Leadership, benefits, and technology risks top of mind for risk and HR professionals surveyed by Mercer and Marsh
May 23 2024 - 10:00AM
Business Wire
Mercer and Marsh, businesses of Marsh McLennan (NYSE: MMC), the
world’s leading professional services firm in the areas of risk,
strategy and people, released today their US People Risk 2024
Report.
Based on responses from more than 1,000 risk and HR
professionals nationwide, the survey revealed that ineffective
leadership is viewed as the biggest people risk facing
organizations today, followed by improper rewards decision making,
and increasing health and benefit costs. Risk managers also
identified a lack of cybersecurity knowledge and mismanagement of
AI as key people threats in 2024.
“The breadth and depth of intersecting risks organizations face
today is staggering,” said Susan Potter, Mercer’s US and Canada
Region President. “People are an organization’s most important
asset, but they can also expose organizations to risk without the
right culture, policies, and training. By taking a proactive,
predictive, and disciplined approach to people risk management,
businesses will be better prepared to help their people and
businesses thrive in this increasingly complex risk
environment.”
Risk and HR managers have several concerns related to
ineffective leadership at their organizations. According to the
report, a third (34%) of employers are concerned about significant
dependencies on key people and inadequate succession planning. Only
30% feel they currently have an effective workforce strategy where
talent can be acquired, grown, and deployed based on skills.
Additionally, one out of three (35%) respondents say they are
concerned ineffective leadership will lead to negative
organizational culture or work environment, tense team dynamics,
and mistrust.
A recent Mercer survey showed that the average per-employee cost
of employer-sponsored health insurance rose by 5.2% in 2023. The
People Risk Report finds more than one in three risk and HR
professionals are concerned about significantly increasing medical
costs beyond general inflation. Nearly a quarter (24%) said their
organizations do not have an articulated cost containment strategy
in place, and 37% cited concerns about limited available strategies
to control costs beyond benefit reduction.
Risk and HR managers also cited concerns regarding improper
rewards decision making, the second most highly-ranked risk for
both HR managers and the US overall. Four in ten shared concerns
with making benefit decisions without considering long-term cost
impact, and 39% voiced concerns about making benefit decisions
without considering the impact on employees.
Nearly half (43%) of respondents said they are concerned about
the increased risk of cyber-attacks due to lack of cybersecurity
awareness among their people, and 34% said they are concerned with
employees’ over-reliance on and complete trust in AI-generated
content.
Despite these challenges, 97% of risk and HR managers say their
organization is collaborating to mitigate various people risks, and
respondents at organizations with a great deal of collaboration
overwhelmingly report higher numbers of risks being managed “very
well.”
The results indicate that the stronger the partnership between
risk and HR teams, the more effective risk mitigation measures will
be. “Leaders should encourage risk and HR professionals to work
together to build a risk management culture,” commented Michelle
Sartain, Marsh’s US and Canada President. “Through collaboration,
they can better analyze and address the people risks inherent in
the business environment.”
Click here to learn more and download the report.
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 Marsh McLennan
Marsh McLennan (NYSE: MMC) is the world’s leading professional
services firm in the areas of risk, strategy and people. The
Company’s more than 85,000 colleagues advise clients in over 130
countries. With annual revenue of $23 billion, Marsh McLennan helps
clients navigate an increasingly dynamic and complex environment
through four market-leading businesses. Marsh provides data-driven
risk advisory services and insurance solutions to commercial and
consumer clients. Guy Carpenter develops advanced risk, reinsurance
and capital strategies that help clients grow profitably and pursue
emerging opportunities. Mercer delivers advice and
technology-driven solutions that help organizations redefine the
world of work, reshape retirement and investment outcomes, and
unlock health and well-being for a changing workforce. Oliver Wyman
serves as a critical strategic, economic and brand advisor to
private sector and governmental clients. For more information,
visit marshmclennan.com, or follow us on LinkedIn and X.
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version on businesswire.com: https://www.businesswire.com/news/home/20240522935890/en/
Media: Cassie Lenski Mercer +1 469 841 8999
Cassie.Lenski@Mercer.com
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