Mercer acquires Leapgen, furthering investment in digital HR strategy market

Rhea-AI Summary

Mercer, a business of Marsh McLennan (NYSE: MMC), has acquired Leapgen, a leading HR technology advisory firm. This acquisition strengthens Mercer's position in the growing digital HR strategy market. According to Jean Martin, Senior Partner at Mercer, Leapgen will enhance HR transformation solutions, enabling organizations to better align technology with their unique needs. With more than 16 HR systems commonly deployed in organizations, and increasing HR tech spending, the need for strategic advice is evident. This move aims to improve workforce technology and employee experience outcomes amidst an evolving digital landscape.

Positive

• Acquisition of Leapgen enhances Mercer's digital HR strategy capabilities.
• Strengthens Mercer's position in the rapidly-growing digital HR market.
• Improves alignment of HR technology with organizational needs.
• Addresses the increasing demand for strategic HR technology solutions.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- Mercer, a global leader in redefining the world of work and a business of Marsh McLennan (NYSE: MMC), today announced the acquisition of Leapgen, a leading Human Resources (HR) technology advisory firm focused on digital strategy and transformation, workforce solutions, and improving employee experience.

The acquisition enhances Mercer's position as a trusted advisor in the rapidly-growing digital HR strategy market, according to Jean Martin, Senior Partner, Mercer. “Leapgen will bring world-leading digital HR strategy capabilities and expertise to Mercer's Workforce and HR Transformation solutions, enabling better technology decision making, more effective mapping of HR solutions to an organization's unique needs, and improved workforce technology and employee experience outcomes,” Martin said.

The average organization deploys more than 16 HR systems, and Mercer’s latest research indicates that among US organizations increasing their total HR spend, 63% are spending more on HR tech in 2023. Despite increased investment, nearly 60% of HR Leaders do not think their HR function is sourced with the right mix of Human Capital Management (HCM) technology to effectively execute against business goals. Too often, HR technology can be perceived as a silver bullet; yet well-intended solutions miss the mark because organizations begin with the technology itself and implementation approach, versus deploying strategic capabilities that address the root challenges they are trying to solve. This reflects a broader need for strategic advice to help organizations develop a digital mindset and think holistically about HR and workforce experience.

“When we don't view HR transformation through a digital lens, we risk low return on investment, low utilization, and, of increased importance, a fragmented and unsatisfactory workforce experience,” Martin added. “Mercer’s acquisition of Leapgen will enable our clients to approach HR technology strategically and holistically to transform how HR delivers value to the business, and how people experience work.”

While organizations have been leveraging 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, Global Leader, Digital HR Strategy, Mercer, and former CEO and Co-Founder, Leapgen. “Leapgen has always been on a mission to change work for the better, to transform the HR function, and deploy technology solutions for impact. We found the perfect match for our vision with Mercer."

About Mercer

Mercer believes in building brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. Mercer’s approximately 25,000 employees are based in 43 countries and the firm operates in 130 countries. Mercer is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, with 85,000 colleagues and annual revenue of over $20 billion. Through its market-leading businesses including Marsh, Guy Carpenter and Oliver Wyman, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment. For more information, visit mercer.com. Follow Mercer on LinkedIn and Twitter.

About Leapgen

Leapgen is a digital HR company shaping the NOW of Work. Highly respected as consultants and advisors to the enterprise and the industry, we help our customers make HR digital. Leapgen helps leaders rethink how to better design and deliver workforce services and architect HR technology solutions that meet the expectations of workers and the needs of the business.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230301005753/en/

Cassie Lenski

+1 (469) 841 8999

Cassie.lenski@mercer.com

Source: Mercer

FAQ

What is the purpose of Mercer's acquisition of Leapgen?

The acquisition aims to enhance Mercer's capabilities in digital HR strategy, improving workforce technology and employee experience.

How will Leapgen impact Mercer after the acquisition?

Leapgen will provide world-leading digital HR strategy expertise, enabling better technology decision-making for Mercer.

What are the key benefits of the Leapgen acquisition for Mercer and its clients?

The acquisition will improve HR transformation solutions and help align technology with unique organizational needs, enhancing the overall employee experience.

What trends prompted Mercer's acquisition of Leapgen?

Increased HR tech spending and the need for strategic guidance in leveraging HR technology effectively prompted the acquisition.

How does Mercer's acquisition of Leapgen reflect current HR market demands?

The acquisition reflects the growing need for strategic advice in HR transformation, particularly amidst increased investment in HR technology.