Deteriorating employee mental health and cybersecurity issues are seen as two of the biggest risks facing firms in the year ahead, according to a new report from Mercer Marsh Benefits.
This report found that changing working conditions, due to the Covid-19 pandemic has exposed gaps in the ability of organisations to respond to risks associated with their workforces.
The survey, conducted a year on from the start of the pandemic was among HR and risk management professionals from across the globe. Respondents also cited talent attraction, retention and engagement as being among the top people-related risks facing firms in the year ahead.
According to the report the main barriers to addressing these issues were a lack of senior leadership engagement and a lack of skilled resources to understand and address the exposures.
Globally, cybersecurity was ranked as the top people-related risk. However, mental health deterioration was the top risk issue for UK respondents, reflecting the considerable progress made in recognising and destigmatising mental health issues. Diversity, equity and inclusion (DEI) is named the fourth highest people-related risk, highlighting the focus from many firms in getting this right given on ongoing global events spotlighting race and gender inequity.
The report Turning people risk into a business opportunity found communicable health conditions were not considered a top 10 risk in the UK despite the ongoing impact of the Covid-19 pandemic.
MMB said the report revealed some blind spots for organisations with talent practices and accelerated digitisation named as the two overarching risk areas with the lowest focus.
While globally HR and risk departments were fully aligned on cyber and talent as the top two risks, HR respondents identified succession and key person risk as the third most important; a threat that did not appear in the top 10 for risk managers.
In the UK, both HR professionals and risk managers scored talent attraction, retention and engagement and deteriorating mental health in their top three risks.
MMB partner and UK&I consulting leader Chris Bailey says: “Despite deteriorating mental health being highlighted as a top concern to UK businesses, engagement among executive leadership and board level accountability remains low.
“This is particularly worrying as the UK Covid-19 restrictions end and businesses start asking employees to return to workplaces. Now more than ever the wellbeing and mental health of colleagues should be on boardroom agendas. For people related risks to be dealt with effectively, management need to be genuinely engaged and give them the necessary attention. HR teams and risk management professionals must work together and consider the strategies they have in place to mitigate these key risks and, if they don’t look robust, redesign processes, policies and provisions for the future.”
The survey catergorised 25 people risks into five main categories: health & safety; governance & financial; accelerated digitisation; talent practices; environmental & social,with each risk allocated a risk rating score – a combination of likelihood and impact ratings – to assess the overall threat posed to an organisation.
