A recent report from Mercer Marsh Benefits, a global employee health, benefits, and people risk advisor and part of Marsh McLennan, has highlighted various employee-related risks facing organisations in the UAE. The report, titled “People Risk 2024,” identifies critical risks such as technology disruption, workforce practices, governance, and sustainability, which, if left unaddressed, could significantly impact organisational success.
Drawing insights from 4,575 human resources (HR) and risk professionals worldwide, including over 100 from the UAE, the report ranks risks by likelihood and severity across five pillars: technological change and disruption, talent leadership and workforce practices, health, well-being and safety, governance, compliance and financial, and environment, sustainability, and protection.
A primary concern among UAE respondents is the mismanagement of artificial intelligence (AI). Nearly half (48 per cent) of the participants expressed worry over employees’ over-reliance and overreliance on AI-generated content without proper verification. Additionally, 45 per cent highlighted a lack of alignment between AI plans, ambitions, and available budgets as a critical issue.
The study revealed that UAE respondents are more aware of people risks than their global counterparts. They recognise the importance of HR and risk functions in mitigating these risks. Key findings include:
- 47 per cent are concerned about a growing gap between rewards packages for existing employees versus new hires.
- 42 per cent are worried that employer-provided emotional well-being programmes are insufficient to meet the growing demand for support.
- 48 per cent are concerned about inadequate employer-sponsored or government health care benefits to cover climate-related health conditions.
Julio Garcia Villalon, Regional Leader for Mercer Marsh Benefits in India, the Middle East, and Africa, commented, “While people can be an organisation’s most important strength, they can also expose organisations to risk without the right culture, policies, and training. People risks are broad-reaching, complex, and intricately linked to other risk challenges organisations face. Focusing on people in the context of each risk category can have a highly tangible impact on mitigating and reducing people’s risk in the future.”
Ayman El Hout, CEO of Marsh McLennan UAE, added, “Organisations in the UAE appear to be more vigilant about these issues than their global peers, which – if turned into action – could help to mitigate risks. It is promising that 85 per cent of respondents in the UAE believe their HR function effectively manages risk associated with workforce issues and that 95 per cent say that the HR and risk functions in their organisations are collaborating to mitigate people risks, indicating they are moving in the right direction.”
To address AI-related people issues, Mercer Marsh Benefits recommends that businesses collaborate with leaders across their organisations to understand the advantages and risks of AI. They should evaluate uninsured scenarios, encourage safe adoption, and build a digital-first people strategy.
