Building trust and solving problems starts with taking the time to understand your workforce risk and opportunity landscape.
In a world where workforce dynamics continue to be turned on their head, flipped by the tectonic forces of disruption, global uncertainty and shifts in societal sentiment, it’s vital that organisations manage their workforce risks—but you can’t manage what you don’t understand.
We can help you to assess your workforce risks and turn them into legitimate market opportunities, enabling you to make intelligence-led decisions on investment priorities to create a competitive advantage.
It’s crucial to consider how disruptive market megatrends impact your organisation now, and how they will in the future.
Social instability
Ongoing societal changes and destabilisation are creating massive pressure, resulting in social and economic polarisation and the erosion of trust in institutions and organisations. Now more than ever, companies need to nurture their workforce to remain competitive and fully embrace growth opportunities..
Climate Change
As society is trying to figure out ways to best manage global climate change, organisations are expected to further rethink their footprint and operations, as well as the role their workforce can (or expect to) play in this movement.
Technological disruption
Transformative technology and innovation rapidly changes how we operate in the world. It creates tremendous opportunities for value creation, but also presents a broader range of risks and disruption for organisations.
Fracturing world
The world is becoming more fractured and multi-nodal as more nation states compete for influence, with the rest of the world aligning around them. Organisations are operating in an unstable context and require an increased level of resilience to best navigate new local and international complexities.
Demographic shifts
As the global population median age is increasing and underemployment is skyrocketing in numerous societies, social systems are facing growing constraints to sustainably develop communities. These issues are significantly shifting consumption patterns, skills availability and social dynamics, which organisations can no longer ignore.
79%of CEOs say that the global economy will decline in the next 12 months.
39%of CEOs think their current business model will not be viable in ten years or less.
42% of CEOs are very or extremely confident about their company's prospects for revenue growth over the next year.
Source: PwC's 26th Annual CEO Survey 2023
Risks are more interconnected than ever, with profound global shifts accelerating the need for organisations to not only understand the workforce-related risks impacting their organisations, but to leverage them in driving competitive advantage.
It is not enough for organisations to respond reactively, organisations and their leaders are now judged on how effectively they navigate these challenges.
To address the requirements of this ever-changing business environment and need for organisations to better position their workforce at the heart of their strategy and operations, we have designed a Workforce Risk framework.
Workforce Risk
Bringing the various risks and opportunities into an easy-to-understand, manageable framework is critical. Without this, it will be impossible to navigate these challenges effectively.
Brand and reputation
Your brand and reputation is a commodity, so understanding the impact of your workforce on your internal and external image is critical. Proactively identifying risks, and opportunities to improve, means you are better prepared to avoid any future crises.
Regulatory and compliance
Understanding your workforce-related regulatory and compliance landscape with a forward-looking, proactive approach will create financial and reputational value. As you keep ahead of the curve on emerging regulatory obligations, you will create competitive advantage.
Talent and people
Talent and people are at the heart of any organisation. Understanding their lived experience of your organisation and how your people are managed and rewarded will be key to unlocking their true potential.
Organisation
Your organisation's structure, operating model and functional relationships are the foundation to successfully managing your workforce risk landscape. Unlocking the potential of a best-in-class organisational strategy will drive efficiencies and value, in turn building a resilient business.
Organisations are facing new health, economic and market challenges, plus geopolitical uncertainty that promises to mould and bend in ways that are hard to predict. So, it is important to understand all of the workforce-related risks that affect your business, how they interact and to what extent they impact your organisation.
Hover over any risk or business category to explore
| Risk | Lever | Brand and Reputation | Regulatory and Compliance | Organisation | Talent and People |
| HR Strategy Effectiveness | Workforce Strategy | 10 | 10 | 40 | 40 |
| HR Process and Policy | Workforce Strategy | 10 | 10 | 40 | 40 |
| HR Function Effectiveness | Workforce Strategy | 10 | 10 | 40 | 40 |
| Employee Value Proposition | Workforce Strategy | 20 | 0 | 0 | 80 |
| Culture Strategy | Workforce Strategy | 40 | 0 | 20 | 40 |
| Intergenerational Cultural Perspectives | Workforce Strategy | 40 | 0 | 20 | 40 |
| Culture and Leadership Alignment | Workforce Strategy | 40 | 0 | 20 | 40 |
| HR Operating Model Effectiveness | Workforce Strategy | 0 | 0 | 80 | 20 |
| Organisational Agility | Workforce Strategy | 0 | 0 | 80 | 20 |
| Effective Integration of Functions | Workforce Strategy | 0 | 0 | 80 | 20 |
| Performance Management Tools and Technology | Workforce Strategy | 20 | 10 | 10 | 60 |
| Talent and Succession Tools and Technology | Workforce Strategy | 20 | 10 | 10 | 60 |
| Learning and Development Tools and Technology | Workforce Strategy | 20 | 10 | 10 | 60 |
| Society Wide Skills Availability | Workforce Strategy | 20 | 0 | 10 | 70 |
| Hybrid and Remote Working Strategy | Workforce Strategy | 20 | 0 | 10 | 70 |
| Talent Upskilling Strategy | Workforce Strategy | 20 | 0 | 10 | 70 |
| Wellbeing Strategy | Workforce Strategy | 20 | 10 | 0 | 70 |
| Wellbeing Monitoring | Workforce Strategy | 20 | 10 | 0 | 70 |
| Executive Pay | Tax and Benefits | 40 | 10 | 0 | 50 |
| Reward Strategy Effectiveness | Tax and Benefits | 20 | 10 | 10 | 60 |
| Employment Tax Compliance | Tax and Benefits | 10 | 80 | 0 | 10 |
| Union and Industrial Action | Risk and Regulation | 20 | 60 | 0 | 20 |
| Hybrid and Remote Working Compliance | Risk and Regulation | 20 | 60 | 0 | 20 |
| Employee Relation Management | Risk and Regulation | 20 | 60 | 0 | 20 |
| Coporate Washing | Risk and Regulation | 70 | 10 | 0 | 20 |
| Social Value | Risk and Regulation | 70 | 10 | 0 | 20 |
| Workforce ESG Reporting Obligations | Risk and Regulation | 30 | 60 | 0 | 10 |
| Complexity and Availability of Policies | Risk and Regulation | 20 | 60 | 0 | 20 |
| Safety and Security of Employees | Risk and Regulation | 20 | 60 | 0 | 20 |
| Policy Horizon Scanning | Risk and Regulation | 20 | 60 | 0 | 20 |
| Expense Fraud | Risk and Regulation | 10 | 80 | 0 | 10 |
| Geographically Mobile Employees | Risk and Regulation | 10 | 80 | 0 | 10 |
| Leadership Alignment and Understanding | Leadership | 20 | 10 | 0 | 70 |
| Top Team Effectiveness | Leadership | 20 | 0 | 40 | 40 |
| Leadership Succession Planning | Leadership | 20 | 0 | 40 | 40 |
| Leadership Development Strategy | Leadership | 20 | 0 | 40 | 40 |
| Demographic and Population Changes | ESG | 60 | 10 | 10 | 20 |
| Political Commentary | ESG | 60 | 10 | 10 | 20 |
| Political and Social Neutrality | ESG | 60 | 10 | 10 | 20 |
| Employee Targeting | Digital | 20 | 80 | 0 | 0 |
| Insider Risk | Digital | 20 | 80 | 0 | 0 |
| Cyber Risk Culture | Digital | 20 | 80 | 0 | 0 |
Data drives decision-making
Organisations have relied on human beings to assess their workforce risks, but even when they lean on decades of experience, no one executive or executive team can prepare for a future they can’t fully understand.
We can support you to leverage data to look not just back but forward, weeding through emerging and often interconnected risk factors. Your personalised insight dashboard takes into account your appetite for certain types of risk, limits the guesswork, and leaves you with a precise view of your investment priorities.
Our risk profile dashboard provides you with a high-level overview of your key risks and opportunities by workforce category or function, allowing you to focus on areas of high potential, prioritise and maximise investment.
Our risk heatmap allows you to see the potential impact or importance of individual risks, and a comparison of different parts of your business, in a visual manner. This gives you a bird’s eye view of where to focus your resources and investment.
