DUBAI - According to a new report from Mercer Marsh Benefits, a global employee health, benefits and people risk advisor and part of Marsh McLennan (NYSE: MMC), organizations in the UAE face a range of employee-related risks – from technology disruption to workforce practices, governance and sustainability – which could, if left unaddressed, have a dramatic impact on their future success.  

Mercer Marsh Benefits’ global report, People Risk 2024, draws on the views of 4,575 human resources (HR) and risk professionals – including more than 100 participants from the UAE – and ranks risks by likelihood and severity across five key pillars: technological change and disruption; talent leadership and workforce practices; health, well-being and safety; governance, compliance and financial; and environment, sustainability and protection.

According to the research, the mismanagement of AI ranked as the key concern among UAE respondents with 48% worried about employees’ over-reliance and complete trust in AI-generated content without proper verification, along with a lack of alignment between plans, ambitions and available budgets for AI (45%).

Respondents from the UAE exhibited a higher level of awareness regarding people risks than their global counterparts and view the HR and risk functions within their organization as important in tackling these risks. Among the key findings, 47% of respondents are concerned about a growing gap between rewards packages for existing employees versus new hires; 42% are concerned about the insufficiency of employer-provided emotional well-being programs to meet the growing need for support; and 48% are concerned about insufficient employer-sponsored and/or government health care benefits to cover climate-related health conditions.

Mercer Marsh Benefits’ India, Middle East and Africa Regional Leader Julio Garcia Villalon said: “While people can be an organization’s most important strength, they can also expose organizations to risk without the right culture, policies and training. People risks are broad reaching, complex and intricately linked to other risk challenges organizations face. Focusing on people in the context of each of the risk categories can have a highly tangible impact on mitigating and reducing people risk in the future.”

Marsh McLennan’s UAE CEO Ayman El Hout added: “Organizations in the UAE appear to be more vigilant about these issues than their global peers, which – if turned into action – could help to mitigate risks. It is promising that 85% of respondents in the UAE believe their HR function effectively manages risk associated with workforce issues, and that 95% say that the HR and risk functions in their organizations are collaborating to mitigate people risks, indicating they are moving in the right direction.”

To address AI people issues, Mercer Marsh Benefits recommends that businesses collaborate with leaders across their organization to understand the advantages and risks of AI, evaluate uninsured scenarios, encourage safe adoption and build a digital-first people strategy.

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About People Risk 2024

The People Risk 2024 Report was generated from a survey of over 4,500 risk and HR professionals from 26 countries. Fielded from October to November 2023, the survey captures the greatest people risks facing organizations and how risk and human resources managers can collaborate to limit organizations’ exposure and mitigate risk. Twenty-five people risks were analyzed across five categories: technological change and disruption; talent, leadership and workforce practices; health, well-being and safety; governance, compliance and financial; and environment, sustainability and protection. Risks were calculated and ranked by a Risk Rating Score (RRS). RRS is a numeric score that captures the likelihood of a risk impacting an organization in the next two years and the severity of its impact on the business if it occurs.

About Mercer Marsh Benefits

Mercer Marsh Benefits provides clients with one source for managing the costs, people risks and complexities of employee health and benefits. The network is a combination of Mercer and Marsh experts working across 130 countries to develop local solutions drawn from global expertise. Mercer and Marsh are businesses of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, with more than 85,000 colleagues and annual revenue of $23 billion. Through its market-leading businesses including Guy Carpenter and Oliver Wyman, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment. For more information, visit marshmclennan.com, or follow us on LinkedIn and X.

Media contact:
Whilemina Prendergast
​​​​​​​whilemina.prendergast@mmc.com