In the ever-evolving landscape of business, companies face an array of challenges. From market volatility to technological disruptions, the corporate world is no stranger to adversity. However, as the year 2023 unfolds, it has become increasingly clear that people-related risks have taken centre stage as a top concern for UK businesses. The latest report from Marsh, a global leader in insurance brokering and risk management, paints a revealing picture of the evolving corporate landscape, where the risks associated with employees and human resources have come to the forefront.
The Marsh 2023 report highlights the importance of addressing people-related risks, categorizing them into several key areas:
“In the top five risks, employee mental health and wellbeing (30.8%), talent retention, attraction and succession planning (22.4%), and health and safety of the public and employees (20.9%) take second, fourth and fifth place respectively. Meanwhile, workplace culture and employee engagement (20.2%) sits in sixth place.”
1. Talent Acquisition and Retention: The war for talent continues to intensify, making it increasingly challenging for UK businesses to attract and retain skilled professionals. The report reveals that companies are grappling with the competition for the best talents, which can lead to increased hiring costs and potential knowledge gaps when valuable employees depart.
Companies must focus on not only attracting top talent but also on retaining and developing their workforce. This includes investing in employee training and development programs to foster a sense of loyalty and commitment.
2. Mental Health and Well-being: Employee well-being has moved to the forefront of corporate concerns, particularly in the wake of the COVID-19 pandemic. The report underscores the need for companies to provide comprehensive mental health support and resources to their employees to maintain a healthy and productive workforce. Initiatives like P3 Business Care and access to mental health resources are becoming increasingly critical.
3. Diversity and Inclusion: Diversity and inclusion initiatives have gained traction in recent years, with a growing emphasis on fostering diverse workplaces. Companies that fail to create inclusive environments may face reputational damage, legal issues, and difficulties in attracting and retaining diverse talent.
Companies must actively promote diversity and inclusion in their workplaces by implementing inclusive hiring practices and fostering an environment where all employees feel valued and respected.
4. Regulatory Compliance: UK businesses are contending with a complex web of employment laws and regulations. The Marsh report indicates that non-compliance can result in hefty fines and legal complications, posing a significant risk to organizations.
Staying up-to-date with employment laws and regulations is essential. Firms should establish rigorous compliance oversight mechanisms to ensure they adhere to all legal requirements.
5. Remote Work Challenges: The shift to remote work, accelerated by the pandemic, has presented a range of new challenges. Ensuring the security of remote operations, addressing employee burnout, and maintaining productivity are all concerns the report highlights.
With remote work here to stay, businesses should develop clear and comprehensive remote work policies, addressing security concerns, employee well-being, and productivity.
The report further emphasizes the importance of a proactive and strategic approach to mitigate these people-related risks.
The Marsh 2023 report serves as a crucial wake-up call to UK businesses, urging them to pay closer attention to the people-related risks they face. These risks are not only about legal compliance but also about the vitality and sustainability of their organisations. Addressing these issues proactively can lead to a more resilient and adaptable workforce, and a stronger position in the ever-changing business landscape.
In conclusion, the Marsh 2023 report has shed light on a critical concern for UK businesses – people-related risks. From talent acquisition and retention to mental health and diversity, these issues have emerged as top priorities. It is clear that companies that neglect these aspects may find themselves facing not only legal and financial repercussions but also a loss of reputation and competitive edge. The report underscores the necessity of proactive strategies to address these risks, focusing on talent management, mental health, diversity and inclusion, compliance, and remote work policies. By taking these steps, UK businesses can navigate the complex and dynamic business environment successfully while ensuring the well-being of their most valuable asset – their people.
About P3 Business Care
P3 Business Care is a Community Interest Company and social enterprise operating across the UK. Supporting your business on a weekly basis we provide personal and proactive care to your employees and immediate family working in partnership with the company. Our Business Partners visit your business weekly developing trust & relationships so we can identify and address issues before they become crisis, absence, or staff turnover. Read more about our services here