Rapid changes to working conditions resulting from the COVID-19 pandemic have exposed gaps in the ability of organizations to respond to risks associated with their workforces, according to a new report by Mercer Marsh Benefits (MMB). Conducted a year after the declaration of the pandemic, the survey of over 100 regional HR and risk management professionals highlighted workforce exhaustion as one of the top people-related challenges facing firms.
According to the global survey, The Five Pillars of People Risk: Managing risks for workforce and business resilience, the main barriers to addressing these issues were that organizations lacked resources to understand and address these exposures, a lack of senior leadership engagement, and budgetary constraints.
Regionally the survey identified differences in risk by sector; Workforce exhaustion was rated as one of the top people risks for financial institutions with skills obsolescence a major challenge in the auto and manufacturing industries. Environment-related issues were named as a key issue for the retail sector while the increasing cost of benefit provision was of concern in the construction sector.
Globally both the US and UK ranked mental health deterioration as top risk issue while respondents in MENA said that workplace exhaustion, attracting and retaining talent and the rising cost of benefit provision as their main concerns.
The report picks up on the issue of deteriorating workforce mental health following a widely reported rise in people suffering from anxiety, stress, depression, and addiction in the wake of the pandemic.
Andrew Brody, Mercer Marsh Benefit, Advice and Solutions Leader - MENA, added: “Workforce exhaustion is increasingly recognized as a concern for business leaders and while our survey showed that it is not yet a significant focus for HR we anticipate this changing as the importance of physical and mental wellbeing on an organisations productivity becomes better understood.
“For this issue to be successfully tackled, organizations must ensure that there is support from the highest level, with engaged leaders, investment in skilled resources and adequate budgets to proactively change cultures, practices and employee support programs.”
-Ends-
- Survey respondents were asked to assess the likelihood of the risk occurring in their organization in the next 3 years on a scale of 1 to 5, 1 representing a risk that is unlikely and 5 a risk that is very likely to occur.
They were also asked to assess the severity of the risk’s impact on the business if it were to occur on a scale of 1 to 5, 1 representing a no impact and 5 a catastrophic impact. The overall risk threat is the product of the likelihood and the severity ratings. - MMB pulse survey completed in April among 1,380+ participants globally, 46% of which were HR professionals and 54% Risk Managers.
About Mercer Marsh Benefits
Mercer Marsh Benefits (MMB) was born out of the unification of one of the world’s best HR consultancies, the global leader in people risk advisory and the number one disruptive benefits technology firm to form one unique business. Together they have shaped some of the world’s most loved employee benefit experiences for small companies, growing enterprises and global firms. MMB is 7,000 strong, on the ground in 73 countries, and servicing clients in more than 150 countries. It brings local expertise to more places and works side-by-side with clients, and Mercer and Marsh colleagues around the world. Mercer and Marsh are two businesses of Marsh McLennan (NYSE: MMC), together with Guy Carpenter and Oliver Wyman. With 76,000 colleagues and annual revenue of $17 billion, through its market-leading companies Marsh McLennan helps clients navigate an increasingly dynamic and complex environment.
© Press Release 2021
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