Global insurance brokerages are increasingly focusing on human capital strategies to help businesses manage their most valuable asset: their employees. As economic and political uncertainties grow, many companies face challenges related to staffing, mental health, and workplace morale. Brokers see this as an opportunity to provide risk management advice to small and medium-sized enterprises (SMEs) that can enhance employee engagement and productivity.
Major firms like Aon, Marsh, Lockton, and WTW are leading the way in offering these services. Their goal is to help companies address a wide range of issues that impact both risk management and insurance costs. By improving workforce health and engagement, these brokers aim to create a more productive environment for their clients.
Lockton, for instance, combines cultural consulting, internal communication strategies, and health initiatives into its human capital solutions. Meanwhile, Marsh has shifted its focus to include people risk management, especially concerning supply chains. The firm has noted a significant increase in the financial stakes of supply chain management, which has grown from $15.58 billion to $24.6 billion over the past five years. This highlights the importance of managing people risks within the broader context of business operations.
WTW emphasizes employee wellbeing as a critical component of its human capital strategy. The firm advocates for a comprehensive approach to wellbeing, suggesting that businesses take specific actions to support their employees. These include prioritizing vulnerable workers, leveraging data analytics to listen to employee needs, aligning wellbeing investments with business goals, and utilizing both high-tech and personal solutions for tailored wellbeing experiences.
Aon has identified five key trends in human talent that brokers should understand. Puneet Swani, Aon’s head of talent solutions for the Asia Pacific, notes that many organizations are grappling with employee burnout, especially following the rapid changes brought on by the COVID-19 pandemic. Many employees feel overwhelmed by new technologies and ways of working, making it crucial for companies to find ways to support and motivate their teams.
Another trend is the rise of hybrid working models. While remote work became prevalent during the pandemic, companies are now recognizing the need for a balance between remote and in-office work to maintain collaboration and teamwork. Swani emphasizes that networking and face-to-face interactions remain vital for fostering a productive work environment.
The definition of work rewards is also evolving. Companies are beginning to view rewards more holistically, considering factors like career development and employee wellness alongside traditional compensation. This shift reflects a broader understanding of what motivates employees.
As firms look to the future, there is a growing focus on the skills that will be needed. Swani points out that the skills required may differ significantly from those currently in demand, leading to discussions about how to reward employees who are acquiring these future skills.
Lastly, the use of artificial intelligence in human resources is on the rise. Companies are increasingly turning to AI for recruitment and reward processes, although ethical concerns about bias in AI technology remain a critical consideration.
As these trends continue to shape the workplace, brokers have a unique opportunity to leverage human capital strategies to meet the evolving needs of their clients.