Labor and tech skills shortages top the US people risk agenda, according to Marsh
New York, United States
HR and Risk managers at US organizations say labor and technology skills shortages, as well as the impact of employee financial insecurity, are the top three people risks, according to a new report released today by Marsh (NYSE: MRSH), a global leader in risk, reinsurance and capital, people and investments, and management consulting.
Drawing on insights from more than a thousand HR and Risk professionals in the US, the 2026 People Risk report highlights the top workforce-related factors that can amplify or mitigate enterprise risk and impact organizational resilience and performance.
“Companies that actively manage people risks are better positioned to gain a competitive edge,” said Susan Potter, Mercer’s US and Canada President. “Our People Risk research underscores that organizational resilience also hinges on the extent companies invest in their people — by building skills, supporting health and financial well-being, and redesigning work to better incorporate AI and automation.”
When asked about the positive outcomes organizations realized by successfully managing and mitigating people risks, 42% of respondents said they increased workforce productivity and efficiency, and 35% said they achieved faster progress on strategic initiatives such as AI adoption.
Labor and tech skills shortages are the tip of the iceberg
A labor shortage is the top concern for HR and Risk managers in the US. “While the headline reads as a hiring challenge, the underlying story is more complex,” said Tauseef Rahman, Mercer’s US Workforce Rewards Solutions Lead. “Many organizations are grappling with depleted workforces, escalating labor costs, and a talent supply that is difficult to navigate.”
This pressure is reflected in related worries, with 36% of US respondents citing employee burnout and 35% pointing to increased labor costs, driven by heightened competition for talent, as concerns. Additionally, when it comes to attracting, retaining, and engaging employees, the leading concern is limited growth or career advancement opportunities within organizations, said 34% of respondents.
“When teams are overburdened and frustrated about their career prospects within an organization, burnout rises, turnover accelerates, and the problem feeds itself. The companies that break the cycle treat this as a workforce design and resilience issue, not just a recruitment challenge,” adds Mr. Rahman.
Technological skill shortages are the second-highest people risk in the US, as a lack of skilled workers in fast-evolving fields like cybersecurity and AI is hindering the development, deployment, and management of critical technologies, eroding competitiveness and leaving organizations exposed to emerging threats.
While organizations continue to invest heavily in AI, the most significant threat may be translating that spend into real productivity, innovation and performance gains. Thirty-eight percent of HR and Risk professionals are concerned that their organizations are investing in and adopting AI without adequate training and upskilling, and 38% acknowledged that a lack of AI knowledge in HR is limiting their ability to transform people practices.
Financial stress and deprioritized health and safety concerns undermine performance
Employee financial insecurity is now a material organizational risk, ranking third in the US. Employees’ rising living costs and debt burdens are directly linked to lower employer retention and engagement, as well as potential misconduct in organizations.
Financial strain also extends to employee health and well-being. Employees may delay care due to affordability issues, quietly eroding workforce resilience. HR and Risk professionals expect the situation to worsen, with more than half (57%) saying health and benefits costs are almost certain or likely to increase.
"Workforce health and safety underpins organizational performance—employees can't perform, adapt, or innovate if they're injured, unwell, or feel unsafe. Yet health and safety risks were not among the top 10 US People risks this year, highlighting that they are being overshadowed by other urgent concerns,” said Ms. Potter. “When health risks aren’t addressed, it undermines organizations’ productivity and long-term resilience.”
Risk maturity delivers a measurable advantage
Organizations that report more advanced approaches to managing risk also consistently report having more effective people risk mitigations in place. Additionally, the report shows that companies with strong collaboration between the Risk and HR functions have significantly more effective risk mitigations in place today — translating into stronger decision-making and greater stability.
Forward-looking organizations understand that their workforce is their greatest strategic asset, and investing in leadership and technology skills–and employee health and financial security–will create a competitive advantage over others.