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3 Global Talent Trends 2022: Rise of the relatable organization 1 Marsh McLennan. Global Risks Report, 2022. Available at www.marshmclennan.com. Introduction Two tumultuous years, much of which have been spent six feet apart, have paradoxically brought organizations and their workers closer together. With worker trust at an all- time high, a moment of profound opportunity has arrived: to pick up the tools of empathy learned and honed during this period and carve a new way of partnering that is more relatable, sustainable and attuned to the new shape of work. The fragility of the post-pandemic recovery shows that the COVID-19 era of complexity is not over. Living in a heightened risk environment — where risks and opportunities intersect in unexpected ways — is the new reality. Whether we call it the Great Resignation or the Great Reassessment, a fundamental change in people's values is underpinning a structural shift in the labor market. A stronger-than- expected economic rebound in some geographies has enabled workers to take action: witness the labor crunch in the US and the "tang ping" (lying flat) movement in China. Evidence from nearly 11,000 voices reveals that winning organizations are becoming more relatable Organizations predicting high growth, those with a thriving workforce and those with innovation cultures all share one agenda this year: a focus on becoming more human and, in turn, more relatable. These relatable organizations are challenging legacy notions of value-creation and redefining how they contribute to society. They are rethinking processes, ways of working and digital investments that deliver on a new vision for work, working and the workplace — a vision that unlocks potential through values, partnership, wellness, agility and energy. Continued turbulence impacts 2022 ambitions Companies' reinvention plans will come up against a host of constraints in 2022. The strained supply chains and geopolitical conflict of the last two years remain. So do concerns over inequality, slow progress on social justice and the de-carbonization agenda that is currently slated for a disorderly net-zero transition. 1 Market gyrations and inflation concerns continue too, as views diverge over whether to take bold action and how to mitigate risk. We all learned lessons during the past two years — the fingerprints of which are evident in executives' plans for business resilience and recovery. In the event of another economic downturn, C-suite executives plan to make strategic investments, not only cut costs (see Figure 1). There is an interesting comparison to the last time executives had to contemplate an impending downturn, with fewer planning to leverage variable staffing models (down from 39% in 2019 to 29% today) and reduce headcount (down from 30% to 26% today). This reflects a pandemic-era lesson — that companies can be more nimble in difficult times by retaining people who know the culture and are already committed to the journey — and acknowledges the unique challenges of a tight economic climate combined with a hot labor market. Figure 1. In the event of an economic downturn, executives would: Make strategic investments Increase strategic partnerships 36 % Increase use of AI and automation 34 % Accelerate reskilling 32 % Change business/product mix 25 % Increase M&A activity Outsource investment responsibilities 23 % 22 % Reduce operational costs / freeze expenses Cut costs 38 % Curtail travel and/or mobility assignments 33 % Increase use of a variable staffing model 29 % Decrease bonus pools 27 % Reduce headcount 26 % Slow down digital transformation 23 % Scale back investments in health and well-being 22 %