We continue to move from one crisis to another with Australian organisations needing to continually react and to unfolding events.
Instead, they must learn the lessons of the pandemic, strengthen risk management foundations by being more deliberate, comprehensive and innovative in anticipating emerging and longstanding risks.
Critical to this is building on the trust established between risk and human resource functions so they work together to protect employees and mitigate people risks linked to health and safety, ESG and the future of work.
The pandemic pushed the health and safety of employees and society as a whole to the fore. As a result, nearly nine out of ten (87%) HR and Risk professionals rate health and safety people risks as a serious threat to the business.
Administering employee benefits, retirement plans, and compensation is becoming increasingly complex. Regulation ranging from new compensation disclosure requirements, ongoing anxiety over equipping individuals to make the right financial decisions and evolving employment and benefits legislation contribute to making this the second highest rated people risk.
Accelerated digitization is pushing digital risks, including cybersecurity and data privacy ahead of all risks. More than nine out of ten cybersecurity issues can be traced to human error.
The way sensitive employee data is used in benefit plans continues to be an area of data exposure as more people join new companies as part of “the great resignation”. At the same time, the accelerated pace of digital transformation is changing the relationship between people and machines. Automation and AI advances are anticipated to require half the workforce to reskill by 2025 and 75m jobs to be lost.
The war for talent, especially digital skills, means organizations across different industries are competing for the same high performers. Consequently, 43% of employers say their employee value proposition now needs improving.
There is an urgent need to recruit the new skills required to drive transformation, as well as retain and motivate existing talent. The changing nature of work, from the rise of hybrid working to globalization, is now the fourth-biggest people risk overall.
Environmental and social risks now make up a fifth of the top ten people risks but are perceived to matter more to employees than the C-suite.
Organizations are feeling pressure from customers, investors, employees and regulators to ensure profit does not come at the expense of society or the planet. Employees also want to work for socially responsible employers with good ESG credentials. However, only 3 in 4 organizations agree that they have enough budget to manage environmental and social risks today.
What are the key risks and priorities for HR and risk professionals in 2022?
HR and risk managers are aligned on some of the top risks while ranking them differently.
Explore five people risks, how to mitigate them, and the differences across geographies and industries.
People Risk 2022 includes views from 2,594 HR and Risk professionals in 25 countries across Asia, Europe, Latin America, the Middle East, and Africa, North America, the Pacific, and the United Kingdom, from industries including finance, communications, media, technology, manufacturing, automotive and retail.