As organizations embrace working from home, digital solutions, and technology-first strategies, HR and risk managers must address business risks involving cybersecurity, digital delivery of benefits, and how to manage technology skills gaps.
Rapid digital transformation is the norm of our times. Organizations are not only having to make changes to their business delivery, but they are also needing to do a lot more to create a truly digital work experience for their employees. Of course, this has been accelerated by Covid-19 and the urgent shift for many to remote or flexible working.
People management practices have not kept pace with other technological developments. Risks involving cybersecurity, loss of personal information, and system obsolescence are heightened due to how HR data is maintained, and how benefits and other HR programs are delivered.
This accelerated digitization creates five key people-related risks for firms. These are:
But it’s not all about threats and missed opportunities. Accelerated digitization has led to an explosion in digital health and well-being programs, which have become more relevant and have gained significant traction during the pandemic.
Employee expectations are changing too, requiring employers to transform how benefits are delivered. Two-in-five workers say they are less likely to leave the company if their employer promotes or sponsors digital health solutions.1 As such, HR teams must design employee experiences that are fit for a flexible, digital working environment. Are employees’ personal details such as salary or dependent information being shared with third parties using spreadsheets? Is that a risk you are comfortable with? 53% of employers believe their current HR technology processes and procedures expose them to undue risk.2
Businesses are embracing technological developments and seeing the clear benefits that a digital-first organizational strategy can bring. However, HR departments are failing to keep pace, and rising cybersecurity and data privacy concerns – especially in light of remote working, high volumes of employee benefits data, and vulnerable processes – goes beyond a HR role.
As such, HR is being challenged to accelerate digital transformation, but can only do so by ensuring that the HR strategy is in alignment with the business vision and protected through a risk lens. We urge HR and risk management teams to work together to seize the opportunities to transform programs and embrace the employee health, well-being, and risk protection benefits that digitalization can bring.
1 Mercer. 2020 Global Talent Trends Survey.
2 MMB Darwin. The Age of Agility: Flexible, Adaptable and Resilient Benefits, 2020.
3 MMB Darwin. The Age of Agility: Flexible, Adaptable and Resilient Benefits, 2020.