Effective human capital management is about creating the right workforce to meet business objectives and achieve sustainable competitive advantage. Mercer works with organizations globally to develop comprehensive workforce strategies and specific workforce solutions that will attract, engage, develop and retain the workforce each organization needs to succeed. Our proven workforce analytics approach ensures that human capital strategy is aligned with business strategy, enabling organizations to identify and address gaps in their talent mix and make targeted workforce investments that drive better business outcomes.

The role of workforce analytics

Mercer’s data-based consulting leverages a comprehensive set of proprietary tools and analytics designed to help organizations establish clear and measurable links between their human capital programs and policies and their business results. These tools, which feature both quantitative and qualitative methods, address the growing demand for organizations to manage their people programs more effectively and to demonstrate a return on their investment in these programs. Mercer’s approach helps organizations understand their current human capital needs and challenges, project their future needs and challenges, and create talent solutions that drive business value.

About our tools and analytics

Internal Labor Market Analysis®

Mercer’s Internal Labor Market (ILM) Analysis® examines the flow of people into, through and out of an organization, answering fundamental questions about a firm’s workforce, such as who gets hired, who performs well, who advances and who stays. It also provides critical insights into the operation of an organization’s management system, reflecting actual (versus perceived) practices and their consequences. It focuses on causal links between critical workforce events and behaviors over time, thus revealing which attributes and management practices account for workforce outcomes.

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External Labor Market Analysis®

Mercer’s External Labor Market (ELM) Analysis® evaluates local, regional and national labor supply and demand conditions around the world. Even within a metropolitan area, labor market conditions may vary. Understanding the distribution of an organization’s workforce and varying labor market characteristics (such as educational attainment rates and commuting distance) informs recruiting efforts, pay decisions and the selection of alternative site locations.

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Business Impact Modeling®

Mercer’s Business Impact Modeling® tool quantitatively identifies and models the workforce characteristics and workforce management practices that are the strongest drivers of business outcomes such as productivity, profitability, growth, quality and customer retention.

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Human Capital Scan®

Mercer’s Human Capital Scan® provides a qualitative gauge of the importance and relative alignment between business objectives and the various components of human capital strategy. Often the first step in a series of strategy and measurement diagnostics, it builds a better understanding of human capital issues within an organization’s unique business context and provides a consistent framework for making human capital decisions.

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Mercer Workforce Forecaster™

The Mercer Workforce Forecaster™ is a web-based planning tool that enables Mercer to analyze an organization’s current workforce profile, view historical trends, and model future changes in workforce size and cash compensation, segmented by categories such as business unit, job family and gender. It can support a range of human capital decisions – from total rewards program design to overall workforce planning and strategy.

 Download Mercer Workforce Forecaster™ PDF

 Watch Mercer Workforce Forecaster™ video

Pay Equity Calculator™

Mercer’s Pay Equity Calculator™ tool provides an efficient way to review and resolve pay inequities for an organization’s entire workforce, using a methodology that meets stringent new government standards for self-evaluation. A company’s own data are used to construct statistical models that reveal its unique drivers of pay. These drivers can help to develop systemic gaps and solutions – that is, HR practices that can stop pay gaps from emerging. The pay drivers also help identify employees who are paid significantly less than expected and can be used to recommend potential pay adjustments.

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Performance Sensitivity Analysis®

Mercer’s Performance Sensitivity Analysis® tool allows an organization to connect actual equity performance – and the related risk – to the design of incentive compensation and other human capital practices. The analysis of risk covers a number of dimensions, including overall volatility in total shareholder return (TSR) and the sources of that volatility – that is, the portion attributable to firm-specific, industry-driven and market-based factors. The tool provides a quantitative basis for appraising the relative cost and incentive value of using equity-based rewards, considering both the internal and external factors affecting total shareholder returns.

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