The new shape of work: New business realities 

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Navigating uncertainty

Companies have to address in real-time how inflation, recession and a tight labour market are affecting their business. They are deploying agile tactics to respond to the economic shocks and are sensing the market to map out business strategies that build resilience and balance near-term concerns with targeted investments for growth. 

To navigate the storm and be ready for uncertainty analytics, design thinking, and strategic business and workforce planning to thoughtfully anticipate and prepare their organisations to manage through disruption for the better. 

Our Mercer Marsh Benefits People Risk report identified the top five areas of people risks that companies are grappling with.  

  • Health and Safety 
    Health and safety risks are a threat to organisations, signalling high potential to disrupt business.
  • Governance and financial 
    The management of compensation, employee benefit and retirement plans is becoming increasingly complex and difficult.
  • Talent practices 
    The changing nature of work, from the rise of hybrid working and gig economy to globalisation, is now the fifth biggest people risk.
  • Accelerated digitisation 
    Skills obsolescence, where businesses struggle to develop, acquire or retain the skills for digital transformation or cyber management is now a top people risk.
  • Environmental and social 
    Organisations are under pressure from customers and employees to address inequalities, remove disparities and prepare for climate change.

Themes impacting organisations and their employees 

  • ‘Polycrisis’

  • Climate change

  • Societal polarisation

  • Artificial intelligence

Fifty–seven percent of CEOs and CFOs plan to increase the use of AI and automation in the case of a deepening recession. Nearly one-third are redesigning work to reduce their organisations’ dependency on people.
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