Study insights into the most critical issues organisations in EMEA are unearthing today across the human capital continuum.
This year’s edition assembles a selection of articles covering a multitude of talent-related topics that should be of particular interest to organisations with headquarters or operations in the Europe, Middle East and Africa (EMEA) region. The publication combines Mercer’s intellectual capital and points of view with case studies shared by leading client organisations from various industry sectors.
Mirroring the unprecedented levels of complexity that global and multinational organisations have to deal with in today’s global economy, the overarching theme for the fifth edition of this annual publication is staying ahead of the competition in a two-speed globalised world. In collecting these articles, our intention is to bring to your consideration the most critical issues organisations in EMEA are exploring today across the human capital continuum – from leadership and organisation performance to executive and workforce rewards and talent mobility in the broader sense of the word.
Please feel free to download the entire anthology or any of the individual articles listed below.
In his opening address at this year’s World Economic Forum in Davos, Klaus Schwab, Founder and Executive Chairman, stated that capital is losing its status as the most important factor of production in our economic system. While reports of the imminent demise of capitalism are exaggerated, there is growing evidence that we may be entering a new era: the “age of talentism”. Rule of capital will be replaced by creativity and the ability to innovate – in other words, human talent is becoming the decisive competitive factor. What impact is this going to have on how businesses are run?
Contact: Ilya Bonic
Even in a recession environment, talent management remains a critical issue for chief executives and is undeniably a top priority for business success. A 2012 Conference Board survey of 776 chief executives from around the world revealed that the war for talent sits alongside the race to innovate and the hunt for new markets, and it is seen as one of the critical factors defining today’s global business environment. CEOs also list talent as a key factor in addressing other top business challenges, such as business growth, innovation and cost optimisation.
Author: Martin Meerkerk
Who controls the assets that have the most sway with equity analysts? If you said senior talent leaders, you would be right – but probably puzzled as well, given what most investors talk about when they refer to the critical assets of a business.
Authors: Susan Dunn; Bruce J. Avolio (University of Washington)
At Mercer’s Talent Management Summit 2012, participants examined the equation of growth, turnover and managed interventions in both mature and high-growth markets. This article summarises the summit discussion on talent challenges and solutions in fast-growing economies.
Authors: Stevens Sainte-Rose (The Coca-Cola Company), Julia Howes
With the economic downturn continuing worldwide, in Mercer’s latest 2012 Worldwide Survey of International Assignment Policies and Practices we expected to find companies moving towards more diverse compensation practices, such as local plus, localisation and host compensation. In actuality, we have continued to see an overall increase of both short- and long-term international assignments and other types of moves for European and global multinationals.
Authors: Bola Ogun (Reckitt Benckiser), Yvonne Traber
In the wake of the financial crisis, remuneration regulations were imposed on the financial services industry to discourage imprudent risk taking by crucial players in the sector. As these regulations continue to be subject to changes, and as their implementation is nearly complete, organisations in the financial sector have significantly changed their executive compensation programmes. These developments have led to a number of unintended consequences that may potentially present new difficulties for the sector.
In June 2012, Mercer hosted a debate on this topic, more than 60 investors, non-executive directors, senior executives, and human resource and reward professionals from many of the largest companies in the UK attended. The overwhelming view was that a fundamental problem does exist and the current concerns about executive pay should not be dismissed as a temporary phenomenon associated with the difficult economic period, during which there have been calls for pay restraint applying to all.
Organisations continue to face uncertainty in response to the Eurozone crisis, and some employers are concerned over losing top talent after cutbacks and pay freezes in previous years. Mercer experts discuss ideas on how to retain top talent, engage current workforce and astutely allocate rewards investment to enhance your company’s competitive advantage.
In an effort to examine current compensation and benefits practices in sub-Saharan Africa, Global Remuneration Solutions, in partnership with Mercer, conducts approximately 26 remuneration and total cash surveys. While the surveys do not garner as many participants in this region as they do in other parts of the world, the findings offer a significant snapshot of current trends among preferred local employers and multinationals.
Benefits packages have an expiry date, just like most other products and services. We need to continually assess whether they are fit for purpose in terms of attracting and retaining talent. The litmus test is their impact on engagement and productivity, which can be enhanced by addressing both the employee’s needs and the organisation’s needs. Hence, benefits packages work best when they are aligned to the company’s strategic goals and objectives with regard to talent management.
Author: Wolfgang Seidl
Organisations must continually adapt to emerging industry-wide business changes that carry implications for business strategy, an important pillar of which is driving operational efficiency and developing a more flexible cost base. Worldwide leader in the pharmaceutical sector, AstraZeneca, discusses the launch of AZEngage, a global business-enablement programme, designed to drive strategy through HR transformation.
Author: Mark McGowan, Simon Appleby, Alison Cowdall (AstraZeneca)
The workforce measurement (metrics and analytics) discussion has gained momentum within European organisations. Business and HR decision makers increasingly show a strong desire to better understand the business impact and outcomes related to their people investments.
The demographic shift is creating a change in the working environment in Germany and is posing a great challenge for companies. In economics, politics and the media, new forecasts and figures are driving a constant discussion about the ageing workforce and the lack of trained professionals. But are these words followed up with action? What does the reality truly look like in companies? How are companies’ decision makers trying to overcome these challenges, and what changes have been put into place?
Author: Sandra Klement
Even though legislation to ensure equal pay for men and women has been in place across most of Europe for 30–40 years, the disparity in pay continues to exist. As more countries introduce stricter regulations to close the gap, companies are rushing to conduct gender pay audits. Yet, all too often, a simple correlation of jobs performed by men and women is not possible, and gender is simply one of many factors contributing to the discrepancy in salaries.
Authors: Romain Bureau, Eric Bachellereau (Veolia)
Engagement is essential for optimising the value of your human capital. In a highly competitive global market, employers are endeavouring to build a differentiated and strong employee brand, and employees are thinking more about what they want from their work and careers. For both to get maximum value, there needs to be a clear understanding of what the employer is offering in terms of rewards and what the employee is offering in terms of loyalty and commitment. This can be achieved with the right communication strategy.
Contact: Jim Christopher