R O A D M A P 2025 P O W E R O F W O R K F O R C E R E I M A G I N E D

Transcription

1 H E A L T H W E A L T H C A R E E R M E R C E R S I G N AT U R E C O N C L AV E 2018 R O A D M A P 2025 P O W E R O F W O R K F O R C E R E I M A G I N E D W E L C O M E! D E C E M B E R 7,

2 A G E N D A 09:45 a.m. 10:00 a.m. WELCOME & OPENING NOTE 10:00 a.m. 10:45 a.m. KEYNOTE ADDRESS - THE CEO PERSPECTIVE 10:45 a.m. 11:15 a.m. KEYNOTE ADDRESS - ROADMAP :15 a.m. 11:30 a.m. TEA BREAK 11:30 a.m. - 12:15 p.m. REBUILDING THE TALENT ECOSYSTEM (CHRO PANEL DISCUSSION) 12:15 p.m. 01:15 p.m. REIMAGINING THE WORKFORCE IN AN AGE OF DISRUPTION 01:15 p.m. 02:15 p.m. LUNCH BREAK 02:15 p.m. 03:30 p.m. ROADMAP 2025: ENABLING A THRIVING WORKFORCE (BREAKOUT SESSIONS) 03:30 p.m. 03:45 p.m. TEA BREAK 03:45 p.m. 04:30 p.m. THE WEALTH GAME: REIMAGINE FINANCIAL WELLNESS FOR THE ALGORITHMIC AGE 04:30 p.m. 05:15 p.m. HOT-OFF-THE-PRESS INDIA TRENDS - MERCER RESEARCH ) 05:15 p.m. 05:30 p.m. VOTE OF THANKS Copyright 2018 Mercer Consulting (India) Private Limited. All rights reserved. 2

3 H E A L T H W E A L T H C A R E E R M E R C E R S I G N AT U R E C O N C L AV E 2018 R O A D M A P 2025 P O W E R O F W O R K F O R C E R E I M A G I N E D A N I S H S A R K A R C E O M E R C E R I N D I A

4 K E Y N O T E A D D R E S S T H E C E O P E R S P E C T I V E A R U N A J A Y A N T H I C E O A S I A P A C I F I C & L A T I N A M E R I C A A N D M E M B E R O F T H E G R O U P E X E C U T I V E C O M M I T T E E C A P G E M I N I MERCER

5 K E Y N O T E A D D R E S S R O A D M A P N I D H I G O Y A L F O U N D E R & D I R E C T O R R I S I N G F L A M E MERCER

6 R E B U I L D I N G T H E T A L E N T E C O S Y S T E M C H R O P A N E L D I S C U S S I O N A M I T C H I N C H O L I K A R GLOBAL CHRO T A T A GLOBAL B E V R A G E S R A J E N D R A M E H T A C H I E F P E O P L E O F F I C E R DHFL R A J K A M A L V E M P A T I H E A D H U M A N R E S O U R C E S A X I S B A N K MERCER

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

8 Y O U C A N N O T W A I T U N T I L A H O U S E B U R N S D O W N T O F I R E I N S U R A N C E O N I T We cannot wait until there are massive dislocations in our society to prepare for the Fourth Industrial Revolution Robert J. Shiller 2013 Nobel laureate in economics Yale University professor 8 MERCER

9 What worries many job experts is that automation may prevent the economy from creating enough new jobs throughout industry, the trend has been to bigger production with a smaller work force many of the losses in factory jobs have been countered by an increase in the service industries or in office jobs. But automation is beginning to move in and eliminate office jobs, too. The Automation Jobless, TIME Magazine MERCER

10 W H E N W A S T H I S A R T I C L E P U B L I S H E D? A B C D MERCER

11 G R O W T H W H A T I S D I S R U P T I O N? H A C K I N G G R O W T H E X P O N E N T I A L G R O W T H DISRUPTION L I N E A R G R O W T H T I M E MERCER

12 MERCER

13 G L O B A L T A L E N T T R E N D S S T U D Y C - S U I T E E X E C U T I V E S W H AT D O E S W O R K F O R C E O F T H E F U T U R E M E A N T O Y O U? MERCER

14 KEY SHIFTS AT WORK MERCER

15 W H A T I S C E R T A I N T H E T A L E N T S U P P L Y S I D E AN AGEING GLOBAL POPULATION WITH LIMITED DIGITAL SKILLS 2025 Female Male 56% of adults have no Information and communication technology (ICT) skills or only very basic skills Older 34% of workers possess advanced cognitive skills enabling them to evaluate problems and find solutions using technology 1985 % of population in age categories Younger >40% of those using software at work every day do not have the skills required to use digital technologies effectively MERCER

16 W H A T I S C E R T A I N T H E T A L E N T D E M A N D S I D E 1 Digitalization 2 Robotization Digitalize transactional or repetitive tasks Optimize work allocation Increase workforce efficiency Decrease the number and the gravity of work accidents Enhance quality of service Improve productivity and efficiency Amplify impact of work and the reach of humans MERCER

17 T H E G L O B A L D E M A N D S U P P L Y M I S M A T C H H A S L E D T O T R A D I T I O N A L J O B S B E I N G R E C O N F I G U R E D A N D N E W S K I L L S B E C O M I N G C R I T I C A L T O S U C C E S S AUTOMATION IMPACT ON THE WORKFORCE NUMBER OF JOBS, % 45% of today s jobs are automatable 100% 10% and 35% of the remaining jobs will see their core tasks change significantly 90% AND THE NATURE OF WORK AND COMPOSITION NATURE OF WORK The changing nature of work and of the workforce composition Transact. COMPOSITION External 45% but only up to 10% of jobs are actually threatened 35% Transact. Relational External Internal 55% 35% 55% Relational External Expertise Expertise Internal Today ~2025 Today ~2025 ~2025 Source: Oxford University, OCDE, France Stratégie, World Economic Forum, Mercer and Oliver Wyman analysis MERCER

18 W H I C H H A S S I G N I F I C A N T I M P L I C A T I O N S O N H O W W O R K I S D O N E As work becomes more information-based, exponential technologies can be leveraged to execute tasks 1. UNBUNDLING OF WORK FROM JOBS Jobs are no longer the organizing unit for work; rather, there is a redistribution of tasks between humans and machines, depending on who is best suited to do the job 2. NEW WORK, NEW SKILLS With the rise of new technologies, we will see the emergence of new roles associated with the design, development and maintenance of new technologies 3. HIGHER COGNITIVE COMPLEXITY OF HUMAN WORK The human workforce of the future will execute tasks requiring higher cognitive and emotive complexity, and activities requiring the application of general intelligence THREE SHIFTS ARE UNDERWAY creating significant opportunities for productivity gains and innovation in the enterprise. MERCER

19 THE NEW TALENT MODEL MERCER

20 T H E E M P L O Y M E N T D E A L N E E D S T O S I G N I F I C A N T L Y C H A N G E ONLY 2 IN 5 EMPLOYES BELIEVE THEIR COMPANY HAS A COMPELLING AND DIFFERENTAT E D VAL UE PROPOSITION C H A N G I N G D E M O G R A P H I C S W O R K P L A C E F O R M E F L E X I B L E W O R K I N G GIG E C O N O M Y How can we ensure our proposition resonates with five generations How can we meet individuals evolving health, wealth and career needs? How do we create a culture that enables people to contribute under flexible work arrangements? What can we do to embrace the rise of the free agent? How can we translate our EVP into an Individual Value Proposition? MERCER

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

22 L E V E R A G I N G T H E T A L E N T E C O S Y S T E M T O O R C H E S T R A T E T O M O R R O W S W O R K F O R C E INTERNAL TALENT Internal talent will increasingly be supplemented through other types of talent, and will actively team with other talent types PARTNERSHIP TALENT Sourcing through partnerships will increase in importance as industry and capability barriers blur FREELANCE TALENT Sourcing freelance talent will increase as large groups of the workforce will prefer to work independently CROWDSOURCED TALENT Crowdsourcing will increase, especially where the wisdom of the crowd will lead to more creative, innovative and faster solutions. CO-OPETITION Collaborating with competition will also increase, driven by economies of scale and speed to market W H I C H O F T H E S E TA L E N T P O O L S A R E Y O U TA P P I N G I N T O T O D AY? Source: Mercer Research Talent Ecosystems, Manage critical capabilities to gain a competitive edge Considerations for business and HR leaders MERCER

23 AGENDA FOR TRANSFORMATION

24 A G E N D A F O R T R A N S F O R M A T I O N D E L I V E R I N G T H E W O R K F O R C E O F T H E F U T U R E ALIGN What changes are impacting my workforce and what do they mean? Identify the business and industry trends impacting the workforce Assess the impact of strategy on the workforce design Assess the impacts across the value chain Align leadership around the future workforce vision How do we drive the transformation forward? Establish transformation governance Roll-out enabling technical platforms Manage the implementation Continuously measure progress DRIVE 1 Set the vision and prepare change 2 Map the current and forecast the future workforce WORKFORCE FOR THE FUTURE Deliver the transformation 3 Determine and 4 design workforce Strategies DEFINE What does my current workforce look like, and what could it look like in the future? Gain insight into the size and shape of the current & future workforce in terms of technology impact, and skillsets Understand internal workforce dynamics (e.g. drivers of outcomes) Identify potential talent gaps Evaluate and select the options for addressing gaps How do we get there? Specify the strategies for delivering the future workforce Define solutions that are practical and can be driven by management Implement platforms to enable automation of work and access to external talent pools DESIGN SOURCING REWARDING DEVELOPING OUTPLACING MERCER

25 D E F I N E W I T H I N S I G H T S A N D D A T A S C I E N C E Evaluate current and future supply of talent Translate existing critical jobs to KSAs (knowledge, skills, and abilities) and gather further input on future needs Identify impact of automation on key jobs Identify similarities between adjacent jobs and KSAs Assess supply-demand gaps in terms of key jobs and KSAs MERCER

26 E X A M P L E B U I L D I N G T H E W O R K F O R C E F O R T H E F U T U R E F R O M T H E W O R K F O R C E O F T O D A Y Measuring the degrees of transportability of skills across job families Business Intelligence Analyst Risk Management Analyst Skills that require more development Survey Researcher MERCER

27 E X A M P L E C L O S I N G T H E G A P S T H R O U G H U P S K I L L I N G A N D R E S K I L L I N G Our Systems Examples of MMC-Specific Content Providers Technical Skills Soft Skills Open Resources Videos MERCER

28 R I S E O F T H E T A L E N T E C O S Y S T E M INTERNAL TALENT LEVERAGING THE TALENT ECOSYSTEM PARTNERSHIP TALENT FREELANCE TALENT CROWD SOURCED TALENT CO-OPETITION WorkMarket is helping us transform our store operations across our 8,200 U.S. stores." Charles Hughes Director of IT Field Services - Walgreens MERCER

29 A G E N D A F O R T R A N S F O R M A T I O N W H E R E D O W E S T A R T? By assessing yourself against 5 key dimensions of tomorrow s organizations, you can map your journey to lead through disruption Purpose-driven vision and a culture that rewards innovation, engagement, collaboration, speed and comfort with failure DISRUPTORS Organizations that are already exponential and are future-ready in all dimensions Workflows and metrics that are flexible and scale learning across the enterprise, and are designed with shorter feedback loop cycles Workplaces built on intelligent applications and innovative practices, which allow for autonomy, experimentation and human-machine collaboration Organization design that moves tasks and decisions closest to information, reduces internal friction and enables crossfunctional collaboration and risk-taking Skills and capabilities that enable tomorrow s workforce to operate in the augmented and humanin-the-loop future Organizations that have developed strategies across all dimensions and are seeing results in many PRAGMATISTS Organizations that are preoccupied with solving for today s challenges and have a linear strategy for tomorrow ACCELERATORS Organizations that are selectively responding to pain points across some dimensions, but do not have a unified approach OPTIMIZERS MERCER

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

31 R O A D M A P E N A B L I N G A T H R I V I N G W O R K F O R C E B R E A K O U T S E S S I O N S E M P L O Y E E W E L L N E S S I N N O VAT I N G F O R S U S T E N A N C E G O I N G B E Y O N D M E A S U R I N G E N G A G E M E N T M A N A G I N G E X E C U T I V E C O M P E N S AT I O N D U R I N G O R G A N I Z AT I O N A L C H A N G E TA L E N T A S S E S S M E N T S : A D I G I TA L U P G R A D E Copyright 2018 Mercer Consulting (India) Private Limited. All rights reserved. 32

32 T H E W E A L T H G A M E R E I M A G I N E F I N A N C I A L W E L L N E S S F O R T H E A L G O R I T H M I C A G E S U D E S H S A D A G O P A N F O U N D E R L A D D E R 7 F I N A N C I A L A D V I S O R I E S MERCER

33 FINANCIAL WELLBEING IN THE NEW AGE Presentation by Suresh Sadagopan Founder LADDER7 FINANCIAL ADVISORIES

34 Changed environment Economic unheavels Pace of change is high today Disruption - Obsolescence / irrelevance of entire industries Job insecurity Competitive pressures are very high

35 Personal situation has changed Aspirations / Consumerism Nuclear families / fending for oneself Education has become very expensive Home prices are sky high Longevity in Retirement etc. etc.

36 Our response There has been a sea change in the financial domain as well However, our response has largely been no different from four decades back! The old approach of investing in FDs, insurance, properties & gold won't work.

37 Explosion of products & services The financial services space has transformed. There are a lot many more products available today. The area has become quite complex It's far more difficult to know the right mix of products to achieve our goals than ever before

38 Problems / myths that afflict people Need to know the right time to buy and sell We cannot plan our life; it's too dynamic; let's enjoy the day Diversifying Investments as much as possible in all instruments Investment returns is the most important focus area

39 Problems / myths that afflict people Looking to higher & higher income is the only way to financial nirvana Investing regularly ( through SIP ) is Financial Planning, I buy what my friends / colleagues buy/ suggest Saving for retirement can start after 40/ 45

40 The answer Almost all that the investor thinks is wrong. What is needed is a holistic approach towards finances & proper planning to achieve one's goals. This is called Financial Planning

41 Financial Planning Financial Planning is Skillful management of available resources to fulfil one's goals in a planned manner

42 What is done in Financial Planning? Cashflows & cash adequacy throughout life Scenarios which are probable Risk assessment Risk Profiling/ Asset Allocation

43 What is done in Financial Planning? 12 months cashflow planning Review of all Investments, Insurance, Loans etc. Setting up liquidity, contingency, provisioning Detailed & Actionable recommendations with rationale

44 What is missing here? We attach too much importance to material goals Many times, the goals we take up are a source of stress We don't enjoy life even though everything is going well

45 LIFE PLANNING Life Planning is a precursor to Financial Planning to understand what we truly want to do in life. Once that is clear, we can plan for it!

46 What can one achieve? By doing the life planning exercise we can understand - What is important to us. What will bring vigour, fulfillment & meaning in our lives? What kind of life we want to live, going forward?

47 How do we go about it? There is a process to it - Three questions Exercises / worksheets Facilitation by a Life Planner to get to the vision of a fulfilling life

48 Life Planning stages The process is captured in the word EVOKE Exploration Visioning Obstacles Knowledge Execution

49 HR initiatives HEALTH Gyms, nutritious diet, Events, Talks, checkups CAREER Career assistance, mentoring, skilling, reskilling & upgrading

50 HR initiatives WEALTH Investment help desk, Tax planning/ filing assistance, sessions on investments/ financial well being WELFARE Creche, Flexi- work hours, Picnics

51 HR Challenges Employee motivation / Retention This can be addressed by - Excellent Financial planning & management assistance

52 H O T O F F T H E P R E S S I N D I A T R E N D S - M E R C E R R E S E A R C H V I S H A K H A S A W L A P U R K A R C L U S T E R L E A D E R C O N S U M E R & R E T A I L, F I N A N C I A L S E R V I C E S, M E D I A & E N T E R T A I N M E N T M E R C E R MERCER

53 I N D I A R E W A R D T R E N D S C H A N G E, C H A N G E A G E N T S A N D C H A N G E E N A B L E R S The CHANGE, CHANGE "AGENTS AND ENABLERS The Country The Workforce The Individual HR Socio-political transition and Changing landscape w.r.t. type of jobs, attitudes and behaviors, What s in it for me? How does HR stay relevant in this economic evolution relevant reward and talent changing talent management systems landscape? MERCER

54 E M E R G I N G M A R K E T S P O S I T I O N E D F O R S T R O N G G R O W T H WORLD GDP 3.8% ASIA INDIA 3.8% (3.6% ) 8.1% (7.9% ) AFRICA MIDDLE EAST 6.2% (8.1% ) 3.5% (3.5% ) US 2.3% (2.9% ) 6.5% (4.8% ) 10.9% (10.6% ) EUROPE -0.1% (2.2% ) 4.8% (4.8% ) 3.7% (3.6% ) 4.4% (3.9% ) 3.4% (3.2% ) 8.6% (8.4% ) 8.4% (8.4%) ASIA has: Highest GDP Lowest unemployment GDP Unemployment MERCER 2018 Figures in brackets indicate forecasted values for 2018 Source: 2018 Global Compensation Planning Report 55

55 Inflation Rate E C O N O M I C G R O W T H C O M P A R I N G A C R O S S A S I A 7.0% Year: 2018 (2019 F) 6.0% Legend X-axis: GDP Growth Rate LK: 8.5% Global GDP Growth: 3.6% APAC GDP Growth: 4.8% BD: 10% (10%) 5.0% Y-axis: Inflation Rate : Salary Increase Rate PK: 10% (10%) MM: 9% (10% ) IN: 10% (10%) 4.0% 3.0% MY: 5.5% ID: 8.2% (8.6% (5.5%) ) PH: 8% (8.5% ) VN: 8.9% (9% ) KH: 8% (8%) 2.0% US: 2.9% (3% ) AU: 3% (3%) NZ: 3% (3%) KR: 4.6% (4.7% ) HK: 4% (4.1% ) CN: 6.7% (6.9% ) 1.0% SG: 4% (4%) TH: 5.5% (5.5%) TW: 4% JP: 2.3% (2.4% ) (4%) 0.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% GDP Growth % MERCER 2018 Figures in brackets indicate forecasted values for 2019 Source: April 2018 Global Compensation and Planning Report; 2018 TRS 56

56 G R O W T H A G E N T S W H A T I S D R I V I N G T H E E C O N O M Y Ease of Doing Business Ranking jumped by 23 positions Factory Activity in November expanded at the fastest pace this year I n d e x India s Global Consumption to increase by th Change % 500 m i l l Most Competitive Economy World Economic Forum s global competitiveness index for B i l l i o n MODICARE to cover 500 million of the poorest Indians ER&D market growth projections by FY22 MERCER

57 A D D I T I O N A L L Y T H E R E A R E G L O B A L T R E N D S I M P A C T I N G T O D A Y S L A N D S C A P E Rising protectionism 4 th Industrial revolution Changing business Artificial Intelligence, Robotics regulations Exponential Technologies Increasing regional control REVERSE G L O C A L I Z A T I O N A C C E L E R A T E D R E I N V E N T I O N Pervasive Digitization Scale Age of personas Empowerment to shape experiences People platform Personalized insights M A S S C U S T O M I Z A T I O N R E S K I L L I N G W O R K F O R C E Change Agility Design Thinking Upskill for a digital era MERCER

58 I N D I A R E W A R D T R E N D S C H A N G E, C H A N G E A G E N T S A N D C H A N G E E N A B L E R S The CHANGE, CHANGE "AGENTS AND ENABLERS The Country The Workforce The Individual HR Socio-political transition and Changing landscape w.r.t. type of jobs, attitudes and behaviors, What s in it for me? How does HR stay relevant in this economic evolution relevant reward and talent changing talent management systems landscape? MERCER

59 T I M E O F A C T I O N, N O T A N T I C I P A T I O N L I V I N G P A S T T H E I N F L E C T I O N P O I N T W H A T W E K N O W W H E R E W E A R E A T W H E R E W E A R E H E A D I N G TECHNOLOGY INFLECTION POINT Cloud Technology 3D Printing & Advanced Manufacturing The Internet of Things Automation, Robotics AI & Machine Learning Blockchain Virtual Assistants Wearables BIG DATA MANAGEMENT INTERACTIVE DATA LAYER AUGMENTED HUMANITY DISRUPTIVE TECHNOLOGY Predictive Analytics AI Board Directors Rise of the Free Agent Multi-generational Workforce Longevity Pay Equity Vocality of the Female voice Rise of the Individual Personas AI adaptive systems that anticipate needs Building awareness Getting organized Starting to accelerate MERCER

60 I N D I A S T A L E N T M A R K E T P L A C E 8.1M 2% 28 Yrs 10% 89% 20% Jobs per year are being created in India Market Of the workforce in the non Technology Industry are emerging as specialists Median Age of the workforce in India Increase in female participation in workforce, GDP impact 700M by 2025 U P S K I L L I N G D I G I TA L C O M P E T E N C E Workforce dominated by Millennials, Gen X and Baby Boomers at Professionals and Para Professionals 20% of roles in their organization will cease to exist in 5 years I N C R E A S I N G A C C E S S T O C O N T I N U O U S L E A R N I N G T H R O U G H M U LT I P L E P L AT F O R M S MERCER

61 C H A N G E A G E N T, I M P A C T O N O R G A N I Z A T I O N S T R U C T U R E LOWER THAN ALL-INDUSTRY ALL-INDUSTRY HIGHER THAN ALL-INDUSTRY SSO, Chemical, Life Sciences, Hi-tech EXEC: 1% Consumer, Manufacturing Hi Tech, SSO MANAGEMENT: 17% Auto, Life Sciences, Consumer, Chemical, Manufacturing, Hi-tech SSO, Chemical, Consumer, Manufacturing, Auto PROFESSIONAL: 64% Life Sciences, Hi-tech Hi-tech, Life Sciences, Manufacturing, Auto, Consumer Chemical, Manufacturing, SSO MERCER 2017 MERCER 2018 PARA PROFESSIONAL : 18% 62

62 S U S T A I N I N G T H E S T R U C T U R E T A L E N T S O U R C I N G 2017 ALL INDUSTRY ATTRITION 2018 (F) ALL INDUSTRY ATTRITION EXEC 56% Of the organizations have increased the headcount for this year 59% Of the organizations are looking at increasing the headcount for next year 11.7% BUY 8.6% 6.8% 8.1% MANAGEMENT 8.6% B U Y : B U I L D PROFESSIONAL B U Y : B U I L D : B O R R O W 12.5% Is it time to relook at our traditional way of looking at talent sourcing? 8% PARA PROFESSIONAL B U Y : B U I L D 9.4% MERCER

63 T A K I N G A G E N D E R V I E W F U N C T I O N A L S E G M E N T A T I O N Human Resources Marketing Finance Engineering Manufacturing Supply & Logistics Engineering Executive Management Professional Para Professional MERCER 2018 Source: 2017 India All Industry Total Remuneration Survey 64

64 S E I Z I N G T H E G R O W T H O P P O R T U N I T Y T H R O U G H E M E R G I N G M E G A C I T I E S In the next 10 years, nearly 50% GDP growth will come from 440 growth economy cities and growth markets will be home to 83% of the world s megacities Indian cities score high on their ability to provide good work, appropriate home conditions to leverage the opportunity, important to understand what drives the decision to move Therefore 1. Critical to create a compelling EVP 2. Address low-hanging fruit to ensure staying power 3. Build IVP from the EVP for different personas within the organization MERCER

65 O N E I N D I A O N E W O R K F O R C E C I T Y D I F F E R E N T I A L I M P A C T TIER 3 X TIER TO 6X TIER TO 1.75 Largest gap between Tier 1 and Tier 3 cities exists in Legal (9X) Communication and Corporate Affairs (4-5X), Marketing (3.5X) R&D (3X) Largest gap between Tier 2 and Tier 3 cities exists in Legal (6X) R&D and Communication (1.8X) Other functions are in the range of 1-1.3X Smallest gap between Tier 1 and Tier 2 cities exists in Legal (1.5X), R&D and Manufacturing Mercer Quality of Living Survey Worldwide Rankings 2018 Ranking City 142 Hyderabad 142 Pune 149 Bengaluru 151 Chennai 154 Mumbai 160 Kolkata 162 New Delhi Mercer Cost of Living Survey Worldwide Rankings 2018 Rank as of March City MUMBAI NEW DELHI CHENNAI BENGALURU KOLKATA MERCER 2018 Source: 2018 India All Industry Total Remuneration Survey 66 Compensation: Comp2 (Annual Guaranteed Cash)

66 C O N C E P T O F W O R K M E N H A S U N D E R G O N E S I G N I F I C A N T C H A N G E Unbundling of work from jobs + = New work, new skills WHICH IS LEADING TO CHANGE IN HOW WE WORK Higher cognitive complexity of human work 14% 25% 21% 27% 40% 82% 55% 54% 66% 65% 74% 31% 21% 13% 8% North East West South 56% Unionization continues to be a reality tending increasingly towards collaborative outcomes HSC/ SSC ITI Diploma/ Graduate Automation & enhancement of work profile needs higher qualifications Entry differs by industry type MERCER 2018 Source: Mercer Workmen Benchmarking Studies 67

67 T O T A L R E W A R D S C H A N G I N G I N - L I N E W I T H C H A N G I N G A S P I R A T I O N S & W A Y O F W O R K I N G Drivers of operators/workmen compensation L O C A T I O N 10-12% 9-12% Salary increase across regions comparable to white collar increases O F P L A N T 8-10% 15-20% E X P E R I E N C E O F O P E R A T O R S 12-14% 5-12% Additionally an increasing emphasis on compensation variability through Performance Linked Bonus E D U C A T I O N Q U A L I F I C A T I O N S 9-11% 5-8% Pay premiums across regions (ITI across experience) Variable Pay 10% Benefits moving beyond the traditional & focusing more on employee aspirations of growth & flexibility Guaranteed Cash 90% MERCER 2018 Note: Figures are for median Annual Guaranteed Cash Compensation, Differential is on overall India 68 Median Compensation Figures

68 C R I T I C A L R O L E S W H A T H A S C H A N G E D? R&D R&D P R ODUCT M AN AGEMENT S AL E S S AL E S R&D E N GINEERING M AR K E T I N G S AL E S E N GINEERING MERCER

69 I M P A C T O N S A L A R Y I N C R E A S E S? R A T I O N A L I Z A T I O N A C R O S S Y E A R S I N D U S T RY M E R I T I N C R E AS E All Industry 10.0% 10.0% 10.0% FY 2019 (F) 10.0% Auto Chemical 10.0% 10.0% 10.0% 10.3% 10.0% 10.0% FY % Life Sciences 10.6% 10.0% 10.6% SSO 9.0% 8.9% 9.5% FY % High Tech 10.3% 10.0% 10.0% FY % Consumer 10.5% 10.0% 10.3% Manufacturing 10.0% 10.0% 10.0% FY % Logistics 9.0% 8.0% 8.9% 2019F MERCER 2018 Source: 2018 India All Industry Total Remuneration Survey 70

70 P A Y D I F F E R E N T I A L S A C R O S S I N D U S T R I E S T E L L S I T S O W N S T O R Y O N S T R U C T U R E & P A Y P H I L O S O P H Y MULTIPLE BETWEEN FUNCTION HEAD & HEAD OF ORG 32 MULTIPLE BETWEEN SUB-FUNCTION TO FUNCTION HEAD Similar gaps but different talent environments & priorities 10 Traditionally lower starting salaries MULTIPLE BETWEEN ENTRY TO SUB- FUNCTION HEAD 0 All Ind Chemical Manufacturing Auto MLS Hi Tech SSO Consumer Double digit increases however will persist as the pay ratios from entry-level to senior leadership continue to be very high an outcome of low entry salaries & talent market continuing to be volatile MERCER across the hierarchy

71 STI as a Percentage of Guaranteed Cash%(median) S H O R T T E R M I N C E N T I V E S T A R G E T E M P L O Y E E C A T E G O R Y O V E R A L L E L I G I B I L I T Y T A R G E T V A R I A B L E B O N U S 2018 HEAD OF ORGANIZATION 30.00% EXECUTIVE 22.00% MANAGEMENT- SALES MANAGEMENT - NON SALES 15.00% 15.00% PROFESSIONAL SALES PROFESSIONAL NON SALES 11.60% 11.00% 10.00% MERCER 2018 Source: 8.30% 2018 India All Industry Total Remuneration Survey 72

72 L O N G - T E R M I N C E N T I V E S P L A N S H O W A R E T H E Y E V O L V I N G? 3% PERFORMANCE CASH LONG TERM CASH 18% STOCK / SHARE OPTIONS 33% 4% SARs 25% PERFORMANCE SHARE / SHARE UNITS 65% RESTRICTED SHARE / SHARE UNITS MERCER 2018 Source: 2018 India All Industry Total Remuneration Survey Note: Some of the organizations extend more than one type of LTI, therefore total exceeds 100% 73

73 B E N E F I T S R E M A I N K E Y D R I V E R S O F C H A N G E Market Competition Cost Optimization Employer Brand Employee Feedback 89% 81% 77% 77% Driving factors for benefits review and/or change MERCER 2018 Source: Mercer APAC Benefits Snap Poll,

74 K E Y A R E A S O F C H A N G E O B S E R V E D I N B E N E F I T S 44% O F E M P L O Y E R S I N A S I A A R E R E V I E W I N G O R C H A N G I N G T H E B E N E F I T S P A C K A G E T H I S Y E A R. Health/ Medical benefits Insurance benefits Flexible Benefits Leave benefits Flexible Working Arrangements Innovative benefits Employee benefits under review/ change MERCER 2018 Source: Mercer APAC Benefits Snap Poll,

75 I N N O V A T I V E B E N E F I T S A P A C Pet Insurance Employer Built Housing Special Wage for Employee Parents HIV Coverage Vacation Leave for Social Botox Leave Activities/ Long Service Leaves Tele Health Date Night Sponsorship E Book Allowance Fitness Devices Fertility Treatment Medical Insurance for Retired Employees Benefit Market Place Psychiatric Treatment Autism Benefit Surrogacy Benefits Sabbatical Stem Cell Treatment Flu Vaccinations Crèche Facilities I N D I A Source: Mercer Benefits Monitor TM MERCER 2018 All 2018 data is from the latest release of MBM 76

76 I N D I A R E W A R D T R E N D S C H A N G E, C H A N G E A G E N T S A N D C H A N G E E N A B L E R S The CHANGE, CHANGE "AGENTS AND ENABLERS The Country The Workforce The Individual HR Socio-political transition and Changing landscape w.r.t. type of jobs, attitudes and behaviors, What s in it for me? How does HR stay relevant in this economic evolution relevant reward and talent changing talent management systems landscape? MERCER

77 A L L I N A L L I N D I A N E M P L O Y E E S A R E L O O K I N G F O R.. C H A N G E AT SPEED WORKING WITH PURPOSE P E R M A N E N T FLEXIBILITY P L AT F O R M F O R TA L E N T D I G I TA L F R O M I N S I D E O U T 89% employees in India want opportunity to grow both personally and professionally Thriving employees in India are 2x more likely to work for a company with a strong sense of purpose 79% of employees in India say they would consider working on a contract basis Only 73% of employees feel that their organizations understand their unique interests and skills India leads global indicators on Compelling EVP, and Change Agility Career promotion opportunities Leaders should set clear direction More flexible work options Working with the best and brightest Opportunity to learn new skills MERCER 2018 Source: 2018 Mercer Talent Trends Study - India 78

78 P E R M A N E N T F L E X I B I L I T Y T H E E M P L O Y E E E X P E R I E N C E 83% of thriving individuals in India say their company offers them flexible work (compared to 59% of non-thriving) 52% of all employees in India want more flexibility Only 3% of companies in India say they are Flex leaders 20% assess every job for its ability to be done flexibly; most have ad-hoc arrangements BUT 58% have had a request for flex turned down 35% are concerned that flexibility will impact promotion prospects What's working? Managing on results, not hours (77%) Colleagues being positive (76%) Manager being supportive (75%) 98% of HR have concerns Ability to apply fairly to all employees Ability to measure and reward contribution Ability to manage career progression Impact on teamwork and face to face collaboration Impact on results/outputs MERCER

79 L O O K I N G B E Y O N D B O R D E R S A S A L E V E R F O R T A L E N T E N G A G E M E N T & D E V E L O P M E N T M O B I L I T Y I N C R E A S I N G N - 14 N B E C O M I N G S T R AT E G I C. 50% INDIA Companies anticipating increase in number of strategic assignments N 59 India database 64% 42%.... A N D B E I N G U S E D A S A T A L E N T L E V E R India Global Companies anticipating a rise in number of long term assignments in coming two years 4 1 % International assignments for career management / leadership development 4 1 % Provide specific technical skills not available locally...leading to 1. O F F E R I N G O P P O R T U N I T I E S T O M O R E Y O U N G A S S I G N E E S (70% companies anticipate increase) 2. F L E X I B I L I T Y O F B E N E F I T S & P O L I C I E S A S W E L L A S C O M P E N S AT I O N A P P R O A C H to cater to diversity of assignees MERCER 2018 Source: Mercer s India & Global WIAPP Survey 80

80 I N D I A R E W A R D T R E N D S C H A N G E, C H A N G E A G E N T S A N D C H A N G E E N A B L E R S The CHANGE, CHANGE "AGENTS AND ENABLERS The Country The Workforce The Individual HR Socio-political transition and Changing landscape w.r.t. type of jobs, attitudes and behaviors, What s in it for me? How does HR stay relevant in this economic evolution relevant reward and talent changing talent management systems landscape? MERCER

81 W A Y S H I G H - P E R F O R M I N G H R O R G A N I Z A T I O N S T H I N K D I F F E R E N T L Y A B O U T T O T A L R E W A R D S 1. More likely to include elements beyond compensation and health benefits in their total rewards definition especially the experiential elements 2. More likely to communicate holistically about total rewards (and use more vehicles to get the message out) 3. Slightly less likely to segment their total rewards strategy to differ program offerings by employee group 4. More likely to use employee perspective and cost/affordability studies to analyze their total rewards strategy (in addition to external benchmarking) 5. More likely to measure the effectiveness of their total rewards strategy, and use more metrics to do so 6. More likely to revisit total rewards strategies to align with changes in the company strategy rather than to improve attraction and retention MERCER 2018 Source: 2018 Mercer Select Intelligence - Total Rewards Strategies in High -Performing HR Organizations 82

82 The future depends on what you do today. MAHATMA GANDHI MERCER

83 H E A L T H W E A L T H C A R E E R M E R C E R S I G N AT U R E C O N C L AV E 2018 R O A D M A P 2025 P O W E R O F W O R K F O R C E R E I M A G I N E D S H A N T H I N A R E S H I N D I A B U S I N E S S L E A D E R, C A R E E R & R E G I O N A L P R A C T I C E L E A D E R, W O R K F O R C E R E W A R D S - A M E A M E R C E R

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