New Mercer Marsh Benefits Report Highlights Critical Employee-Related Risks for UAE Businesses
A new report from Mercer Marsh Benefits, a global advisor on employee health, benefits, and people risk, underscores the significance of addressing employee-related risks for businesses in the UAE. The People Risk 2024 report highlights various risks, including technological disruption, workforce practices, governance, and sustainability, that could significantly impact the future success of organizations if left unmitigated.
The comprehensive report, drawing on insights from 4,575 human resources (HR) and risk professionals worldwide, including over 100 participants from the UAE, ranks risks by their likelihood and severity across five key pillars: technological change and disruption, talent leadership and workforce practices, health, well-being and safety, governance, compliance and financial, and environment, sustainability and protection.
Key Concerns in the UAE
Among UAE respondents, the mismanagement of AI emerged as a top concern, with 48% expressing worry over employees' over-reliance on AI-generated content without proper verification. Additionally, 45% highlighted a misalignment between AI plans, ambitions, and available budgets.
UAE respondents showed a higher awareness of people risks compared to their global counterparts. The report reveals that:
- 47% are concerned about the growing disparity between rewards packages for existing employees and new hires.
- 42% believe employer-provided emotional well-being programs are insufficient to meet the increasing need for support.
- 48% are worried about inadequate employer-sponsored and/or government health care benefits to address climate-related health conditions.
Expert Insights
Julio Garcia Villalon, Mercer Marsh Benefits’ India, Middle East, and Africa Regional Leader, commented, "People can be an organization’s greatest asset, but without the right culture, policies, and training, they can also be a source of significant risk. Addressing people risks in the context of each risk category can profoundly impact future risk mitigation."
Ayman El Hout, Marsh McLennan’s UAE CEO, added, "UAE organizations are more vigilant about these issues than their global peers. This awareness, if translated into action, could significantly mitigate risks. It is encouraging that 85% of UAE respondents believe their HR function effectively manages workforce-related risks, and 95% indicate collaboration between HR and risk functions to mitigate these risks."
Recommendations for Addressing AI Risks
To tackle AI-related people risks, Mercer Marsh Benefits recommends that businesses:
- Collaborate with organizational leaders to understand the advantages and risks of AI.
- Evaluate scenarios that may not be covered by current insurance.
- Encourage safe adoption of AI technologies.
- Develop a digital-first people strategy.
The People Risk 2024 report emphasizes that proactive risk management and cross-functional collaboration are crucial for mitigating employee-related risks and securing the long-term success of UAE businesses.
