After facing the shocks and uncertainties of 2009, organisations will be planning carefully for 2010 throughout the autumn season. Market and economic forces will continue to create unprecedented challenges, but some emerging certainties mean we can all plan for 2010 with more confidence than was possible 12 months ago. While activity is returning to the market, it is doing so slowly: we are seeing signs of growth once more, but competition is tougher than ever.

What does this business context mean for the human capital agenda in 2010? Actions that employers needed to take during 2009 have shifted critical dynamics in the workforce: downsizing has created labour imbalances; pay freezes or “chills” have affected the trust and connection between employee and employer; and attitudes towards work are changing as employees adjust to short-time working and sabbatical leave.

Planning for 2010 must reflect the business priorities for next year and be informed by the changes that have taken place in 2009. In a September survey of Mercer clients, a majority said that they intend to conduct or are already conducting formal planning for 2010 using more robust workforce data and analytical tools. Nearly three-quarters of clients identified the primary driver for 2010 human capital decisions as cost containment or reduction, with less than 10 percent focussed on matching competitive practices. The emphasis for 2010 is less, “what are others doing?” and more, “what can I afford to do?”

In this edition of Human capital perspective, we cover how to approach planning for 2010 and explore some of the talent and reward issues that are top of mind for many organisations, both local and global. I hope you find these articles helpful and provocative, and above all they should contribute to your success in navigating the continued uncertainties of 2009 and challenges of 2010.

Finally, I am keen to hear your thoughts on any of the articles or topics so that we, at Mercer, can continue to support you effectively.

Christopher Johnson (London)

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Featured UK articles

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• Mercer survey reveals human capital planning challenges, concerns
• 10 for 2010: Actions for achieving executive remuneration success in 2010
• Compensation decision 2010: Difficult questions; expert insight
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• The future of total rewards: Analytics to action

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