What’s Topping HR Leaders’ List of Workforce-Related Risks?

U.S.-based HR and risk managers see labor shortages, technology skills gaps and employee financial insecurity as the top three human capital concerns threatening their organization’s resilience and performance, according to the 2026 People Risk report, released Friday, May 8, by consulting firm Marsh. 

The report, built around insights provided by more than 1,000 survey respondents, highlighted that the rapid pace of technological change is deepening existing talent challenges. While many organizations are investing heavily in artificial intelligence (AI) and automation, these efforts are being hindered by inadequate, specialized skills, making technology adoption a critical risk area. 

“Companies that actively manage people risks are better positioned to gain a competitive edge,” said Susan Potter, the U.S. and Canada President of Mercer, a Marsh subsidiary. “[The] research underscores that organizational resilience also hinges on the extent companies invest in their people — by building skills, supporting health and financial well-being, and redesigning work to better incorporate AI and automation.”

Labor Shortage Is a Complex Crisis

While often viewed as a hiring challenge, the Marsh report stated the current labor shortage is a more complex issue involving depleted workforces, financial constraints and fierce competition for talent. 

This crunch is driving significant internal pressures, with 36% of survey respondents citing employee burnout and 35% pointing to increased labor costs as major concerns. In addition, 34% of respondents noted limited growth or career advancement opportunities within organizations are hindering the ability to attract and retain staff. 

“When teams are overburdened and frustrated about their career prospects within an organization, burnout rises, turnover accelerates and the problem feeds itself,” said Tauseef Rahman, Mercer’s lead for U.S. Workforce Rewards Solutions. “The companies that break the cycle treat this as a workforce design and resilience issue, not just a recruitment challenge.”

Tech Skills Gap Is Hindering Progress

Technological skill shortages are the second-highest people challenge, according to the polled HR and risk managers. They stated a lack of skilled workers in fast-evolving fields like cybersecurity and AI is impeding the development, deployment and management of critical technologies, eroding competitiveness and leaving organizations exposed to emerging threats.

While organizations continue to heavily invest in AI, the most significant threat may be translating that spend into real productivity, innovation and performance gains. Thirty-eight percent of respondents are concerned their organizations are investing in and adopting AI without adequate training and upskilling, and 38% acknowledged a lack of AI knowledge in HR is limiting their ability to transform people practices.

Workers’ Financial Constraints Generating Workplace Concerns

Employee financial insecurity rounded out the top three respondent concerns. The study directly linked employees’ rising living costs and debt burdens to:

• Reduced retention;
• Deteriorating engagement; and,
• Potential misconduct.

Marsh also correlated financial strain with employee health and well-being, stating employees may delay care due to affordability issues, quietly eroding workforce resilience. Survey respondents anticipate the situation to worsen, with 57% saying health and benefits costs are almost certain or likely to increase.

“Workforce health and safety underpins organizational performance — employees can’t perform, adapt or innovate if they’re injured, unwell or feel unsafe,” Potter said. “When health risks aren’t addressed, it undermines organizations’ productivity and long-term resilience.”

Positive Outcomes Through Proactive Management

Despite these challenges, the report highlighted that successful mitigation of people risks yields significant business benefits. When asked about positive outcomes: 

• 42% of respondents reported increased workforce productivity and efficiency.
• 35% achieved faster progress on strategic initiatives, such as AI adoption.

Editor’s Note: Additional Content

For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:

• People Analytics
• Total Rewards
• Well-Being