Employers risk losing key members of staff during business transformation programmes, as they are failing to specifically address this risk, according to new research.
Mercer Marsh Benefits found that companies are failing to look at ‘people risk’ during periods of change, and as a result risk losing talent, damaging their reputations and failing to achieve their strategic goals.
The report, Business Transformation: Mitigating People Risk, surveyed 140 employers representing more than 500,000 employees and found that employers are struggling to connect changing employee expectations with HR and business objectives.
The report also highlights the need for employers to focus on employee health and wellbeing, as well as diversity, equity, and inclusion.
Aligned to this finding, 70 per cent of respondents said market demand for skills is a challenge, and almost two-thirds said the current cost of recruiting new skills is a risk, with wage inflation and demands being of significant concern for three quarters of respondents.
Mercer Marsh Benefits partner, digital, strategy & markets leader Nick McMenemy said: “The findings from this report are alarming and highlight the urgent need for employers to prioritise employee wellbeing and resilience in the face of rapid business transformation.
“Businesses that fail to take action risk losing valuable talent, falling behind competitors, and potentially facing financial losses. By aligning corporate culture and human values, and by focusing on access and need, employers can mitigate people risks associated with business transformation and ensure that their employees are motivated, well-led, and able to cope with change.”
While half of research respondents have, or are implementing, skills and talent mapping for future business needs, more than a quarter still plan to put this type of strategic planning in place within the next two years. Within two years, any CHRO or HR director not doing this will be in the lower quartile among their peers.
McMenemy adds: ”Employers who fail to address people risk during business transformation are playing a dangerous game. A clear strategy, an aligned reward and benefits offerings, and regularly gathering employee listening data are not just useful first steps, they are essential for survival in today’s business landscape.”
The report is part of the REBA/Mercer Marsh Benefits Transforming Engagement Series, which aims to help employers navigate the challenges of business transformation.