Change defines the modern economy: supply chain disruptions, regulatory shifts, action to fight climate change, employees on the move.
These changes can be difficult for organizations to manage. But to manage the short-term, you must think in the long term: understanding the investment trends that define modern markets, as well as the structural shifts in Canadian business. It means knowing what they mean for society, and what they mean for your organization.
Only after you understand what is changing can you begin to plot a path forward – and find the opportunity in the squeeze.
Prepare for the metamorphosis
Inflation is on the mind of every policymaker, every investor and every consumer in Canada. But it is likely to be transitory.
What is the market outlook for 2022? What lies beyond inflation? How will businesses deal with an increasingly decentralized financial system, a rising Asian continent, and a universal push to decarbonize the energy system?
A new era requires new methods – particularly for investors with a long-term view.
The old 60/40 portfolio may not hold up forever. What investment trends should Canadian plan sponsors be following? Now is the time to assess your long-term strategy and ensure it reflects emerging investment trends. These trends include the impact of inflation on investment portfolios, allocations to Asian markets, to adapting to new ways in which finance is delivered.
Deliver what matters most to employees
Employees have more bargaining power than ever. Some of the forces granting employees greater bargaining power – such as inflation – are likely to be temporary. But others – like the rising acceptance of remote working – are likely to be permanent.
In the New Normal, employees will have more options on the job market than ever. But we know that salary increases, in many cases, are not matching inflation. Is your organization keeping up?
Employees know they have more job options than ever before – are they taking advantage of them?
In this environment, where the market for talent is more competitive than ever, Canadian organizations must act today and invest to retain their employees and attract the talent they need to succeed.
Develop a culture of care
The COVID-19 pandemic took a toll on the healthcare system – public and private.
How will plans withstand a predicted wave of procedures, especially in an inflationary environment? Will costs to plans rise? Will plans be able to withstand a deluge of claims, as individuals move forward with long-delayed procedures?
The challenges facing organizations are not only short-term. The pandemic did not only affect people’s physical health. COVID-19 damaged mental health and wellness across the every sector of the economy, raising organizations’ people risk.
Addressing these long-term problems requires long-term solutions. While every organization is different, helping HR teams develop a culture of care is a critical first step.
Short-term challenges do not affect long-term trends. It’s only in understanding your organization’s position within those trends that you will be able to carve out a path to success.
Read our whitepaper to understand the themes that will define your 2022, and the opportunities you may discover.
To begin to plot your path forward, contact your Mercer consultant today