2018: The Year Success is Redefined for the CEO

As 2017 comes to a close, CEOs reflect on the year gone by as we prepare for 2018. Inevitably, one of the questions we are all asking is “What is the definition of success moving forward?” This past year has been fraught with political, economic and technological change. While revenue growth continues to matter to every CEO, when we reflect on success, we realize, our definition of it has expanded. We ask ourselves “What counts as a win? And how can we best ensure our companies are positioned for success in the future?”

As much as hitting earnings targets and strengthening relationships with customers and partners matter, we realize we are in the midst of a great transformation called “the future of work.” CEOs are realizing they need to enhance, or expand, their definition of success in new and innovative ways.

Success factors for CEOs today are evolving to include strategies that drive business transformation. A company must prepare the entire workforce for that future. Yes, preparing your workforce for the future does mean, as examples, addressing skill gaps, integrating tech changes like AI and robotics, and much more. Successful companies in many ways will include those who embrace the emerging priorities of their colleagues. One important element which is emerging is a strong focus around financial security.

As world poverty has leveled and middle classes are expanding, life expectancy has also more than doubled over the course of a few generations. In fact, 50% of the children born today in the developed world can reasonably be expected to surpass the age of 100! People are living longer, working harder and staying in the workforce rather than retiring. All of these changes mean that many individuals in the workforce may not be as financially prepared for a longer life as they should or could be. As leaders, the responsibility falls on us and our teams to provide solutions as the longevity boom continues.

At Mercer, we recently finalized some new research focused on financial security, surveying over 7,000 adults and 600 senior organizational decision-makers across 11 countries and key industries. The study confirmed that many people feel financially insecure and stressed, shaking their confidence and ability to save. This was true across generations, geographies and gender.

The findings showed that two-thirds of people don’t ever expect to retire or that they expect to keep working after retirement. In fact, 70% of millennials expect to keep working later in life to maintain their desired quality of life. This raises some fundamental questions: What is the savings plan of the future? Moving forward, is it time to retire retirement and add financial security, both present and future, to the list of success factors a CEO must foster?

There is no silver bullet here but there must be a greater sense of urgency to the issue. As 2018 unfolds, I would recommend that leaders consider how we can create success by educating and enabling financial security for the workforce. Two areas that will have particular impact include increased coaching and the aging workforce.

The responsibility to coach/educate: 79% of the adults we surveyed trust their employer to give sound, independent advice on planning, saving and investing. The workforce looks to organizations as a trusted source and provider of easy-to-use, secure, digital tools to help navigate the financial seas and choose benefits wisely. We should commit to providing the tools and programs needed for our employees to develop financial security.

Maximizing longevity in the workplace: 68% of people globally do not ever expect to retire or expect to keep working longer than anticipated.  As health is the number one priority for people as they age, maintaining the ability to purchase and access healthcare will require continued income. This means staying employed longer. As CEOs, our companies are now challenged with creating a multi-generational workforce, consistently trained and managed to produce effective results while maintaining work-life balance.

The aging workforce has a different perspective and needs for health, wealth and career. In order to be proactive and prepared for a successful future, companies need to stay fully involved with employee health care, professional development and financial security. As we transition into 2018 I am looking forward to continued conversations with fellow leaders around this topic. Together we can create successes that will develop a secure future and inspire our people for generations to come...

Happy Holidays.