Covid-19 accelerates need to focus on people risk and value

It has never been more important than in the post-Covid-19 world for organisations to recognise that people are their most important asset or risk, and that both sides of the same coin must be properly managed, said experts at Commercial Risk’s employee benefits event. Delegates gathered for the two-day virtual event were told that even before the pandemic struck there was mounting evidence and recognition that employees are an organisation’s biggest asset. Employee wellbeing boosts staff retention and productivity, among other things, they said. “Having a well-informed and engaged workforce leads to business resilience. It is becoming more and more evident that the wellbeing of employees is inextricably linked to the bottom line,” said Barbara Schonhofer, founder and chair of the Insurance Supper Club, the global business community for women operating in, or involved with, insurance. Fellow speaker Peter Cheese, CEO of the UK’s Chartered Institute of Personnel and Development (CIPD), said before Covid-19 there was growing recognition that people are an organisation’s greatest asset and that the human dimension is fundamental to success. Mr Cheese said the pandemic has only accelerated this understanding and trend within business. “It is a human crisis and has forced us to think about people… There has never been a more important time to focus on people, to understand both their value and their risk,” he added at the event partnered with Generali Employee Benefits Network, MAXIS Global Benefits Network and Zurich Global Employee Benefits Solutions. Ms Schonhofer agreed. “Now more than ever before, it is being recognised that people and talent are the most precious asset to corporates, and at the same time bring the most risk to business.” She said the wellbeing of employees is currently front and centre of business discussions after a “seismic shift” in the way human beings function in and out of work. “Virtually overnight we have fast-forwarded ten years in how we operate. We are no longer nine-to-five commuters in grey suits. Our work and home lives merged and with it came the dawning of a new reality,” said Ms Schonhofer. “A new collaborative era has dawned… there is no going back,” she added, before stressing the importance of employee benefits in ensuring the wellbeing of employees. Mr Cheese said that although the pandemic has focused attention on people and employee wellbeing, companies haven’t traditionally understood this risk well enough. The issue has been widely under-resourced and not understood at board level, he continued. The expert conceded that is difficult to measure people risk and culture, but said it can be done through a mix of quantifiable and qualitative analysis to build the bigger picture. Mr Cheese said it also vital to remember that people risks impact almost all other risks and must be managed holistically. “The people risks are integral to our understanding of all risks, and people metrics are integral to balanced scorecard reporting. We can talk about cybersecurity… but you must blend that with the analytics and understanding of how people are responding and if they understand their responsibilities,” he said. Mr Cheese added that people risk and value are different sides of the same coin. The expert advised delegates to stress the risks first when trying to get buy-in from business leaders. “If people skills are a risk, then building up skills is a value… on almost every dimension of people risk I can think of, it is also about understanding that value is the flipside of the same coin,” he began. “So, if we are presenting at the highest levels of our business and to our board about the value of people, we are also talking about the risk. Often, to attract the attention of business leaders, I start with risk because it will most likely get their immediate attention… If I say to someone, ‘if you don’t invest in your leaders or manage your people effectively, you are creating significant risk around the retention of employees’, I know I am going to get their attention,” he added. Speakers also said that risk managers can help deliver more efficient global employee benefits (EB) but must overcome potential clashes with human resource professionals (HR) with clear communication, strong cooperation, clearly defined roles and buy-in from the top.

Covid-19 accelerates need to focus on people risk and value

Want to read this article?

Read Next

UN launches new net-zero insurance forum

Pen extends capacity deal with Zurich in Republic of Ireland

Mapfre Global Risks boosts profit by 58% despite reduced premiums

Talanx confident of ‘significantly exceeding’ full-year forecast

The Netherlands sued over PFAS contamination

UN launches new net-zero insurance forum

Pen extends capacity deal with Zurich in Republic of Ireland

Mapfre Global Risks boosts profit by 58% despite reduced premiums

Talanx confident of ‘significantly exceeding’ full-year forecast

The Netherlands sued over PFAS contamination

Want to read this article?

Read Next

UN launches new net-zero insurance forum

Pen extends capacity deal with Zurich in Republic of Ireland

Mapfre Global Risks boosts profit by 58% despite reduced premiums

Talanx confident of ‘significantly exceeding’ full-year forecast

The Netherlands sued over PFAS contamination

Related Articles