The economy is on the upswing and things are looking up for many industries and organizations, but with increased opportunities come increased risks. Companies big and small are faced with new challenges as technology advances, consumer habits change and social norms that were once prevalent are no longer acceptable.
As we enter the second half of the year, we thought it an appropriate time to look at some business risk statistics and assess how things are shaping up. While the following risks top our list for 2018, we’re confident they have some staying power and will likely increase in years to come. Is your organization prepared to face them?
1. Labor shortage
The entire country is experiencing a labor shortage, according to a recent Federal Reserve survey. Companies have to spend more to attract workers and pay more in the form of compensation and benefits to keep them. In fact, 47% of HR leaders cited employee turnover and retention as their top challenge.
In addition to traditional recruiting efforts, employers need to get creative in their recruitment tactics to attract the right talent. Building a strong culture and helping employees find worth and value in their work go a long way in ensuring they remain engaged (and employed) with you!
2. Poor Employee Engagement
More than half (51%) of the U.S. workforce isn’t engaged, according to Gallup. Dissatisfied workers leads to increased absenteeism, disruptions, decreased morale increased safety incidents, lower productivity and even disengaged customers.
Creating an engaged workforce requires diligent work, transparency, authentic communication and an open-door atmosphere that invites employees to contribute their ideas and involvement. These efforts begin from the very first interaction during a job interview and throughout an employee’s career. Support your engagement initiatives with a well-crafted employee handbook that sets expectations and serves as a resource.
3. Lack of Competitive Benefits
Small and mid-sized businesses often struggle to compete with larger corporations when it comes to benefits, but employees are increasingly considering other perks in their decisions to work for a company. Leave and flexible work schedules, for example, rank among the top three benefits that employees value, according to a 2017 Employee Job Satisfaction and Engagement survey. Health care rounds out the list.
Other areas of focus might include wellness programs, community involvement opportunities and education. Or, what about contributing to student loan repayment? Overall, employers should think creatively about benefits and benchmark what others in the industry are doing rather than trying to keep up with cutting-edge companies.
4. HR Compliance
From the moment you contact potential hires until they retire, there are regulations your company must comply with to protect employees’ rights. Even asking the wrong questions during an interview could pose risks.
Labor laws are becoming increasingly complicated, and keeping up with changes ranks among the greatest frustrations for HR professionals. The Affordable Care Act (ACA) remains in flux, the Fair Labor Standards Act (FLSA) continues to draw confusion for salaried versus hourly worker requirements, and staying on top of best practices for the Family Medical Leave Act (FMLA) is a challenge. There are even more laws on the books that employers need to follow, and compliance is non-negotiable. If you’re even slightly uncertain about where you stand, it’s best to contact an HR services provider to ensure you’re abiding by all regulations.
5. Business Interruption
Whether a result of a natural disaster, fire or crippling cyber attack, when your company can’t produce its goods or services, it can have devastating effects. According to Allianz Risk Barometer 2018, business interruption and cyber incidents are the top global risks that businesses face.
What would you do if your company was unable to operate for hours, days or weeks as a result of a catastrophic event? Not every incident is preventable, so make sure you have a robust business continuity plan that informs everyone of their roles and outlines steps to take if something happens. Additionally, work with your insurance provider to ensure your coverage is up-to-date and that you’re properly protected.
At McClone, our entire focus is on helping businesses thrive. Working with a single provider for these needs has many advantages, and the strategic risk advisors at McClone can help you take a holistic approach. Reach out today.
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