Risk Outlook 2022: Increase Investment in Employee Health

The latest International SOS Risk Outlook 2022 report revealed that organizations worldwide are set to increase investment in employee health. The report and updated global risk maps also signal that organizations are grappling with an increasingly complex risk landscape.

Nearly 1,000 risk professionals across 75 countries participated in the survey. Insights from the Workforce Resilience Council and International SOS proprietary data indicate that both mental and physical health support will see increased investment with over half (56%) of organizations intending to increase spending on both.

Organizations are facing a dual challenge on the health front. Along with the physical aspects of COVID-19 safety, the pandemic has significantly contributed to a mental health crisis. Over a third of respondents (36%) expect mental health to cause a significant decrease in productivity in 2022.

The need for increased investment comes as organizations expect to face increased risks in 2022. Over two-thirds (68%) of organizations anticipate risks to increase or stay the same next year. In particular, decision-makers responsible for business travel (69%) and international assignees (67%) expect risk levels to increase or stay the same in 2022.

International SOS’ global survey revealed that the top five expected causes of decreased employee productivity in 2022 are COVID-19, mental health issues, natural disasters including extreme weather, transport concerns, and security threats, and civil unrest.

“In 2022 we are facing a layered threat environment. Entering the third year of the pandemic, while COVID-19 and the fallout from lockdowns continue to be major disruptors, other risks are coming back to the fore as travel resumes. With many experts predicting 2022 will be the year of the ‘great resignation’ organizations must act to ensure they provide the necessary support for employees,” explained by Dr. Neil Nerwich, Group Medical Director of International SOS.

COVID-19 Continues to Disrupt as Organizations Struggle to Respond

For many organizations, COVID-19 will continue to be a significant operational challenge. A third (33%) of respondents said that having adequate resources to deal with the virus was a top challenge for 2022. Surprisingly, this increased to nearly half (47%) of organizations based in Asia. This suggests that the continent first impacted by COVID-19 may still be dealing with disruption for some time to come.

Meanwhile, respondents from Western Europe and the Americas were more likely to be challenged by COVID-19 policies and more specifically, the need to define testing and vaccine policies for COVID-19. 36% of respondents in Western Europe and the Americas cited this as an issue compared to a global average of 25%.

To respond to these challenges the management of the ongoing significant impact of COVID-19 needs to be carefully considered. Organizations will need to draw on the expertise of business leaders as well as functions such as HR and risk management.

Perennial Security Concerns a Continued Risk

While the pandemic tops the lists of concerns, other perennial security risks are expected to cause disruption in 2022.

With concern growing over climate change, 21% of respondents predicted that natural disasters including extreme weather would be disruptive in 2022. This was closely followed by transport concerns for local, domestic and international travel at 19% and security threats and civil unrest at16%.

International SOS’ Five Predictions for 2022    

Drawing on the findings of the Risk Outlook survey, the Workforce Resilience Council, and the organization’s proprietary data, International SOS’ released its top five predictions for next year. These include the impact of COVID-19, Long COVID, & mental health as the primary employee productivity disruptors in 2022 which will escalate absenteeism and continuity issues.

This is followed by the effect of the infodemic as it continues to exacerbate the complex nature of protecting people, while Duty of Care obligations are reshaped by new health & safety measures, employee expectations, & regulatory compliance.

International SOS’ also predicted that pandemic-disrupted activities will reach a degree of stability by 2023 as organizations utilize health & security risk management as a competitive advantage to support employee retention, and willingness to return to activities including business travel.

The leading global health and security risk management group also said that organizations risk being caught off-guard by rapidly changing security environments, as civil disorder and geopolitical volatility will rise above pre-pandemic levels

International SOS also stated that climate change will increase the frequency and impact of climate-sensitive hazards, such as infectious diseases, extreme weather events, and socioeconomic tensions.  

The annual risk outlook study conducted by International SOS exposes the gaps in the protection of employee health and security such as risk perception, mental health, productivity impacts, and operational challenges. The survey is complemented with interpretations and predictions from the Workforce Resilience Council, as well as extensive proprietary data and analysis from International SOS. The Workforce Resilience Council is made up of representative experts of all health, security, and safety fields. The participants in this year’s Council are from a mix of think tanks, associations, advisory boards, NGOs, and IGOs, relevant to the risks of working at home or abroad.

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