Mercer acquired Leapgen, an HR technology consulting firm that focuses on digital strategy and transformation, workforce solutions and the employee experience. The company said the acquisition will improve its position as a “trusted advisor” in the digital HR strategy market.
Mercer said the average employer deploys more than 16 HR systems. At the same time, its research indicates that, among U.S. organizations increasing their HR budgets, 63% will spend more on HR tech during 2023.
But despite increased investment, nearly 60% of HR leaders do not think their function is sourced with the right mix of technology to effectively execute against business goals.
One reason for that is companies often regard HR technology as a silver bullet, even though solutions miss their mark when companies began their efforts thinking primarily about the technology itself and its implementation. They should be thinking about deploying strategic capabilities that address the root challenges they are trying to solve, Mercer said. This, Mercer said, indicates a need for strategic advice to help organizations think holistically about HR and workforce experience. Leapgen will help Mercer do just that.
“When we don’t view HR transformation through a digital lens, we risk low return on investment, low utilization, and increased importance, a fragmented and unsatisfactory workforce experience,” said Mercer Senior Partner Jean Martin. She believes the acquisition will help clients strategically and holistically address these challenges.
While organizations have leveraged HR technology for decades, Covid-related requirements – such as health reporting, talent intelligence needs and support for employees in remote and hybrid work environments – has accelerated this adoption.
“Digital is the new mindset for technology, transformation and workforce experience. It’s the only way to design business and people capabilities for both scale and sustainability,” said Jason Averbook, co-founder and CEO at Leapgen and now global leader, digital HR strategy for Mercer. “We found the perfect match for our vision with Mercer.”