One of the biggest impediments to successful organizational transformations is the risk related to human capital, yet only one in three executives rates their company’s ability to mitigate people risks as “very effective.” This perception may be based on a lack of focus, as only 29% of HR leaders strongly agree that their business executives prioritize human capital risks, according to Mercer’s 2019 Global Talent Trends study.

With the business reality facing organizations today, the absence of disciplined management and quantification of the risks to business performance and value emanating from the people side of operations — that is, human capital risks — cannot be ignored.

Robust human capital management (HCM) matters more than ever to the C-suite, boards and their shareholders to tackle challenges in the marketplace, technology and workforce and turn them into opportunities. This requires shifting from a cost-and-efficiency viewpoint to one focused on strategic capital deployment. Only then will organizations be in a position to leverage their human capital to truly derive competitive advantage in the new context.


HCM Compass

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Mercer’s HCM Compass is an innovative and sophisticated capability assessment model that allows organizations to obtain an integrated view of their HCM capabilities. HCM Compass not only enables the executive leadership team to understand the alignment between their HCM practices and business strategy but also provides an actionable roadmap through HC Blueprint Creater™.


Why HCM Compass?

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Comprehensive human capital dimensions

HCM Compass provides a comprehensive end-to-end capability maturity assessment:


10 dimensions of HCM addressed

30+ sub-dimensions covered

160+ parameters evaluated


The C-suite and the Board  members  are provided  with a single score view of the overall state of maturity of their human capital management capabilities and the associated risks. The HCM Compass offers an intuitive and dynamic dashboard for evaluation, periodic progress monitoring and strategic action plan (through the HC Blueprint CreatorTM ) that can help organizations jumpstart their HC maturity development.

Stronger value proposition compared to traditional tools

Compared to the traditional perception based survey approach of conducting assessments, HCM Compass provides an analytical and data driven approach to measuring HCM maturity levels.

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Key benefits

HCM Compass addresses two important needs of the C-Suite and the board: It acts as an impact measurement tool for investments in human capital capability enhancement, and it provides a single-score view of the overall HCM maturity.  Some additional ways in which HCM Compass benefits organizations include:


  • Provides a baseline for current organizational capabilities for HCM
  • Offers a mechanism to track overall progress as part of the transformation journey
  • Creates a deeper understanding of the budget and planning implications to strengthen HC
  • Builds momentum for human capital capability development
  • Creates transparency with all dimensions of people strategy in one place

HCM Compass not only presents a measurable, trackable and single human capital management indicator, it also provides an actionable and prioritized roadmap for the leadership to start improving the organization’s HCM capabilities.


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