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

M E R C E R W E B C A S TG L O B A L I S A T I O N S E R I E S

G L O B A L I S AT I O N : T H EM E G A - T R E N D C H A N G I N GT H E H R F U N C T I O N

Mark HobleChris CharmanFinn KeoughAnna Tweed

30 SEPTEMBER 2015

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G L O B A L I S A T I O N W E B C A S T S E R I E SW H E R E W E A R E

Title Date Speakers

1 Globalisation: The Mega-Trend Changing the HR Function 30 September

Chris CharmanMark HobleFinn KeoughAnna Tweed

2 One Size Fitting All? The Impact of Globalisation on Executive andWorkforce Compensation and its Management. 14 October

Chris CharmanMark Hoble

3 Think Globally, Engage Locally: Managing Engagement Across aDiverse Organisation 27 October

Finn KeoughKimmo Parkki

4 Building the global skills for the future 11 NovemberMichael GroverTegwen MorganAnna Tweed

5 Rewriting the Rule Book for Managing Performance Globally 25 NovemberJen SaundersAnna Tweed

6 From Barriers to Borders: Developing Diverse Global Talent 8 December Michael Grover

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T O D AY ’ S S P E A K E R S

Mark HoblePartner

Chris CharmanPrincipal

Anna TweedAssociate

Finn KeoughPrincipal

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GLOBALISATION:THE MEGA-TRENDCHANGING THEHR FUNCTION

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

The increased interconnectedness andinterdependence of peoples andcountries that represents afundamental change from a world ofindividual and independent states to aworld of state interdependence1

1. The World Health Organisation

A single cup of Starbucks coffeecan depend upon as many as 19different countries. Between thecoffee beans, the milk, the sugar

and the paper cup, Starbuckscoffee is a global hub that connectsthe poorest countries in the world

with some of the wealthiest.

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T R A D EA N I N T E R - C O N N E C T E D W O R L D

Total value of world trade exploded from $57 billion in 1947 to$14.9 trillion in 20101

1. Manfred Steger, Globalization: A Very Short Introduction (3rd edn), Oxford (2013)2. World Trade Organisation World Trade Report 2013

The number ofMNC’s

globally hasrisen from

7,000 in 1970to about

80,000 in 2012

100 largest MNC’shave a total

foreign directinvestment of over

US$374 billion

200 largestMNC’s accountfor over half of

the world'sindustrial

outputMNC’s

account forover 70 per

cent ofworld trade

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M I G R AT I O NA N I N T E R - C O N N E C T E D W O R L D

Source: Wittgenstein Centre for Demography and Global Human Capital

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O U T S O U R C I N GA N I N T E R - C O N N E C T E D W O R L D

IT firms in India alone grew their global market share to 27.1%in the period between Jan – Jun 2015 from 23.6% in the firsthalf of 20141

0

20

40

60

80

100

120

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Rev

enue

($U

SB

illio

n)

Global market size of outsourced services 2000 - 2014

1. The Times of India – August 2015

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

Internet users per 100 inhabitants

In 2015 there are more than 1.3 billion Facebook users – thatis more users than were on the entire internet in 20081

1. PostCapitalism: A Guide to Our Future – Paul Mason

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

Globalisation trends will have a profound impact on all areas of the HR function andthese will each be covered in a separate webcast throughout the season

COMPENSATION

ENGAGEMENT ANDCOMMUNICATION

PERFORMANCEMANAGEMENT

TALENT DIVERSITY

GLOBALLEADERSHIP

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G L O B A L I S A T I O N W E B C A S T S E R I E SO N E S I Z E F I T T I N G A L L ? T H E I M P A C T O F G L O B A L I S A T I O NO N E X E C U T I V E A N D W O R K F O R C E C O M P E N S A T I O N A N DI T S M A N A G E M E N T

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G L O B A L I S A T I O N W E B C A S T S E R I E SO N E S I Z E F I T T I N G A L L ? T H E I M P A C T O F G L O B A L I S A T I O NO N E X E C U T I V E A N D W O R K F O R C E C O M P E N S A T I O N A N DI T S M A N A G E M E N T

Convergence of structure & governanceHomogenisation of regulationInstitutional shareholder views globallyDiversity of Board nationality

Career frameworksConsistency and efficiencyEnabling global career mobilityStrategic insight through data and metrics

Remuneration philosophyBenchmarking in a global talent marketEqual vs. fair: currency and cost of livingIncentive plan design and payouts

Isremuneration

becomingmore and

more similarglobally?

CONSISTENTGLOBAL

FRAMEWORKS

THE MARKETFOR TALENT

VS.THE MARKET

FOR PAY

GOVERNANCEAND PLAN

DESIGN

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G L O B A L I S A T I O N W E B C A S T S E R I E ST H I N K G L O B A L L Y , E N G A G E L O C A L L Y : M A N A G I N GE N G A G E M E N T A C R O S S A D I V E R S E O R G A N I S A T I O N

The situation…

• Governance, centralisation and mobility are increasingly important, as is a uniformcustomer/client experience

• Social media enables employees and potential recruits to quickly form and shareopinions about you – building or eroding your reputation

…yet in different geographies…

• Employees have diverse needs, wants and skills

• Work/life conditions and market expectations will vary

Therefore…

• Having a robust and authentic global employee value proposition (EVP) is critical toengaging your employees, but it’s equally critical that it allows for localdifferentiation and implementation

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G L O B A L I S A T I O N W E B C A S T S E R I E ST H I N K G L O B A L L Y , E N G A G E L O C A L L Y : M A N A G I N GE N G A G E M E N T A C R O S S A D I V E R S E O R G A N I S A T I O N

Approach

1. Define where you want to be – must be authentic because there is no hiding

2. Know where you are – employee research + public information

3. Address your challenges – e.g. virtual teams, acquisition integrations, etc.

4. Cascade globally, allowing for flexibility – requires resource to build capability in allgeographies

5. Implement locally – allows for tailoring to meet employee needs and engage in away that’s relevant

How it can be done – case study

• Nestlé – global launch of flexible total rewards policy with:• Supporting introductory materials• Toolkit to enable local implementation

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G L O B A L I S A T I O N W E B C A S T S E R I E ST H I N K G L O B A L L Y , E N G A G E L O C A L L Y : M A N A G I N GE N G A G E M E N T A C R O S S A D I V E R S E O R G A N I S A T I O N

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

Geographicexpansion

Global mergers,acquisitions, JVs

Global customersand suppliers

Global talent

The requirements of global leaders are different - an appreciation of diversity and crosscultural knowledge is critical and has never been in greater demand

Today’s reality requires leaders to think & act globally regardless of level or travel budget

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

Passagefive

Passagefour

Passagethree

Passageone

Passagetwo

GlobalExecutivePassage

Fullpackage

BaselineAttributes

GlobalMindset

GlobalMindset

GlobalSkills

If you wait until top level leadership forglobal development you’re too late

We have defined the baseline attributes,skills and mindset for global leadership

Develop leaders with and withoutassignments

Identify the criteria for global leadershipsuccess & assess leaders against them

Set up an infrastructure and cultureto grow your talent pipeline

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

EAST COAST / CENTRAL

W EST COAST

CENTRAL AMERICA

NORTH AMERICA MIDDLE EAST & ASIA

PACIFICAFRICA

EUROPE

DECLINED

IMPROVED

DECLINED

SAMESAME

DECLINED

IMPROVED

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

EAST COAST / CENTRAL

W EST COAST

CENTRAL AMERICA

NORTH AMERICA MIDDLE EAST & ASIA

PACIFICAFRICA

EUROPE

Technologyto retain

objectivity

Disruptivepractices

Focus onthe

individual

Segment theworkforce

Increaseautomation

Managers ascoaches

Drive TalentManagement

Our point of view• Clarifying the point of performance

management• Redefining performance• Managing the performance of a

diverse workforce• Consequences for reward

200 millionunemployed

globally Globally 34% ofemployers can’t fill

available jobs2

74% technical skills

68% supervisory/managerial skills4

Talentism isthe new

Capitalism1

1Klaus Schwab, Founder & Executive Chairman of the World Economic Forum; 2ILO 2013 and Manpower Group’s Talent Shortage Survey;317th Annual Global CEO survey, PwC 2014; 4Mercer global Oil & Gas Talent Outlook and Workforce Practices Survey 2014

CEOs areconcernedabout findingkey skills3

63%

G L O B A L I S A T I O N W E B C A S T S E R I E SF R O M B A R R I E R S T O B O R D E R S : D E V E L O P I N G D I V E R S EG L O B A L T A L E N T

G L O B A L I S A T I O N W E B C A S T S E R I E SF R O M B A R R I E R S T O B O R D E R S : D E V E L O P I N G D I V E R S EG L O B A L T A L E N T

BUYERS66%

BUILDERS1

34%Borrow

?

1Mercer Talent Barometer Survey 2013

NewTalent

SourcesMobility

WOMEN

GENERATIONS

LGBT

Source: Mercer Worldwide International Assignment Policies and Practices Survey: Boston Consulting Group “Decoding Global Talent” study

G L O B A L I S A T I O N W E B C A S T S E R I E SF R O M B A R R I E R S T O B O R D E R S : D E V E L O P I N G D I V E R S EG L O B A L T A L E N T

88%concerned about findingsuitable candidates for

international assignments

64%globally would considerworking abroad rising to

70% of Millennials

Internationalexperience

pre-requisite forexecutive or leadership

roles

Only 20%female

assignees

LGBT Mobility

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Q U E S T I O N S

Mark HoblePartner

Chris CharmanPrincipal

Anna TweedAssociate

QUESTIONSPlease type your questions in the Q&A section of the toolbarand we will do our best to answer as many questions as wehave time for.

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www.mercer.com/webcastsView past recordings and sign up forupcoming webcasts

Finn KeoughPrincipal

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

Title Date Speakers

1 Globalisation: The Mega-Trend Changing the HR Function 30 September

Chris CharmanMark HobleFinn KeoughAnna Tweed

2 One Size Fitting All? The Impact of Globalisation on Executive andWorkforce Compensation and its Management. 14 October

Chris CharmanMark Hoble

3 Think Globally, Engage Locally: Managing Engagement Across aDiverse Organisation 27 October

Finn KeoughKimmo Parkki

4 Building the global skills for the future 11 NovemberMichael GroverTegwen MorganAnna Tweed

5 Rewriting the Rule Book for Managing Performance Globally 25 NovemberJen SaundersAnna Tweed

6 From Barriers to Borders: Developing Diverse Global Talent 8 December Michael Grover

© MERCER 2015 25