Allianz Risk Barometer 2024 -
Rank 10: Shortage of skilled workforce

Allianz Risk Barometer respondents rank talent shortage as a top five risk concern in Australia, Bulgaria, Canada, Croatia, Germany, Hungary, Ireland, Netherlands, Switzerland, as well as in the UK.

Clearly, attracting and retaining skilled workers remains challenging – a Manpower Group survey [1] noted that 75% of companies globally had reported talent shortages and difficulty hiring over the past year, the second highest total in the past decade. Employers in the healthcare and life sciences industry reported the most difficulty, while IT and data skills were seen as the most challenging to find regardless of industry and geography.

Meanwhile, a recent European Commission report [2] acknowledged that labor shortages not only exist in various sectors and occupations across all skills levels but could grow further, driven by the creation of new jobs and the need to replace workers who retire. The working age population is projected to decline from 265 million in 2022 to 258 million by 2030.

Company working conditions also rank highly on the environmental, social, and governance (ESG) risk list, according to the Allianz Risk Barometer. Issues such as staff engagement rank as the third top ESG risk trend of most concern to companies (35% of responses), behind only cyber security resilience and increasing regulatory and disclosure requirements.

These risks can be minimized by prioritizing health and safety, fair wages, open communication, and regulatory compliance. Companies should also adopt regular employee feedback surveys and take them seriously, especially if they are from marginalized society members.