Nearly three-quarters of business decision-makers believe their businesses aren’t moving fast enough to address risks associated with “global megatrends” across trade, technology, weather and workforce, according to a July 17 report from professional services firm Aon.
In addition, 86% said the four megatrends are important to their organizations and believe it’s important to address related challenges and opportunities. However, they said it’s becoming more difficult to make the right decisions in these areas.
“These findings confirm what we’re hearing from our clients every day — the world is more volatile and complex, creating uncertainty and need for new solutions across our global economy,” Greg Case, CEO of Aon, said in a statement.
“Business decision makers recognize the enormity of the challenges” presented by trade, technology, weather and workforce, he said, and they are “looking for actionable insights and innovative tools to more quickly address critical risk and people issues.”
When considering workforce risks, executives said they’re increasingly balancing costs with the ability to provide a good employee experience.
In particular, one of the biggest workforce challenges is rising workforce costs, with 57% saying their company has materially changed employee benefits or healthcare offers in order to improve affordability and outcomes.
Business decision-makers said another top workforce concern is adjusting their talent strategies to account for changes in technology. About 52% said they’ve taken action during the last year with reskilling or upskilling related to green technology and renewable projects, and 45% said climate issues are helping to create a mission-driven culture that attracts and retains talent.
Most business leaders are concerned they can’t train workers quickly enough to keep up with AI and tech developments in coming years, according to a World Employment Confederation survey. Leaders said it’s never been so hard to plan for future talent requirements, especially with flexible workforce needs requiring online talent platforms, more contingent workers and more internal flexibility.
Employers also plan to maintain their current health benefits in 2025, despite rising costs in 2023 and 2024, according to a Mercer report. They may consider specialized coverage as well, including reproductive health and weight-loss medications. However, employers are split on how to cover rising costs, with about half saying it’s likely they’ll shift rising costs onto workers, and the other half saying that seems unlikely.