People Risks are an unavoidable part of any organisation. According to Lockton Risk Velocity Report (opens a new window), CFO’s concerns regarding risk velocity have exponentially increased and People Risk is ranked among the Top 3 strategic risks.
Risks relating to people can come in many forms, such as compliance issues, safety hazards, employee turnover, or absenteeism. Recent trends among employees, especially Gen Z, are inspired by social media earlier this year to not go above and beyond in their jobs, or doing the bare minimum or coasting, a behaviour called Quiet Quitting.
The origins of quiet quitting came from places where overworked and burned-out employees concluded that going above and beyond is not worth the continuous sacrifice of their health and wellbeing. It’s a silent protest against the “hustle culture”. Quiet quitting is proving to be more than just another flaky social-media trend.
As a result of the pandemic, many organisations have had to shift their business focus. In many cases, employee recognition and development were put aside as a result of this reprioritisation. Employees who feel they lack development are two times more likely to leave their jobs in the next year. For those who remain, a lack of recognition could lead to quiet quitting. A lot of employees feel that work wasn’t equitable during COVID. The long hours and hard work required were often met with little to no reward, and this imbalance has caused some employees to pull back.
The job market has shifted during the pandemic so that employees believe they can find an organisation that aligns with their personal values, especially if your company doesn’t. Addressing the unique issues within your workplace is key to keeping employees engaged.
An area where your organisation can start is building trust through regular employee feedback surveys. Not only do surveys show employees that you are open to hearing feedback, but they can help your HR teams uncover the key drivers of motivation among your workforce. Furthermore, surveys foster a sense of personal connection, community, and belonging, as employees will see the aggregate results of their input and that of their peers. It goes without saying that committing to concrete action on the back of survey results is critical to maintaining trust and avoiding disappointment.
To understand how employees feel about work in your organisation, here are a few more things managers can do to better engage your employees:
Discussing with your employees and showing authentic concern about challenges they are facing and demonstrate support
Developing wellness programmes and policies that allow employees to disconnect and de-stress
Setting up good boundaries with work-life balance when working in a remote or hybrid environment
Organisations should focus on creating a culture where employees feel comfortable communicating with their manager and team members. This can be achieved by establishing clear channels of communication, encouraging open dialogue, and providing regular feedback. Employees who feel they can communicate freely with their manager and team members are more likely to be productive and engaged in their work.
Before you consider adding or improving benefits as a way to reduce cases of quiet quitting, other methods include:
Setting clearer milestones and career paths for employees
Creating performance plans for under-performing employees
Holding more company-wide meetings to keep employees informed
Enforcing stricter employee time tracking
Finally, organisations should strive to create an environment where people feel safe and valued. This means providing a supportive work culture that encourages open communication, trust and respect between employees and management. It also requires establishing clear policies and procedures for addressing any issues or concerns raised by staff members.
Overall, tackling People Risks is an important part of any organisation’s risk management strategy. By taking a proactive approach to identifying and managing risks, it also encourages innovation, productivity, and engagement. Organisations can ensure their operations continue to run smoothly and effectively while protecting themselves from potential negative impacts. This helps create a culture of trust and respect which is essential for long-term success.
For more information, please do not hesitate to contact:
Rachael Tay, Regional Head of Benefits, Asia Pacific | +65 8869 8592 | rachael.tay@lockton.com (opens a new window)
Stella Sung, Head of Benefits and Health, Greater China & Korea | +852 2250 2831 | stella.sung@lockton.com (opens a new window)
Rhea Ablan, Head of Employee Benefits, Philippines | +632 811 0388 | rhea.ablan@lockton.com (opens a new window)
Risk Velocity series – People Risks
