Workforce

The Evolving Workforce: Prioritising Flexibility, Safety, and Proactive Risk Solutions

Key Findings

62% of UK insurers report a moderate impact from current labour market conditions on their organisation’s ability to grow and manage claims efficiently.
76% of UK insurers identify flexible work arrangements as crucial to employee retention, followed by enhanced employee benefits (62%).
Notably, in the UK, offering competitive salaries to retain employees has seen a 39-percentage points decrease since last year.

Balancing growth and resilience amid ongoing workforce shifts

The UK labour market offers new opportunities and modern work practices, yet organisations continue to face challenges in expansion due to a constrained talent pool, the cost-of-living crisis, and economic and political uncertainty. Organisational transformations that are emerging with advancing technology, regulatory shifts, and evolving customer preferences are leading to the rise of burnout and fatigue among workers. Furthermore, increased workloads and exposure to occupational hazards continue to contribute to a global trend of labour shortages.

GB’s survey reveals that, due to current labour market conditions, 72% of global insurers reported a moderate to significant impact on their organisational ability to grow and manage claims efficiently. However, in the UK, although the concern about this topic is slightly lower than globally, it is still considerable. 62% of insurers indicate a moderate impact arising from the current challenges. This represents a potential opportunity for insurers to adapt and strengthen resilience in the face of ongoing pressures.

Flexibility and well-being take centre stage for employee retention

The shift to new work dynamics has prompted many individuals to reassess their careers. Each year, about three in ten UK employees leave their current roles for new opportunities, leading to an average turnover rate of 34%.^[¹ ^] Today, workers increasingly seek positions that align better with their personal values or offer improved financial and personal stability. A noticeable increase in the demand for benefits that provide enhanced security and job satisfaction has occurred in light of the ongoing cost-of-living crisis.

In response to changing employee expectations, particularly following the pandemic, UK organisations view employee retention as a matter of stability and an opportunity to cultivate loyalty, motivation, and satisfaction within their teams.^[² ^] Reflecting this, 76% of UK insurers have implemented flexible work arrangements as their top strategy for retaining employees, followed by enhanced employee benefits (62%) as the second most implemented strategy for attracting and keeping skilled talent. Globally, however, 60% of insurers are prioritising enhanced employee benefits, with flexible workplace arrangements coming in at a close second (58%) as primary strategies to address turnover in the current labour market.

Furthermore, offering competitive salaries is no longer sufficient to retain staff, as workers now appear to value approaches that support personal well-being and enhance productivity. This shift in focus also correlates with a notable 39-percentage point decrease in offering competitive salaries among UK organisations, demonstrating a commitment to meeting employee needs by offering work flexibility and fostering a culture of trust and adaptability.

Addressing workplace violence: A call for proactive risk management

Workplace violence remains a pressing issue with often overlooked impacts on productivity. In the UK, one in ten employees have reported experiencing bullying or harassment at work, with higher rates among women and individuals from lower socio-economic backgrounds.^[³ ^]However, organisations in the present day are increasingly reflecting upon this as a critical business risk. There is increased awareness that harassment, bullying, and discrimination pose ethical, legal, and reputational risks, impacting productivity and hindering talent acquisition and retention.

Furthermore, there is a positive legal duty for employers to prevent sexual harassment from happening in the first place. As of 26 October 2024, the Worker Protection Act in the UK imposes a new ‘positive duty’ on employers to actively take reasonable steps to prevent sexual harassment within the workplace.^[⁴ ^] This has been introduced to ensure the proactive identification of potential risks and the implementation of measures to mitigate them effectively.

For insurers, this evolving landscape underscores the need to develop innovative risk management solutions that address the broader implications of workplace violence, including prevention and response strategies. The new Act adds an additional layer of accountability, creating opportunities for insurers to guide clients in navigating compliance challenges while fostering safer and more inclusive work environments.

^{[1] “}^{Benchmarking employee turnover: What are the latest trends and insights?}^{”, CIPD, Published on 11 Jun 2024.}^{[2] “}^{Why is Employee Retention Important?}^{”, Knight Frank}^{[3] Vanessa Gash, et al. “}^{VISION Policy Report - Violence in the workplace in the UK: Business and individual-level exposure}^{”, City, University of London, Posted on 18 Oct 2024.}^{[4] Nicola Whiteley “}^{Monthly Highlights – UK Employment Law – September 2024}^{”, Orrick, Posted on 02 Oct 2024.}