There are mixed opinions about this year’s business climate. Buoyed by pro-business policies, some predict the world is on the cusp of significant economic opportunity — with technological advances and innovation promising greater productivity and more balanced lives. At the same time, there is mounting concern that unresolved geopolitical tensions will dampen global growth.
Business leaders worry most about the relentless march of competitors (traditional and new) and the shifting opportunities offered by technology. Concerns around talent migration and corporate responsibility to address societal issues have increased significantly since last year. Add to that
cybersecurity risks and changing business regulations, and companies are facing pressure on multiple fronts (Figure 3).
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T a l e n t m i g r a t i o n R e g i o n a l i z a t i o n /o n s h o r i n g
C o m p a n i e s ’ r e s p o n s i b i l i t y f o r s o c i e t a l i s s u e s C o n s u m e r i n t e r e s t i n e t h i c a l p r o d u c t s I n c r e a s e d b o r d e r c o n t r o l /r e g u l a t i o n C y b e r s e c u r i t y I m m i g r a t i o n p o l i c i e s I n c r e a s e d s t r e n g t h o f e m e r g i n g m a r k e t s C h a n g e s i n b u s i n e s s / t a x r e g u l a t i o n s C h a n g e s i n l a b o r r e g u l a t i o n s It is precisely during these times of change that employees look to their employers for direction and inspiration. Job security is one of the top three reasons people joined their company and the main reason they stay. As organizations move from anticipating the future of work to actively preparing for it, they can bring people along on the journey by upholding the values individuals admire, actively managing the change process, and remembering that it is people who make transformations stick.In the Human Age 1, the most significant threats to successful organizational transformations are
rooted in human capital risk, including the stress triggered by individuals feeling a lack of control in the face of uncertainty.2 Yet only one in three executives rates their company’s ability to mitigate people risks as “very effective.” This perception may be based on a lack of focus — only 29% of HR leaders strongly agree that their business executives prioritize human capital risks.
H U M A N C A P I T A L R I S K S L O O M I N G
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An era dictated more than ever before by human behavior and one that will be defined by rapid human evolution 2World Economic Forum, in partnership with Marsh & McLennan Companies and Zurich Insurance Group. (2019). The Global Risks Report 2019. Available at: https://http://www.77cn.com.cn/reports/the-global-risks-report-2019F I G U R E 3. E M E R G I N G S O C I O E C O N O M I C F O R C E S
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