Furthering its investment in the digital Human Resources (HR) strategy market, business consulting firm Mercer has announced the acquisition of Leapgen, an HR technology advisory firm focused on digital strategy and transformation, workforce solutions, and improving employee experience.

Mercer has been historically strategic in its acquisitions, tending to select companies that add significant brand as well as technical value.

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 HRtransformation solutions, enabling better technology decision making, more effective mapping of HR solutions to an organisation's unique needs, and improved workforce technology and employee experience outcomes,” Martin said.

The average organisation deploys more than 16 HR systems, and Mercer’s latest research indicates that among US organisations 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 organisations 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 organisations 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 utilisation, and, of increased importance, a fragmented and unsatisfactory workforce experience,” Martin said, adding that Mercer’s acquisition of Leapgen will enable its clients to approach HR technology strategically and holistically to transform how HR delivers value to the business, and how people experience work.

While organisations 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 Co-Founder and CEO, 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."