Our People Risk research looked at the individual people risks with the most power to disrupt business, to identify the top 25 people risks across five pillars of people risk management.
Critical to mitigating these risks is recognizing that while people are an organization’s most important strength, they can also bring significant risk.
Instead of reacting to unfolding events, HR and Risk must now collaborate to mitigate people risks linked to health and safety, ESG and the future of work. This requires putting a proper foundation for risk management in place, including proactive measures to protect employees.
See below for our People Risk research highlights and download the full report for detailed insights on managing people risk.
People risk management barriers
People risk management for employee benefits
Administering employee benefits, pensions and compensation is the second biggest individual people risk, after cyber security and data protection. Which is also linked to employee benefits due to the huge amount of personal data involved in administering employee benefits.
Without careful governance, and a deliberate strategy, employee benefits plans are unlikely to succeed at supporting business resilience. Even so three fifths of businesses (59%) don’t have effective governance for insurance and benefits. While just two in five (42%) have a benefit cost containment strategy in place. Falling to less than one in three (31%) employers in the United Kingdom.
Instead, with employee health benefits increasing at two and a half times the rate of inflation, cleaver employee benefits design is essential. This should not only look at optimizing spend by reducing health risks, but also securing the best deals from insurers.
A clear governance approach for benefit and insurance program design, delivery and financial decisions will also reduce costs and risk. Think about establishing a formal governance process, including defining roles and responsibilities for making benefits design, administration, communication, HR technology and insurance decisions.