Critical skills shortage What is the risk? Not having the right people with the skills needed to compete, innovate or grow can seriously hinder an organization's future. “Look at how many companies want to grow in emerging markets,” says Mary Young of the Conference Board. “Their biggest concern is not finding the right people.” Industries with an aging workforce – such as oil and gas, where 50% of the workforce is expected to retire by 2015 – have even more to worry about. Why should they care about HR? As Young says: “These are the things HR does all day. It's your daily bread. HR probably already looks at workforce planning in terms of risk management, but now you need to translate that to the rest of the organization. What to do now: Gather data and analytics that create a compelling reason to add it to your business risk map. Focus on putting it on the company's agenda, if it isn't already there. Succession planning What is the risk? As HR magazine explored a few months ago, only 32% of companies actually have a comprehensive CEO succession plan (according to SHL). “With 43% of UK businesses admitting they have experienced an unexpected change in leadership in the last 12 months, this is a pretty big risk.” Not having a future leadership plan in place can cause stock prices to plummet and even leave organizations at risk of a hostile takeover if a CEO leaves unexpectedly. Why should HR be in the business of HR? HR plays a critical role in leadership development and should invest time and money in the leadership pipeline of the future. Involving yourself in CEO succession planning and senior roles can also mitigate the C-Suite's occasional 'old boys' club' mentality. What to do now: "When it comes to... half the paper.... ..revealed that some of its products were built by employees working in forced labor conditions? Why should HR care? As Francis says by Skanska: “Companies can no longer get away with what they could – now everything happens in real time on Twitter.” Therefore, any scandal can result in serious reputational damage, which could impact engagement, retention and talent attraction. Additionally, any issues regarding outsourcing work will go back to HR. What to do now: The Staff Wanted Initiative, a project led by the Institute for Human Rights and Business and Anti-Slavery International, recommends using the EEA formula. SEE stands for examine, engage, ensure. Scrutinize and monitor relationships with staff, recruitment and placement agencies; interact with the workforce to discover any problems; ensure you provide a suitable and adequate workplace, whatever the location.