Since the Coronavirus hit the entire world, businesses are not the exception. Employers under COVID 19 are clueless about how to react. The spread of COVID-19 is a global problem, and the conditions are deteriorating further day by day. Major industries are bearing the brunt of the pandemic and are having to change the very way they carried out their operations. Tech, sports, travel & tourism are some of them. Economists predict that at this rate, a major recession is on it its way.
There has been a rapid increase in job losses. The US Economy alone has lost over 700,000 jobs in the previous month, which is seven times the prediction. The unemployment rate has risen from 0.9 to 4.4%. On the other side, it is estimated that over 120,000,000 Indians could have lost their jobs since the country started observing a complete lockdown. This is a global worst crisis that affects countries that are under the vast influence of the virus.
During these difficult times, organizations need to remember that there are employees who have their salaries as the sole source of income. While some employers under COVID 19 are straight away resorting to cutting pay and firing employees under COVID 19, we must remember that we are all in this critical situation together. Moreover, to overcome this, we need to take care of not ourselves but also those dependent on us.
What can employers under COVID 19 Pandemic do about employees?
Provide Self-Prevention Instructions
If the job role of the employees does not allow to work from home and have to come into the workplace every day, be sure to put up instructions on self-care to prevent getting infected by the virus. Also, provide them with necessary pieces of equipment like masks, sanitizers, and gloves.
Instead of pressuring employees to work under challenging situations, inform customers about the temporary unavailability of services. Do not wait until the last minute to take a call on this.
Update Company Policies
Update policies towards work from home if necessary. Make sure the employer under COVID 19 must ensure employees access to the technology required to continue working from home.
Don’t say goodbye to employees
Wanting to cut-costs is understandable. However, before acting on the same, give a second thought, is the downsizing workforce essential? Saying goodbye to trained resources can be more costly than paying salaries for doing nothing during the temporary lockdown period. Furthermore, Various countries Governments also announce the advisory or an order to restrain lay off.
Revise Employee Benefit Policies
Alternatively to laying off, revising employees benefits policies to reduce the cost can be a good alternative and do employees understand the reasons and future benefits of such changes.
Lay off but with sympathy
If the organization left with no option but to employees go, deliver the news to them with empathy and compassion. It is also wise to let employees know what options lie in front of them and see if you can help in any way.
Stay connected with employees
Keep your employees updated about the public health situation. Keep sending them emails or text messages to keep them aware and healthy.
Review human resource policies
Review human resource policies, and explain what and how everyone requires to respond with co-workers or customers at this critical situation.
What Can Companies Do In Order To Save Themselves From Bankruptcy?
Rethink the Cost
It might be time for the industries to start looking at cost-cutting. Cutting costs may take away some comforts, but it is a sacrifice in order to sustain the viability of the business. Moreover, this is only temporary. But only if employers under COVID 19 Pandemic act at the right time.
While making business plans, be conscious of the best and the worst possible outcomes of the same. Preparing yourself for the worst-case scenarios always proves to be helpful. Remember that revenues will take a hit, and payments will become slower. There may be disturbances in the inflow of cash.
Redefine Payment Plans
Create a payment plan for debt settlements. Inquiries about repayments will increase, and employers under COVID 19 Pandemic should have a clear vision of how to manage suppliers and vendors until this pandemic is over.
Restructure processes for lockdown
Try to develop or modify business processes, work online or virtual, if possible. Consult organization think tank how an organization can provide desired products to the customers under this lockdown situation. Doing business online will not only keep the business running and open up a new path for cash to come in, but it will also draw your customers closer to your brand.
Build Customer Loyalty
Build loyalty with your clients as well. Offer special rates and support in whatever way you can. Do not try to gain off their condition because you will need them after the pandemic is over too. And loyalty is an investment in itself.
Job losses and financial crunches have become a problem for every country affected by the pandemic. Governments are wasting no time in taking measures to protect the interests of businesses and industries, as well as employees under COVID 19.
The Government of India has just announced that it will be immediately issuing all pending income tax returns up to Rs 500,000 to all individuals and business owners. This decision will directly impact the lives of around 1,400,000 taxpayers and their employees too.
Let us remember once again that this lockdown is temporary and will be called off one day. And then lives will have to get back to normal. How easy that process will be, can depend on the decisions we make at this point. And not to forget, businesses and industries will hugely be affected by the decisions of our governments make during this time, and after.