Mercer, a global leader in redefining the world of work and a business of Marsh McLennan, has recently 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. However, the company did not disclose the terms of the deal.
Under the deal, Mercer will bolster its US operations with the six-year-old Minnesota-based company, which generates over $10.7 million in annual revenue and counts Adobe, McDonald’s, Kohler, and other Fortune 500 titans among its HR technology consulting clients. Former Leapgen CEO and Co-founder Jason Averbook has taken on the new role of the global leader of digital HR strategy at Mercer.
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 the 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 execute against business goals effectively. Too often, HR technology can perceive as a silver bullet. Yet, well-intended solutions fail 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.
Speaking about the acquisition, Senior Partner & Global Head of Product, Global Business Solutions & Career of Mercer, Jean Martin, said:
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. 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.
The acquisition enhances Mercer’s position as a trusted advisor in the rapidly-growing digital HR strategy market. 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, according to Jean Martin, Senior Partner.
Mercer believes in building brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking actual health and well-being. The platform is approximately 25,000 employees, is based in 43 countries, and operates in 130 countries. The New York-based firm is a business of Marsh McLennan, the world’s leading professional services company in 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.
Jason Averbook, Global Leader, Digital HR Strategy, Mercer, and former CEO and Co-founder, Leapgen, added:
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 scale and sustainability. Leapgen has always been on a mission to change work for the better, transform the HR function, and deploy technology solutions for impact. We found the perfect match for our vision with Mercer.
Leapgen is a global digital transformation company shaping the Now of Work. The startup helps enterprise leaders rethink how to design better and deliver workforce services, and architect HR technology solutions that meet the expectations of workers and the needs of the business.
In 2018, Mercer had acquired Mettl, an Indian HRTech startup that measures talent using assessments and big data analytics, for an estimated Rs 250 crore.