Ineffective Leadership Poses Big Risk to CompaniesIneffective Leadership Poses Big Risk to Companies

HR professionals and risk managers view ineffective leadership as the biggest people risk facing U.S. organizations in 2024, according to a May 23 report from Mercer and Marsh.

HR and risk leaders also pointed to major people risks linked to improper rewards decision making, increasing health and benefit costs, a lack of cybersecurity knowledge and mismanagement of AI.

“The breadth and depth of intersecting risks organizations face today is staggering,” Susan Potter, Mercer’s region president for the U.S. and Canada, said in a statement. “People are an organization’s most important asset, but they can also expose organizations to risk without the right culture, policies and training.”

In a survey of more than 1,000 HR and risk professionals in the U.S., leaders noted several concerns related to ineffective leadership at their workplace. About a third said they’re concerned about significant dependence on key people and inadequate succession planning, and only around 30% said they have an effective workforce strategy to acquire, grow and deploy talent based on skills.

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