Talent is still in demand

Yahoo Finance’s Julie Hyman and Brian Sozzi sit down with Mercer CEO, Martine Ferland, at the 2023 World Economic Forum in Davos, Switzerland as they discuss the future of work, mental health support in the workplace, and talent needs.

Video Transcript

JULIE HYMAN Davos will cover many important topics, including the future of work. That’s something that is also a hot topic in the US. Can we be both? Are we all allowed to work from home? Remote? Mental health is also a significant part of the picture. Let’s welcome Martine Ferland. She is the CEO at Mercer, the largest HR consultancy. She is a great person to discuss all these issues. Martine, thanks for being here.

MARTINE FERLAND It is my pleasure.

JULIE HYMAN Let’s begin with hybrid, remote and in-office. What do you think makes the most sense at this time? People I talk to say that there isn’t any consensus.

MARTINE FERLAND Yes, we are still doing the great experiment of hybrid. It’s likely that there’s a consensus that hybrid is a good idea because it allows you to do both.

How do we do this? We haven’t cracked the nut. But it is possible to solve it. It’s a great mix. In truth, I don’t believe we’re ever going back to the pre-pandemic level. It’s gone forever. We need to find a new way of working.

BRIAN SOZZI What’s the effect on businesses? It could be that there is a future of hybrid work.

MARTINE FERLAND Yeah. What we are hearing is that office leaders are comfortable with this mix of working at the office for two to three days and then spending two to three days at home. We know this is a very early stage of trying to establish a new standard. Therefore, we hear a lot of leaders setting policies and expectations. They also set a culture about how they want us all to work together. They know it will backfire. People are taking their time, adapting, and finding a place to lend money together.

BRIAN SOZZI Are executives still concerned about worker burnout?

MARTINE FERLAND The HR community might not believe as much. Is it the HR community being more connected and the C-suite being less? It could be the HR community being closer and the C-suite being further apart. There’s definitely more demand for mental support services from employees. This could indicate that there is discomfort or some need. I believe it’s adaptability, this new environment we live in, trying find your boundaries, anchors and people who need help.

BRIAN SOZZI Be right back. I must go check a Slack email. I’ll be right there. No, I’m kidding. Just kidding. Just kidding.

JULIE HYMAN We’ve also been discussing this topic with other guests. From a mental health perspective, what’s the single most important service that an employer can offer that will make a difference in mental health?

MARTINE FERLAND Yeah. Yes. A business is a team. We all work together to achieve something. We deliver something to the outside. It’s important to ensure that everyone is on the same page and understand each other. Clear communication, open communication and two-way communication are key to mental health.

This is something I am not an expert on. However, in everyday burnout, disengagement, and everyday disconnect that we see, it is important to maintain a psychological connection with people. Why are you here? This is how we create an intersection between our big collective purpose– at Mercer we want to make a real difference in peoples’ lives. Through our HR program expertise, we do it.

These include better retirement plans, better coverage for health, and all the rest. This collective is different from mine– I may have a slightly different purpose and aspiration for my own career. How can we link the two? How can we make sure we have clear goals and that we feel we’re moving toward our goal? It’s important to feel fulfilled and satisfied in your work life.

BRIAN SOZZI Recession is the buzz word at the World Economic Forum at least for this year. Everyone has it on their minds. Do you feel that we are nearing the end of mass layoff announcements in the investment banking sector?

MARTINE FERLAND And technology.

BRIAN SOZZI Technology.

MARTINE FERLAND The crystal ball of recession. When it happens, what form it will take, how long it’ll be, how deep it’ll be. All of this is speculation. My own perspective is limited. However, HR consultants are an expert in HR consulting. The talent agenda is still very high. It is vital to have the right people and succeed through having a thriving employee base. That’s why it’s important to stay at the top. We are currently able to see two dimensions. Two thoughts are necessary.

JULIE HYMAN Or, in other words: Are you saying that workers are still hard-to-find?

MARTINE FERLAND Yes. Yes.

BRIAN SOZZI Other companies are more likely to hire.

MARTINE FERLAND Some. Some. Surprisingly, the tech companies that hire too many workers are often not tech companies. This will be interesting to see how it turns out. According to demographics, the population is on the decline. Population that is working. During the pandemic, baby boomers have retired earlier than usual.

The need for skills and talent remains. It can be quite confusing to see companies lay off, while others continue to hire, often the same companies. It is just a different skill set they require. It’s not easy to understand. We’ve tried to balance the two sides of the coin, trying to be prudent with our spending while still ensuring that we have the right people to deliver the service.

JULIE HYMAN Do you see any drop in demand right now for your services or products?

MARTINE FERLAND It’s not happening right now. That’s why the people agenda is so elevated. Wage inflation creates labor tensions. Skills Upskilling, Transformation of the Way We Work, Technology, Embedding Technology. These strands existed pre-pandemic. These strands have been super-accelerated by the pandemic. As a lever against a recession, it is important to continue to implement digital working automation in the workforce. Also, reskilling people to adapt to these new ways to work. This is all high on the employers’ agenda.

JULIE HYMAN Just a quick note: it sounds like there is some kind of secular big-picture change that will continue even during a recession.

MARTINE FERLAND It all depends on how deep or long the hole is. How deep do you need to batten down the hatches for? Is it just a bit? I think ultimately, of course, people is high cost on companies P&L. We might eventually get there. However, most industries are not showing the signs of it. However, there have been exceptions.

JULIE HYMAN Very interesting. Martine, thank you so much. Martine Ferland, CEO at Mercer.

MARTINE FERLAND Thank you, Julie, and Brian, for having me.

BRIAN SOZZI Appreciate it.