Study: Staffing and mental health risks, key worries for GCs and executives

Study: Staffing and mental health risks, key worries for GCs and executives

Based on the study by Clyde & Co and Winmark almost two years in the pandemic, some 69 percent of people surveyed are concerned about people-related risk. A recent report has revealed that the pandemic has brought corporate counsel and C-suite executives' attention to people-related risks and evolving regulatory concerns.

Surveyed by the UK-based law firm Clyde & Co and membership network Winmark, The Looking Glass Report has revealed that 69 percent of 140 gauged global business leaders and general counsel have begun to view staffing issues and concerns over employee mental health as the number one risk factor that could impact their organizations.

The majority of C-suite respondents, like around 80percent cited people-related challenges as a 'high impact' risk, with 30percent indicating that they were not prepared for such challenges.

More than half of US law firm leaders now view acquiring and retaining talent as a risk to future profitability, according to a report published in November, 2021 by Thomson Reuters and Georgetown Law's Canter on Ethics and the Legal Profession.

According to a recent Clyde & Co report, employee health and wellbeing, an issue that came under scrutiny during the pandemic, will continue to be a priority as it will help organizations attract and retain employees, boost retention rates and ensure more remote workers are supported.

Neil May, chief operating officer at law firm Thackray Williams in Southeast England stated, "We take the wellbeing and mental health of our employees seriously, just as other firms have done too," in the report.

Including people who have been furloughed and conducting surveys to track employee wellbeing, May said his company is communicating more about mental health issues.

Clyde & Co employment partner, Heidi Watson said the focus on mental health and wellbeing since the pandemic is a "positive step" for businesses and their workforces. Watson added that employers will place more emphasis on workplace culture and training and development to be more attractive in the lateral talent market.

The threat of increased compliance and regulatory risk was also cited among the top concerns in 2021 with 64 percent of respondents listing an increasingly regulated global business environment as a top issue almost two years in pandemic.

More than 70 percent of general counsel surveyed expect to encounter increased governmental regulations in the global business environment. It includes those relating to bribery and corruption legislation, modern slavery, GDPR and environmental, social and governance regulations.

As a multinational company, every single office does something different, in addition, we have national, state and even country regulations - how we monitor that on a day-to-day basis can be challenging, especially in a high-litigation environment, said one chief ethics and compliance officer for a US-based consumer goods company.

As of 2020, the perception of climate and societal risks had changed significantly from last year, with 32percent more general counsel and 10percent more directors highlighting climate-related risks for their companies.

The General Counsel will have a responsibility to oversee public disclosures involving environmental issues as well as to communicate with governments, regulators and other stakeholders, according to the report.

Clyde & Co partner, Nigel Brook, who is responsible for the firm's climate change risk practices, commented: "The critical step is to embed climate risk awareness in both strategy and company culture at all levels of an organization. To achieve net-zero, major investment will be required and regulations will be imposed as well. Businesses may be able to take advantage of new opportunities, but they should also be aware of potential risks."