Mercer’s Global Talent Trends 2026 explores the key workforce trends shaping the future of work, including the growing impact of AI, changing skills requirements, employee expectations and the evolving role of HR. Drawing on insights from nearly 12,000 executives, HR leaders, employees and investors globally, the report provides practical insights to help organisations rethink how work is designed and build resilient, high-performing workforces.

Wellbeing initiatives play an important role in supporting employees, but are they effectively controlling psychosocial risk? This article explores the difference between wellbeing activity and meaningful psychosocial risk controls, and considers how law firms can take a more practical and proactive approach to managing risk in the way work is designed, led and reviewed.

Thank you to Centre for Corporate Health for providing these valuable insights.

The new Practical Psychosocial Risk Control Guide from Centre for Corporate Health gives HR and WHS leaders a practical framework to work from can be downloaded here.

Listen to Episode 1 of This Is Not a Drill 'Good intentions are not sufficient psychosocial controls'. Listen here

This is our fourth Equity Partner Contribution and Compensation Survey since 2015. In the report we observe the trend toward merit-based pay models and accelerating pay dispersion between equity partners in the same firm. The survey examines changes to contribution management practices and reward governance. We also consider the extent to which partner reward helps or hinders AI experimentation and the likely evolution of partner reward over the coming 12-24 months. Over 140 firms responded to this survey.

When AI changes the shape of work, the real advantage comes from leaders who protect wellbeing while redesigning roles with intent. AI is reshaping work faster than our wellbeing systems can keep up, and this guide shows how to close that gap with clarity and care.

Thank you to Centre for Corporate Health for providing these valuable insights.

For further information about the services Centre for Corporate Health provide, click here

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Why better partner comparisons are the key to fairer outcomes

Ray D'Cruz of Performance Leaders reports that fairness in partner reward is a foundation for trust in the partnership. When partners believe the system is fair, cohesion builds. When they perceive favouritism or inconsistency, cohesion is at risk.

The challenge is that fair reward determination requires effective comparison between partners. Dividing profit is a zero-sum game. To determine whether Partner A's reward is appropriate, RemCom members need to understand how it relates to Partners B, C, and D in similar circumstances.

Yet most RemCom processes make clear comparisons remarkably difficult.

Read the full report here

Building tomorrow's legal business model - Building a culture-first, future-facing firm.

Ray D'Cruz of Performance Leader and David Kearney of Wotton Kearney discuss how his firm grew from its early days, and more recently transformed from partnership to private equity-backed corporate structure, implementing strengths-based performance management, emphasising "legal business" innovation, maintaining values-driven collaborative growth strategy and staying focused on client value all the while.

David is co-founder and managing partner of Wotton Kearney, Australia's leading insurance law firm. Starting with two lawyers in 2002, WK has grown to 94 partners and 850 staff across 11 offices through strategic focus, clear values and an ambitious vision. It's a remarkable story. David is the first to point out it's been a collective effort, but the vision, principles and energy in David tells the story of this firm.

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Are we still in the hype phase, or have organisations come to peace with AI? In this episode, host Cynthia Cottrell and Mercer’s Global Business Solutions and Innovation Centre Leader, Jean Martin, explore AI in the workplace – in both its current and potential future state.

Cynthia and Jean discuss the ‘productive anxiety’ that HR executives grapple with as AI continues to evolve, which gives rise to uncertainty on how to effectively leverage the technology. This leads to discussion about the challenges and opportunities that come with AI adoption, including the risks of overestimating AI's capabilities and concerns around data privacy.

They also talk about the role of AI agents, the importance of redefining human potential within organisations, and HR's role as custodians of both AI and employee data.

The episode wraps up with an exciting preview of Mercer’s People Insights platform and AI-based job matching and grading tools, which promise to revolutionise HR functions.

Tune in here for ideas and considerations when it comes to using AI in your workplace.

Drawing insights from the latest releases of Mercer’s Total Remuneration Survey (TRS) and Australian Benefits Review (ABR), this episode highlights a shift in job market dynamics, where salary budgets are stabilising and employers are regaining power as hiring slows and turnover rates decline.
Tune in to hear more about:

• Shifting power dynamics: Why employers are regaining control in the job market and what they are doing to keep their people engaged and motivated.
  
• Salary budget forecasts: Employers plan a 3.6% allocation for merit raises in 2025, down from 3.8% in 2024.
  
• Employee benefits: Flexibility is key, with 89% of organisations offering flexible work arrangements. Some are now being creative in their approach to flexibility.
  
• Incentives for retention: Organisations are focusing on comprehensive compensation packages, including performance-based bonuses.
  
• Upskilling and development: 60% of organisations are now offering learning and development for the entire company. Learn what training topics are trending.

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As we move further into 2025, HR professionals in the legal sector have a unique opportunity to shape a more sustainable and supportive workplace culture. Evolving expectations around work-life balance, regulatory changes, and global challenges are prompting the legal profession to rethink how it supports its people.

Drawing on insights from recent psychosocial risk assessments and employee assistance data, we see several key areas where HR leaders can drive meaningful change.

Click here to read more

Mercer’s podcast Making work ‘Work’ offers some insightful thought leadership for HR professionals.

Featuring insights and market trends from Mercer’s thought leaders, you’ll find a wide range of topics covered from ‘Understanding the Gender Pay Gap’, and ‘Sharing the productivity gains from AI’ through to their most recent episode, ‘Salary and benefits trends 2025: The tide is turning in favour of employers?

Click here to learn more