See Pandemic Preparedness

ThPellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Proin pharetra nonummy pede. Mauris et orci. Aenean nec lorem. Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue massa. Fusce posuere, magna sed pulvinar ultricies, purus lectus malesuada libero, sit

Exploring the Data

Download Full Report

See GRMS data

A European perspective

img oil rig. Revisiting the future of risk: Energy

2. Companies need to be transparent about the risks and opportunities that climate change, and the shift to a net zero economy pose to their business.

3. Central banks and regulators need to make sure that our financial systems can withstand the impacts of climate change and support the transition to net zero.

4. Banks, insurers, investors and other financial firms need to commit to ensuring their investments and lending is aligned with net zero.

“By 2030 government will need to reflect on commitments made in Paris and milestones reached. It is likely that there will be an acceleration in climate policy, as governments seek to limit global warming and achieve the aims of the Paris accord, as the alternative is climate catastrophe. This will lead to greater pressure to divest, ‘green’ the system and meet climate change targets.” At COP26, countries agreed to monitor commitments and milestones reached on an annual basis. This is likely to concentrate minds at the international level and apply additional pressure to energy companies as progress is made towards decarbonising the global economy.

Accoriding to recruiters and companies.

Leading Causes of Skills Shortage in the Industry

82%

Apprenticeships

Targeting women to join the Industry

Targeting transferable skills from other industries

Training and development of existing workforce

Partnering with colleagues

Changes to retention and recruiting practices

How are energy firms addressing the skills gap?

28.9%

22.6%

36.2%

64.7%

29.4%

28.5%

Experts across the sector acknowledge that attracting and retaining skilled talent is critical to meet growth plans as part of the energy transition. Commitment to building a sustainable talent strategy needs to become a leadership priority. “For change to resonate at all levels of the organisation, responsibility cannot exist within the HR teams alone; it’s got to be a leader-led identity change.” Tamsin Lambert, Talent Excellence Advisor, Shell

Bringing retirees back

15.7%

“The shift towards renewables, and the transition toward digitalisation and automation will gather momentum, placing a renewed emphasis on the need for new skills, and providing new opportunities for energy firms to develop their workforce.” We expect to see new technologies and operations to continue creating new opportunities at entry and experienced levels. Decarbonization is driving an industry-wide operational evolution and many firms are reassessing their approach to succession by identifying future leaders in new ways. The path to leadership is becoming less linear, and firms are finding new ways to support future leaders with the skills and values needed to guide the firm through a period of rapid change.

Talk With Us

If you would like to discuss any aspects of these insights, or to better understand our capabilities in this area, please do not hesitate to get in contact with our team.

Emma Whitworth Senior Risk Engineer emma.whitworth@aon.co.uk

Geri McMahon Co-Head of Responsible Investment geri.mcmahon@aon.com

Suzanne Courtney Chief Commercial Officer, EMEA suzanne.courtney@aon.com

“Within 20 years, the development of technology is likely to accelerate the transition to automation. As business models change and roles become increasingly automated, different skills will be needed… digital readiness will be the difference between success and failure.” Already, innovative technologies are helping firms evolve their operating models.We expect new technologies to become integral to business models, and firms will seek to fill new roles to support this transition. The pace of technological development will continue to grow exponentially, demanding new skills from the workforce, which will continue to evolve over time.

Mark Jeavons Associate Partner - Head of Climate Change Insights mark.jeavons@aon.com

Name Here Details Xxxxxx@aon.com

Divestment

Supply Chain

Talent

Leaders now appreciate that they need a deeper understanding of their supply chains, and the demand for flexible, accurate supply chain logistics is increasing. This has prompted a realization that supply chain due diligence cannot exist without data-driven technology – tracking goods in transit and potential downstream impacts of delay.

Why is Resilience Important in a Workforce?

Names Here

Name Here Details Xxxxxx@aon.com

Share the Insights

Name Here Details Xxxxxx@aon.com

Read Legacy Issues

In navigating the Great Convergence, employers have been scrambling to attract and retain talent and critical skills. The labor market is tight. Rising pressure on compensation means it’s an employee’s market, and employees know it.

Increased Choice

Attrition is becoming an increasingly important factor, with 83 percent of leaders listing it as a top concern, while 76 percent report a loss of critical skills, affecting their ability to remain agile.

65 percent of candidates say that they’ve discontinued a hiring process because of an unattractive employee value proposition. More than three-quarters of employees say that worries about finances impact them at work . Wages are expected to rise 4 percent in 2022, the fastest growth in over a decade. Added to that cost pressure on employers, inflation is at a four-decade high, which not only adds further cost pressure for employers, but also more potential financial stress for employees

With that in mind, employers need to know what will allow them to retain their talent. The answer is to build towards a more sustainable working life. A major part of that lies in having a workforce that is resilient.

Food, Agribusiness and Beverage

For the Food, Agribusiness & Beverage (FAB) sector, growing global population, geopolitical tensions, fragile supply chains, shifting sociocultural values and developmental technologies are directly impacting the workforce across the FAB sector.

Fast-moving consumer goods e-commerce sales are predicted to grow from 10 to 40 percent by 2026. Meeting this uptick in demand will drive operational change.

Changing Demands

Around 40 percent of roles will be automated by 2035. Organizations will need to focus on attracting, retaining and reskilling talent to drive growth and innovation.

Skills Shortage

Successful reskilling can cost less than 10 percent of a role’s salary, whereas replacing an employee can cost more than 100 percent of the role’s annual salary.

Taking Action

Intensifying regulatory pressures, cyber exposures from increasingly digitalized operations, environmental, social and governance pressures, increasing competition from new disruptors, upended working practices and the race to innovate continue to intensify the demands on the workforce.

Financial Institutions

Cyber attacks on financial institutions rose by 38 percent since the outbreak of the pandemic. Rapid digitalization of the FI sector is creating new exposures and operational challenges.

Operating in a Digital World

Only 28 percent of FIs feel positive about managers’ ability to address employees’ mental health . Stress, burnout and anxiety directly impact performance. Firms need to address employee wellbeing.

Focus on Employee Wellbeing

Almost 90 percent of reputational crises in the FI sector are triggered by human activity. Failures in governance, poor business practices and financial irregularities demand people resilience.

People Resilience is Key

The life sciences sector is evolving rapidly. New technologies are revolutionizing traditional healthcare delivery models and highly skilled workers are in short supply and high demand. As organizations compete for top talent, a focus on compensation, health and benefits strategies and total rewards, will be critical to building a resilient workforce and enabling innovation.

Life Sciences

Record levels of deal activity in 2021 resulted in the most active M&A year ever. With record levels of private equity capital available, the life sciences sector is poised for much M&A activity in 2022.

A Rapidly Evolving Sector

Projected voluntary turnover numbers are trending as high as 18.4 percent for the life sciences sector. Employers must look at the total employee value proposition, rather than just rewards.

Facing Unstable Talent Pipelines

71 percent of life sciences companies plan to increase their workforce. Even in cases of modest turnover, companies will need to hire more than 25 percent in the next 12 months to meet hiring goals .

Workforce is Critical for Growth

4. Making Better Decisions

2. Exploring the Data

1. What's the Challenge

Most employees fall into the “live to work” or “work to live” camp. Work/life balance is an elusive concept – sought after but rarely achieved. Yet, the Great Convergence is a catalyst for change. For the first time, in an employee-centered market, organizations are starting to understand the value of creating a sustainable working life for their employees. To retain and attract talent, they must build an environment where careers can exist and flourish alongside (and in harmony with) people’s personal lives and commitments. No one should sacrifice one for the other; this acknowledgement is no longer merely lip service at company meetings but must form the bedrock of employee value propositions and investment, permitting new talent to see it in action. As this understanding develops, the potential for diversity, equity and inclusion will also broaden, leading to workforces that truly reflect the societies they inhabit.

Conclusion

SECTION 2

Welcome

Exploring the Data

Data in Action Roadmap

Making Better Decisions

Measuring the Return on Investment and Return on Value. If resilience drives opportunity in times of volatility, then it’s not ancillary to the core business. Fundamentally, resilience is the business. Having the ability to quickly take action at scale while others are struggling to mobilize opens doors. Leaders who are unable to link the two may be less resilient than they think in times of unexpected volatility. Those who clearly establish how resilience fits into their core business—and use that understanding to inform better decision making—can most effectively protect and build their businesses.

Greg Case, Chief Executive Officer, Aon

“

76%

report a loss of critical skills, affecting their ability to remain agile

list attrition as a top concern

83%

of candidates say that they’ve discontinued a hiring process because of an unattractive employee value proposition

65%

of wages are expected to rise

4%

Wage Pressures

Sustainable Working Life

resilient employees say they would want to stay at their current employer for the foreseeable future, compared to about half of non-resilient employees.

More than 9 in 10

However, just 30 percent of employees are resilient. Resilience shows up in more than just retention. It’s also about the performance, health and wellbeing of your workforce. Poor health and absenteeism lead to lower productivity, but it’s more than that. Non-resilient workforces are less likely to be enthusiastic, satisfied or confident and less likely to have good concentration or energy.

Reality Check

What can leaders do to make the remaining 70 percent of the workforce more resilient?

Toward a More Resilient Workforce

No Program

15%

Partial Program

29%

Broad Program

45%

A comprehensive strategy is best. Improving employee resilience as a step toward building a sustainable working life is the best way an organization can compete and retain talent.

The Great Convergence Doesn’t Affect Every Industry Equally

What's the Challenge?

1. Aon Global HR Pulse Survey

Data in Action

Read on to access a roadmap on how to bring these insights to life through tangible actions.

Access More Insights

www.aon.com

Legal

Privacy

Cookie Notice

Food, Agribusiness & Beverage

Financial Institutions

Life Sciences

Read on to see how specific sectors are impacted:

1. The European Commission: Digital Finance Factsheet (2020) 2. Pentland Analytics 2020

Legal

Privacy

Cookie Notice

Explore aon.com

Visit the website

What's the Challenge?

SECTION 1

Share the Insights

Making Better Decisions

Data in Action Roadmap

Exploring the Data

What's the Challenge?

Welcome