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Mercer Marsh Benefits (MMB) listed the top people-related business risks as cyber security, catastrophic personal life events, and the changing nature of work.
The report surveyed 106 Australians to identify the top threats facing businesses and how they’re managing and eliminating these issues.
85 per cent of Australian respondents noted health and safety risks as the most commonly addressed risk, with businesses making it their area of focus over the next two years. Mental health was recognised as the most-likely people related risk to occur over the next three years, and environmental and social risks have become much more of a concern compared to last year.
Only 36 per cent of the companies surveyed had an effective benefits cost containment strategy prepared. Furthermore, increases in benefit and health risk protection costs ranked in fifteenth.
The current workforce is in turmoil with the pandemic, low workforce resilience and economic downturn causing competing priorities for businesses. The survey recognised a significant disconnect between HR managers and risk managers. With diversity, equity, and inclusion (DEI) ranking as the second most important concern for risk managers, while HR ranked it as sixteenth.
According to MMB, this disconnect is due to companies lacking a clear risk strategy, resulting in departments prioritising threats differently.
Head of MMB Pacific, Sarah Brown, said the pandemic, fatigue, and economic downturn are key factors causing confusion.
“People risks touch every part of a business and tackling the complexity and interrelated nature of these risks requires collaboration across all departments. It’s critical that departments come together to draw on the necessary skills and resources within the organisation – rather than working in silos and competing against each other,” explained Ms Brown.
“There is a danger that companies will miss the opportunity to effectively manage the very real threat these risks present if they continue to work in siloes. By working together, organisations will be able to better manage their people risks and align them with their broader purpose so that risk management meets organisational objectives.”
Cyber security continues to take the top spot as the biggest risk to employees. Mental health, handling of the pandemic, and health and safety are among the most commonly addressed risks.
“A continued focus on employee mental health risks is also being observed,” said Ms Brown.
“It was surprising to see work-related illness or injury ranked so low by Australian respondents, coming in at position 23 out of 25 – a potential blind spot that could lead to reputational damage if not re-prioritised.”
The full report can be downloaded here.
RELATED TERMS
Benefits include any additional incentives that encourage working a little bit more to obtain outcomes, foster a feeling of teamwork, or increase satisfaction at work. Small incentives may have a big impact on motivation. The advantages build on financial rewards to promote your business as a desirable employer.
Jack Campbell
Jack is the editor at HR Leader.
