Transforming HR

Our advisory and consulting services and related products help amplify the transformation of your people function and your overall employee experience.


Reinvent with HR transformation

Embark on a transformative journey with our leading-edge HR transformation advisory services. Make sure your organization is future-ready by reinventing your people function, and foster a digital-forward culture to provide an exceptional employee experience.
81% of executives say the business and people agendas have never been more intertwined, making it imperative to transform the people function.

Use HR transformation to drive organizational change

In this fast-paced world, organizations face a multitude of challenges that have a profound impact on the workforce, including complex people-related risks that can have significant implications for the bottom line. As we navigate this complex terrain, executives are progressively acknowledging the imminent challenges and the crucial role HR needs to fulfill. 

feel they are currently in an employee-centric labor market


say they have a skills gap or expect to have one within 2–5 years


anticipate current talent models will struggle to meet demand


feel AI will radically change how HR operates in the future

Seize opportunities grounded in solid people strategies

Amid this dynamic landscape, executives seek trusted partners in their HR functions — people they can rely upon to address the complex challenges of managing a modern workforce while identifying strategic people advantages that can drive action and results today and in the future. These include:
  • Aligning people strategies
    HR needs to become a trusted advisor and partner for the business, driving change and securing a seat at the decision-making table.
  • Reshaping and digitalizing the people function
    It’s time for HR to reshape its service portfolio and design processes that cater to the specific needs of customers to create tangible business impact and emerge as a relatable, proactive, forward-thinking and agile function.
  • Reimagining HR roles to upskill and reskill for todaysthe ‘now’ of work
    With evolving responsibilities and ambitions, HR needs to rethink new and adapted roles and build the right supporting digital capabilities.
  • Generating valuable insights
    People analytics can empower HR to make informed, data-driven decisions and provide insights to shape and influence business outcomes.

Mercer’s HR transformation philosophy

When it comes to transforming the people function, there is no “one size fits all.” Although many organizations face similar challenges — and may be trying to find similar answers — no two organizations are identical. How we reach the aspired-to status is a different journey for everyone. Therefore, it is crucial to know your business, your customers, your vision, your portfolio, your footprint and your HRIT landscape to listen, understand and then design an organization-specific HR transformation to match your culture and generate sustainable benefits.

We believe the HR function is ready to step up to provide tangible business outcomes and data-driven advisory solutions. Through radical simplification of processes and policies, as well as new opportunities for generative AI and automation, the transactional work of HR should not be higher than 25%–30%. This will allow the people function to elevate its core tasks, delivering outstanding services to drive talent attraction, retention, productivity and engagement. In addition, HR needs to build the capability for true strategic advisory as the leading authority on all things people. By embracing digitalization, making work more frictionless and orienting itself toward outstanding employee experience, HR will create a shift that can unlock the full potential of the people function. 

HR strategy sits at the top of the pyramid, supported by HR core with HR administration as the foundation. Two key aspects of HR administration are automation and simplification. HR strategy, HR core and HR administration are used together to create digitization and process orientation, which leads to a lean, agile and focused organization. Automate for efficiency and speed, become flexible, and simplify with customer orientation. 

We follow a human-centered and multidimensional approach to transformation. Everything we do is centered around humans — putting the focus on the needs of the entire workforce as customers of HR. All services, processes and the HR setup are designed around them.

Rethinking how to better design and deliver services starts with purpose. Each of the related dimensions (strategy, content, process, organization, technology, etc.) influences and affects the others. Strategy guides decisions, and changes are likely to influence how technology is applied and how the organization is delivering services.

This is an infinity loop highlighting how the cycle is always on and interconnected. Technology implementation happens here, as part of a deployment but it’s only one part of being digital. Deployment, to sustainment to strategy to activation back to deployment.

How Mercer can support your HR transformation journey

  • HR vision and strategy roadmap

    Know where you are today and how best to move forward. Create a map for your future HR vision and strategy to transform your HR content, processes, organization and technology.
  • HR Target Interaction Model and operating model

    Build an effective and future-proof HR operating model. We help you create an HR Target Interaction Model (TIM) to meet the strategic objectives of the organization and unlock the employee experience.
  • HR process design

    Create exceptional and efficient HR processes and services. Use design, automation and radical simplification to build state-of-the-art HR practices to foster outstanding employee experiences along the moments that matter.
  • Digital deployment

    Reimagine a digital strategy starts with our Digital Equation for Success - Mindset/Vision, People/Audience, Process/Journey and then technology. It's a conscious shift from doing technology projects to becoming a digital function. With unbiased advisory, a digital mindset and customized consulting, this is how we change the way the world works.
  • Talent acquisition, learning and performance management

    Drive talent attraction to ensure you’re bringing in the best talent. We help you set up your employee value proposition, recruiting process, organization, and technology to attract and retain employees who are critical to your future success.
  • Future HR skills

    Upskill your HR teams to build strength for a successful future. Mercer Learning collaborates with leading content providers to offer the best scalable, digital learning solutions customized to meet your HR upskilling requirements.
  • Digital implementation

    Implement a variety of solutions with in-house resources. We partner with an array of providers to select the best solutions for our clients’ individual needs. Our recommendations are impartial and not biased toward any specific vendors.

Related insights

    Connect with an HR transformation specialist

    Contact us today.