly, females in STEM.
I was reading a study-- or a result that came out in a report released just a few months ago that stated that if AI was behind a lot of the hiring today, they would actually-- AI would actually hire more women than if humans are sitting at the recruitment end. So you can kind of feel in a statement like that. It sounds great. But at the same time, who is building that technology? And how is that really helping us create a more diverse workforce? What are your thoughts on how this world of AI and who is behind building these very powerful platforms, how that will also shape the future of the workforce in society?
I love that you're exploring that, that exciting new place where we are, Cynthia. And if we can take that in two parts, I think-- firstly, I've been researching the lack of women in technology and broadly STEM for 24 years now. So I was very fortunate I had a couple of role models myself who were academics who were looking at the lack of women in tech back in 1997. So there were certainly pioneers in this space.
So they recognized the s of women walking across the stage graduating in the information technology degrees at Griffith University. And so I fortunately joined their research team and have been studying it ever since. And I guess, that brings us to where we are today.
But funnily enough, not much has changed in almost 25 years in terms of the purpose of why I do what I do and why this is important. So I was studying AI back in 1998 as part of my undergraduate degree, so this stuff isn't new in some ways. And I guess, back then, there were even concerns of, who are we leaving behind? And what does AI have the capability of bringing forward and also-- yeah, marginalizing. And I guess, often in the AI space, marginalized voices are further marginalized.
And I love the study that you quoted. And I did actually look that up before we had this conversation today because much of the narrative before today and pointing out of that story has been that CVs are generally processed by AI by the biggest companies. They're generally programmed by, dare I say, middle-aged white men, but the majority. And therefore, they're using words that men usually wouldn't use in their CVs.
So I have certainly read studies where women are actually left out of that recruitment process because of the AI. So I'd love to explore that further. And I think if that's possible, I love that.
But that's not what we've seen so far. So that certainly has prompted me from a really long time ago to do what I do because I think these technologies have an ability to leave populations out. And I don't think that's useful for us to build useful digital futures for everyone.
I think of something quite tangible every day. In fact, I use my phone for probably more purposes other than talking through it, so probably spending a bit too much time from the screen. But talking about the way technology and platforms are built and not having enough diversity behind that, I think about my phone and the fact that, to this day, I can't hold it in one hand and swipe from left to right because I can't actually reached my finger across the width of the screen.
That might suggest that whomever designed it has much bigger hands than me and likely much bigger hands than most women who are holding that phone. And so you can only imagine what would the world be like if we had more diversity, more diverse thinking in the design of these platforms, again, whether it be your phone, or certainly, these very powerful platforms that are making decisions about hiring, about selecting, about inferring knowledge. So I think the why is pretty much right in front of us every day, isn't it, Jenine?
Absolutely. I love that example. And some of the-- I'm not sure if you know. One of the most interesting example-- and I'm sure people are not really proud of it.
But when we started using our phones to take videos, the videos would always be of a certain orientation. And it would always default to a certain orientation. And that was because it didn't actually allow for people with left hands-- left-handed people, I should say.
Left hands. Left hands. We all have left hands, but sorry, left-handed people. And so I guess, that concept of we just-- there's diversity in so many different parts. It's not around just gender specifically, but so many ways that we can tap into all of our awesomeness.
Yeah, that's a really good point. Coming back against the impact of Techgirls, this is the 10-year anniversary of the foundation. So lots of girls have passed through the program. And as you say, they can start the program as early as age six. Is that right?
Correct. We generally start it at eight. But we've had seven-year-olds say, can we be in the program? And they've built apps to look for animals in their local community and track them, so certainly.
The research tells us that girls opt out as young as six out of STEM. And that's why we're open from that age. But certainly, we run workshops as young as we can to open the possibilities for young people that technology can be used for good.
And so let's talk a little bit about the impact over the years. It'd be wonderful just to hear some stories from you. What a great job have, to be able to get up every morning and young woman by woman be able to shape their thinking about STEM and in careers. It'd be wonderful just to hear a little bit more about the program you run and the impact it's had.
Absolutely. I guess, we started-- so we launched 10 years ago, International Women's Day 2014. And it was really, for me, about turning research into practice. We know what the problem is. We know why we don't have enough women in the technology space and more broadly in the STEM space. What can we practically do to change that?
So I designed a program called Techgirls to essentially address that problem. And it's really around lack of visible female role models and then also, what do people in technology do? So we know what a doctor does. We know what a lawyer does. But what does a technologist do?
And even myself on a day-to-day basis, I'm not sure what most of us do because we make up all of these names for creative things that we do. But certainly, there's a lot of space for finding out what people and what the possibilities are for careers in this space. So we created a campaign called Tech Girls Are Superheroes, which is a series of books that profile women in technology as superhero characters who changed the world.
And so I'd love to throw it out there to you, Cynthia. And you don't have to answer right now. But what is your superpower? And your superpower is not about being awesome at everything. But what is that one thing that makes you different, that makes you amazing, and helps you bring your awesomeness to life?
And I know for myself, it's I'm really good at bringing people together. I have this great ability to bring people together. But I guess, on the funnier side, when I talk to young people, I often say it's about my smile because there's something powerful.
And it's almost physically impossible if you smile at someone for them to frown at you. So if you're in a challenging time, smile at them and see how it goes. But I think it's about, how do you bring your best self to the world?
And for me in STEM and in technology, it was about, how do I engage young people in a place where they don't feel welcome, they don't feel comfortable? So let's bring your superpower. And you might not feel imposter syndrome. You might not feel 100% like you're worthy of being that person or that place. But bring it to that, and give it a try.
And I love when I talk to young people and I say, could you do x technically? And they go, no, no, no, I couldn't do that. And I say, well, if you could do it as a superhero, how would you do it? And they give you 10 ways they could do it.
And it's this amazing thing when we're someone else or we have a piece of jewelry, or a piece of a pair of shoes, or whatever it is to bring our best selves forward. And so that's really what Techgirls is about. It's about engaging young people to find their best selves, to realize that STEM is for them. And we talk a lot about STEM plus X.
So what is your X factor? What do you love about the world? Is it animals? Is it health care? Is it the environment? What is it, and how do you bring STEM to that?
And STEM is in everything that we do. So if we can do STEM plus X and find a way for young people to be engaged-- and that's what we do in our programs. So we've done it through our books in terms of role models and finding ways to have careers. We've done that through our competition of 12 weeks.
Find a problem in your community. Solve it. And we have mentors to help you. And it's really about finding your awesome and knowing that you have something really important to contribute to the world.
Just as you said, I was thinking through how I would answer that question of what my superpower is. And I think my superpower is not too dissimilar to yours. I have this laugh that is pretty discernible, I've been told, in a crowd. But it's energy-giving, I like to say. So I think my superpower is giving energy to others and just doing that through a positive view on life and on ways to approach problems.
And I think one thing that I've really enjoyed about our work with Techgirls and one of the programs you run is the competitions. And what a neat way to bring out the innovation, and the ideas, and the solving of problems through STEM techniques that these young girls pursue as part of the program. I know that when we had a chance to host nearly 100 school-aged girls in our offices here at Mercer where we talked about problem sets from right across the industry, I was absolutely knocked off my feet by the practical, innovative, creative ways that these girls approached the problems that my business thinks about all the time.
And sometimes it is that ability to give confidence to these girls that they have something to say about these things, that they can approach these problems in a way that may be very, very different from the way that we look at them in the corporate sense or even from the adults' perspective. And I think that those competitions that you run are really neat way to apply STEM and to do it in a fun way. I mean, who doesn't like to win an award?
[LAUGHTER]
I agree. I agree. And I think it's almost the cherry on the top in a way. And I think just the concept of competing, I love it.
And I think Australia is particularly-- we like competing. There's a thing about us against others. And there's something about when the girls get in the room together at the end for the showcase, they realize there are a whole bunch of other girls like them.
But otherwise, they're like, yeah, let's give it a go. Let's give it our best shot. And let's try to do the best thing we can possibly do.
So I think the competition is a great motivator. And it's not about giving awards to everyone. But it's about recognizing-- yeah, I mean, awesomeness where it is and the most innovative ideas.
Speaking of the impact this program has had on girls and what they take from it as they move on in their education and beyond, I've got a really fun story I'd like to play for you. And this is actually a story from one of your Techgirls alumni. So let's go ahead and roll tape.
[AUDIO PLAYBACK]
- I competed in the Techgirls competition when I was in year nine. My app that I created was called Vocabulary Voyages. And it gamified studying for the NAPLAN test.
I had absolutely no knowledge of coding or the technology world before the competition. After I did the competition, I decided to study computer science at university. And probably without the competition, I wouldn't have gone down that path.
Today, I'm a software engineer at Atlassian. I also run a business on the side with my partner. And we create custom websites and technology as well as apps. So I'm still continuing on my app development journey.
[END PLAYBACK]
I love hearing Kyra's story. It never gets old. Kyra is one of our many alumni who have shown that, again, if you can't see it, you can't be it.
And I love her story so much that it wasn't a pathway she had ever considered in STEM. It was something that she was-- did it as part of her schoolwork, did an incredible job. Her school certainly supported her in that. And she always wanted to be a doctor. And then she found her way to be a computer scientist.
And I think what didn't come out in the interview was the many awards that Kyra has run-- has won, sorry, as part of her undergraduate and other degrees going forward, and how she's contributed to breast cancer technology and detection, and made incredible advances in that space for how we use technology in a place where it's really important for women particularly. So I love Kyra's story. And I think we can all learn so much from her.
Well, she's working at a pretty top notch company in Atlassian, so I expect that we'll be seeing a lot of Kyra for years to come. But speaking of Kyra and others like her that have gone through your program, what would be your recommendations to organizations who want to try and hire a Kyra or even nurture that spirit of innovation that she exhibited in her time at Techgirls?
That's a great question, Cynthia. And I think it comes back to what you were talking about before about giving young people a voice and recognizing that they can contribute really useful ideas to how we shape our products and our services going forward. And we often just think of young people on their phones all the time. They don't have anything useful to say. And I think that's really shortsighted.
I think, how can we use the technology they have in their hand every day to actually help us to solve real-world problems? And that's what we do at Techgirls. So for us, I guess, number one is let's just do the gender pay gap.
Let's just fix that. That's a pretty easy thing to level the playing field to get women to actively and equally contribute in our STEM industries. I think that's the easy one.
--having an open mind about the opportunities where women can contribute. And we often think, well, women should be in an admin role. Or they're not capable of management roles or whatever stereotype we bring to those lenses.
But certainly, it's about focusing on the women we have. How do we retain them? How do we promote them? And how do we keep them? And how do we provide opportunities for young people to come into our workforce and provide value and views on the way that we do things every day?
And as you say, with your experiences with your Techgirls program with your partners, it's so easy to miss what's right in front of us. And we have these resources. We have these amazing young people. We have these problems. Let's bring them all together and do what we can.
Well, you shared a really practical tip with me last week that I've already started to apply here at Mercer. I don't know if you want to elaborate on it. But it's the concept of inviting the opportunity. And I would love for you to just talk about that because I think there'll be a lot of listeners today who are going to find great use and resource that type of activity in their organization.
OK, so a bit of background was I went to a conference pre-COVID. I was in China. And I happened to meet up with a computer science professor from the US.
And she was talking about her students. And she asked her students, so why are you studying computer science? And so 80% of the males in the room said, I'm studying computer science because I'm good at it.
And then she asked the females in the room, why are you studying computer science? And they said, because I was invited to. And so breaking that down, what does that mean?
So the women who were studying the computer science degree were basically told, you should study this degree because you would be good at it. It's not necessarily something you would innately think that you would want to do or follow that pathway. But you would be good at it. Funnily enough, they were. And so I think there's something really powerful in that.
And anytime I say this, I see all these heads in the audience nodding because I think it's a thing where, how many times women that are listening today, they get invited to do something? That's why they did it, not just because they thought, I will do that because I'm good at it. So it's a barrier we need to get over, but certainly, something-- it's not silly. It's just the way that it is.
But how can we find people in our organization where we should put women forward? Let's give them the opportunity to speak in meetings. Let's invite them to a lunch. Let's find ways to include them in ways we hadn't thought about before.
And I love that you're doing that, Cynthia. I think that's such a powerful thing as a leader to find people that we're, again, leaving behind. And how can we give them a tiny bit of spotlight that they probably don't want, to be honest? But that's the only way we learn and move forward.
It sounds so simple, but there is a psychology behind inviting someone, as opposed to nominating them, as opposed to recommending them. The invitation just to a wedding, or a birthday party, or to a career is your choice. But someone's recognized you. Somebody wants you there. And we're waiting for your response.
So ladies out there, we're waiting for your response. We want to see more of you in STEM. And we can't wait to have you join us. So Jenine, thank you, though, for joining us today. Your experience and insights will surely help many of our listeners today as they work towards making their workforces more diverse, more equitable, and certainly, more inclusive for the next generation.
Thank you. I have goosebumps as you're talking. So thank you so much for the great work you're doing in this space at Mercer and beyond in your family and in your community. And I invite everyone to join the Techgirls community and make a good difference in the world.
Great. Thanks, Jenine. So I'm Cynthia Cottrell. Thanks for listening to Making Work 'Work' from Mercer Workforce Solutions. See you next time.
I hope you enjoyed today's podcast. And thank you for listening. Please subscribe to keep up to date with our latest episodes. And if you have any questions, get in touch with us via our website at mercer.com.au
[MUSIC PLAYING]
Episode 9: Advancing Women in STEM: You can't be what you can't see
Guest:
Founder and CEO, Tech Girls Movement Foundation
https://www.techgirlsmovement.org
Women continue to be underrepresented in STEM fields. Learn how Techgirls is nurturing your talent and helping bridge the gender gap.
Did you know that in Australia, the number of software engineers outnumbers plumbers, hairdressers, or baristas1? Despite this, only 15% of Australia's STEM skilled workforce are women2, a stark contrast to the nearly 50% female participation in the broader workforce.
Today, we delve into the efforts to bridge this gender gap in STEM fields. Our host, Cynthia Cottrell, shares her experiences as a woman in STEM, reflecting on the challenges she faced as one of the few females in her systems engineering major over 25 years ago. To shed light on empowering the next generation of girls in STEM, Cynthia sits down with Jenine Beekhuyzen, the visionary founder of Tech Girls Foundation. This remarkable organisation is on a mission to inspire young girls to pursue STEM careers through innovative initiatives and programs.
In this captivating conversation, Cynthia and Jenine underscore the importance of female role models and how witnessing successful women solving significant problems in STEM can ignite a spark of inspiration in young girls. They emphasise the need to create a supportive community that nurtures young talent and explore the role organisations play in promoting diversity and inclusion in their workforces so that everyone can achieve their potential, or as Jenine says, bring their 'awesomeness' to work.
Here is a condensed version of the conversation – it’s been edited for clarity and concision.
Cynthia Cottrell: Today we're going to explore a workforce challenge that is near and dear to my heart, and it represents the life’s work of my guests today. The topic is women in STEM.
Australia's STEM skilled workforce significantly lacks female representation, with only 15% of women compared to nearly 50% in other industries. This underrepresentation is concerning, especially as tech jobs have grown at a rapid rate since the mid-1980s, comprising a significant portion of the workforce.
The hyper digitalisation of everyday life, along with the increasing prevalence of low code or no code tools, indicate that STEM skills will be essential for most individuals, regardless of their roles.
Partner, Workforce Solutions Leader, Mercer
On a positive note, there has been a 24% increase in the number of women enrolling in STEM courses at universities between 2015 and 2020, outpacing the 9% increase among men. We are seeing the right trajectory of building the pipeline of females who could go on to take STEM qualified jobs.
But we must ask if this progress will be sufficient to bring about a significant change. As a mother of two girls, I'm particularly invested in seeing more females taking on STEM roles. I am aware that my daughters are fortunate to have both parents with engineering degrees, making STEM discussions normal in our household. Yet, I know this is not the case for many girls, who may find themselves in the minority when it comes to their studies, interests, or hobbies in STEM.
To address this issue, Mercer is working with the Tech Girls Movement Foundation, supporting initiatives and programs that aim to cultivate future female STEM leaders. The Techgirls envisions a society where girls confidently lead in STEM entrepreneurship and contribute to their communities and the economy. Today, we have the privilege of speaking with the founder of the Tech Girls Movement Foundation, Jenine Backhausen. Welcome to the podcast, Jenine.
Jenine Beekhuyzen: Thank you, Cynthia. I love the story about your family, and I'm putting your girls on the list of our recruits for next year.
Cynthia Cottrell: Please do. I'll let them know.
Jenine, tell us a bit more about your background. You know what attracted you to the field of STEM careers and what drove you to create the Techgirls Movement 10 years ago?
Jenine Beekhuyzen: Thanks, Cynthia. You are an incredible role model for your girls. Your girls are fortunate, they can see you doing these incredible things, solving problems that are important. Role models are critical, if you can't see it, you can't be it.
In my experience, having those role models, having mentors, having people to show pathways that we may not have seen otherwise, is really important. I've had many role models and mentors who paved the way for me to be here, and I wouldn't be here without them. Certainly, I have technical skills, I have abilities to solve problems in our communities and I encourage the community of young people to do the same. But I’m building on the back of other people in front of me who have shaped the world with technology.
There are so many interesting technologies in the world today, how can we use them for good? That's really what Techgirls is about, using technology for good and finding problems in our community and encouraging young people to be empowered and courageous and solve problems where others haven't done before them.
Techgirls has a focus on finding problems in our community and encouraging young people to be courageous and solve problems with technology.
Founder and CEO, Tech Girls Movement Foundation
Cynthia Cottrell: That's awesome, Jenine, and I love that saying “you can't be what you can't see.” I'm going to reveal my age a little bit, but when I was going through my engineering degree more than 25 years ago, I was one of only three in my graduating class in my major in systems engineering. I do remember feeling isolated at times and, certainly not amongst a lot of other females that I could confide in and or discuss how I was feeling as I was going through my studies. But I was able to push on and I did have a wonderful network of family and friends who supported me.
As you talk about the vision of Techgirls and its mission to provide support, encouragement, and confidence, I believe there's a significant emphasis on building confidence, particularly in fields where females are a minority. Jenine, could you elaborate on the specific activities and support that Techgirls offers and share some insights into its impact?.
Jenine Beekhuyzen: Thanks, Cynthia. I think confidence comes from a number of sources, not just awareness of technology and its problem-solving potential, but also having hands-on digital skills. According to the UN, women and girls are lagging behind in terms of digital skills. We urgently need them to be part of shaping future solutions, but for various reasons, they are just not there.
Techgirls aims to tackle this issue by offering girls choices in life and equipping them with digital skills. These skills are as essential as English and math literacy in our daily lives, and we all need them to thrive. Through Techgirls we foster hands-on learning and building confidence. Our goal is to empower everyone, not just girls, to utilise technology in a way that benefits us all.
Digital skills are as essential as English and math literacy in our daily lives, and we all need them to thrive.
Founder and CEO, Tech Girls Movement Foundation
Cynthia Cottrell: Let's step back a little and just think about why this is so important now? I just talked about what it was like 25 years or so ago and you've talked a bit about your early career in STEM and here we are still talking about this today as an urgent need for the future of the workforce.
I was reading about a study that suggests that if AI was behind a lot of the hiring today, AI, would actually hire more women than if humans were doing the recruitment. A statement like that sounds great but is AI really helping us create a more diverse workforce? What are your thoughts on how this world of AI and those behind building these very powerful platforms will shape the future of the workforce and society?
Jenine Beekhuyzen: Let's break this down into two parts. For the past 24 years, I have been researching and exploring the underrepresentation of women in technology and STEM fields. In 1997, I was fortunate enough to have a few role models who were academics investigating the gender gap in tech. They were pioneers in this field and identified a lack of women graduating with information technology degrees at Griffith University. Joining their research team allowed me to study this issue ever since. This brings us to today, and surprisingly, not much has changed in almost 25 years in terms of the purpose of why I do what I do and why this is important.
Back in 1998, as part of my undergraduate degree, I was already studying AI. In some ways, the subject isn't entirely new. Even at that time, there were concerns about the groups being left behind and questions surrounding AI's role in both advancement and marginalisation.
In the AI space, marginalised voices are often further marginalised. I love the study that you mentioned because it challenges the prevailing narrative that algorithms used in human resources systems are based on historical data and perpetuate biases against women. There are studies suggesting that AI has excluded women from recruitment processes. I'd love to explore that further because the evidence so far doesn't fully support that possibility. I think if that's possible, that’s excellent. But that's not what we've seen so far and that’s certainly prompted me to do what I do, because I believe that these technologies can inadvertently exclude certain populations, and that and this lack of diversity hinders the development of genuinely useful digital futures.
Cynthia Cottrell: When we consider how technology and platforms are developed without enough diversity behind the process, I'm reminded of my phone's design. Even today, I can't comfortably hold it in one hand and swipe from left to right, as my finger can't reach across the screen's width. This suggests that the phone's designer likely had much bigger hands than me, and probably bigger than most women who use this device. It makes me wonder how different the world would be if we had more diversity and diverse perspectives involved in designing these platforms, whether it's a phone or the powerful systems responsible for hiring, selecting, and inferring knowledge. The reasons behind the need for diversity seem apparent in our daily experiences, don't they?"
Jenine Beekhuyzen: I love that example and I have another telling instance. When we started using our phones to make videos, the videos would always default to a certain orientation. And that was because it didn't actually cater for left-handed people. This highlights the importance of embracing diversity in so many different levels, not just around gender. There are so many ways that we can tap into all types of diversity.
Cynthia Cottrell: Coming back to the impact of Techgirls, this is the 10th anniversary of the foundation, so lots of girls have passed through the program. They become they can start the program as early as age six. Is that right?
Jenine Beekhuyzen: Typically, our program caters to eight-year-olds, but we've even had seven-year-olds asking to join the program. Research tells us that girls opt out of STEM as young as six. To counteract this trend, we conduct workshops targeted at girls from a very young age, aiming to introduce them to the world of technology and its vast potential. By doing so, we hope to open up a world of possibilities for these young minds and inspire their curiosity and interest in technology.
Cynthia Cottrell: Let's talk a little bit about your impact over the years. You have an incredible job, being able to wake up every morning, knowing that you have played a role in shaping how countless young minds perceive STEM and careers. I'm eager to learn more about the programs you run and the impact they have had on individuals and communities alike.
Jenine Beekhuyzen: Our journey started 10 years ago on International Women’s Day. For me, it meant turning research into practice, understanding the problem, and working towards solutions. We know why we don't have enough women in the technology space and more broadly in STEM. The challenge lies in finding practical ways to change that.
So I designed a program called Techgirls aimed at tackling the lack of visible female role models in technology and demystifying technology-related professions. Unlike careers like doctors or lawyers, the role of a technologist may not be as widely understood. Even in the tech industry, there's often a lack of awareness about what we do. To bridge this gap, we introduced a campaign called Techgirls Superheroes. It comprises a series of books that portray women in technology as superhero characters who are changing the world. These stories aim to inspire and illustrate the incredible impact women can have in the field of technology.
Unlike careers like doctors or lawyers, the role of a technologist may not be as widely understood.
Founder and CEO, Tech Girls Movement Foundation
The challenge for me in STEM and in technology, is about how to engage young people in a place where they don't feel welcome or comfortable. So let's bring your superpower to STEM when you might not feel 100% worthy of being there and let’s use your superpower and give it a try.
When I talk to young people and I ask if they could you do “x” technically, they go, ‘no, no, no, I couldn't do that,’ and I say ‘well if you could do it as a superhero, how would you do it?’ Then they give me 10 ways they could do it. This is what Techgirls is about, engaging young people to find their best selves and realising that STEM is an option for them.
That's what we do in our program. We've done it through our books and we've done that through our competitions. The competitions encourage the girls to find a problem in the community and solve it. We have mentors working with the girls and helping them understand how they can contribute to the world through STEM.
Cynthia Cottrell: I really enjoyed our work with Techgirls in one of the competitions. What a neat way to bring out the innovation and the ideas and the solving of problems through STEM techniques that these young girls pursue as part of the program.
I know that when we had a chance to host nearly 100 school age girls in our offices here at Mercer, where we talked about problems from right across the industry, I was absolutely knocked off my feet by the practical, innovative, creative ways that these girls approach the problems that my business thinks about all the time. Sometimes we need to give confidence to these girls so that they can approach these problems in a way that may be very different from the way that we look at them in the corporate sense, or even from the adults’ perspective. I think that those competitions that you run are a really neat way to apply STEM and in a fun way. I mean, who doesn't like to win an award?
Jenine Beekhuyzen: I love the concept of competing and I think in Australia in particular, we like competing, and there's something about when the girls get in the room together at the end for the showcase and they realize there are a whole bunch of other girls like them that are giving STEM a go. I think the competition is a great motivator. It's not about giving awards to everyone, but it's about recognising the most innovative ideas.
Cynthia Cottrell: Speaking of the impact this program has had on girls, I've got a story from one of your Techgirls alumni that I would like to play for you. So let's roll tape.
I competed in the Techgirls Competition when I was in year nine. The app I created was Vocabulary Voyages - a gamified studying for the NAPLAN testing. I had absolutely no knowledge of coding or the technology world before the competition. After I did the competition I decided to study computer science at university and probably without the competition I would not have gone that path.
Today I’m software engineer at Atlassian. I also run a business on the side with my partner. We create custom websites and technology as well as apps. So I’m still continuing on with my app development journey.
Jenine Beekhuyzen: Kira is one of our many alumni who have shown that, again, if you can't see it, you can’t be it. STEM wasn't a pathway she had considered but the program inspired her to pursue a career as a computer scientist. What didn't come out in the story that she shared was the many awards that she has won as part of her studies and how she's contributed to breast cancer technology and detection and made incredible advances for how we use technology in a place where it's important for women. I think we can all learn so much from Kira.
Cynthia Cottrell: I expect that we'll be seeing a lot of Kira for years to come. What would be your recommendations to organisations who want to try and hire a Kira or even nurture that spirit of innovation that she exhibited in her time at Techgirls.
Jenine Beekhuyzen: It's a great question, Cynthia, and I think it comes back to what you were talking about before. It's crucial to empower young people by giving them a voice and recognizing the value of their ideas in shaping our products and services. The misconception that young people, particularly those always on their phones, don't have anything useful to contribute is indeed shortsighted.
Now, when it comes to attracting more women to STEM, the first and essential step for organisa tions is to address the gender pay gap. They have to rectify any disparities and level the playing field. This is an achievable and straightforward measure that can create a more inclusive environment and encourage women to engage more confidently in STEM-related fields.
Another critical aspect is having an open mind about the opportunities where women can contribute. It's common to fall into the trap of stereotypes, assuming that women should primarily be in administrative roles or are not capable of taking on management positions. The key lies in recognising and appreciating the talent and potential that women possess and providing opportunities for growth and advancement.
Cynthia Cottrell: You shared a highly practical tip with me last week that I've already begun implementing at Mercer. It's about 'inviting the opportunity,' and I believe many of today's listeners will find it incredibly useful for their organisations. Could you please elaborate on this concept?
Jenine Beekhuyzen: I attended a conference in China where I had an interesting encounter with a computer science professor from the US. She shared an enlightening observation about her students' motivations for studying computer science. When she asked male students why they chose this field, 80% replied that it was because they were good at it. However, the female students gave a different response - they said they were studying computer science because they were invited to do so. Essentially, they were told they would be good at it, even if it wasn't something they initially considered. And they succeeded. This insight struck me as powerful. Many times women, even today, will have a go at doing things because they were invited or encouraged, not because they thought they were inherently good at them.
Many times women, even today, will have a go at doing things because they were invited or encouraged, not because they thought they were inherently good at them.
Founder and CEO, Tech Girls Movement Foundation
As leaders, we should actively seek out individuals in our organisation and provide them with opportunities to shine. Let's give them speaking roles in meetings, invite them to lunches, and explore ways to include them that we may not have considered before. It's crucial to identify those who may have been left behind and give them the spotlight they deserve.
Cynthia Cottrell: It sounds so simple, but there is a psychology behind inviting someone as opposed to nominating or recommending them. An invitation, just like to a wedding or a birthday party or to a career, represents a deliberate choice. It means that someone has recognized you, somebody wants you there. So to all women out there, we're eagerly waiting for your response. We want to see more of you in STEM and we can't wait to have you join.
Jenine, thank you though for joining us today. Your experience and insights will surely help many of our listeners today as they work towards making their workforces more diverse, more equitable and certainly more inclusive for the next generation.
Jenine Beekhuyzen: Thank you so much for the great work you're doing in this space at Mercer and beyond in your family and in your community, and I invite everyone to join the Techgirls community and make a difference.
Cynthia Cottrell: Thanks, Jenine.
-
“The hyper digitalisation of everyday life, along with the increasing prevalence of low code or no code tools, indicate that STEM skills will be essential for most individuals, regardless of their roles.”- Cynthia Cottrell, Partner and Workforce Solutions Leader, Mercer Pacific
-
“Digital skills are as essential as English and math literacy in our daily lives, and we all need them to thrive.”- Jenine Beekhuyzen, Founder and CEO, Tech Girls Movement Foundation
-
“Many times women, even today, will have a go at doing things because they were invited or encouraged, not because they thought they were inherently good at them.”- Jenine Beekhuyzen, Founder and CEO, Tech Girls Movement Foundation
-
“Unlike careers like doctors or lawyers, the role of a technologist may not be as widely understood.”- Jenine Beekhuyzen, Founder and CEO, Tech Girls Movement Foundation
Is work working for your people and organization? In this podcast, Mercer thought leaders, industry experts, and business visionaries share big ideas and best practices to help you build great workplaces and a future where work works for everyone. "Making Work 'Work'" is a podcast for Mercer Workforce Solutions.
Welcome to "Making Work 'Work'". I'm Cynthia Cottrell. You know, I've debated about whether or not I would have ChatGPT write my introduction today. I'd probably be less than honest with the fact that I did consult with ChatGPT prior to today's show.
And in fact, consulted on a couple of points-- one, what is the state of the nation or the state of the world as it relates to artificial intelligence? And what does it mean for humans everywhere? I also consulted it on a really snappy intro that I could start today's discussion with, because today, we are talking about the impact of artificial intelligence, particularly the progression to generative AI on the workforce.
Recent information has been quite scary for job holders everywhere. If you listen to the stats, things like artificial intelligence and economic and social conditions are expected to result in 83 million job losses, with only 69 million jobs created over the next five years, which sounds like a net job loss as a result of artificial intelligence. We also know from a recent Mercer survey that 57% of CEOs' and CFOs' plan to increase the use of AI and automation, nearly 1/3 are already redesigning work to reduce their organization's dependency on humans.
So with all of those things together in the picture here, it does sound a bit scary. It does sound a bit nerve-wracking for workers everywhere. So I thought, who best to help us understand this, and maybe do some myth busting with us as well?
But let's certainly bring all the facts to the table and our predictions. Who best to help us do that than Ilya Bonic, the President of Mercer's Workforce Solutions Business and Head of Mercer Strategy globally? And we're going to talk to him today about the challenges and opportunities presented by AI in a balanced way, in a way that does help us to bring some sense to all of this sensational information today about AI and where we sit. So Ilya, welcome to the podcast.
Hey, Cynthia, great to be here.
Before we talk shop about AI, it would actually be really cool to just hear a little bit more about your background and how you became such an enthusiast for the world of artificial intelligence, and what that means for the workforce.
Sure. So I've been with Mercer, just sit back, for 25 years. Right? There's not many people nowadays that have a career that extends that long with one employer. But I've been really fortunate. Every time I've got restless, there's been another opportunity for me, and it's taken me from Australia to Asia to Europe.
And now, I'm based in the US. And I have to say, in that 25-year career, there's never been a more exciting time to be part of Mercer. But I also say, there's never been a more exciting time to be part of the profession.
And that's because all of us focus on the work. We all focus on the people. And there's so much disruption, so much risk, so much opportunity. And we've got an important role to play in navigating through that, I think.
I agree. So I'm going to ask you something, and this sort of sets the scene and the tone for our discussion today. Do you think AI will ever replace your job, Ilya?
So my response to that is, I'm more on the optimistic side of AI than the pessimistic. So I'll say that as long as I'm open to learning, as long as I'm curious and sure that I remain familiar with the technology and its developments, I'd like to think that actually, I can be augmented by AI rather than be replaced, rather than be automated away.
You and I meet with clients all the time. And one of the things that I'm involved in is a lot of, how do we build our business through inorganic means. And just a couple of weeks ago, I met with a large multinational company that was interested in partnering with Mercer.
I ran out of time to prepare. So what do I do? I jump on ChatGPT. I'm meeting this person. We want to talk about partnership. They're the CEO of this organization.
Structure a conversation with me. And literally, in 15 seconds, I've got this outline of a script, not only of what to cover to get to the end point of, can we partner or not or what are the next steps, but also the softer things is, they might be interested in these kind of things based on their profile. So it's a shortcut to getting things done.
And that's what I mean, is like, if I'm getting used to the technology, it can augment me, make me better, make me more productive. And to be honest, I'm a little scattered, so it gives me some structure. So I'm sure we end up with a better outcome using that kind of approach, than if I just try to wing it, for example, which would not be good.
There you go, folks. You heard it here first, on "Making Work 'Work'." The secrets to success-- consult ChatGPT before any client meeting. [LAUGHS] I share that view of augmentation as opposed to replacement.
One of the biggest promises-- and you just mentioned this in your own personal example of productivity and being more efficient-- from your perspective, how is AI making the HR function or the role of HR more productive? Or where do you see the potential for that to be the case? And we have a lot of listeners who are going to be really interested in this.
Yeah, I think this is going to go down as the most important period in history for HR. And here, we've got a choice to make. It's like, take advantage of what AI has to offer for our work, for all the discomfort it might have, in terms of the changes it could bring to HR, but also to focus on, how do we not reinvent work, but how do we redesign work, so that AI can be applied in a way that's a benefit to the organization, but also a benefit to the workforce?
You've probably read just as I have, that there's research saying that if any jobs are going to be disrupted, it's more likely going to be HR than any other profession. So that's pretty scary for us, right? But if you think of work in the way that there's different aspects of it-- so let's say there's an expertise component, there's a relational component, there's a transactional component.
And as much as HR want to be the strategic partner to the C-suite, we get caught up on all of that day-to-day transactional work of making the employee experience work, because we haven't quite got it right, technology-wise. If we have the opportunity to apply tools like generative AI to improve the efficiency of the work we do to reduce some of that transactional load that we all get caught up in, then it gives us more opportunity to focus on the relational aspects, the strategic aspects, where we can have most impact.
And even if I bring some of the expertise that we have in the profession, it just is the example I gave before-- we can think of it about enhancing or augmenting our expertise to be able to do an even better job than before. And so I think for HR, if we take an optimistic view, we can augment our own jobs, free us up to focus on the more strategic pieces, and genuinely have the impact that we've always wanted to have, but have just been unable to because of the nature of the design of our jobs.
I think that's not just optimistic. I think it's welcome and realistic for organizations. You know, I'm thinking about the use of AI and what we're already seeing taking place in HR functions like talent acquisition. And we talk a lot about creating a fair and equitable place or a playing ground for people to have access to opportunities, free from bias, free from those decisions that might exclude certain talent pools or certain people because of biases about their ability to complete the work or to do the job.
And I think that in addition to the efficiency and the ability to free up HR to do those strategic and relational pieces, I also see it as an improvement to the employee experience, and overall, to the fairness and the equity that I think employees everywhere are searching for right now as well. So I see that benefit, too.
Yeah. Yeah. You know, Cynthia, you and I have been together for the last few days while I've been here in Sydney. And you shared with me that you've put together a playlist for our team here, so have you got George Michael's "Freedom" on that list? Because that's what's going through--
[LAUGHTER]
That's what's going through my mind right now.
Now, it's stuck in my head. Thanks, Ilya.
[LAUGHTER]
You also commented on bias, for example. Here, I also think that the HR profession has a really important role to play. Like, there are-- and we all know if we follow the discussion-- there are a lot of dangers in the blind discussion of AI. It is an area that I worry about for a number of reasons.
Maybe we'll get there. But here, I think that one of the roles for us as HR professionals is going to be to ensure that the technology is introduced in a way that minimizes bias. And I don't think that job will ever stop, because AI learns from the content that it is exposed to.
And so I think there's going to be a constant role to fine-tune the AI to make sure that it works within the context of your own organization, and that we're vigilant for those areas of bias that might creep through. And it's a really important role to play, because-- and this is where I worry about AI.
It's like, whatever comes out of ChatGPT, it's a shortcut for us. And so the temptation is just to believe whatever comes out. But if it's been trained on the wrong material or if it's been biased on the volume of material that influences, AI can come out with perspectives that are either wrong or biased in itself, but we go on in our day-to-day lives, being very busy, not thinking particularly critically about the content or the information, and then using it sometimes to make decisions that turn out to be just wrong.
I think that's a fair and reasonable fear, or certainly, a concern about the future. And I like that. I hadn't thought of it that way, Ilya. That could be an interesting and important future role that HR could play in this space, and certainly in concert with organization enterprise strategy around an AI policy, which would be true for all parts of the business that might be employing artificial intelligence.
I'm going to plug a book now. I read a book a few weeks ago, written in the 1950s, believe it or not, by Isaac Asimov. And it was called, "I, Robot."
Yeah. Yeah. Oh.
And the key character was a robot psychologist. And you start reading it, and you wonder, what the heck would you need a robot psychologist for? But it's to continually review and retrain and redirect and make sure that the AI-- or in this case, the robot with the artificial intelligence-- stays on track. It's fascinating to think that something that's written 80 years ago is just so relevant for today.
And often, the Asimov book is invoked-- its imagery as well as just the I, comma, robot. It's often now the preceding title to a lot of discussion right now about where AI could take us, and also, potentially, the dark sides of it. I'm going to switch gears just a little bit.
And coming back to a point you mentioned earlier, Ilya, about how we safely usher in this technology as organizations increasingly make use of AI. One of the questions that comes up quite often is the skill set and the thinking with regards to how jobs and how work is designed might need to change to make room for augmentation or make room for these new ways of working with generative AI.
From your perspective, what could organizations be thinking or doing right now in the space of skills development, in being able to take full advantage of the productivity and efficiency gains from AI?
I think the first thing is to be proactive, recognize that generative AI is here with us now and it's not going to go away. So from a leadership perspective, it's critical that the leaders of the business form a vision of AI's role in the future. I think it's always important to give workforce confidence that the business has a strategy that's going to drive success.
And if the business is successful, then there's opportunity for the workforce to move along as well. And so we should be very transparent that as leaders, we're thinking about the role of AI in the future of our organization and give the workforce confidence that we're going to not just implement AI to make work more productive, which can be a little scary if that goes towards thinking around disruption, but rather that we will apply it in a way that's going to make us more competitive, and that we will be looking for opportunity to develop people's capability to ensure that their skills are evolving in a way that's relevant and ensures that they have sustainable careers?
Ilya, I'm curious. I know that as an employee at Mercer, which is one of the group of companies called Marsh McLennan, I know that I use ChatGPT in my everyday work. You clearly use it in your work. But if you could just step back for a moment and tell us a little bit about what the approach is for Marsh McLennan in regards to the use of AI, and particularly generative AI, that would be great.
Yeah. So firstly, we want to make sure that we're at the forefront of use of AI, and not only for helping us operate as effectively as it can as an organization, but also in terms of the advice that we're providing our clients. That means that we need to be using AI. That means that we need to develop the skills of our workforce in using AI.
So the first place we went, actually, was on the conservative or the risk side. So I don't know if you use ChatGPT-- maybe you noticed that sometimes your responses come back in a way that asks you the question, have you been learning from what I've been asking?
Yeah. Yeah.
Essentially, it is, right? Like anything we put into these models, they learn, and they grow. Our biggest concern-- our initial concern was, if we're putting client or sensitive information into these artificial intelligence technologies. And so we've had broad communication to encourage our workforce to use these tools and get familiar, but to make sure that there's nothing private or sensitive. And that's the first step.
The next is that because of our size, we're able to work with organizations like Microsoft, like Google, like Amazon on their plans for creating generative AI tools that are usable within a corporate context. In other words, preserve privacy and confidentiality. And so that's what we're working through currently, is setting up our systems so that we can use AI without fear of any leakage of that sensitive content into the market.
Then, we've created user groups, which have been inundated with people wanting to know more. And we're creating sandboxes, where we're asking people for ideas so that we can experiment with the technology. We will learn from that. We will get feedback from our teams on what's working and what's not.
And then, we'll iterate as we move forward. So that's the initial plan. It's still early days, but it's the early days of AI. And just reinforce the point is-- our advice to clients is be proactive, and that's what we're doing ourselves also.
That's great. And I'm part of one of the communities-- I'm in the community that's collaborating with my colleagues around the world on the impact of generative AI on HR. So it is a lively dialogue, I can attest to that, Ilya.
Speaking of which, as we're talking to a number of folks listening to us right now, who are thinking about implementing AI applications and systems into the technology stack, whether those be talent marketplaces or learning experience platforms, you know, Workday, Oracle, SAP, all are using elements of AI anyways inside of their platforms, whether we know it or not. Either way, what tips, what advice, would you give to organizations, particularly as they think about investing in the implementation of AI technology to support HR functions?
So we have a phrase and a philosophy in our business that is, be digital, don't do technology.
That's cool. Yeah, I like it.
And like, they sound similar, but they're a lot different. Like, technology is the tool to get things done, but being digital is everything that goes around it. Just because you implement a technology doesn't mean that it will be adopted, right?
There is, especially since COVID, there's been an explosion in the uptake of learning management systems and tools, right? We have them at Mercer. We have them at Marsh and McLennan.
A common complaint from our clients is, for all the best intent to help their workforce develop the skills that will keep them relevant for the future, the uptake is 5%, 10%, 15%, right? There's a lot of disappointment around-- that's not the only technology, but a lot.
Reason behind that is we introduce the technology, thinking that's going to be the solution. What we need to do is step back and think, well, what's our strategy? We've got all these tools. So firstly, do they fit together? And what's the experience going to be for our clients, for our colleagues?
What's the vision that we have for how we want to use the tools and ask the question of why? Why do we want these? Then, we need to get the organization ready, so prepare for the introduction of these tools that we need to deploy, which also includes aspects of change management.
Then we implement the technology, which is just one small piece of this process. And then, we wind back, and we think about, how do we sustain? How do we ensure the adoption we have continues? And then, we keep going, like think of it like an infinity loop going through that process.
So I wonder now if the "be digital, not technologies"-- it doesn't really work, but like, maybe it's like, think the augmented intelligence, don't think that technology. And it's the whole thing. It's more about the people than it is about the technology. And that's what we need to keep in mind most.
Yeah, I agree with that. In fact, with the organizations that we work with, we often start with a version of that mantra, which is, it's not about the tech. And as someone who spent most of my career in a tech firm and in working on transformations driven by digital and tech, it never is about the tech.
And in fact, it feels-- in the present day, the ability to implement technology, because of cloud, because of virtualization, and other really neat things that make it easier to instantiate these tools, it actually really isn't about the tech, is it? And we do often work with organizations who really need to orient themselves to what does matter, which is the human experience that they are trying to drive with the help of technology.
And you made this really-- you told this great story earlier this week about, maybe, why perception often about AI and about technology tends to gear more to that type of change, a technological change, a process change, versus a human one. Do you want to just tell us a little-- tell our audience a little bit about that story? Because I think it's got a twist to it that I think is worthy for the audience to hear.
Yeah, we did some work with clients envisaging what a skills-based organization would look like and how we would enable that with technology. And being a friend of ChatGPT, I and we use that to help with the envisaging process. But then, what we also did is we asked the technology to actually create some art.
So what actually would a skills-based organization look like? What would a talent marketplace-based organization look like? And we used Mid-Journey for that. And it came out with a piece of art.
But before examining that piece of art, what we also did with our clients is, we just did a web search. And in this case, we used exactly the word, talent marketplace, which is a technology, right? There's a lot of concepts behind it, but the technology is talent marketplace.
Google search, click on Images, and a page pops up, where you have images of what a talent marketplace looks like-- images that are created by marketeers, by product strategists, by business leaders to position their organization in this future of work space. And what was fascinating as you scrolled your way through those tens and tens of images is that 80% to 90% of them focused on process and focused on technology.
When we turn to what ChatGPT had helped us create through artificial intelligence, the image was nothing like that. The image was about humans. The image was about people in an organization. And I think in that whole image, there was only one small piece of technology where someone happened to be using something that looked like a laptop.
And so the contrast was incredible. It was like, here, you've got humans describing a skills-based organization, which is about people as technology and process. And on the other hand, you've got artificial intelligence interpreting as all about the people.
And that is the twist. And I-- (LAUGHING) I think that's what I take away from that story-- is it's a good thing that the machine recognizes that humans are necessary, that this is about human cultural shift in the way we work, not the replacement or extinction of humans as some might be worried about. And there you have it-- ChatGPT also acknowledging that, in a very real way, even better than what we as humans have put out into the market about what we think is most important.
So I really think that's a neat story. Look, Ilya, we could-- well, we could also invoke ChatGPT and turn that on right now and start talking to it, but-- we could do this for hours, but we are at the end of our time together. And I just wanted to thank you for joining us today.
Your insights, your enthusiasm for what this could mean for our organizations globally, for workers globally, was certainly palpable. And I know that our listeners are going to learn a lot from not just what you're seeing in Mark, but certainly what Marsh McLennan are doing and what you're helping organizations do as they safely usher in this era of AI.
So thanks for being here with us, Ilya.
Thank you, Cynthia. It's been a pleasure to be here.
So I'm Cynthia Cottrell. Thanks for listening to "Making Work 'Work'" from Mercer Workforce Solutions. See you next time.
I hope you enjoyed today's podcast, and thank you for listening. Please subscribe to keep up to date with our latest episodes. And if you have any questions, get in touch with us via our website at mercer.com.au.
Episode 8: The impact of generative AI on HR and the workforce
Guest:
President, Career, Mercer
In this captivating episode, our host Cynthia Cottrell asks Ilya Bonic, the President of Mercer's Workforce Solutions business and Head of Mercer Strategy globally, a thought-provoking question: "Do you think AI will ever replace your job?" This question sets the stage for the conversation as they delve into the challenges and opportunities presented by AI, exploring its impact on the present and future of work.
Their conversation covers:
- HR’s crucial role in integrating AI into business and culture
- Reshaping work to leverage AI for the benefit of organisations and their workforce
- Minimising bias in decision-making with AI
- Embrace the cultural shift in the way we work, as AI complements and enhances our capabilities
This is an insightful episode on the incredible potential that AI holds for our future. Tune in now and be part of the transformation.
-
“It’s about the people, not the technology. Redesign work so AI can be applied to benefit the workforce.”- Ilya Bonic, President, Career, Mercer
-
“Organisations need to orient themselves to the human experience that they're trying to drive with the help of technology.”- Cynthia Cottrell, Partner and Workforce Solutions Leader, Mercer Pacific
-
“Be digital, don't do technology. Technology is the tool to get things done. The being digital is everything that goes around it.”- Ilya Bonic, President, Career, Mercer
-
“We have to think of how work is designed and make room for augmentation and new ways of working with generative AI.”- Cynthia Cottrell, Partner and Workforce Solutions Leader, Mercer Pacific
-
“One of the roles of HR is to constantly fine tune the AI to make sure that it minimises bias.”- Ilya Bonic, President, Career, Mercer
Is work working for your people and organization? In this podcast, Mercer thought leaders, industry experts, and business visionaries share big ideas and best practices to help you build great workplaces and a future where work works for everyone. Making Work 'Work' is a podcast for Mercer Workforce Solutions.
Welcome to Making Work 'Work'. I'm Cynthia Cottrell. I'm really excited about today's show because I've got a special guest who's going to help us think about and talk about ways that organizations can help create great places to work.
My guest comes from Mercer Pacific, where she is the Chief People Officer of an organization that spans both Australia and New Zealand, and also was recently recognized in AFR Boss's Best Places to Work list. Why are we talking about this, though, today?
There's a lot going on in the world of work. We know that last month's jobs report indicates that more jobs were created than expected, meaning that Australia now is at still record unemployment levels of 3.5%. Couple that with the rising cost of living, a myriad of expectations and needs by employers across all industries, and rising cases of fatigue and burnout.
So there's a lot going on. And that's why my guest is so special today because we're going to solve this together with Gay Morris. Gay, welcome to the podcast.
Thanks, Cynthia. Great to be here.
So Gay, before we solve the world's problems today, I'd like for you to just talk to us a little bit about you, how you came into your role, and what you do as the Chief People Officer at Mercer.
Yeah, thanks, Cynthia. It's quite funny because I started my career as a maths teacher and have spent the last 25-plus years in HR in a variety of roles. And it's always interesting. People say, oh, so what's the difference between teaching and HR? And really, I think the issues are the same, just the people are taller.
But when I think about my role here and how I came to Mercer, just a fantastic opportunity to come to a business that had a real growth story ahead of it. And building up our business, and thinking about how we set our people up for success in line with growing our business has been really awesome challenge.
But the pandemic has thrown a couple of curve balls at us. But we've managed to get through, I think, pretty well.
Well, I think so too and so does AFR Boss. Let's just jump right into it. And again, your perspective as a Chief People Officer will be welcome as a voice in this growing and energized conversation about what creates a great place to work. From your perspective and your experiences at Mercer, what are some of the key pillars that you think people leaders should be focused on when it comes to creating the best possible place to work?
Yeah, thanks, Cynthia. I think inspiring leadership and leadership that you can distribute throughout your business is just absolutely key to enable change in your business and to really create a thriving culture. So we need our leaders to be relatable. We need them to be able to be accountable and to really connect with our people if we're going to keep people in this really tough market that you talked about before.
Unemployment is low. There's a real difficulty in attracting and retaining talent. So when you've got the best, you want to keep them. And so leaders can make such a difference. So we've focused on leadership throughout the organization, thinking about, what does it mean for our very top leaders at the top of the organization, and then our next group of executive leaders, and then every single people leader in our business?
So how do they bring the culture to life at work? So that's probably the first one that comes to mind as a real bedrock for me is leadership. Then I think learning and learning growth culture, they just go hand in hand. So if you're thinking about how did your business grow, people need to think about how they're growing and how do they keep their skills current.
And then as an organization, us thinking about, how do we leverage skills in different ways? And how do we bring the best capability to our biggest and brightest problems, so we can get the biggest and brightest solutions? So those two. And my third one would be inclusion and diversity.
And to really bring that sense of belonging to life, we always start with inclusion. So our strategy is to focus on inclusion. And then if we can have a really inclusive culture and environment, diverse people will come. And they will stay. And they will thrive. So they're the three for me.
And I think if I can speak as a consumer of the great programs that your team have put in place for Mercer employees, as I am an employee as well, I've really enjoyed the Learning Days Initiative, which is part of your pillar of creating a growth mindset and a culture of continuous learning. Can you talk a little bit more about those programs that you are supportive of and how that's been picked up by the rest of the organization?
Yeah, the Learning Day sounds quite basic when you actually say it. It's a day that we-- [LAUGHTER] it's a day that we dedicate for people to learn. But really what we are doing is creating legitimate time for everyone to focus on their learning.
So we encourage people to keep a One Note of all those cool things that you go I'll read that later. And it just sort of goes into a folder. And then when you open that, you think, oh crikey, there's so much in there. And I never get time to read it all. So legitimizing the day really just helps people think about their learning not only what they're going to learn, but how they're going to learn.
So we encourage people to think about, are you going to have a watch party? If you're going to watch a recording, maybe do it as a whole team and do it together. Or are you the sort of person that is a solo learner? Or are you someone that you need a bit of a buddy to work through and chat through some of the issues as you go?
So we get people to think about how they're going to learn. And then we schedule the day. We have some really cool out-of-office messages for people to say, my organization values my skills. And then it's currency. So I'll be back to you tomorrow.
Of course, we can't have everyone having the day for learning. And we have to schedule it a little bit differently for some of our operational areas. But it's great to be able to get some great keynote speakers, harness some cool things that we've done across our business, and get some of our internal people to come and talk about and share with what they're learning.
But one of the coolest sessions that is one of the hottest ones is Dancing with 365.
So it's not Dancing on the Ceiling. It's dancing with-- I was channeling my Lionel Richie. But dancing with 365, you have to tell us a little bit more about that.
Yeah, so look, we've got people from all different backgrounds and all different levels in our business. And once Teams came in, and Office 365, and One Drive, and all of those changes, there is a lot of people who just need to go to a friendly space to actually ask their questions. And we've got some cool people at Mercer.
John Humphreys is one-- shout out to John-- who just runs a really user friendly session, where people can sort of pop in the chat. Just asking for a friend. How do you do this? Or what's the best way of organizing myself? And they've just been really great sessions, where people have had a bit of a giggle. And they've learned a lot through asking questions and working with other people.
So it's good to see those things live. And you can read the help chats. And you can get online. But to have someone who you know explain it for you is often quite relatable. And it really sticks.
You just touched on a word that's so relevant at this time, which is relatable. In fact, when Mercer released its 2022-2023 global talent trends research, the theme ultimately that ties everything together that seems to be of interest to all leaders globally is the rise of the relatable organization.
From your perspective as the Chief People Officer at Mercer, how are you creating a relatable organization that employees experience on a day-to-day basis?
Yeah, Cynthia, it's really important to me being relatable. So as a daughter of two factory workers who grew up going to school without Google, without the internet, and trying to work things out for myself. And it's always surprised me that people can make relatively simple things quite complex.
So we spend a lot of time really thinking about our HR initiatives or our people initiatives and how we make them relatable and how we market them to our audiences. And so when we have a session like the Dancing with 365, for example, we gave it a name that was quite relatable, where people thought, oh yeah, I'm wrestling with it and dancing around with it as well.
So we think about everything we do, and what we call it, and how we message it in. And we have a bit of fun at work as well. To be relatable, people-- we're spending a lot of time at work, whether it's on Zoom or in the office. And you want to have a bit of fun. You want to bring yourself to work and feel that you can be yourself.
People are looking for leaders that care about them and help them be their best and really create that sense of belonging. And you can only do that if you're relatable. And it starts at the top. So it's the sort of message that we share every time we have a town hall.
And you'd know, Cynthia. We have a bit of a giggle at those as well. And we get to bring our whole selves to work. And people have worn some pretty amazing using outfits more recently with the acquisition of and merger with BT in advance. We had a lot of gold milestones. And when we hit the final gold milestone to see one of our senior leaders in a gold sequined jacket at the town hall was pretty fun.
So I think being relatable, it puts a smile on people's faces.
Yeah, and just on that point about merging with BT and Westpac Advance, that is not an uncommon thing that's happening in organizations throughout the country in terms of growth, even in these times where there are clearly challenges economically and certainly globally that are impacting on that.
From a Mercer perspective, growth has been on the agenda throughout the current times that we're in. And certainly one of those ways of growing is through M&A. And I think that BT merger and Westpac brought nearly 350 new colleagues into Mercer as well.
And just on that note, just knowing that there are many organizations tuning in who are undergoing similar levels of growth and doing that whether organically or inorganically, what were some of the tips or lessons learned from your perspective when welcoming those new colleagues?
Yeah, we had a bit of time to plan for this, which was good because planning is key. One of the things that we did talk about was we talked about being better together. So we knew that both of our organizations would be better together.
And so that was our slogan or our catchcry throughout the integration. And hopefully it's not wasted on you, Cynthia, that better together is BT. So that was sort of a cool little piece as well. But we did purposefully do a range of things.
So as I talked about before, distributing leadership throughout our organization. So we have an executive leadership group below the executive team. We got together with the BT leaders that would be on the executive leadership group before they came across. And we spent a bit of time sharing about our businesses, and what we did, and really had a bit of fun, and just got people to actually connect and meet each other.
So that happened about five months before they joined. So that was a really good way of level setting and thinking about what we wanted to be together. We spent a bit of time at that two-day forum unpicking and understanding some of the cultural analysis work that we'd done on both of our businesses.
So we looked at four key elements of how culture would show up. And we then had a conversation with the team about how Mercer would show up in that and how BT would show up, the similarities, and then the watch points for difference, which again, we had a bit of fun with as well. But it really resonated.
So we sort of knew where we were going to start. And then together we actually built a narrative about what we wanted to be going forward. And that, again, was a co-creation piece, which is something that we're now using to work with our teams. And if you think about the story that we want to tell, without us putting a narrative into the space, people will create their own.
And look, I'm sure the narrative will grow its own legs over time. But it is really great to have quite a purposeful narrative that we can do together. But Cynthia, you would know that very well because you were a key host on that day, or those days.
Yes, that's right. You guys keep asking me to come back and host these events. Yeah, no, look, I think something that just strikes me about the work that you do, Gay, with us as leaders and what I imagine all leaders do in the HR space in their respective organizations is focus on culture. And I think that what we talk a lot about on our podcasts are, how do we make work work for everyone? And how do we make it even lovable, if that's possible?
And I think that one of the things that's so important in your role-- and I have a question in this. But one of the sayings I have is that in our current times with so much change happening, and the volatility, and the velocity of that change just being constant, I think that this is the era of the Chief Human Resources Officer. I really believe CHROs are going to save the world.
With that said though, there is a lot of pressure, I think, on folks like yourself, Gay. And I'd love to know from your perspective if you were advising your peers in this space, what would you give as top tips in terms of addressing the myriad of priorities and needs that are coming your way?
Yeah, I'll just strap on my cape, Cynthia, to save the world.
Yes, strike your superwoman pose.
Look, there is a lot. The environment's really, really full. When you think about what's coming down legislatively in the Australian environment, there's lots of changes that are impacting culture. There's a lot in the rewards space. There's a lot in the workplace health and safety space.
There are rising expectations of our people in terms of what they expect from their culture, and what they will and won't do at work, and how they expect to work, and when and where they want to work as well. So there are a raft of things that we need to consider. And I think if a Chief People Officer thinks that they're going to actually do it all themselves, they're going to be wrong.
So that's where for me this distributing leadership throughout the business but purposefully doing it is really important. So we need to understand and create a framework for people, but enough of a framework that individual leaders can bring it to life with their own personality, their own secret sauce, and then know what the framework is that they're working within, but then bring it to life, and share the really cool ideas that they have.
So we've seen things happen in some of our business units that we've just shamelessly copied across the business. It's been cool to see things happen. So that leadership piece and distributing it with a framework I think is really key for Chief People Officers to really make a difference. Thinking that each initiative is going to change the world, it's not.
It's going to be the collective. And it's not so much what you do, but how you do it. So I've seen lots of leadership programs and lots of different learning day initiatives, for example. But it's how we bring them to life is the secret sauce. And that's the defining piece of the culture.
So those learning days we've made really relatable, really user friendly. They're fun. People are looking forward to them. They know they've got time to do it. Being a superannuation organization, we've got getting your super sorted. So people can go and sort their super out. They're just going, thank the Lord, I've got that opportunity.
It keeps coming back to being relatable, doesn't it? And another one I'd like to mention is continuous employee listening. So how do you get the voice of your people to your initiatives?
So we think about that in terms of surveys, running into people and just checking in, purposeful feedback sessions and focus groups, as well as our annual employee engagement surveys as just ways to really get good feedback and really listen to our people, whether it's just feedback straight after a session or a town hall.
But that's the goal that will really help you keep your initiatives on song.
That's a good one, Gay. Totally agree. And I'm glad you snuck that one in. Those are really super helpful tips for not just Chief People Officers, but I think for team leaders, managers, heads of departments everywhere. At the end of the day, whilst folks like yourself, Gay, are playing a central role in helping to create healthy, resilient cultures that attract and retain great talent, it is a responsibility, isn't it, of all of us?
And as you say, one of the key pillars you mentioned being distributed leadership being the secret sauce-- not so secret now because we're on podcast, but certainly a core pillar of what you've made such a success, and again, recognize and market as a key way to make great places to work.
Look, Gay, I just wanted to thank you for joining us today. Firstly, it's just been really fun hearing you talk about all the great things you've helped to lead at Mercer. And to see that recognition by AFR Bosses is really awesome, a great testament to all of that effort.
And we know that your work's not done and that those of all of our Chief People Officers and CHROs we're facing into some very exciting times with the future of work, but also great opportunities ahead for so many to shine in this space. So again, thanks for joining me today, Gay.
Thanks, Cynthia. It was fun.
I'm Cynthia Cottrell. Thanks for listening to Making Work 'Work' from Mercer Workforce Solutions. See you next time.
I hope you enjoyed today's podcast. And thank you for listening. Please subscribe to keep up to date with our latest episodes. And if you have any questions, get in touch with us via our website at Mercer.com.au.
Episode 7: What makes a great place to work?
Guest:
Chief People Officer, Mercer Pacific
Step into Mercer’s world of work and discover the secrets behind creating a truly great place to work. In this captivating episode, our host Cynthia Cottrell engages in a thought-provoking conversation with Gaye Morris, Chief People Officer at Mercer Pacific. They delve into the dynamic landscape of modern workplaces and explore the initiatives spearheaded by Gaye, resulting in Mercer's coveted nomination for the prestigious 2023 AFR BOSS Best Places to Work list.
You will discover how Gaye and her team cultivated an exceptional culture of collaboration during the acquisition of BT Super Fund and gain insights into the transformative power of distributed leadership, learning and development, and the importance of creating a relatable organisation.
Are you ready to unlock the secrets of what makes a remarkable workplace? Tune into a stimulating discussion that tackles the pivotal role of Chief Human Resources Officers (CHROs) in today's challenging times.
-
“It’s a responsibility of all leaders to create healthy and resilient cultures that attracts great talent.”- Cynthia Cottrell, Partner and Workforce Solutions Leader, Mercer Pacific
-
“If you create a really inclusive environment, diverse people will come and they will stay and thrive.”- Gaye Morris, Chief People Officer, Mercer Pacific
-
"I think this is the era of the CHROs. They are at the forefront, shaping the way organisations operate. But with great opportunity comes great pressure."- Cynthia Cottrell, Partner and Workforce Solutions Leader, Mercer Pacific
-
“People are spending a lot of time at work, either on video call or in the office. They want to feel that they can bring their whole self to work.”- Gaye Morris, Chief People Officer, Mercer Pacific
-
“Chief People Officers cannot do it all themselves, distributed leadership throughout the business is really key for CPOs to make a difference.”- Gaye Morris, Chief People Officer, Mercer Pacific
[MUSIC PLAYING]
Is 'work' working for your people and organization? In this podcast, Mercer thought leaders, industry experts, and business visionaries share big ideas and best practices to help you build great workplaces and a future where work works for everyone. Making Work 'Work' is a podcast for Mercer Workforce Solutions.
[MUSIC PLAYING]
Welcome to Making Work 'Work', I'm Cynthia Cottrell. Today I'm speaking with Ravin Jesuthasan, global transformation leader for Mercer, about a novel way of looking at work that has emerged. Ravin and I have spent the last week talking to almost 60 different client organizations throughout Australia to learn about how organizations are facing into this new way of work, one that takes a different approach at building capacity, unlocking potential, managing careers in an organization--
In other words, what I love to say, things that make work lovable. We think it's a movement and we think the movement is called skills-powered. I couldn't have a more capable guest to talk about the topic. Ravin is a recognized global thought leader, futurist, and best-selling author on the future of work and workforce transformation. Welcome to the podcast, Ravin.
Thanks, Cynthia, it's lovely to be here with you.
Ravin, if you could just give us a bit of a background about yourself and how you've spent most of your career thinking about the world of work, and what you see in front of us now.
Yeah, absolutely, Cynthia, happy to. As you mentioned, I take care of Mercer's transformation business globally. I've been writing about the future of work since about 2007. And I don't think we were calling it the future of work back then. But over the course of the four books I've written, my last three have really started to unpack and unpick work from that traditional construct called a job to thinking about ever more agile ways of getting work done.
My second book was called Lead the Work, Navigating a World Beyond Employment, where my co-authors and I looked at how work was fleeing the organizational boundaries. We started to see the gig economy become a real feature in many developed markets and the new disciplines required to enable organizations to tap gig workers, which really, as we look back on it now, was kind of the start of this skills-based conversation.
And then in our third book, my co-author, John Boudreau and I wrote about how automation was coming into organizations, like AI, like robotic process automation. And until you got to that elemental layer of skills and activities, you couldn't really get to the optimal combinations of humans and machines. And then with Work Without Jobs, our most recent book, what we wanted to do was lay out an operating system that would allow organizations to be thoughtful about how they could make skills the currency for work.
How they could capture the agility that was promised by this new currency, as well as drive more resilience in the face of challenges like the pandemic, the uncertainty we see with geopolitical crises, like the war in Ukraine, and ensuring, thus, that talent was able to both redeploy more seamlessly as well as develop much more seamlessly.
And it's been fantastic to spend the last week with you and our colleagues in Australia, because we're seeing so many Australian companies be at the forefront of this movement towards being skills-based enterprises.
Speaking of those organizations that shared their stories with us, I wanted to play a couple of snippets from the skills-powered event that we held last week, where we asked HR directors and business leaders to tell us what they think skills-powered means to them, and why it might be valuable to the future of their companies.
In the work that I do, we have very much portfolio careers. We have kind of our own gig economy within the company. People wear multiple hats, they do different projects at the same time. So while we only have 800 people, those 800 people might be doing 4,000 different things. And so matching those things, those tasks and opportunities, to people and skills, and seeing how they can develop and grow is really important to me and in my role.
Nobody really knows how this works optimally yet, but there's lots of great ideas out there and lots of great case studies already starting to emerge about the huge benefits that it has, and how it's really going to reimagine what work looks like for a lot of people globally. So, exciting times.
So for us, we are heavily reliant on high-cost external contractors for work that comes up, and growth opportunities. So we're interested in a skills-based market so that we can understand internally who we have that might have capacity, who can we engage and help develop their skills so that we can tap into them at short notice, as well as invest in that internally for IP. So that's why we're interested in the skills marketplace.
So as you can see, Ravin, organizations are thinking differently about how the workforce will flow to the work and think differently, whether it be about gig workers, external contractors, full-time or part-time work. So Ravin, what do you see as some of the key trends in this space, as they're being put into practice at organizations you've helped advise over recent times?
Yeah, Cynthia, it's fascinating to hear those comments from our clients in Australia because they really do mirror much of what we're hearing from organizations around the world. They're looking for much better signals of where the demand for work is going and what that means for the skills of the workforce, given what we're seeing with digitalization and automation. You and I have talked a lot about ChatGPT and what that might mean for how skill premiums for various types of work are changing.
So a better sense of that demand, a better sense of what skills that workforces really have. This thing called a job hides all manner of sins, I like to think. And often, it obscures the true skills of the individual because the job doesn't really tap into all the unique capabilities that he or she might bring. And so as we move to a skills based enterprise, we get much better, not just demand signals for where work is going, much better signals of the supply of talent.
The unique interests and passions that you, Cynthia, have the skills you've acquired over the course of previous employers, previous experiences, previous certifications, expertise, et cetera. So that insight into the talent is the other dimension to this.
And I think the third dimension is the much more seamless matching between supply and demand, not just relying on this thing called a job, which often only enables very episodic movement as talent typically thinks of either moving upwards or laterally, to now, to use a phrase that you used, having squiggly careers, where people see opportunities three months, six months, a year from now, all driven by their ability to both express the skills they have as well as acquire new skills.
So I think we're seeing companies start to recognize the game-changing potential of the skills-based enterprise and the need to engage in what is undoubtedly very challenging work, of thinking beyond the job.
We talk a lot on this podcast about making work lovable, and we talk about it in those terms. Because I think you've touched on such an important reason why this movement to skills-powered is gaining steam. You talked about really understanding the skills and how they connect people to the work that they love doing most.
So while the signals from understanding skills will help us understand supply and demand, it also feels like there's a great opportunity to help humans discover skills that they didn't know they had, but they've always known that they've really loved, that task of driving Excel spreadsheets to the nth degree of insight. Or being able to deliver an emotional or an inspirational speech to their team. That those are all key skills that are important and are worthy of being surfaced to others so that they can be used elsewhere.
You do a lot of work, Ravin, in fact, with the World Economic Forum. And I wanted to touch on this point with you, because as we talk about work becoming more equitable, more engaging, and, in fact, just lovable, I think it's worth talking about your work with the World Economic Forum around creating equitable and fair workplaces. And I'd love you to talk a little bit about what your research has shown, and your partnership with the World Economic Forum has surfaced for us in terms of how that might broaden our views about fairness in the workplace and support the ESG agendas across organizations globally.
Yeah, Cynthia, we've been collaborating with the World Economic Forum for the last couple of years on a pretty important initiative for them called The Good Work Framework that was really designed to do what you just described, which is to bring more rigor, more thoughtfulness, and structure to the S in ESG, much in the same way we've seen that rigor be brought to the environmental side of things and to corporate governance.
And the work we've done to articulate five key priorities, five key elements of the framework, are really intended to drive more equity, more inclusivity, and generally to make work a much fairer and better proposition, to make it more lovable, if you will, as you just said.
And I do think at the heart of this is the need for us to think about how the drive towards the skills-based enterprise might actually support this. Because what we're seeing with organizations who have insight into the skills is, they're better able to reward talent based on the skills they bring, they're better able to deploy talent to new opportunities, they're better able to upskill and reskill talent based on the skill gaps they observe between their evolving needs and the skills of that talent. They're able to provide better portability and mobility for talent, not just within their organization, but beyond their organizations as well.
So ensuring that our responsibilities to the workforce are not just when they're our employees, but beyond that as well. And I think this framework, The Good Work Framework and the underlying Good Work Alliance, is a really important part of taking the skills-based narrative beyond just a good operating system for companies today to drive agility, flexibility, and resilience. But to make work more lovable, to make it more equitable and inclusive for everyone.
Ravin, you mentioned, in talking about your work with the World Economic Forum and those benefits that you talked about in your discussion points just now, are absolutely attractive to any organization thinking through the great talent challenges that we're going through right now, round engagement, attracting and retaining great talent, and also those important tangible business outcomes of being able to still get to market in a timely manner with product, or serving customers.
Can you give us an example of an organization that you've worked with who has made this investment in moving to a skills-powered model and has started to see the benefits of that investment?
Absolutely, Cynthia, I'll give you a couple of examples. One is Unilever, well documented as one of the poster children, if you will, for the future of work. We've had the privilege of working with them for quite a few years. And their move towards the skills-based enterprise was part of this broader objective of creating much greater agility within the organization.
And the interesting thing was that they introduced their internal marketplace that they were using to power their skills-based enterprise at the start of the pandemic. And it helped shape a very differentiated response to the pandemic. It allowed them to mobilize their talent, it allowed them to better understand where the demand from their customers might be going as this pandemic sort of played out.
It also allowed them to mobilize their workforce and redeploy talent much more quickly, saving many countless jobs, because they didn't have to go through the usual response that we see from companies when their demand profiles change, where they have a reduction in force in one part of the business, and then they go out and hire talent in another part of the business. So I think that was one really good example of an organization that, during the pandemic, demonstrated the power of the skills-based enterprise.
The other is a very large insurance company that we've worked with, where we've introduced the skills-based enterprise for all their digital talent, their data scientists, their UI/UX designers, et cetera. And the move from a traditional functional structure to an environment, where skills were the currency for work resulted in a 600% gain in the productivity of their data scientists.
And the extension of what started off as a fairly narrow experiment to cover all of their digital talent around the world, enabling much better talent deployment, much better work experiences, and the ability for talent to pursue their passions and keep upskilling and reskilling themselves as they got better signals of where the demand for work was going.
That's amazing, 600%. I can't imagine any leader or executive not wanting to take up that business case and implement it tomorrow. And on that note, for all of our listeners who are thinking about joining in this movement, or are in the process already of transitioning to a skills-powered organization, Ravin, what would you advise them as they consider the potential pain points or trigger points that they are solving for? What would be your top two or three tips for organizations considering or just starting this journey?
Yeah, Cynthia, it's such a great question. The change we're talking about is a really significant one, as you and I have talked about. We have 140 years of learned behavior, and leadership muscle, and organizational capability tied to this thing called a job. Now, despite the title of the book, Work Without Jobs, we're not saying that jobs are passe or will be going away anytime soon. But what we are saying is that organizations need to find a way to move beyond jobs if they're going to build the agility to respond.
So it's really important that, as you move in this direction, you find some triggers which are going to give you the permission to start to experiment with this thing called the skills-based enterprise. Where are there some pain points that the traditional response may not be sufficient? How can we experiment with some of these ideas in discrete areas that don't threaten the operational integrity of the business? How do we engage leaders in understanding this journey and giving them the catbird seat, if you will, for looking at how these changes are playing out in a safe space.
Equally, many tend to lead with the technology. And as you and I know, the technology is the easy piece, the marketplaces, the talent insight platforms, and there are so many great platforms out there. The harder work is the work of rewiring the enterprise and rewiring leaders and managers.
And I think that's where starting discretely, walking before you run, but building that architecture around the technology, I think, is a really important part of the equation. So, looking beyond the tech to actually understand what's the behavioral and cultural change that needs to happen in order to enable this new way of working and capture some of the gains that we just talked about.
I think that's great advice, Ravin. And I just wanted to press on that piece around the tech. You and I were discussing, in fact, with an organization recently about-- I can't describe it any better than to say FOMO, or fear of missing out, with regards to the technology. And I think you were right in that organizations sometimes equate this movement of skills-powered to the technology.
And I think one of the points that I thought was very interesting in our discussions this week with clients is that the technology will only continue to accelerate over time if we-- you mentioned ChatGPT, or generative AI, at the start of this discussion. As those technologies, as AI continues to get better, to become more consumable everywhere, I think it kind of resonates that this movement is not about the technology.
The technology will get better. It can be replaceable, it could potentially continue to evolve in such a way that where you start from with tech may change by the time you end your journey. So it feels like, to me, the movement really is about, as you say, that cultural shift. That rewiring of leaders, of team members, of employees, of humans, to really take the reins of this journey, and own it, and make the most of this moment. The technology is just the enabler, and it will likely continue to evolve.
Yeah. Cynthia, that's absolutely right, as my co-author, John Boudreau, and I have written in our last two books. And we've demonstrated the organizations who lead with the work consistently outperform those who lead with the tech. And that's not just true of this space where we're talking about these marketplaces. But it's true of every domain of the enterprise, that the companies who lead with the work, understanding how it's going to, in nuanced fashion, affect the work and the role of the technology, get to much higher order outcomes.
And there's something that's really important in what you just said, which is technology is perpetually rendering itself obsolete. We know that. You just have to look at our iPhones, right? My goodness, if you are my kids, you have to get a new iPhone every year. Your operating system is getting upgraded in the background, maybe every two or three months. Your apps are getting updated every week or so.
And I think that's the mindset we need to have is that yes, technology is going to be perpetually rendering itself obsolete. How do we build a mindset and a culture of perpetual reinvention so we're continuously questioning and challenging the work operating model? And I think the way we do that is to get to that foundational level and elemental level, if you will, of skills and capabilities as the currency for work.
Ravin, I think you've summed this up very well for all of us, and your time here in Australia as well. I want to thank you for joining us today. Your experience and insights will surely help many of our listeners consider their next steps towards becoming a skills-powered organization.
Well, it's my pleasure, Cynthia. It's been lovely to be here with you.
I'm Cynthia Cottrell. Thanks for listening to Making Work 'Work' from Mercer Workforce Solutions, see you next time. I hope you enjoyed today's podcast, and thank you for listening. Please subscribe to keep up to date with our latest episodes. And if you have any questions, get in touch with us via our website at mercer.com.au.
[MUSIC PLAYING]
Episode 6: Why it's time to join the skills-powered movement
Guest:
Global Transformation Leader at Mercer
One of the biggest challenges for organisations has always been how to monitor the skills they have and the skills they will need in the future. But as Cynthia Cottrell, Partner and Workforce Solutions Leader at Mercer Pacific, and Ravin Jesuthasan, Global Transformation Leader for Mercer, discuss in this episode, a new way of looking at work is emerging, one that takes a different approach at building capacity, unlocking potential and managing careers. They describe this new approach as a movement called “skills-powered” and explain that when skills (not jobs) become the currency of work, this not only helps organisations become more agile and resilient in the face of constant change and uncertainty, but helps secure futures – for workers and societies.
Tune in to listen to Mercer’s thought leaders discuss the evolution of work, how companies are using Talent Marketplaces to power their skills journeys, the role of AI and tools like ChatGPT in monitoring and matching supply and demand of skills, and advice for companies considering or starting their shift towards a skills-powered enterprise.
Learn more about this movement, listen to the podcast now.
-
“It's been fantastic to be in Australia and seeing so many Australian companies at the forefront of this movement towards becoming skills-based enterprises.”- Ravin Jesuthasan, Global Transformation Leader, Mercer
-
“There's a great opportunity to help our people discover skills that they didn't know they had, those skills that are important and are worthy of being surfaced so that they can be used elsewhere.”- Cynthia Cottrell, Partner and Workforce Solutions Leader, Mercer Pacific
-
“This thing called a job often obscures the true skills of the individual because the job doesn't tap into all the unique capabilities that employees might bring.” Ravin Jesuthasan, Global Transformation Leader, Mercer- Ravin Jesuthasan, Global Transformation Leader, Mercer
-
“Technologies will continue to get better, but the skills-movement is not about the technology. It’s about a cultural shift—the rewiring of leaders, team members, employees, to take the reins of this journey and own it and make the most of this moment.”- Cynthia Cottrell, Partner and Workforce Solutions Leader, Mercer Pacific
-
“Organisations who have insight into their skills are better able to reward talent based on the skills they bring, are better able to deploy talent to new opportunities, they're better able to upskill and reskill talent.”- Ravin Jesuthasan, Global Transformation Leader, Mercer
[MUSIC PLAYING]
Is work working for your people and organization? In this podcast, Mercer thought leaders, industry experts, and business visionaries share big ideas and best practices to help you build great workplaces and a future where work works for everyone. Making Work 'Work' is a podcast from Mercer Workforce Solutions.
Welcome to Making Work 'Work'. I'm Cynthia Cottrell. According to the recent Mercer Executive Outlook Study, 50% of the nearly 400 CEOs and CFOs that responded stated that they anticipate their organizations will struggle to meet demand with their current talent models as they face into persistent labor skill shortages, inflation, the prospect of global recession, quiet quitting, and a new one for me, resenteeism-- which is a buzzword now to describe individuals who are unhappy with their jobs but can't find alternative work, so they are openly now unhappy at their jobs-- and the list goes on. The industries that will struggle most, according to our study, include construction, energy, automotive, and manufacturing.
The pace of change in the new world of work seems to be moving at breakneck speed. And scary enough, it will never be this slow again. According to LinkedIn's 2023 Workplace Learning Report, skill sets for jobs have changed by around 25% since 2015. By 2027, this number is expected to double. So how should leaders evolve or rethink their talent models in this VUCA world that we live in?
Today, I'm joined by Amy Baxendale, global capability and workforce readiness director at Arcadis. Arcadis is a global organization with 36,000 people in over 70 countries, delivering sustainable design, engineering, digital and consultancy solutions for natural and built assets Amy and the team at Arcadis have embarked on the journey towards becoming a skills-powered organization, an important cultural shift for the 135-year-old company. And it is a major reboot for talent models across that industry. Amy, welcome to the podcast.
It's great to be here, Cynthia. Thanks so much for having me.
Amy, you use a really neat term in the conversations we've had in the past that I think you've coined, and it's a way that you've described your career at Arcadis. The term is "squiggly." Tell us more about what squiggly means to you and what you're up to in your current role at Arcadis.
Sure, Cynthia. Thank you. So I first joined Arcadis 18 and 1/2 years ago. And during that time, I've lived and worked in five different cities in four different countries. And this is now my 14th role, all broadly within the specialisms of people and culture but also in business transformation as well.
I'm also a boomerang employee. So I left for 18 months and came back. But I guess, for me, the squiggly career pieces, I feel really fortunate that I've had the privilege as a career that's been really personalized and aligned to work that I'm passionate about. And my current role, really, brings together a number of different experiences and opportunities I've had over that time and really, brings together talent acquisition and capability development very purposefully at global level. So that as we as business understand more about the skills we need now and in the future, we can make more informed decisions about whether we build, buy, or borrow that talent that we need now and in the future.
That is certainly a squiggly career path. And I think it sets us up nicely to talk about this journey that you and Arcadis are just embarking on. So before we get into more about that journey, let's just step back and zoom out for a little bit. Why is this shift to skills-powered for Arcadis so critical at this time? Why now?
I think, for us, Arcadis, the journey towards becoming a skills-powered organization, really, is genuinely considered by the business to be central to our business strategy because we, really, see it as an enabler to build a workforce that's ready for the future within the context of what we all know is an ever evolving world of work. But in order for us to continue to grow and scale globally as a business, it's really critical that we have better insights into the skills that we need now and the skills that we need in the future.
So I guess to bring an example to this, Cynthia, like as an example, during 2022, we've acquired four organizations. So we've welcomed 6,000 new Arcadians into the business. If we had been further on our skills transformation journey, then we would have been able to further accelerate our integrations by really quickly understanding more about the talent that's joined our business and then better identifying opportunities to connect those new skills to immediate or emerging client needs.
It is all in the timing, isn't it? Everyone is talking about skills shortages. We opened with that today, and it is absolutely top of mind for executives everywhere. With that in mind, Amy, it does sound like the time is now for this very critical shift to skills-powered. Tell us more about why it's so critical now for Arcadis.
Yeah, I mean, you've mentioned a number of the things that keep us as HR professionals up at night. But at Arcadis, we've always believed that our people are our most important asset. So we think now is the time to shift to a skills-powered organization for multiple reasons, and I could go on all day.
But I guess, if I think about the kind of, I guess, the top three, the first one is really around transforming access for our people to enable much more diverse career pathing. So moving from majority of people thinking about a really structured, usually quite hierarchical, probably promotion-based routes to development to really thinking much more about how do we give them access to more career enhancing experience and as I discussed earlier, what I fondly call squiggly careers, but really, to enable much more personalized development planning and growth paths so that people can have better growth conversations and access more opportunities and information to better take control of their own careers.
As a business, I guess, a really important thing one for us is as part of our ongoing evolution and growth, we're going through digital transformation. And as part of this, we've launched the standardized and automate program. So this is all about identifying, developing, and reaping the benefits from having globally aligned processes, definition, and much more harmonized ways of working. So as part of this, we'll start to identify opportunities to substitute, to augment, and to reinvent work, which will naturally release our people to then be able to maximize their skills in different ways. Also for our clients, they really benefit as we're able to more proactively change the way that work can be delivered for our clients.
So by having the skills-powered organization program run alongside this, as we increase the knowledge of our people and their skills, we can then provide opportunities for Arcadians to move their skills to where they're needed, both as a business but also aligned to their personalized career ambitions as well. So for us, part of this journey, really, importantly, is we're also looking to support our people to be able to stay relevant for the long term by reskilling, upskilling, and cross-skilling in line with the in-demand skills.
So I suppose, the third one for me is this, really, does allow us to adopt what we're creating an internal first approach to talent discovery, so to truly enable us to leverage our global connectivity, and have genuine conversations with our clients about skills they need and the skills that we have in the business and then being able to identify and mobilize the right talent to help solve those client problems and deliver on those client commitments. So really, for us, it's about our people, it's about the business, and it's about our clients. And I guess, just as a business, we're really excited about the opportunity to, I guess, potentially democratize learning and access to role opportunities across the whole business. To quote Jacoline, our chief people officer, we really see this as an equalizer for all of our people globally because it will help us to have more objective, transparent, and bias-free internal talent processes across the board.
Amy, that is so exciting. It is very clear to me based on the way that you and the organization have thought about skills, that you have a strong strategic vision for the future of skills, not jobs, as you embark on this journey. Can you just tell us a bit more about how you are thinking about this journey? I mean, how do you get started on something like this?
Yeah, so as we evolved our understanding of the opportunities and the possibilities of a skills-powered organization and we work with the business to better understand the potential impact, we started to recognize that it was really important to start with our immediate pain points that are impacting our business right now, but to truly become a skills-powered organization over time, we needed to start the journey with an ultimate vision. And you've just said it there, Cynthia, that vision for skills, not jobs, to underpin all talent processes around the employee lifecycle, so to really make sure that skills become the currency of the business. I think I probably stole that from Mercer. Actually, I think that's one of the things you said to me in the past. But really, how we make sure skills around the whole lifecycle of the employee experience so that, ultimately, we attract, grow, and connect to talent globally.
So we've, really, purposefully designed this as a multi-year, multi-horizon strategy and that so we can truly embed that skills philosophy in all we do in the business, but really, importantly, by ensuring we do it in a timely and manageable way in terms of business impact. This is a huge cultural shift for, as you said earlier, 135-year-old business, that we really will change the way we work and the way we learn at Arcadis. So it's enabled by the implementation of talent intelligence and talent marketplace technology, but fundamentally, it's a cultural shift to our business.
You've really hit on an important point, I think, for everyone listening, certainly, for me, which is treating this journey towards becoming skills-powered as a cultural shift more than anything else, more than the technology implementation and all of the process and things that will have to go into this. You've mentioned as well and recognize that this is a multi-year journey, and I think like all good journeys, it would be fascinating for us to fast forward into what does that feel like and what comprises this journey for Arcadis. Can you tell us a little bit about this approach you're taking? Because it feels a bit like a test and learn approach as you go through these next few years with the organization.
Yeah, absolutely. And I'm very conscious of where we're starting now and what we think now will, no doubt, evolve as we go through this as well. But at this stage, we've set out a five horizon strategy. So we're starting with horizon zero during which we will co-create this full skills transformation roadmap and strategy with the business, and we really want to take that opportunity to establish a clear Arcadis-specific proof of concept. There's lots in the market about people further on the journey. We've got to make it really specific to us at Arcadis. And therefore, the business case with the benefits and the ROI across all the horizons is, really, a central part of horizon zero.
And critical to the point we've talked about in terms of the focus of change is that our change management strategy and plan is, really, central to this first phase as we, really, start to think about the cultural change needed to support the implementation of the full strategy. Each then horizon, as we move forward, then focuses on the evolution of different talent processes around the employee lifecycle. So we go through each one at different horizon points, but really, importantly, at each horizon, we'll have what we're calling pause, or reflect, or move moments to really test assumptions on the priorities and ensure that as a business, we're still ready to take that next stage.
I think, for me, one of the things we've talked about a lot, Cynthia, is that a massive driver for us that I've not mentioned already-- I'm going to steal a bit of Deloitte's Human Capital Trends Report here because they articulate it so well. Employees now really want, and need, and expect increased agency choice and influence over the way they work and also over the organization for which they work. So therefore, really, central to our strategy and approach, we'll be making sure that we've continuously got opportunities for our Arcadians to contribute and be part of the design and the evolution of what the future of work Arcadis will look like. So really, critical for us, therefore, is conducting pilots so that we're getting those proof points specific to our business, and really, utilizing those to test and learn, as you say, and adjust our approach as needed, and also brings success stories that we can then take for a wider global rollout.
I think one thing for me that's been really, really critical is saying from the start and being really committed to the start about having a cross-business steering committee. So this is really central and really critical because we've got what we call business change sponsors. They're representatives of the global business areas, the leadership teams in our business. And so they're part of the skills-powered organization team and responsible for, really, designing, building, and implementing the change needed in the business.
I think what is clear to me is that the integration with the business and co-creating with the business is essential to the transformation and the roadmap that you've laid out, but as you mentioned as well, there are numerous talent processes that are impacted by this new way of thinking, skills, not jobs. And so what is the role that HR plays in all of this from a transformation perspective?
Yeah, great question, Cynthia. And it's something we've been very purposefully thinking about from the start. I mean, members of the people team are involved throughout the skills-powered organization structure, but I will say it's very purposefully a business-led change program to which the expertise of the people team play a critical role but alongside and with colleagues from the business. So to bring it to life for you in terms of how this plays out for us Arcadis, so Jacoline, I mentioned earlier, our chief people officer, she's a joint executive sponsor of the program along with our chief operating officer. I'm then the senior responsible owner of the project overall, and the program manager also sits in the people function.
However, the steering committee, as I just mentioned, is made up of cross-business representation. We also have change and communications professionals from those specialized functions and SMEs from all parts of the business. Some of them, as you absolutely say, from the people function but also from other parts of the business as well, and they're all involved at different stages, depending on the focus of the horizon.
That sounds fantastic. And I think, again, that wonderful joined up view between business, people, and culture. But most importantly, as you've mentioned, from Jacoline through to your COO being the executive sponsors co-leading this is-- I think it's truly something that many organizations will tune into and look to try and find a way to replicate in their journeys as well.
I'd like to sort of take us in a different direction for just a moment because you're living this experience. There are a number of listeners who are thinking about starting this-- a journey similar to this. And as they're thinking through this with their own organizations, it'd be interesting to hear your perspective, based on what you've learned, how this journey could get started.
Skills-powered is not a new concept per se in terms of-- if anything I can tell you based on the number of organizations I speak to on any given week, this is certainly one topic that comes up quite often, but getting started is certainly new for many organizations. Could you just tell us a little bit about how you guys got started at Arcadis? And any tips and tricks for the organizations listening?
Yeah, definitely. And as you say, Cynthia, there's a number of organizations already on the journey. And I think for any organization-- I've spoken to many of them. For everybody, this is a multi-year whole business change program. But every organization approaches it-- and I'm sure you hear this from your clients. Everyone approaches it in a different way and therefore, at a different pace.
I think, for me, the advice would be to start by determining the immediate pain points relevant to your specific business and build further from there because what's right for us at Arcadis won't be right for another organization. But I guess, where we started was, really, understanding the art of the possible, so really, starting to understand what on earth all of this stuff means. So I listen to podcasts all the time, listening about skills, and talent intelligence, and talent marketplaces, and deconstructing jobs. And a year ago, it all made logical sense to me, but I couldn't work out how to piece it all together to be able to talk to the business about it.
So to be honest, to start off with it, it was really about educating myself for me then to bring others in the business on that journey, and there's so much thought leadership, as you say, Cynthia, around this. So I devoured a lot of that. But also really, importantly, and the big advice, I'd say, is there's so many providers and companies in the market either who have supported organizations in the implementation and change journey or those that offer the technology that enables those transitions, but also clients of both of those types of organizations who've embarked on the journey, and I spoke to lots and lots of them.
And that really helped us to understand more about what it really means to transition to a skills-powered organization. And then from there, we started to work with the business to think about, OK, if this is the art of the possible, how could those opportunities support and respond to real challenges relevant to us, to our people, and to our clients? The added complexity for us at Arcadis is we are approaching this from the start globally. Many organizations have done it in parts of their business or are only based in one particular region. We really are looking at this holistically as a business.
So I think I've probably mentioned this a couple of times, but it's probably the key point for me to reinforce that from the start, this has been a co-creation. So this isn't just the people function. We've had our global transformation engine. We've had our global operations and project services. We've had the technology function, and really, critical as I mentioned earlier, the global business areas. So they're the people who support our clients with our services and solutions delivery. So as a people function, we've got a critical role to play but as part of a really collaborative business wide team.
And I suppose it's part of your question around how do you get started, very early, because of all I've talked about so far, it became really clear that because this is a cultural change program and one that we need to take a human-centered change approach around, we have to have implementation partners to support us with that but also to scale this globally and be future-proofed, it also needs to be technology-enabled as well. So we purposefully, from the start, looked separately at an implementation partner and a technology partner to enable us to evolve our ways of working and support Arcadians globally to change.
Sure. And I think with any change of this nature and as you point out, it's not just a technology implementation but more importantly, a cultural shift. All of this takes a lot of energy, a lot of resources. This is not something ChatGPT can solve for anybody overnight.
In fact, it'd be really great to hear a little bit about, how did you get that business case across the line? There's going to be resources, investment, time over multiple years by the organization to be all in on this, to lean in. Could you tell us a little bit about what that business case process was like? And how did you get it across the line?
Yeah, we started with what I called a pitch. It, really, was just sort of describing the art of the possible and the opportunities as we saw it to our executive leadership team, and that was really to get approval and buy in to just take our thinking further. So it was very much a kind of pitch at the start.
But from there, as we started to work through, we created a business case light. Purposefully named light because for a fully costed business case with all of the benefits realization and ROI fully articulated, we needed to identify who our delivery partners would be because obviously the commercials differed in different organizations. So we started with that business case light that, really, thought of all of the different various stakeholders and articulated the potential benefits from different perspectives that we can understand from speaking to others in the market.
And then it was approval of that business case light that enabled us to go out to the market for requests for proposals process. And as I mentioned, we did we did two in parallel-- one for the implementation partner and one for the technology partner. And as part of that as well, we had multiple discussions to explore potential funding options, which could be finalized once we knew the commercial impact following the RFP process. I think important for us was during that whole RFP process, we had people from across the business engaged at every stage so that we really made sure we had diversity of thoughts, perspectives, and questions that informed the exploration with potential partners because, again, what we might be looking for from a people team perspective might be different to what different functions or the business are looking for.
And I suppose, some of the bits that when I reflect back what's been really powerful over the last year, because this is such a complex program and it is a long-term commercial investment for any business, your procurement teams, your legal teams, your privacy teams, for those who have got operations in Europe, your works counsel specialists, they're going to be on your speed dial, and they're going to be important to guide you through every single process because naturally, the technology to support such a broad range of functionality to enable skills to underpin all talent processes needs to be appropriately understood, and implemented, and managed to ensure the highest levels of data privacy.
Yeah, just speaking of the business case, I understand that there was also a unique stakeholder in this from an Arcadis perspective. Can you just tell us a little bit about that stakeholder, and how important they factored into this decision to proceed?
Yeah, absolutely. So as I said, embarking on this journey, it is a significant multi-year investment, no matter where you decide to start. And there, obviously, are both internal and external costs to the business, both in terms of the partners that you need to work with, and the change load in the business, and people in the business to be involved. And it's really hard, actually, to fully grasp what that might be and a challenge to really consider and help the business think about how best to prioritize investment.
But as you say, Cynthia, at Arcadis, we're in a really unique and privileged position to have a foundation called Lovinklaan Foundation. So it's a foundation that's led and managed by employees, and it's the largest shareholder in Arcadis. And Lovinklaan's mission is to ensure the continuity of Arcadis and to provide Arcadians the opportunity to reach their full potential.
I just love that.
I know. It's the best, isn't it?
I think it's the best thing. I could just see organizations wanting to adopt something like that, and so their primary shareholder group to be the employee. So sorry to-- I just think that it's so awesome.
Yeah, it is really unique. And I guess the clear alignment between the Lovinklaan's mission, to ensure that continuity of the business and Arcadians, and the vision of a skills-powered organization, when we engage with Lovinklaan early on, those two things really came together, really, naturally, and we were extremely grateful that they have co-invested with Arcadis in order to act as an incubator during the horizon-based implementation. So yeah, it's really unique to Arcadis, but it's also a really great position to be in to support us with being able to move forward with skills-powered organization.
Well, Amy, we're so excited about the start of this journey, and hearing it from you as you start, clearly, the energy and excitement is there. And I just-- when I try and of sum up what we've heard today and what you've armed yourself with and the organization as you embark on this journey, I think of three key points for our listeners in particular. You and the team at Arcadis have recognized that shifting to a skills-powered organization, at the end of the day, is a human-centered change program, and at the end of the day, it's dedicated and committed to helping humans, to the Arcadian everywhere, helping them be the best they can possibly be at Arcadis. So I think that is a neat take away from all of this, that sometimes we can get caught up in the technology or in the processes, and in the governance, and things like that, but I like that you've anchored into the human-centered piece around this as it relates to change.
I think the other piece you were really clear about that, I think, many organizations can take away from is that this is a business-led change. Yes, it has a lot of impact on talent processes and the way in which people, and culture, and HR organizations will navigate, but at the end of the day, it's business-led, and I think that's really an important nuance to this shift. And I think the third thing I heard from you is that we're recognizing that this is about future-proofing the business. So you talked a lot about the vision for skills and that yes, you are addressing current business needs, but ultimately, you are designing a workforce for roles and jobs that may not actually be in place today. And so you are indeed focusing on the future-proofing aspect of what skills-powered means today.
Yeah, I think that last point you say there, I think there's a big-- you're absolutely right, and that's been really central to our thinking throughout. And there's a really important point around this around kind of business readiness and the right time because ultimately, to future-proof yourself for the yet unknown, the never before, if you don't start now, then you won't be ready in five years' time. And I got a piece of advice really early on that there will never be the right time to start this journey, you've just got to start. And I think that's been the sort of what we've talked about as a business going through, that if we don't start now, we are impacting our readiness for the future
Oh, I couldn't have said it better. And in fact, we might have to end on that note. We want to leave it on a cliffhanger for today, everyone, because we can't wait to have Amy back on the show in a little bit of time in the future just to see and check in on this journey, if that's OK with you, Amy. Look, I just want to thank you for joining us today. Your experience, your insights, this is happening in real time, and we're just so glad you took some time out today to share that with our listeners as they are considering their next steps to becoming a skills-powered organization.
My pleasure. Thanks so much for having me, Cynthia. And as you say, we're at the start of the journey, so there's still a lot of learning to go. But yeah, great to have talked it through with you today. Thank you.
Great. Well, I'm Cynthia Cottrell. Thanks for listening to Making Work 'Work' from Mercer Workforce Solutions. See you next time.
I hope you enjoyed today's podcast, and thank you for listening. Please subscribe to keep up to date with our latest episodes. And if you have any questions, get in touch with us via our website at mercer.com.au.
Episode 5: Becoming a skills-powered organisation: Arcadis' journey
Guest:
Global Capability & Workforce Readiness Director, Arcadis
As businesses grapple with the challenge of ongoing labour and skills shortages, a growing number are adopting a skills-based approach to define the skills they will need in the future, flex their workforce, and purposely drive career development.
In this episode, our host Cynthia Cottrell, Partner and Workforce Solutions Leader at Mercer Pacific, speaks with Amy Baxendale, Global Capability & Workforce Readiness Director at Arcadis, about their journey towards becoming a Skills-Powered Organisation (SPO).
Their conversation covers: The business case for change and why now is the time for Arcadis to shift to a skills-based model, why Talent Marketplace technology is critical to enable the transition but culture change is at the heart of this human-centric transformation, HR’s role in this business-led change program, and how to get started with moving from jobs to skills.
Tune in to learn how an SPO talent model can help your business and hear practical steps to get started.
-
"Shifting to a Skills-Powered Organisation is ultimately a human-centred change program - it’s dedicated to helping your people be the best they can possibly be."- Cynthia Cottrell, Partner and Workforce Solutions Leader, Mercer Pacific
-
“There will never be the right time to start this journey. You’ve just got to start. If you don’t start now you are impacting business readiness for the future.”- Amy Baxendale, Global Capability & Workforce Readiness Director, Arcadis
-
“This is about future-proofing the business; addressing today’s needs while designing the workforce for roles and jobs that may not exist today.”- Cynthia Cottrell, Partner and Workforce Solutions Leader, Mercer Pacific
-
“This is a huge cultural shift for a 135-year-old business that will change the way we work and learn at Arcadis.”- Amy Baxendale, Global Capability & Workforce Readiness Director, Arcadis
-
“Start with the immediate pain points impacting your business, but to truly transform into a Skills-Powered Organisation you need to have a vision where skills will become the currency of the business.”- Amy Baxendale, Global Capability & Workforce Readiness Director, Arcadis
-
“As a People First business, we have always believed at Arcadis that our people are our most important asset. Now is the time to shift to a Skills-Powered Organisation to empower our people to take control of their careers.”- Amy Baxendale, Global Capability & Workforce Readiness Director, Arcadis
[MUSIC PLAYING]
Is work working for your people and organization? In this podcast, Mercer thought leaders, industry experts, and business visionaries share big ideas and best practices to help you build great workplaces and a future where work works for everyone. Making Work Work is a podcast for Mercer Workforce Solutions. Welcome to Making Work Work. I'm Cynthia Cottrell. Inflation and the rising cost of living, it's something everyone has been talking about.
And it's likely to continue to dominate conversations, whether you're in the boardroom or you're in your living room, let's be honest. AMP's 2022 financial wellness research shows that a growing number of workers right across Australia and New Zealand are worried about their finances and stressed about the cost of living pressures and the prospect of limited pay increases. So where does that leave workers as we face into the prospect of another few years of inflation and cost of living pressures?
So this is what we know. Talent shortages, labor market tensions, and rampant inflation across all industry sectors have highlighted this shift in the social contract between employers and employees. We know that from the Mercer's 2023 Global Talent Trends Report that it's indicated 50% of c-suite executives are saying that they're going to focus on enabling new ways of working that will restore the balance between management and labor.
We also know that at this year's annual meeting at Davos, which is the meeting of the World Economic Forum, that our very own Ravin Jesuthasan, who is Mercer's Global Transformation leader, presented on the topic of good work goals. And as he points out, organizations need to reinvent the proposition and business model, and it needs to be centered on creating a workforce-centric enterprise. And that is actually what's going to become economically viable for all organizations and economies worldwide.
And the way to do this is to do it through focusing on what's attractive and what's important to employees. So in today's episode, we will talk about how companies are responding to inflation, and what are they doing right now and in the future to attract and retain talent during these inflationary times? Today, I'm joined by Chi Tran, partner at Mercer Workforce Solutions and head of our data and insights business.
She recently spoke with the Australian Financial Review about the results of our most recent total remuneration survey, which painted a picture of an Australian jobs market defined by severe labor shortages, large pay rises in some sectors, high rates of staff turnover, and a growing emphasis on non-financial benefits to attract and retain talent. Hi, Chi.
Hi, Cynthia. Thanks for the warm welcome. Thrilled to be here.
And we have Andrew McKechnie, who heads our Workforce Solutions business in New Zealand. He's joining the conversation to explore the impact of the current economic landscape on attraction and retention and what organizations can do to ease the financial pressure on employees and make work work even in inflationary times. Welcome, Andrew.
Oh, hi, Cynthia. Thanks for the welcome, and great to be here.
It's great to have you both. So why don't we get started? When we kind of step back, let's just look at this from a big-picture perspective. What is the total REM survey telling us about what's happening right across Australia and New Zealand, Andrew?
Thanks, Cynthia. Our New Zealand and Australian total remuneration survey shows a median remuneration increase of 3%. That's for the year ahead, 2023. And this is across general market. Surprisingly, this is unchanged from the increase from 2022. And what will come as a hard truth for many employees is the significant gap between the median rate and the rate of inflation, given rising cost of living and increased mortgage.
I mean, effectively, Andrew, it feels like we're going backwards, right?
Well, look, in some respects, we are. But the challenge for organizations is really closing that gap because there's only 26% of organizations that are factoring the cost of inflation into their budgets for 2023. So what that means is there is a considerable gap there for the workforce. And what's interesting is conversations and approaching an employer around compensation increases is a really tricky thing to navigate.
And even for the best of us, it can be an uncomfortable conversation to have. So I kind of liken it to the analogy of the unhappy customer. An unhappy customer very rarely complains. They just don't come back. So if you're an organization listening to this, the risk is if an employee is unhappy with their compensation, they generally won't raise it and they'll walk in search of higher paid opportunities.
Now that is a wake up call, isn't it, if there was one for organizations to do more than they are at the minute around understanding employee needs and how they can do more than increase wages if that is one of the levers they pull. But before we move further into that topic, I do have to say that felt slightly gloomy, Andrew. And I just wanted to ask Chi, I mean, is it really gloom and doom across all sectors as it relates to wage increases and how organizations are providing financial benefits in their plans this year?
Definitely not, Cynthia. There's definitely industries leading the pack, and it's not 3%. In the 2022 total remuneration survey, we definitely saw 3.5% for industries like technology, life sciences, and mining, and metals leading the way. But if you peel back the onion even more and dive deeper, there's definitely jobs out there getting paid really nice and getting really, really nice increases. And we're seeing these jobs in IT, sales and marketing, and engineering as well getting big pay premiums, as high as 22% higher than the norm.
And we're seeing it's definitely much richer than remuneration. We're seeing voluntary attrition rising to the highest point ever in five years in Australia, and that's just compounding the issue of attraction and retention. We also found in our survey results is that 64% of organizations are reporting a difficulty in hiring and retaining their employees. And we know it's a tough market out there right now. It is an employee's market. And attraction and retaining the best people will be even more important in 2023.
Thanks, Chi. And again, I think we can safely say that there's more to the story than pay. And you mentioned things like voluntary attrition being at its highest point in five years. And as Andrew said, employees are not likely to raise their concerns about pay to their managers. So the first time a manager might hear about this level of unhappiness leading to a regretful resignation is when that person submits their notice. So with all that said, I'd be interested, Chi, in what you're hearing from organizations about what else they're doing maybe in regards to their benefits and other forms of addressing the needs of their employees.
Sure, Cynthia. You hit the nail on the head. We know pays just really one part of the equation. And benefits is where we're seeing organizations make up that difference or the differentiator in the market to attract and retain because it's not always about the money, and inflation can impact employees differently. So what we're seeing clients do and what we're hearing from them is that there are reviewing their flexible benefits to cover more range or extend more coverage.
And it's not just about offering employees a chance to work from home. We know that with COVID, that's now a given. It's non-negotiable. But it's about offering differences in that coverage. And what I mean by that is offering your employees different choices when it comes to flexibility. So for example, it could be allowing them to work condense four days a week. And we know Atlassian is doing it right now.
In fact, Unilever recently announced, after trialing it successfully in New Zealand, that they're going to introduce it now to Australia also. So very exciting. And then there's having the options for employees to start earlier, finish earlier. It's really about catering to all the different employee demographics within your organizations and the different personal aspects of their life and work-life balance.
So that's one area. Another area we're seeing companies do is review their leave policies and it's not just about giving more paid leave time but it's about areas such as increasing paid parental leave. So that they stick out in terms of what they're offering there as a key differentiator extending their coverage to include IVF leave, allowing their employees to take off time to do that. There's pay transgender leave and increasing days for that type of surgery and recovery.
And it's leave, not just for carers looking after six sick children, but extending that to help elderly and aging parents and giving them leave to take parents to doctor appointments. And sick pets as well is also something that's new that's coming through. So really catering for aspects of their life and extending that coverage and options so that you're meeting all the needs of your employees. And it's going to be a real differentiator out there.
Yeah, I agree . And I certainly look forward to this innovation. I'm already thinking through the various ways that personalizing these benefits-- we talk a lot about making work loveable and really placing that at the center of how the employee experience should be thought of and designed, and the onus being on organizations and employers to really think about, how do we improve work?
And I think really thinking about how life fits into work and not the other way around is a really neat perspective that all these organizations are thinking about in regards to personalizing their benefits. I might just turn to Andrew. You're in New Zealand, and as Chi mentioned, a very important set of experiments happened there around the four-day workweek with Unilever successfully passing right through that experiment and wanting to scale that out.
But from your perspective just in general, Andrew, what are you seeing in New Zealand? And how are organizations really stepping up to help their employees feel a lot more comfortable and safe where they're at?
What is really clear over the past two years is organizations are facing the most incredibly challenging times that they ever have. And locally, in New Zealand, New Zealand is not immune to that. I just want to recap on the very fundamental point that compensation clearly isn't everything. It's a ticket to the party. And what excites me is you look at how far organizations have come, where they're starting to become more relatable with their workforce.
They're really starting to have open, transparent, authentic conversations to really tap into what's important, what motivates them because it can't-- when you're looking at a benefits platform above and beyond compensation, it can't be a one-size-fits-all solution. So to Chi's point, it's around really lifting the lid, talking to your workforce. And by doing that in an authentic, transparent way, it's creating a psychological safety platform where you can really start to get to the nitty gritty of what's important to your people and then shaping a suite of offerings or a menu based on what you have sort of seek to understand on what's important to your team.
But some notable trends I'm seeing here in the New Zealand landscape is, yes, we've got our compressed weeks, we've got our staggered hours, but really, that gift of time is the fundamental trend that's sort of head and shoulders above the rest. And that's, again, tailoring the gift of time to suit your workforce. So that may be, as Chi mentioned, dependents, children, elderly parents. We're even seeing the gift of time being offered for pets now. The amount of people that went through the pet purchasing process over COVID lockdown, so they're now ingrained members of the family. So you may not have children, but to have that gift of time to walk pets, to take them to doggy day care, that's an important benefit as well.
And also wellness, personal team wellness and health and well being. I know an organization that on the last Friday of every month, they give what they call a wellness afternoon off. Now, this is a great initiative to a reward your team, but also put that health and wellness at the forefront of the company's sort of values. And another growing trend, again, is just the different types of leave. And what we're seeing more and more now that organizations are more cognisant of gender equity.
So as Chi mentioned, extended parental leave, top-ups, and essentially making it easy for mums or returning-to-work-parents to be able to integrate back into the workforce. So that's just an example of a platform that can be built that doesn't necessarily have to be attached to a kind of a monetary incremental increase, but it's thinking about outside the square. But the message is it's about being relatable with your workforce. It's really running a health check on understanding what's important to you to your people, to your important team.
Yeah, it's so important. And I think, again, listening to our employees, listening to the needs and marrying that up with how work gets done and making that a two-way street is such an important theme, I think, for this year. And with that said, we recently spoke with Katherine Glynn, who is the director of People Services at Treasury Wine Estates. And this is what she had to say about the employees and what they are saying about what their needs are.
The expectations of what employees are looking for, what they want in terms of work-life balance, the hybrid working, all of that actually has faced further into those workforce challenges that were already emerging through COVID. So that still is top of mind, finding the right people, the right roles, the right way, the constant battle for us as an organization.
I thought that was super interesting to hear from Katherine, who is doing all the right things to check in with her employees and really understand how they want to work, where they want to work, and doing that in the name of creating an environment that helps them find the right people, retain them, and certainly create that healthy culture. And I think both Andrew and Chi, you've talked quite a lot about the myriad of ways that this can be done through benefits and through tailoring programs that are supportive of both the work and the lifestyles of employees.
And I think that brings us to this, I think, really important point about where workers are in the way they think about work. With all of the change that's happened over the last few years throughout the pandemic, which has really ushered in-- let's be honest-- this new way of working that is not likely to snap back to something pre-pandemic. And I think one way I've thought about this quite a bit over the last few weeks, even from a personal standpoint, which is there's got to be more to life than work.
I spent a lot of time at work, so do all of you. I'm looking for more fulfillment. I'm looking for ways to enjoy and feel passionate about my work. And I want it to mean something. And in order for those things to happen, I know that it's important to work in partnership with the managers, with the leaders that I work with. And I think that when I'm feeling it's probably not too far away from how a lot of people are feeling right now. And so when we think about working in partnership, almost not so much a one-way street of I employee you and, therefore, you must do what these things are in your job description.
But rather, how do we have and use all of these tools that are ready? Benefits, pay, hybrid working, flexibility, and so forth. How can we really, as organizations and employers, how can we really sort of take a different sort of position on these items to really bring that level of fulfillment and passion back to work? So Andrew, I'm going to turn that question to you. It's a deep one, but but also I'd be interested in your own personal view on this. What are some examples of how companies are embracing this new way of thinking, this new employee contract?
Yeah, look, Cynthia, that's a great question. And you've really kind of you've hit a very passionate point with me because we talk about compensation, we talk about benefits, and I see it time and time again that the compensation increase very quickly normalizes. So a 5,000, 15,000, 15,000 increase, it normalizes, so it becomes the given. So I love the analogy that your compensation, your benefits, yes, it's the ticket to the party. But if the music isn't happening, what's going to keep your people at the party?
And so then we talk about culture. And culturing is-- and that's the music at the party. You've got to have all your ducks in a row. You've got to be making sure that you're competitively in line with market dynamics and the competitive landscape. But you've really got to dig deep on the culture aspect, and that's make or break for a lot of organizations. So organizations that are winning in this area are creating a culture of high performance. And again, it's working in partnership with your people, your workforce.
And we know, because we see it and we hear it all the time, employees don't want to work for an organization anymore. They want to work with an organization. So again, it just speaks to the culture that you embed and create in a team environment. And when we talk about a culture of high performance, that's not necessarily about winning and achieving, although winning and achieving is a good thing. But it's more around a culture of high performance as ways of working, trusted ways of working, how management will communicate and liaise with their people.
How open and freely can feedback be given and received? That is all about high performance. So again, the winning organizations are really, really doubling down on culturing and creating that environment, which, again is the music at the party. So again, of the organization listening to this, that would be some of the key areas to really hone in on and focus in on this culturing and high performance.
I love that analogy. And I'll have to ask Chi, just riffing off your analogy there, Chi, what are organizations needing to do to pump up that music? What have they potentially got at their ready to help them strengthen culture and make it a great place to work?
Yeah, it's definitely about amping up that music and finding that song sheet that, song that's going to resonate to all your employees. And really, the key is unlocking what energizes your people. What's going to keep them happy? What's that glue? So my take is, besides communication, transparency, and taking your employees on that journey with you, is look at the whole employee value proposition as well, and really look at that.
So it's not just about-- we mentioned already benchmarking and the financials and non-financials, but it's really about the vision, the purpose, the whole spectrum of it, looking at it from all employees' lens because we know that certain things will resonate to certain employees and certain things may not. So it's really breaking it down, understanding the demographics within your organizations, the different personas within your organization, and putting together a sheet of music that's really going to bring the whole employee experience come to life, that whole employee experience that's going to meet the needs of all your employees and not just certain groups.
So that's going to be really key because I totally agree with everything that Andrew said there. Culture is the glue. And we know for a fact from our latest survey results is that employees no longer want to work for a company. They want to work with the company in partnership and with purpose. So getting the numbers right is important, but definitely relook at your whole employee value proposition and what's to come, and really, really getting that right as well.
Thanks, Chi. And I think that as we kind of get into some practical steps organizations can take, we've talked a lot today about financial and non-financial benefits and programs and ways to weave that into work today. At the end of the day, it is about listening and it is about being responsive to needs, not a one-size-fits-all. Version of creating an experience for your employees that marries life and work.
And I think, on that note, it would be interesting, Chi, just from your standpoint, how do organizations know what good looks like in this space with such a myriad of ways that they can view the employee value proposition and package things up? What would you name as one of your top practical steps organizations can take to get started? And how should they approach it?
Employee listening tools is going to be key. So definitely survey your employees, understand what they're passionate about, what ticks the boxes, what energizes them. That's, for me, and I think Ravin also said at Davos this series, people is the center of all this. And for me, that's the value proposition. So really, a good way to start is hosting your employees and doing it more regularly. Check in with them. And really crafting it based on what it is that they need, their wants, what it is they feel passionate about, and not just on the business requirements, the revenue, the targets. So they really need to blend together. But I would say is start with listening to your people.
Good advice, Chi. And same question to you, Andrew, if you could give some practical sage advice to all our listeners, to all the organizations out there, what would you say are a couple of important, doable next steps?
Yeah, absolutely, Cynthia. Look, the organizations I'm working with are essentially taking a three-pronged approach. So one is compensation and benefits benchmarking. As we've spoken about, it's just a ticket to the party. But your benchmarking has to be done. You need to know what the competitive line in the sand is. And you need to know what your competitors are doing. If you're not within yelling distance of that, then there's a risk. The important part with that is to make sure that you're using credible, robust data.
That's absolutely essential. The second part-- Chi mentioned this-- is engaging in meaningful conversations with your people. Seek to understand. Provide that or create that platform for psychological safety where your workforce can speak and can provide feedback on what's important to them. And then that gives you the opportunity to really tailor a solution to fit the needs of your specific workforce or various teams across the workforce. Then the last piece which is absolutely important as well is really understanding what your workforce heartbeat is.
Now, by that, I mean, pressure testing, engagement, and sentiment. That can be done in various ways. It doesn't have to be over complicated, but it's actually, again, engaging in meaningful conversations with your people to understand how they're feeling. And the key here is a happy, engaged, prosperous team will always thrive. So do a health check. Do a heartbeat pulse check.
Great, thanks, Andrew and thanks, Chi. Look, I think that if organizations are pursuing any number of these recommendations that you've shared, I think workers everywhere should feel really optimistic about the future. I know that I would. I'd feel extremely excited if I knew that my managers were thinking about these things and pursuing these actions. So not to belabor the analogy earlier, I'm really quite pumped.
I'm pumped about the prospects of improving the music everywhere because that would only mean things like the quality of work will improve. The way in which great work is accessible to more workers who want that opportunity, to make that more available would be awesome. And of course, creating just an enjoyable place to be, certainly a place to weather this storm of inflation is not a bad proposition, is it, for workers today? So Chi, thanks for all of your insights today.
My pleasure, Cynthia. Any time.
And Andrew, thanks for letting me steal your music metaphor, and of course, for all of the insights and wonderful advice for our listeners today.
Oh, my pleasure, Cynthia. Look, it's been a great conversation and it's been-- just been thrilled to be part of this. Thanks very much.
I'm Cynthia Cottrell. Thanks for listening to Making Work Work from Mercer Workforce Solutions. See you next time.
[MUSIC PLAYING]
I hope you enjoyed today's podcast, and thank you for listening. Please subscribe to keep up to date with our latest episodes. And if you have any questions, get in touch with us via our website at mercer.com.au.
Episode 4: Attracting and motivating talent in inflationary times
Guests:
Chi Tran
Head of Market Insights and Data, Mercer Workforce Solutions, Pacific
Andrew McKechnie
Head of Mercer Workforce Solutions, NZ
Whether you're in the boardroom or living room, inflation and the rising cost of living continue to dominate the conversations in 2023. Employees are worried about their finances and the prospect of limited pay increases. Executives are concerned with the impact of inflation on both their businesses and talent management decisions. Where does this leave workers and their employers?
In this episode, our host Cynthia Cottrell, Partner and Workforce Solutions Leader, Mercer Pacific, and guests, talk about how organisations can respond to the crisis by centring their value proposition and business model on the needs of their workforce and what support they should provide to promote higher engagement and retention. They also cover key trends from Mercer’s latest salary and benefits surveys, the role of purpose, culture and the EVP, and practical steps that organisations can take today to navigate the current environment.
-
"The onus should be on organisations to really think about improving work and how it’s designed by placing the employee at the centre of the experience."- Cynthia Cottrell, Partner and Workforce Solutions Leader, Mercer Pacific
-
“If an employee is unhappy with their compensation, they generally won't raise it and will walk away in search of higher paid opportunities.”- Andrew McKechnie, Head of Workforce Solutions, Mercer NZ
-
“There're jobs out there getting really nice increases. Jobs in IT, sales & marketing and engineering are getting pay premiums up to 22% higher than the norm.”- Chi Tran, Head of Market Insights and Data, Workforce Solutions, Mercer Pacific
-
“Organisations thinking about personalising their benefits are thinking about how life fits into work and not the other way around.”- Cynthia Cottrell, Partner and Workforce Solutions Leader, Mercer Pacific
-
“The gift of time is the fundamental trend that is above the rest.”- Andrew McKechnie, Head of Workforce Solutions, Mercer NZ
-
“You need to understand the demographics in your organisations, the different personas, and create an EVP that meets the needs of all your employees and not just certain groups.”- Chi Tran, Head of Market Insights and Data, Workforce Solutions, Mercer Pacific
References:
1. AMP’s 2022 Financial Wellness research
2. Mercer 2023 Global Talent Trends
3. AFR - The three sectors planning the biggest pay rises in 2023
4. The data doesn’t lie: what we learned when we tried a 4-day workweek
5. Unilever launches 4 Day Work Week trial in Australia following positive NZ trial
Is work working for your people and organization? In this podcast, Mercer thought leaders, industry experts, and business visionaries share big ideas and best practices to help you build great workplaces and a future where work works for everyone. Making Work 'Work' is a podcast for Mercer Workforce Solutions.
You all listening to Mercer's Making Work 'Work' podcast. I'm Laura Manescu, a senior strategy consultant in Mercer's Workforce Solutions business. Today, I'm guest host for Cynthia Cotterell.
And we're talking about all things early talent. That's graduate programs, internships, apprenticeships, any programs that allow organizations to bring talent in early and develop that talent through the organization. I've led and advised on early talent programs for the last five years.
And organizations are not using these programs strategically to support their broader HR strategy. There's a lot more that organizations can be doing to think about the types of skills and capabilities they want to bring into their organization and growing that type of skill set early through these programs.
Today, we're going to be talking a bit about the challenges that organizations are facing in making really world class programs that engage and retain great early talent. When we look at Mercer's data, our global talent trends survey in 2022 tells us that 55% of Generation Z employees say that they're likely to leave their role in the next 12 months.
This makes it even more important to think strategically about how we design graduate and internship programs because this talent is not staying for the sake of it. They're purpose driven and motivated. And they want to work for a cause that they care about.
So today, we want to talk more about that. What can we do from a recruitment perspective and a program design perspective to really attract and retain this talent. Today, I welcome Fiona Heron, who's a senior manager at Commonwealth Bank in the graduate program space, specializing in technology.
She's also got a lot of recruitment experience and over 10 years of HR generalist experience. Welcome, Fiona.
Hi, Laura. Thanks for having me.
And I also welcome Phil Harrington, who is the leader of Mercer's talent assessment business. He's got a wealth of global experience in talent assessment, including a focus on graduate and internship programs and recruitment. Welcome, Phil.
Thanks, Laura. Great to be here.
So I'm keen to get started by talking about the future of the sector, and the graduate, and intern industry, and what trends you're seeing. So, Fiona, I might start with you. What are you seeing, whether it's at Commonwealth Bank or in terms of the tech sector, what should organizations be looking out for and thinking about?
I think the big one to focus on for now is the expectation of hybrid and flexibility and how much that's changed coming out of COVID. So learning on demand, what does that mean from your expectations, from school and uni, and what's the realities in the workplace where you want to have those together moments learning in the classroom, things like that.
Having that mix of behaviors that people aren't used to showing up at certain times and challenging ourselves as businesses to think differently about what we actually need and being prepared to teach people some different behaviors that we've really lost three years of being able to have ingrained from things like school and uni.
I love that, Fiona. There's no doubt that things have changed significantly over the last three years. Phil, I'm keen to hear your perspective on that.
Yeah, thanks. Look, as an assessment guy, I'm starting to see a greater interest in skill based assessment. I think for a long time organizations have assessed for personality and cognitive ability through psychometric assessment and key competencies required for the job through the legs of a behavioral interview.
Now there's the option of assessing specific skills required for a job, which might be technical, programming, or coding specific, for example. Or they might be specific to various role types, such as accountants or marketing.
And some research from McKinsey shows that being able to validate skills, competencies, and references is the top hiring and talent challenge for organizations. And that was common across 48% of respondents. So as more organizations move towards being skill based in adopting the likes of talent marketplaces, and we're seeing a lot of that globally, I expect we'll see greater uptake of these types of assessments.
And they're really going to help to validate the candidate skills against what's required for the role. And they'll tell us whether those employees have got the skills that they say that they have.
Phil, that ties really nicely into what we were just mentioning previously about the future of skills and using programs more strategically. So that point around, if you know that there are critical capability gaps, you know, cybersecurity being a great example. It's an area that there is a shortage of talent, and skill set, and that is increasingly important in the current landscape.
So it's really interesting to hear about how the talent assessment space is evolving to support that, as well. So I might move us on to our second question. I really want to talk about strategies that organizations can use to design world class programs and attract top talent.
When we look at our Australian benefits review that recently came out, over 70% of organizations at an undergraduate level still aren't offering internships. So that's a really clear example when I think about the strategies organizations are taking. There's a critical shortage of skills and talent.
Yet, many of these organizations aren't looking at that talent, until they're actually finishing university. So there is an opportunity for so many of these, you know, over 70% of these companies in the general market to actually start earlier by introducing internship programs and bringing that talent in while they're still studying. But I'm quite curious to hear from both of you about what you're seeing, what kinds of strategies are working for organizations and for yourselves. Phil, if I start with you, what strategies do you recommend organizations to consider?
I'm seeing more of entire recruitment processes being moved online. That's increasingly common. That provides the opportunity to attract and assess a much broader group of candidates.
And that's from a geographical perspective and also from a diversity and social mobility angle, meaning that it helps to remove some of the barriers relating to background or wealth. An example of that could be candidates who can't afford a train or air travel to attend an interview.
They can now do that online. Or if they can't afford their first suit, that won't be a deal breaker. And the good news is that technology is good enough now for most existing recruitment processes to be completely digitized from application, through to testing, assessment centers, and through interview.
And that's got a huge benefit of saving time for candidates, recruiters, as well as hiring managers. And it also reduces some of those risks around COVID and scrambling to continue business as usual recruitment when working from home. So there's a reduction of travel cost and carbon emissions, which is terrific.
And I've also had clients running virtual assessment centers. And sometimes, I'll send candidates an Uber Eats voucher so they can order their own lunch. And have breakout rooms, where candidates can meet leaders and ask questions and learn more about the culture.
So feedback we're receiving is at most organizations who've gone virtual have remained largely virtual even after the opportunity exists to move back to face to face.
Fiona, what are your thoughts on that? What have we won and lost out of moving some of these recruitment processes virtually? One of the things we've spoken about in the past is this need to assess talent in terms of how graduates and interns work together.
And so those group assessment center activities that were very heavily face to face. They're so important. And they don't replicate quite so well in a virtual environment. But I'm keen to hear your thoughts on that.
I'm a big fan of it, particularly to some of Phil's about the accessibility of it and the ability to move away from people have to be in a capital city to participate or a certain level of socioeconomic status. It is a bit tricky.
I think there's some really cool innovations coming through of what people are doing, how you can actually see a lot of those behaviors in a virtual way, as we all start as employers to understand in ourselves and our own behaviors what equates to that.
And then, I think being prepared for-- there will be some kind of core skill building needed in the programs when, again, you could kind of bank on people learning some interpersonal skills at school or uni. There's going to be less of that.
So how can you design your program around having some of that basis. So those that just haven't had those opportunities. Everyone's lifted to the same level.
And they need to embrace that it might be some core communication skills or interpersonal skills. And adapting the program to that, I think will be the flow to keep that nice balance.
Yeah, and that shows a really nice tie-in to how you need to be thinking about the way recruitment fits in with program design and not just as a recruitment activity. Graduate programs, they're a holistic program. And you need to think about the learning design piece, too.
So to your point, when there's a lot less learning by osmosis because people aren't in the office and somebody is brand new to a corporate environment, thinking about how we intentionally training those skills and building spaces for people to learn, it's increasingly interesting.
But Fiona, in terms of strategies, what else are you seeing or what's working for you and that you want to do more of?
Expanding on, I guess, the digitization of it, doing something with that data that we have in personalizing the experience as much as possible. We really live in a world where everything's adapted. You're served up content.
You've got personalized messaging. You've got all of that really to you. And then the expectation that that should happen in the workplace. And that things are no longer for the masses.
You're getting the individualized target, development, communications, seeing the rise of things like AI bots through a lot of process, just to help with similar basic questions. Really, then, personalizing that through, as well, so you can be part of a program big or small, but still feel like an individual that you have agency in it.
You have some control over what you're doing, what's happening. And you're really taking part in your career. I think there's a lot more that we all need to do in that space.
Thanks, Fiona. We might move on to our next question and really talk about why aren't these programs working for organizations at the moment. So there are obviously challenges getting in the way.
I know that funding and resourcing is always going to be a constraint. And that is a practicality of the business world. There's also things like silos that I know from experience that one of the challenges can be that not all of your business lines or functions are working together in terms of your talent programs.
Maybe you don't have the same vision for talent, or not even equal amounts of funding, or links of programs, all of that kind of alignment. But Fiona, I might start with you. What do you think are the biggest challenges in running, really, well class programs and attracting this talent? And what can organizations do differently?
I'd really encourage anyone listening to be prepared to think about four calendar years at any given time. You're thinking now it's four roles in your head count that's in FY 26 FY 27 and beyond. And you have to embrace that from the start, and think long term.
The size and the scale of programs is going to be different for everyone. But if you can just get your head around thinking I have to think long term, even if you don't have that really set out, but you know where you're going.
You know where the plane is flying, and you can make your course corrections along the way. But you've got to chart that route from the get go.
Yeah, that's a consistent challenge we're seeing in the market. It's this complete competing dynamic between what the HR forecasting cycle is, and strategic workforce planning is doing, and how you look at headcount in a broader business versus what the early talent space needs, and how far ahead that market is.
You're making offers up to a year ahead. And then that comes back to things like your keep warm strategy and how you actually engage this talent in between the time you've made an offer to have them stick around, until they start. So I think that piece of thinking ahead and strategizing ahead is really important.
And then how do you actually translate that to also the execution of the program the way that you really bring talent on board through a long period of time. Phil, what about your perspective? You've worked with such a range of clients in your talent assessment and recruitment experience. What are you seeing is the biggest challenges in where these organizations are getting in their own way?
Yeah, certainly stakeholders with competing interests and insufficient budgets to run effective and engaging programs is a common challenge. But I'd love to see more organizations using the data they've already gathered through the recruitment process for onboarding and developing their new talent.
I think all too often we see valuable data filed away or put through the shredder, when it could really assist the hiring manager to have meaningful conversations with a team member and help with their ongoing development. And then more assessments are conducted for development purposes.
When, in many instances, the assessment the candidates just completed could have been utilized for that purpose. So it's quite a waste of money and time. But it does require greater cooperation and coordination from recruitment to node. And I think it's easier said than done I'd struggle to pick more than a handful of clients out of the 100 I've worked with who've done this well.
Thought of being the key word for all of us when we think about HR strategy more broadly. But Fiona, on that point, what do you think we could do? Where could data be better used when it comes to in program and through this recruitment process? What could we be doing better with that information?
I really think that's the key to the personalization point I made before. Use what the candidate is telling you about themselves to think how you can tailor the experience for them, thinking about just some of the adaptive tools that can tweak that for you, even if you can't do that.
But just listening to what actually the candidates are saying, big or small, you can absolutely do that in a small operation and just do something with it. And I think through that also being really clear with what you're doing with that data for the candidates to make sure that safety is there for them to go.
OK, this is a really good place for me to participate. What I'm saying is being used in an ethical way. I think this gen-z is really, really keen on making sure that as we all should be. That safe, we're being ethical in our decisions.
So that sort of mix of being upfront about what you're doing with it. And then finding a way to use that in a meaningful way.
So I want to bring us to the topic of diversity, equity, and inclusion. And that's something that all three of us are very passionate about. And I'm keen to, I guess, ask the million dollar question, which is what does it take and what can organizations be doing to build more diverse, equitable, and inclusive programs? Phil, I might start with you.
This is a great question. DI isn't about one particular gender, race, or group. The research suggests that 15% to 20% of the population may be neurodiverse. And this includes those who are dyslexic, or autistic, have ADHD, or epilepsy, in addition to a range of other conditions.
So with this in mind, neurodiverse candidates are a really essential part of the labor market, particularly in a tight labor market. And we need to ensure that we understand what reasonable adjustments to our recruitment process need to be made and changes to the workplace in order to set these individuals up for success.
First up, I'd strongly recommend to have an assessment policy that goes into detail around how assessments are used, as well as looking at what to do if a candidate raises that they've got a condition that requires a reasonable adjustment. And that allows for consistency of process and fairness.
The great thing about scientific assessments is they're objective. We're not judging candidates based on appearance or their ability to answer interview questions perfectly. Many clients actually prefer to call psychometric assessments, objective assessments for that reason.
So the recommendation would be that, in most instances, a recruiter has a conversation with a candidate. They learn about what accommodations have been made in the past, at school for tests or exams, and whether changes are required for the recruitment process in order to make it fair and appropriate. And the main point here being that each candidate is unique.
So there's no one size fits all approach. But it really doesn't have to be a big deal. I've worked with clients who've targeted specific groups from those with autism for analytical and technical roles, where being neurodiverse can be a real strength.
Other clients have focused on increasing gender balance for roles like coders, where females are underrepresented. And they've looked for females who've got no coding experience, but the right cognitive and behavioral fit to be successful.
Most of these skills are trainable. And these organizations are overcoming talent shortages and a lack of diversity by adopting this approach.
Fiona, what are your thoughts on that point? And just even in terms of having that conversation about reasonable adjustments in the recruitment process, how do you see organizations do that well and create these safe spaces?
Thanks, Laura. This one strikes really close to home for me. I am a person with a disability. I have low vision.
So having clear policies out there of exactly what's going to happen in a process are really helpful to allow anyone with any type of disability to see what the standard kind of practice might be and ask for adjustments in a real way. Asking a blanket question can be really hard to navigate because you don't know what the situation you're going into.
And it's really hard to navigate that with just the broad spectrum of adjustments that people might need for the huge range of disabilities that they are. So again, kind of coming back to feeling safe about what data you're putting out there, making sure that you're really transparent, genuinely asking the question, being open to making the adjustments, and then actually doing it are those really important behaviors.
Fiona, thanks so much for sharing. We really appreciate those personal stories. And it just goes to show the impact that it can have when someone has a really genuine conversation with you about your own experiences and what you need from the organization through this process. And then even, once you're on board, and once you're in the team.
From a diversity, equity, and inclusion perspective, what kinds of things are you seeing as an opportunity to build more inclusive programs at Commonwealth Bank and in the broader industry?
I think challenging ourself about education backgrounds and locations, in particular. So with the rise of, obviously, working from home and location flexibility, hybrid, really challenging ourselves to think what barriers are we putting up by saying people have to be in a certain location.
Thinking about can people work in the communities that they live in now and the massive door that opens for talent who don't want to move away from home and from the community that they're connected to. And thinking about as well different educational backgrounds and the social mobility-- there's not always the privilege to go to university.
So thinking about is there different ways to look at like Phil's example of females who've done some type of study, but have no coding experience. How can you build that directly or just really thinking outside of the box of the typical universities is really challenging that I think is so important, and just embracing that people will come from all sorts of different walks of life.
And getting out into rural, there's some really phenomenal rural universities that are such an untapped market.
It's interesting, too. I think about not just the recruitment process but into how we manage performance cycles and the standard way that a large organization might run their roundtables at performance review time. And this is where a graduate who doesn't fit into your stereotypical box of what corporate is used to can really fall between the cracks and not be supported and not be recognized.
So even if I think about introverted talent, and when you're having a conversation about who wants to speak up for this grad and put them up as a star performer, and the types of conversations you're having is where multiple leaders are speaking up about a graduate because they've seen them perform. But that generally still favors extroverted talent who is getting out there.
And they're in the office, and they're networking. So it's quite interesting because even when it comes to diversity of personality and approaches, and that can come back to culture, as well, it just shows that we're not always recognizing talent if we lean heavily on the way we've always assessed talent, the way we've always recognized talent.
And these important conversations that leaders need to be having to challenge their dialogue and what they're asking, when they're asking it in a roundtable.
I think expanding on that, as well, Laura, is the importance of making sure we don't just look at the talent that's in person in face to face. So it's really easy to fall back on.
Yeah, who's extroverted, but who's in person, as well. So people who might have caring responsibilities or life needs to be not in the office working in multiple different locations, making sure that if you've got data and a way to track that is great, or just being really conscious of it and being aware.
Don't just reward those who are in person, face to face because you will really make the others feel like othered. And like they shouldn't bother participating that you have to be in person to participate, or the best opportunities happen to those who are extroverted. We are all in positions to do something about that. And really keeping ourselves accountable to that is really important.
So an area I'm really interested in getting your thoughts on is candidate experience and particularly through that recruitment process. We've talked a lot about the talent shortage, and how hard it can be to attract this talent. So Phil, I might start with you.
But what are your thoughts on this. And what do organizations need to do to really make it a great candidate experience when they're recruiting and stand out from the market?
It's certainly a market where it's exceptionally competitive. And I'm hearing this term reverse recruitment thrown around quite a lot. Meaning, it's not the hiring managers and recruiters who are in control. But actually the candidate.
The candidate experience is absolutely critical. Keeping it appropriate and length, so shorter, typically, for early talent programs, longer, perhaps, for senior leadership positions. But that process from job application to offer is really important to keep some timely so that you don't lose talent to competitors who do have a shorter process.
Thanks so much, Phil. And it's a really interesting point about that reverse recruitment and how much power is back with candidates in the current market. Fiona, what's your perspective? And what are you seeing in terms of candidate experience and the important parts of that recruitment process?
I think it has to be at the center of absolutely everything that you design around the program from offer point then through to start date, from start date through to end of program. That should be at the core of any design.
When I talked before about your strategy should be three to four years in advance, that's thinking about the talent that you might want to start at that time, and how you're going to engage them in that time, as well. So that should absolutely be a core part of how you're going to find them through a great experience.
But then keep them excited once you've made the offer so that they actually start with you. That's the biggest challenge. I think facing most grad people. And it's one of the most important areas.
And if I just add to that. If we think about what it is that you're wanting to understand, that can change over time. So depending on your strategy now and what you think it might be in a couple of years time, are you assessing for now? Or are you assessing for the behaviors of skills?
Those competencies that you're going to require in the future in order to be successful, and organizations need to remember to continuously update their success profiles or their competency framework so that it reflects their strategy and is current.
Couldn't agree more, Phil. It's that relevance every single year, not just set and forget once and in five years' time relook at what you're assessing for in this process. So it's a great point. I just want to bring us to our final piece of advice and closing takeaways.
So Phil, what is your short sharp takeaway for anyone who's listening out there and wanting to design these world class programs?
Use the data you collected through the recruitment process beyond point of hire. You may have to break down some silos, but the holistic use of that data is really powerful. And it should support that hiring manager and support ongoing development conversations well into the future.
Thanks, Phil. And Fiona, what about you?
Talk to some grads would be my immediate advice and takeaway. Engage them. Use grads that have come through now alumni. If you've never had grads, just get in front of some students so that you can personalize the experience around what they want, what you're looking for.
But absolutely, put them at the heart of that experience. I think we can't go past it. Both of you have really touched on this throughout. But that personalization, the data, the experience that is centered around an individual person and somehow delivering that at scale that is the crux of the challenge and the opportunity for all organizations.
So thank you so much, Fiona Heron, senior manager graduate programs at Commonwealth Bank.
Thanks so much for having me, Laura. This has been a great conversation to be part of.
And Thank you so much, Phil, practice lead Mercer Metal ANZ.
It's been a really fun conversation. Thank you.
You've been listening to Mercer's Making Work 'Work' podcast. If you like what you heard, you can subscribe at mercer.com.au, or wherever you get your podcasts from. We'll see you next time.
I hope you enjoyed today's podcast. And thank you for listening. Please subscribe to keep up to date with our latest episodes. And if you have any questions, get in touch with us via our website at mercer.com.au.
Episode 3: Designing world-class early talent programs
Guests:
Fiona Herron
Senior Manager of Graduate Programs, Commonwealth Bank
Phil Harrington
ANZ Practice Lead, Mercer Talent Assessments
Is your graduate or early talent program delivering long-term value? In this episode, Laura Manescu, Senior Talent Strategy Consultant at Mercer Workforce Solutions, Fiona Herron, Senior Manager of Graduate Programs at Commonwealth Bank, and Phil Harrington, Leader of Mercer’s Talent Assessment Business, talk about trends and best practices that will help you bring talent in early and develop and nurture them through your organisation.
In this conversation, they talk about the challenges and opportunities for hybrid work in recruiting and developing early talent, the evolution of assessment practices, assessing for skills, aligning graduate programs with broader HR strategy, using the recruitment process to make strides in DEI, personalizing the candidate experience, using data beyond the point of hire, getting candidates excited about your offer, and more.
-
“We’re not recognising talent if we lean too heavily on the way we’ve always assessed and recognised talent.”- Laura Manescu, Senior Talent Strategy Consultant at Mercer Workforce Solutions
-
“Are you assessing for now or for the behaviours, skills and competencies you’re going to need in the future?”- Phil Harrington, ANZ Practice Lead, Mercer Talent Assessments
-
“Talk to some grads, put them at the heart of the experience"- Fiona Herron, Senior Manager of Graduate Programs, Commonwealth Bank
-
“The holistic use of the recruitment data is really powerful and should support the hiring manager and the ongoing development conversation into the future.”- Phil Harrington, ANZ Practice Lead, Mercer Talent Assessments
-
"Be prepared to think about at least four calendar years at any given time. In 2023, you need to think about your headcount that's in FY26, FY27 and beyond.”- Fiona Herron, Senior Manager of Graduate Programs, Commonwealth Bank
References
1. Mercer 2022 Global Talent Trends Study
2. McKinsey - Taking a skills-based approach to building the future workforce
3. Neurodiversity
[MUSIC PLAYING]
Is work working for your people and organization? In this podcast, Mercer thought leaders, industry experts, and business visionaries share big ideas and best practices to help you build great workplaces and a future where work works for everyone. Making Work 'Work' is a podcast from Mercer Workforce Solutions.
Welcome to Making Work 'Work'. I'm Cynthia Cottrell. So there used to be a time when the difference between getting hired or not came down to your qualifications. These qualifications were used to screen applicants in order to get to a shortlist of candidates, that would go on to be interviewed. And eventually, the selected candidate would receive an offer.
Now, these qualifications might include things like a degree, proof of residency in a certain jurisdiction, word-processing proficiency, a driver's license, your years of work experience. And these qualifications assumed that you had all the necessary technical skills to be successful in your job. In some cases, it meant that organizations did not have to invest as much into your development because they were hiring you for your skills. Sound familiar?
Well, if you're like many organizations right now who are experiencing unprecedented talent and skill shortages whilst navigating rising inflation and the threat of global recession, then this is the podcast for you. Skills have become one of the most important topics globally. We know from the Mercer Global Talent Trend Study that reskilling is the number one priority of executives across Australia.
Meanwhile, the Australian government has sharply increased permanent migration since COVID to help ease widespread skill shortages. And in the short term, the government has agreed to inject a billion dollars into a one-year national skills agreement that will provide additional funding for fee-free [INAUDIBLE] in 2023, but will this all be enough? What do we need to do to view skills through a different lens? How do we untether from the old ways to unleash their full potential of our teams and organizations where skills will set us free?
Today, I'm speaking with Anne Le Blanc, senior principal at Mercer Workforce Solutions. Anne has over 30 years of experience building continuous learning cultures for organizations that include a big-four bank, telecommunications and technology, and insurance companies. She recently blogged about talent marketplace in which she talks about the need for cultural revolution in order to fully realize the benefits of a skills-powered organization. Anne, welcome to the podcast.
Thanks, Cynthia, great to be here. So let's start with the big picture, Anne. Why are organizations and governments placing a big bet on skills?
So we live in a world today where things are changing super fast around us. Organizations, teams, individuals need to adapt with a fair amount of pace actually. So at the individual level, the more skills you have, the more attractive you are to help your team, your organization, and actually, your own career, and that means that you become more employable in the future.
On the flip side, you have organizations who are coming to the point of working in this highly adaptive environment where new skills emerge, other skills become obsolete. And Cynthia, you noted that we are in a super tight labor market, which is what we're seeing today. And it's really extremely difficult for businesses to fill jobs, but what if filling jobs was actually the wrong way to think about it? What if there's a better way to plug the skills gap in your organization?
In the Wall Street Journal bestselling book, Work Without Jobs, our colleague Ravin Jesuthasan says that the very concept of job and the one-to-one relationship with a person may be the factor that's actually really holding businesses back, and back from success. So instead, we see that many leading organizations are shifting to a new model, deconstructing jobs to their underlying tasks and matching those tasks to different individual skills. Resetting the work operating system around skills, not jobs, opens a potent new way of thinking about work and talent.
So Anne, what strikes me about what you said is this idea of untethering from jobs and thinking about what that means in terms of applying skills to specific activities or tasks, kind of the way that I opened at the beginning about how people feel about going through the job application process. It all begins with this idea that there is a way to say I've got all the right skills and qualifications to do this job that I've been hired for.
It kind of made me think. I can't remember what job description I was hired for, and I was hired only a couple of years ago into Mercer. So I do wonder, is there something behind that, about how organizations think about jobs and then these underlying long-held ideas that you're hired for this job that's described in the form of words and qualifications, and yet the work and what you actually do doesn't seem to match with that? What do you think?
It's a super interesting thing-- when you think about the job description, I, too, actually-- I think I looked at it at the start and really, haven't looked at it since. And I think it's a great guide to help people get a feel for the job, but actually, if you think about-- so we've always had skills and this ability to-- and in the past, we've actually referred to them, kind of loosely, as capabilities and competencies. And job descriptions actually comprise of that to a high degree.
But if you think about-- and this is kind of what Ravin talks about. If you think about jobs are effectively disintegrating, the focus really comes back to, what skills does the employee bring to the table, what experiences do they have? And so as an organization shifts either small or sometimes even large chunks of their population in their workforce to what we call sort of fungible teams, and that is all about having the team do the most important work, the most prioritized work.
And so when you start to think about that, that means that you really need to know what skills and experiences people bring to the table. And that is just so much more than a job description. So don't get me wrong, there'll still be jobs, and there will still be some generic job descriptions, but more organizations are really focusing on this concept of flex and flow worker types, and that goes to the heart of, really, understanding what skills people have or need to acquire and develop. And so the challenge for organizations is thinking about, how do we untether from jobs and really, embrace the ability to move people around to the most important work that needs to get done?
Now, I hear you. I think it feels like a massive mindset shift. And I don't think it's a choice, I think it's a necessity, particularly in the current environment. Whilst the reality of a global recession continues to loom large, organizations really can't afford to pull back on this challenge. Tell me more about what you're seeing, Anne, in how this is becoming more of a necessity, rather than a choice.
For sure, it is an absolute necessity. And when you look at the data, it helps us understand why skills are becoming important. We have a quite a low birth rate, so we're not having enough people coming into our workforce ultimately, and we have an aging workforce. And we have a huge need for service or people related roles. And we don't have enough people coming in to immigration into our country.
And so what that means with general market turnover up by about 1/3, we're at full employment right now effectively because our employment rate is so low. And so the bottom line is ultimately both now and into the future, we just don't have enough humans for the work. And so that's why skills are becoming so important because we've got to match humans to the skills that we need to get the work done.
There's an increased expectation that employers play a leading role in helping people remain employable. And so with retention being the mainstay of, now, HR's focus, this requires organizations to embrace the concept of what we call a circular economy where skill development is continuous, it's perpetual, and renewable. So more of the organization can be deployed to the important and right work.
I recently ran a poll to find out what people thought about why skills are important, and actually, it wasn't about being recognized and it wasn't about doing more work, it was-- a huge percentage was about them feeling more valuable and building a better future. And I think our people are really thinking about this, too.
I like that concept of understanding that it's not skills for the sake of trying to complete a particular job for which you can't remember why you got hired for in the first place, and that it is about more than that. We talk about creating loveable work, better work. And as you say, Anne, organizations who are adopting that mindset of a circular economy-- I love that term. I've not heard it before in regards to skills-- that the idea of developing your people is about building a more valuable workforce but a better future, not just for the organization but for those who are working inside of the organization and inside the teams.
And I think that is another important mindset shift that really matters, again, I think in the name of making things better for everybody. And I think it kind of begs that next question about, what organizations are doing today about this? Skills and talking about developing them isn't a new concept, but what we're talking about here sounds a lot like putting skills and reskilling on hyperdrive and really, thinking about how do we continuously develop them. What do you think about what organizations are doing today to build that culture of continuous learning?
If I reflect on my time when I was at one of Australia's leading telcos, the opportunity to be in flexible teams and to go to different work, really, meant that the people in those teams could, really, develop and supercharge their skills forward because they're getting such a concentration, and they're not being stuck in teams doing work that might not be super important. And so they're able to move around at more pace with more agility to go to the work that's really meaningful. So I think being able to have that opportunity and really, fast forward your skills by gaining maximum exposure on lots of different things, I think that's a really good thing for not only the employee but also the organization because they get that benefit ultimately.
Yeah, you had the story you've told me about a song you guys came up with. Come on, you've got to give me a couple of bars of that. Come on.
Oh, my goodness. So firstly, first and foremost, let me say, I can't sing, and I'm constantly told I can't sing by my family. So I'm definitely not singing for you today, but we talked about it in the concept of I've got skills, they're multiplying to kind of get into our grease lightning.
Come on, in honor of our very own Olivia Newton-John, let's do it.
No. But we kind of love the concept of-- and what sits behind that is multiplying your skills. And you know what I love about that is that it's really taking time to invest in you as an individual by focusing on those skills. And it means that you're actually setting yourself up for success and for long-term employability.
Actually, someone showed this visual a long time ago of a dinosaur or a chameleon. And she said, which one do you want to be? Because we know what happened to dinosaurs. And so this concept of always being the chameleon around skills and always reinventing, I think, is a really great way to think about that and renewability of, how do I keep growing?
Yeah, and the important benefit you keep mentioning here-- and it's wrapped up in all of these efforts to create a continuous learning culture and to invest in your people-- is retention. And if you really step back for a moment and everyone's searching for the best inflation-busting strategies that are out there right now, it's hard not to go past this one. You're focusing on your own workforce and really, working on unique ways to drive that ability to transfer skills, upskill, reskill. What are some of the ways organizations really are supercharging this way forwards, especially in the current environment?
So one of the things that we are seeing emerge is the concept of a talent marketplace. And at the heart of what a talent marketplace is is using AI to match people to work and even jobs-- and there will always be some traditional jobs-- but matching the workers to the work. And what it does is it kind of takes out that middle layer, and it's much more direct, it's much more agile.
And the way that AI works is on matching skills, and that's why skills is super important, we're having that conversation today because that is the basis of the way talent marketplace works. But talent marketplace also gives you the ability to actually refresh, revolutionize some of those other processes and the way that you do things in your employee lifecycle. And I think that is super exciting about what talent marketplace can bring to an organization and really, unleash capacity and unleash the people inside your organization.
So Anne, as we mentioned earlier, you recently blogged about talent marketplaces. And I love this term you used in it, which is the need for cultural revolution. We've sort of touched on learning culture already, but could you help me understand what you mean by that? Could you dive a little deeper?
I sure can. And one of the things I talked about before was that exceptional employee experience, and in doing that or in achieving that what for me is a bit of the Holy Grail. I think there are benefits for the individual and the organization, but I actually look at this through four different lenses, so maybe if just take a moment to explain a little bit about each length.
So firstly, there's the employees. They have the opportunity, in a skills culture empowered by talent marketplace, to really engage in more diverse projects and career opportunities. That in turn exposes them to a broader network of people. It in turn gives greater flexibility and control over their career, the experiences they have, and the work that they do.
And what we know is that often increases the likelihood of a better reward and higher engagement in the future. How that works in practice is I can search in talent marketplace and express an interest in different projects, or gigs, or work that I'm interested in because the AI is matching to my skills, which means it's much more inclusive of a wider array of opportunities.
Now, if I sit back and then think about this from the people leader's perspective, that means I have access to a wider talent pool or internal talent pool and diverse mix of skills and experiences. It's faster to source talent with the right skills and capabilities. In many ways, I save money in increased efficiency by going direct. It opens up potential for succession planning and key person risk.
And the thing I also love about this is that greater transparency about the current skills and gaps in my own team. And so how this, for me, works in practice is as a leader, my gig or the work gets matched to so many more interesting candidates, and I can actually act fast on that. And I'm not necessarily just relying on my own networks. It really opens it up.
I think, then if I take then from the HR lens and the organization, from a HR perspective, there's higher retention through reskilling and higher engagement levels. There's cost efficiencies. There's reduced time in those processes. The ability to support strategic workforce plans and reskill talent into critical roles, I think, is super important and that just adds to that greater workforce mobility.
And then the organization perspective, because there's loads in it for them as well-- reduce turnover, high retention, strategic and efficient allocation of resources to higher value projects with the right skills to support the business strategy. And if that doesn't get the heart pumping, I don't know what will. Better customer outcomes, I mean that is the heart of why we do stuff. The ability to stand up teams and respond in crises and to support continuity planning. And the other thing that I particularly love about this is that it really reduces silos across the organization and increases agility.
Well, it sounds like a no-brainer, right, Anne? I mean, it feels like in this kind of urgency we have to accelerate skills development to fill these shortages that we're seeing right across every industry, small or large business at this point, it seems like we should all be on this talent marketplace train, but yet-- what are some of the things that prevent us from doing this? What's getting in our way?
From an organization perspective, lots of things that we do take time, and planning, and investment. The one thing about this particular revolution, as I like to call it, is it does touch every part of the ecosystem. A number of people have said to me, well, it's just about putting in technology to support the skills culture, but actually it's so much more than that.
And so if there's one thing that I would love to leave our listeners with that thought is that it, really, combines the power of technology and the culture piece together to really supercharge that forward. And so I think-- just thinking about those two things and how they come together, I think, is a, really, important step forward. But it takes planning, and it takes effort, and it takes prioritization from the organization to, really, put this on top of their agenda.
And I think, as you say, it is a cultural revolution. When we bring it back to this idea that it starts with the job and that there are rows and rows of people that you can walk down the proverbial aisle and count how many people you have and that they're doing their job to move from that mindset to one where people should flow to the work that needs to be done, that, in fact, they may be doing multiple jobs at the same time, that leaders are leading work, feels a big shift in today's time.
And I think when you mentioned cultural revolution, that really resonated with me because I think, as I mentioned earlier, I think many of us came up through the system as having provided some qualifications years ago. And today, we find ourselves constantly learning in order to continue to be valuable, as you say. But I think the most important thing many of us have found, maybe even particularly as a result of the pandemic, is that we're looking for so much more than just a job. We're looking for a way to fulfill our need to be good at something, to continue to hone our craft right. And I think that in and of itself is another important shift maybe ushered in more quickly than most thought because of the pandemic.
Absolutely. And really, thinking about, how do I deeply develop my craft and the skills that support that, but also, what are those other skills that are transferable, and-- so that over time, I might develop some multiple crafts, actually. But I've got this top layer of skills that help me move inside an organization, to do different things, to increase being valuable to the organization, and that actually aids my own employability for the future.
You bet. So look, Anne, you've given us so much to think about. And I can imagine what it must feel like if you are in an organization right now and just thinking about practical ways to start. What would you recommend are the top one, two, or three things that leaders, that HR, that organizations could do today, if they haven't already got on to this cultural revolution around skills?
So Cynthia, three things that can be done. As an employee, make a list of your skills, what you're good at and what you want to be good at, and go for it. As a leader, try and actually hire not for a direct job description match but for the skills and experiences, and they might be adjacent that really complement your team. And then the last one, from a HR perspective, is ask the question, where is my skills data? And maybe think about developing those use cases as a great way to see the possibilities of what you could do with that data.
And I've actually got one more to add, Cynthia. In the old way, people actually worked in talent captive silos. And what I mean by that is my team works on my work for me, rather than creating these fluid teams to go to the work and unlock capacity or release to flow to where the organization needs them most. And I think this, really, goes to the heart of having a skills culture because you suddenly understand the skills to be able to deploy your people, to work on the most important work. So by and large, you're doing far less busy work and work that just isn't a priority, and this needs a really good understanding of skills and really, helps to make that cultural shift that many organizations are currently talking about.
Thanks, Anne. I think that the cultural revolution is on, and I really appreciate your sharing your views today.
Thanks, Cynthia. It's been great to be a part of the show today, and thanks for having me.
You bet. I'm Cynthia Cottrell Thanks for listening to Making Work 'Work' from Mercer Workforce Solutions. See you next time.
I hope you enjoyed today's podcast, and thank you for listening. Please subscribe to keep up to date with our latest episodes. And if you have any questions, get in touch with us via our website at mercer.com.au.
Episode 2: Creating a culture of skills
Guest:
Senior Principal, Workforce Solutions, Mercer Pacific
Do jobs really define what we do? In this episode, Cynthia Cottrell, Partner and Workforce Solutions Leader at Mercer Pacific and her colleague Anne Leblanc, talk about the evolution of work: the journey from job descriptions, capability and competencies to units of skills and the cultural shift required to unleash the value that all employees can bring to their organisations.
In this conversation, they discuss the circular economy of talent development, the pressing need to close talent gaps by quickly moving skills to where they are needed most, the benefits of building a skills-powered organisation, and the role of technology and talent marketplaces. They also share three actionable tips for employees, HR and organisations to start their own skills revolution today.
-
“At the individual level, the more skills you have, the more attractive you are to help your team, your organisation and your own career.”- Anne Le Blanc, Senior Principal, Mercer Workforce Solutions
-
“Today we find ourselves constantly learning in order to continue to be valuable and fulfil our need to be good at something, to hone our craft. This is an important shift, maybe ushered in more quickly than most thought, because of the pandemic.”- Cynthia Cottrell, Partner and Workforce Solutions Leader, Mercer Pacific
-
“In a tight labour market, it's extremely difficult for businesses to fill jobs. But what if filling jobs was the wrong way to think about it? What if there's a better way to plug the skills gap in your organisation?”- Anne Le Blanc, Senior Principal, Mercer Workforce Solutions
-
“Everyone is searching for the best inflation busting strategies; it's hard not to go past reskilling and upskilling to build a better future not only for our organisations but for our workforces.”- Cynthia Cottrell, Partner and Workforce Solutions Leader, Mercer Pacific
-
“One of the things that we are seeing emerge is the concept of a talent marketplace. At the heart of a talent marketplace is the use of AI to match people to work.”- Anne Le Blanc, Senior Principal, Mercer Workforce Solutions
Anne Le Blanc: Cynthia, three things that can be done: as an employee, make a list of your skills, what you're good at, and what you want to be good at, and go for it.
As a leader, try and actually hire not for a direct job description match, but for the skills and experiences, and they might be adjacent, that really complement your team. And then the last one, from an HR perspective, is: ask the question, where's my skills data? And maybe think about developing those use cases, as a great way to see the possibilities of what you could do with that data.
References
- Mercer 2022 Global Talent Trends
- Wall Street Journal-bestseller Work Without Jobs
- Outcomes of Jobs and Skills Summit
[MUSIC PLAYING]
Is work working for your people and organization? In this podcast, Mercer thought leaders, industry experts, and business visionaries share big ideas and best practices to help you build great workplaces and a future where work works for everyone. Making Work Work is a podcast from Mercer Workforce Solutions.
Welcome to Making Work Work. I'm Cynthia Cottrell. Thanks to the pandemic, we were all ushered into the world of full-time virtual work in a matter of weeks. Waking up to work was and still is, for many of us, the phrase that best describes the blurred lines between work and life.
Quiet quitting, burnout, well-being, productivity, hybrid, four-day workweek, these are all the headline-grabbing topics of the day that tend to shape the conversations about how work has changed. And they are all important aspects of today's future of work, but I think there's more to the story.
I think there's an important question we need to solve for that may, in fact, unlock greater benefits for individuals, organizations, and societies at large. And that question is, how can we make work lovable? I bet you weren't expecting that, but hear me out. Why do we care if work is lovable? It's a job. It's not supposed to be lovable, right?
I love my kids. I could never love my job in the same way. So what's love got to do with this? It turns out a lot. A study conducted by Gallup shows that disengaged employees cost organizations around $550 billion in countries like the US. When individuals find joy in connection with the work that they do, engagement levels are higher, productivity is higher, but most importantly, feelings of happiness are more present. Makes sense, right?
But unfortunately, many workers are finding it increasingly challenging to connect with their work leading to increasing rates of burnout, absenteeism, and resignations. So we asked teachers, baristas, marketing managers, the sales guys, the creative comms professionals, Uber drivers, we asked them what they disliked most about their jobs. And here's what a few had to say.
What do you like least about your job?
Red tape, inefficient processes, and where it takes the firm a long time to make a decision. I think sometimes we can be a little bit slow.
The thing that annoys me the most about my role is when people make assumptions about what you should be doing as a comms professional, and I think that means you end up spending time on the wrong things instead of what you should be doing to add value at work.
What really annoys me about my job is the lack of information that I need to make an informed decision. But sometimes, also, the abundance of information that is not relevant or reliable, and we have to make sense of what we have.
I'm a teacher, and what I don't like about my work is overcrowded curriculum, which leads to too much paperwork, and too little time to complete that.
Forget about digital communication, Teams, Zoom, email, text message, telephones work great, they did for how many hundred years. Just use them guys, it makes life easier.
Today I'm joined by Andrew Lafontaine, who leads Strategy and Growth for Mercer Workforce Solutions. Andrew has been on both sides of the fence having served in executive HR roles in the financial services sector, and also as a consulting services leader for major firms leading enterprise transformation. Andrew, welcome to the podcast.
Thanks, Cynthia. Really great to be here.
So, Andrew, let's start with the big picture. Stepping back, are people less happy or engaged at work than they were 10, 20 years ago? What do you think?
Yeah. Look, it's really difficult to say because I think the last two to three years have been an anomaly, right? So when we're trying to compare the data, when we're trying to compare apples with apples, it's very hard to say categorically that people are less engaged than they were 20 years ago. But let's look at some of the things that we do know.
So we do know that employee engagement across Australia and New Zealand has dropped 2 to 3 points through the pandemic. It's now sitting at 17% below the global average according to a Gallup 2022 workplace report. And then if you think about our own Mercer Global trends study, that shows that 81% of employees feel at risk of burnout this year, and that's up from 63% previously.
So the two words for me is lots of fatigue, and maybe a lack of energy, leading to some burnout. Are they less engaged? As I said, I think it's very hard to compare apples with apples over the last 20 years.
Yeah. And I think I agree with that. But I do wonder if the way work has changed, the way that the lines between home and the office work and life have led to some of these increased trends that we're seeing-- one of the interesting trends I saw recently was this comparison of engagement versus thriving.
And why do we look at that, right? Because we often haven't-- we often see organizations focus a lot on engagement. And the scores of 17% or 50%, whatever that might be for organizations is meant to indicate whether or not employees are happy, productive, and in general, thriving.
But there is a way to actually separate those two measures out. And in that same study by Gallup in 2022, we do actually see that employees who are thriving is on the rise, whereas engagement has dropped.
And I think that's an interesting point to make in that when people think about their time at work, it's very hard to separate what work is now when work is happening a few feet from your bed, or from your dining table, and you're arranging times to go out and pick up your children in the middle of the workday.
I wonder, actually, if these new ways of working, if hybrid, if working three days in the office and two days at home, or changing your hours is also a potential positive in helping people find joint connection in their work today.
Yeah. Look, I think that's a really good point and observation to make. Are people actually thriving in the new way of working, but does that necessarily correlate to them thriving in their work? So around that definition, is it more thriving in life now because they have this flexibility? It's something, I think, that we'll be able to start to measure in the coming years.
Yeah. And I think that one of the terms that we talk about with organizations that we consult with-- I think the neat new term about this is life experience. We talk a lot about the employee experience. And what is the employer's responsibility or focus? Is it just that time between 9:00 to 5:00 and that time in the workspace, or is it actually the life experience that employers could take a stronger position on?
Well, I definitely think it's the latter. I think organizations have accepted that we have definitely changed the way we work, how we work, the days we work, the times that we work. And so it's really inextricable in terms of work and life now, and it's a total life experience. So we've moved very quickly from the total employee experience now to life experience due to the pandemic.
I know. I think we'll call it here, it's life X, right? Everyone calls it employee experience, EX, we'll go with life X. So we've established that there is burnout. There is stress. There are differing levels of thriving, whether it's thriving in your work, or thriving in life.
But bringing it back to organizations and what the impact is when we do look at the current state of where we are in control, or, at least, trying to take control back on how do we attract and retain talent, how do we keep our workforce healthy, and engaged, and thriving, the impact of that in a market such as ours here in Australia and many global markets is-- the truth is we're facing one of the tightest labor markets this country has seen in almost 50 years at a 3.4% unemployment rate.
And yet we still see with many workers who are voting with their feet, who are switching jobs, some are quiet quitting, whatever it might be. What we do see, though, is that that deep unhappiness with jobs still points to a larger problem, which is that, can you solve this problem by simply paying people more?
Can you solve this problem by simply throwing in more yoga classes, and other perks and benefits that many organizations have spent a lot of time and resources on. Is there something more to this answer, I think, than just answering the call on well-being alone? What do you think organizations are going to be challenged most with?
Look, I think the number one fundamental change and shift that's happened first and foremost and organizations absolutely have to acknowledge this is that talent is now highly mobile. More mobile than it's ever been before, I would argue, in the history of work. People definitely happy to change jobs if they don't get the flexibility that they want, if they don't get the careers that they want.
And we know one thing that hasn't changed, we also know that people will come for money, but they will stay because of leadership, culture, career development opportunities, et cetera. So you talked a little bit about, Cynthia, the-- what's been ushered in with this waking up to work because of the pandemic. And lines have been absolutely blurred between that.
As a result, we've got this new phrase of quiet quitting. While it might not necessarily be a new concept, it's certainly getting a fair bit of media airplay at the moment. Where employees are simply saying, I need to start to stop the emails late at night. I need to stop communicating with work late into the night, not necessarily working through to 10:00, 11:00, 12:00 just because I can.
So I think there's a lot that's really swirling around. And then on top of that as you said, low unemployment makes retention even harder because people are paying more money. But organizations in order to really think this through, as you said, need to think through, well, actually, are we really defining the jobs correctly?
In this new world of work, do we need to think about how work gets done? Can there be hybrid roles? Can people flow to work that's important for the organization? What does that all mean in terms of trying to create even more of a little bit of a gig workflow within organizations rather than the traditional jobs?
So all of these things organizations are grappling with, and primarily, to try and retain staff because the traditional labor of paying more money, as I said, will potentially get people to your organization, but it won't keep them there. There's no doubt about that, and we know that, and that's been the case for a very long time now.
Yeah. I think what you've said has really resonated with me personally. I think about 10 years ago when I worked at a technology firm and had my first child, I remember distinctly facing into a situation where there weren't a huge amount of a number of choices I could make. I would go on my leave, and then decide if I would come back part time or full time, and it was one or the other.
And then from there sort out how I would be a first-time mom and somehow transition into that new phase of my life, while still doing the exact same job as it was designed prior to having children. And so when you think about-- when I think about that, and I think about where we're at today, I'm filled with a lot of hope.
I think it's a fantastic time for organizations to work in partnership with their employees and to see them as humans first. That these changes that happen both in our work and in our lives are intertwined. And so I think as you were saying, really thinking and being open about, not just the flexible ways of working, but the work design itself.
Inevitably, work continues to change in the way we do it, whether it's through technology, or automation, or other things that will impact how work gets done. We need to also think about how work gets done when life requires for those particular tasks to be done differently.
Yeah. And we know from our recent global survey that the vast majority of employees would be willing to forgo salary increases for greater flexibility. And I think it's not just greater flexibility in how the day is structured, but it's also greater flexibility in how the work gets done. So I think these are all the things that organizations are thinking through when it comes to making work work for everybody.
That's right. So while we're on the topic of what are organizations doing about this, we've talked a lot about what they should do, but what are some doing right now to create and sustain thriving workforces? How are they going to maintain their competitive advantage through their people? What are you seeing, Andrew?
Well, I think this is probably the single biggest challenge that organizations are facing in terms of their workforce providing flexibility, ensuring business strategy is met, how do they continue to look at productivity gains, leveraging technology. It is one of the biggest challenges they're facing unlike ever before.
And then, of course, you've got the differences between the roles that can have a lot of flexibility versus the roles within an organization that require people to be in the office, or at a store, or in a factory five days a week. So how do you create equality between those roles?
So I think organizations have got to start with thinking about things differently, and not necessarily starting with the five-day a week as that starting point for the discussion. So rather work through, what does the future actually need to look like without the parameters of the past?
I think that's all the conversation has been about, is it two days? Is it three days? Is it five days? Is it work anywhere? Some company has gone to working from anywhere. But they're still all talking within that parameters of the five-day workweek.
So there's a great study coming out of the UK, recently, with the four-day workweek, where I think more than 40% of organizations actually are claiming improved productivity from four days a week. So not the compressed workweek, but the genuine four-day week with the daily doing the 32 hours.
So that's where, I think, some of the organizations need to think about these challenges and really start with a clean sheet of paper. And the companies that are going to really come up with the solutions and get ahead of the curve, they're the ones who are going to be attracting the talent.
I'm really interested in the four-day experiment that's happening globally, and it's happening here in Australia. We know from our latest benefit survey we ran earlier this year, 26% of organizations surveyed are offering the ability to work four days a week. And I guess the key question anyone who's listening is probably asking is, who are these organizations, and where do I sign up?
Yeah. And that's where the work design comes into it. Because it really is about well, how do you redesign work that it can get done in the 32 hours as opposed to the 40 hours? Now, we know a lot of people work more than the 40 hours as it is today.
So they're the kind of things that we as an organization, as workforce engineers, we're helping organizations think through some of those areas around redesigning work, if it's a four-day week, or a five-day week, or all the other variations that's possible.
Well, speaking of workforce engineers, the various conduits to make work lovable-- I'm bring it back to the lovable piece again-- I can't help but ask you about this, Andrew. I'm curious to know. You're always pretty straight about these things.
So there is this rising tide of chief happiness officers. So the CHO, as they are known globally, they actually have these roles appointed at the executive level at large organizations like Google, Amazon, Airbnb, SAP, Slack.
Did you know that Prince Harry, when he stepped back from royal family duties, his first job is as chief impact officer-- so a different three letters, but the role is the same-- at a startup called BetterUp?
Where his role is to focus on connecting employees with personal development opportunities, mental health opportunities to discuss, and other ways that help to improve the overall general well-being and happiness of employees. So now it's got a title. So chief happiness officers.
And before I get your full rundown on what you think that means and what kind of job that must be, the main goal-- if you go into LinkedIn and try and apply for one of these jobs, the main goal is to drive the overall happiness and engagement of the workforce. So what do you think it would be like to be the CHO of any organization today?
OK. So chief happiness officer. I think I'd start that with the premise which I've never really been comfortable with, or that saying that, if you love what you do, you'll never work a day in your life. Underlying that premise is that finding something that you love actually is going to be able to provide you with a living, and that's not necessarily always the case.
So for me, this concept of happiness is also one that is an interesting concept because I'm not sure that people are looking or even can define what happiness means in all aspects of their life let alone their work. So for me, I always think that people want to go to work and feel like they've achieved, they feel fulfilled, they feel that they're growing in their roles and as a person.
And then if the output of all of that means that they feel more happy at the end of the day than when they started the day, then that's a great outcome. But the idea of focusing specifically on being happy, I think, is a really difficult concept for me in person to get my head around in trying to define that.
So while I think it's a great endeavor, I'm not sure it's one of those roles that we might see in the next 10 to 15 years. Well-being, absolutely. I think making sure people feel that their well-being is being considered and focused on, definitely. But I'm probably a little bit skeptical, Cynthia, around the chief happiness officer roles.
Well, let's check in in 10 years and see what happens. I might go apply for one of those roles myself. All right. We're going to-- just on the subject, again, of what are organizations doing today, though, to drive up engagement and overall energy with their employees, I did have this great opportunity to catch up with Angela Barton, who is the CHO of SIXT, the car hire company. And here's what she had to say.
What's the secret sauce at SIXT? What are you guys doing to make work lovable for everybody?
So I think-- we have a campaign where we call Above and Beyonding, and that was our marketing campaign. And we followed it through to our people because our people are our most valuable asset, far and away our most valuable asset. We're a relatively unknown brand in the market, which is super exciting. So we've put a challenge out to people to go above and beyond.
So as for our frontline staff, that could mean anything. Just excite the customers, whatever you need to do to make them feel like they've had the best experience when they rent with us. And for the rest of our staff, it's about-- the Above and Beyonding could be, come to us with a crazy idea, we'll fund it. We're going to test and learn. We want a culture of innovation. So that's what we do.
We also ask our people to bring their best selves to work. So we have an amazing work committee, an amazing shine committee. We really just want you to come, enjoy what you're doing, and that will reap-- everyone will reap the benefits from that.
I want to come work for SIXT.
We've got job openings, Cynthia, so.
I know. I'm on your job site a lot. That's awesome, and thank you.
So I think that's pretty cool, Above and Beyonding. I didn't know you could turn beyond into a verb, but it's a really neat campaign. And the part I really like about what they're doing is they've invited the employees in to have an equal and fair say about how they can treat their customers with all the possible neat things that they could do, and have that ownership, and that excites them not just the customer.
So I love that aspect of playing to increasing the joy that they find in their jobs by having them be active leaders and participants, and forming and shaping that customer experience. What do you think, Andrew?
Yeah. Look, I always love when organizations put in frameworks that really allow employees, and also recognize employees who are willing to exert that discretionary effort in many different ways.
And I think that is still something that absolutely holds true for organizations and employees that-- there are always going to be people who want to exert that discretionary effort. And I think framing it in programs of work or recognition programs, it's something that still holds true for a lot of people that it is really important from an engagement perspective.
So, Andrew, what are your key takeaways from our conversation today?
Look, Cynthia, for me, probably the key takeaway would be that organizations have to be really deliberate if they're going to make work lovable. They really have to think about the work design, they have to think about the leadership, the culture, all those traditional areas, but more so these days, it is about the work design and how that fits into the more flexible lifestyle that everybody is craving for. If they can do that, that's how they'll win.
Cool. Well, look, I think lots to learn from organizations like SIXT, from all the various organizations that we've had a chance to work with. This has been a fascinating discussion, Andrew.
Making work lovable and having people be happy at their work, as you say, has a lot to do with the culture, and the way in which employees and employers work in partnership with each other. So thanks, Andrew, for joining us today. I'm Cynthia Cottrell. Thanks for listening to Making Work Work from Mercer. See you next time.
I hope you enjoyed today's podcast, and thank you for listening. Please subscribe to keep up to date with our latest episodes. And if you have any questions, get in touch with us via our website at mercer.com.au.
Episode 1: How to make work lovable
Guest:
Partner, Strategy & Growth, Workforce Solutions, Mercer Pacific
-
“To create a happier workplace, organisations have to think of work design and how it fits into the more flexible lifestyle that everyone is craving for.”- Andrew Lafontaine, Partner, Strategy & Growth, Workforce Solutions, Mercer Pacific
-
“Having people happy with their work has a lot to do with the company culture and the way in which employees and employers work in partnership with each other.”- Cynthia Cottrell, Partner and Workforce Solutions Leader, Mercer Pacific
-
“Chief Happiness Officers are rising to prominence but can they really drive the happiness and engagement of the workforce?”- Cynthia Cottrell, Partner and Workforce Solutions Leader, Mercer Pacific
-
“Some roles have a lot of flexibility while others require people to be full-time at work. Organisations have to think beyond the parameters of the 5-day week to bring equity to all roles.”- Andrew Lafontaine, Partner, Strategy & Growth, Workforce Solutions, Mercer Pacific
Anonymous speakers: “Red tape, inefficient processes, and where it takes the firm a long time to make a decision. I think sometimes we can be a little bit slow.”
“The thing that annoys me the most about my role is when people make assumptions about what you should be doing as a comms professional, and I think that means you end up spending time on the wrong things instead of what you should be doing to add value at work.”
“What really annoys me about my job is the lack of information that they need to make an informed decision, but sometimes, also the abundance of information that is not relevant or reliable, and we have to make sense of what we have.”
“I’m a teacher and what I don’t like about my work is the overcrowded curriculum which leads to too much paperwork and too little time to complete that.”
“Forget about digital communication, teams zoom email, text message. Telephones work great. They did for how many 100 years? Just use them guys. It makes life easier.”
References
1. https://news.gallup.com/businessjournal/162953/tackle-employees-stagnating-engagement.aspx
2. https://www.gallup.com/workplace/349484/state-of-the-global-workplace-2022-report.aspx
3. Mercer 2022 Global Talent Trends Study
4. https://www.hrmagazine.co.uk/content/news/four-day-week-pilot-success-for-majority-at-mid-way-point/
Related products for purchase
Related solutions
-
People strategyMercer’s HR transformation consulting services and tools help you revamp your people function, accelerate digital implementation and support change management to…
-
Workforce & careers
Workforce & organisation transformation
Mercer helps unlock future growth by helping companies reimagine how they work and how their people experience work. Our approach is human-centric and… -
Skills-based organisations
Skills-based talent practices
Mercer's skills-based talent practices helps leading companies to reinvent their talent and reward programmes around skills.
Related insights
-
Skills-based organisations
Strategic Shift: Skills-Powered Organisations in the Age of AI
Discover how organisations can address skills gaps by implementing a data-driven strategy, fostering buy-in, promoting open communication, setting achievable… -
Future of work
Culture: Your most valuable intangible asset
Culture determines the way an enterprise is run; it also determines its ability to change. Learn the elements of culture and how to transform yours. -
Future of work
The chief people officer’s quick guide to generative artificial intelligence
Humans plus AI deliver a real advantage. The role of CPOs in shaping how we prepare for the impacts on our businesses and workforce has never been more acute.
Related events
Curated
Related case studies
Related Topics
Workforce consulting and products
-
Workforce & careers
Workforce & organisation transformation
Mercer helps unlock future growth by helping companies reimagine how they work and how their people experience work. Our approach is human-centric and evidence-based. -
Executive compensation
Designing competitive executive compensation and policies that align with business strategy while incentivising top talent can be challenging. We can help you factor in all the critical considerations, so you can achieve the most compelling and effective executive compensation and reward plans. -
Attract & retain talent
Talent Marketplace
Mercer will help you to unlock the power and potential of your workforce by establishing a future-fit talent marketplace, fuelled by talent and skills insights, and enables personalised talent development and real-time talent deployment.