The impact of the crisis on the workplace – Part I Introduction-economic change and four phases
As the country was locked down in early March
this year, there was one sentiment which was commonly felt. For many small
businesses that were forced to close indefinitely, or for the industry in general,
the financial impact of the coronavirus was as important as the prospect of
catching the virus itself. This general anxiety was a foretaste of the enormous
economic effects that the pandemic would have.
With the
International Monetary Fund revising its April forecast to predict that GDP
everywhere is to shrink by 4.9%, the world is now mobilising itself.
Governments worldwide have already allocated $13 trillion to this campaign to
stabilise economies in freefall. Despite this downturn, there are some reasons
to be positive: optimism among corporate executives seems to have increased,
and according to a recent survey by the Financial Times, B2B buyers – particularly in Asia and Europe – are holding
their nerve. What, therefore, is contributing to this mixed confidence?
Recent events have
provided greater opportunities for the pharmaceutical and healthcare industries
and for corporations working to provide cleaning supplies. Similarly, logistics
and online sales have boomed. In contrast, other industries are still
struggling– real estate, fashion, hospitality, and insurance companies have
felt the brunt of the lockdown. Some industries, which were already in decline
before the advent of the coronavirus, will require transformative, structural
change to recover – the prime example being the air travel, car, and the
manufacturing industry.
Organisations and individuals have adapted to this upheaval in four key phases:
A)
Logistical and operational changes –
The sudden enforcement of remote working had employers scrambling to organise
IT equipment and advice/support to their workforce, many of whom had never
worked for a single day from home. Many operations were forced to go online,
altering supplying chains and adjusting to a new way of working. Individuals
had to cope with their work-life being interwoven with their home life and the challenges of childcare.
B)
Acceptance and adjustment – As
employees settled into these new ways of working zoom meetings and virtual
communication began to be accepted quite quickly. However, employers had to be
cognizant of the strain on employees mental health and stepped in to support
them. Flexible working hours, virtual exercise and social gatherings, and
constant feedback were a part of this second phase.
C) Return
to Work – For the third and final phase of
adjustment, companies have shifted from a strategy of ‘resilience’ to one of
‘return’. Integral to the process of returning to business is safety.
Workplaces have been adapted to ensure social distancing and safe commuting is
being encouraged – for example, several banks are reimbursing employees for their taxi fares to work.
D)
Planning –Almost all organisations have
adapted to the new normal and accepted a permanent shift to a ‘distributed
workforce’. Against a background of achieving cost reduction, providing virtual
people management to a remote workforce, and ensuring employee engagement is
maintained, they are looking at creative and innovative ways of people management.
The London based HR Tech Partnership runs a Human
Capital Digital Innovation Hub to facilitate learning and adoption by
corporates of agile start-ups around Talent
and Workplace productivity. It also has a People Tech investment venture
which funds early-stage start-ups incorporating AI and leading-edge technology.
The team and most of its stakeholders have senior corporate experience and a
good understanding of large organisations.
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