Are Organizations Actively Managing the Full Spectrum of Risks Associated with the Workforce? | Deloitte Insights

HR Effectiveness

The past few years have highlighted how new, unforeseen risks can make organizations vulnerable regarding their people and business. As leaders build their organizations’ capability to identify and plan for various workforce risks, this article—which is the precursor to a forthcoming report—provides a few ideas. The authors define workforce risk as any workforce-related threat to an organization’s operational, financial, and reputational outcomes. These risks range from the ability to address changing workforce expectations (such as social responsibility) to workforce data and technology (such as responsible use of workforce data and artificial intelligence, cybersecurity, and data privacy). Based on a survey of 875 US executive leaders and board members, one result shows that most companies consider only a few workforce risks—suggesting potential vulnerability. When presented with an extensive list of possible workforce risks that threatened their business objectives, the most frequent response related to potential damage to their organization’s brand and reputation. Issues such as reducing turnover, increasing wages, and ensuring skills availability were less frequently cited despite their being the subject of a great deal of research published on the future of work. As a bonus, I am resharing this 64-page report by MercerMarsh Benefits that looks at 25 people-risks across five categories. Both resources can help organizations identify, prioritize, and manage risks most relevant to their business.