18 Apr 5 Ways to Mitigate Human Risk When Employing People
Without doubt humans and their collective intellect present as one of the biggest assets of any company. In some cases, it has been shown that it is the people within an organisation that can set one company apart from another.
Building this aspect of your business and then maintaining the constant enhancement of your team does come with risks. People you train up may leave the organisation. New hires have inherent risks. Labour laws, compliance and governance can be risky. Accidents and injuries can also impact your risk profile.
The metrics around humans is not as clear as those associated with sales (sales), marketing (leads) and customer service feedback (satisfaction). The positive metric for humans we think is data profiling the human risk factors. Others think it is calculated from the negative approach of disengagement – something to be avoided at all costs.
Gallup Research found that 17.2% of any workforce is disengaged. The same research found the cost to their organisation was $3,400 for every $10000 of salary (34%). Do the numbers – they are scary. Say median salaries are $60,000, therefore each disengaged employee costs around $20,400. A 100 strong workforce is costing the business over 2 million dollars because of disengagement.
So here are 5 considerations to help you manage these risks…and keep employees engaged.
Plan ahead for risks.
This involves identifying and understanding what the risks are currently within your organisation. Are employees engaged or disengaged and what are the associated costs with unmotivated employees? Get some data that offers you the best overview possible of where the risks may be. Don’t wait for the worst to happen. Having identified the risks, have a plan to mitigate these risks.
Build a positive work culture.
Without a positive work culture – this is where the disengaged employee can be a flight risk as well as an expensive element of your workforce. Placing emphasis on valuing your employees is the way to get the culture wheels turning positively. Supportive and culturally sensitive workplaces boost staff morale. Retention and overall work performance are enhanced when the culture is positive and inclusive. Trying to shift the workplace culture without a focus on the individual will prove difficult. The key to improving and nurturing a better workplace culture is to focus on developing the health, wellbeing and connectedness of the individuals who make up the company.
Think differently about risks at work.
Appreciating that traditional risk profiles at work are generally treated with a traditional health and safety management approach – it may be time to view and consider risks at work differently. It is time to view human risk profiles as opportunities to alter, improve or in some cases maintain the status quo. Find out who the champions are in your workforce. Who is managing their risk profile best across the shop floor? Risks can provide opportunities to improve, reduce uncertainty and focus on what employees are doing well.
Use data to make informed decisions.
Data collection within the workplace should be put to great use, not just stored. Get the data organised and analysed so that it continually adds value to your business. Data will give you the insight you need. Metrics that measure leading indicators of risk, tell you where to focus and intervene to bring about change. Decisions are best made based on this data. It can enhance your refinement process in developing your risk management strategy.
Work with the experts.
Working with an external group who present a panel of experts to help evaluate your data will always help you manage your risks more effectively. Without metrics to measure status and monitor progress, employee health and safety efforts, including the psychological status of the workforce, will always amount to guesswork. Experts can help you clarify exactly what data you need collected. They can assist you to enunciate why is this data being collected. Working with experts means using metrics and scientific methodologies to be able to quantify any risks presented. More importantly, experts can identify the root cause of these risks and build a series of programs, interventions, and education resources to help improve the situation at individual and organisational level.
Optimum work with organisations to identify, monitor and mitigate risks presented in the workplace – all with the support of world class, human risk systems, programs, and onsite services. Contact us to learn more.