Risk outlook 2022: Investments in employee health will increase

Companies around the world will invest more in the health of their employees. This is the conclusion of the Risk Outlook 2022 from International SOS. The annual global report, Risk Outlook 2022, produced in collaboration with market research firm Ipsos Mori, also reveals an increasingly complex risk landscape facing companies. Nearly 1,000 employee health professionals in 75 countries were surveyed. The responses show that there will be increased investment in both mental and physical health. More than half, or 56%, of companies intend to increase spending in both areas.

Mental illness significantly reduces productivity

Companies face a dual health challenge, according to the survey. In addition to the physical aspects of protecting against COVID-19, the pandemic has contributed significantly to a mental health crisis, it says. More than one-third of respondents (36 %) expect mental health conditions to cause a significant drop in productivity in 2022.

The need for increased investment stems from the fact that companies expect increased risks in 2022. More than two-thirds (68 %) of companies expect risks to increase or remain the same next year. In particular, decision makers responsible for business travel (69 %) and international expatriates or expatriates (67 %) expect risk levels to increase or remain the same in 2022.

Causes of the decline in employee productivity in 2022

Respondents see the following as the top five causes of declining employee productivity in the coming year:

• COVID-19
• Mental health problems
• Natural disasters including extreme weather conditions
• Traffic problems
• Security threats and civil unrest

Dr. Stefan Esser, Medical Director Central Europe at International SOS, comments: "In 2022, we face a multi-faceted threat environment. We are entering the third year of the pandemic, and although COVID-19 and the impact of the lockdowns continue to cause major disruptions, other risks are also becoming more present with the return to travel. Many experts predict that 2022 will be the "year of the big layoff wave." As a result, companies should ensure they are providing their employees with the support they need. Investing in mental health and physical well-being is essential for employee retention. These measures will help prevent productivity issues. The companies that best support their employees to navigate a changing work environment will be rewarded with higher employee resilience, loyalty and productivity."

Risk outlook 2022: Five forecasts

International SOS's top five listed forecasts for the next year are based on the results of the Risk Outlook Survey, expert interviews and the company's own data:

1. COVID-19, Long COVID, and mental health will be the top disruptors of employee productivity in 2022, causing increased absenteeism and continuity issues.
2. The infodemic will further exacerbate complexity in employee protection. At the same time, duties of care will be reshaped by new health and safety measures, employee expectations, and regulatory compliance.
3. Activities disrupted by the pandemic will become more stable by 2023 as companies use health and safety risk management as a competitive advantage. With improved risk management, companies support employee retention and willingness to return to activities such as business travel.
4. Companies run the risk of being caught off guard by rapidly changing security environments, as civil unrest and geopolitical volatility will exceed pre-pandemic levels.
5. Climate change will increase the frequency and impact of climate-sensitive hazards such as infectious diseases, extreme weather events, and socioeconomic tensions.

"In 2022, businesses need to be aware that perennial security concerns such as crime, civil unrest, terrorism or other geopolitical issues have not disappeared as a result of the pandemic. In many cases, the risks have actually increased. Tensions surrounding lockdowns, vaccine rollouts, and perceived encroachments on civil liberties have led to riots and violence in some places. With increasing vaccination requirements or restrictions on unvaccinated individuals worldwide, tensions are expected to increase in 2022. In addition to COVID-19-related triggers, natural disasters, geopolitical events, domestic conflict, and crime will continue to impact businesses around the world. These impacts will intensify in 2022 as travel increases again and the duty of care of employees in their home country becomes more of a focus," said Gautier Porot, Security Director for Switzerland and Italy at International SOS.

Source and further information: International SOS