Business Impact
The impact on all businesses is inescapable. No one is immune from the health, family,
social, business and economic impact the pandemic is and will have. The
vulnerable and elderly are to be protected, business are sort of being helped,
exams have been cancelled with a huge impact on the people due to sit them and
move on to the next stage in their lives, although with food and medical and
the supply chains needing to remain operational some will escape the worst of
it.
Economic impact
It is too early to predict what the fallout from this will
be but early predictions are for a global recession, the likes of which could be
far deeper and uglier than the last financial crisis. Stock markets have tanked, exchange rates are
down, values of companies have been slashed and pensions etc. are a worry. Unfortunately,
there are going to be many businesses that won’t survive this pandemic and there
are others that will be transformed.
This could be the beginning of a new way of working for us all. Although Government intervention with £330B
sounds impressive, I don’t think grants or loans will help long term because
this money currently needs paying back.
If the Government gives it as aid, the money has to come from somewhere
and most likely in the form of increase in income tax, corporation tax, VAT
etc.
Social impact
All our lives are on hold.
Sporting, social, family and business gatherings have been cancelled.
Our elderly and vulnerable are going to feel isolated, alone and
frightened. We should all do what we can
to help those in need and put the extra effort in to stay in touch and help
them.
Many have moved to remote working where possible. This in itself is no problem but there are
plenty of jobs where that’s not possible.
Where it is possible, technology comes in to play here and we have been
talking for some time about utilising technology to enable smarter working and
now we are forced to make this work. For
those who already work from home/ hot desk, it won’t make too much difference,
although previously it was optional.
This is likely to open a can of worms for those that get used to working
in this way and see the benefits. When
we are over this, what is the advice that should be given from a HR
prospective? Will remote / flexible working become the new norm?
Climate change – the
positive impact
Every cloud has a silver lining. The impact on climate change is going to be a
positive one due to the immediate reduction in travel on a local level and
globally which will help offset some of the negative impact that’s coming. The downside of course, is the businesses
that rely on this to make a living and to keep people in jobs. The airlines,
hospitality, leisure industries are going to be hard hit but where do we draw
the line at Government intervention? If
you do it for one, morally you should do it for all.
IR35 delay helps for
now but more should be done
The delay of IR35 for 12 months is a small reprieve but more
needs to be done in terms of its revision, implementation and general catch
all. It does however allow private
sector businesses to utilise short term, flexible experienced interims to help
restructure, change, transform, turnaround or provide practical business
experience, HR advice etc. I think this will be needed more than ever as
organisations come out the other side and (depending on the lock down scenario)
will need it to get them through these uncharted waters.
Engage with the
experts
The benefit of using experienced executives on a short term
basis is to impart their knowledge and expertise on how to navigate through
this as they have been there before. They can then be fully utilised for either
restructuring, turnaround, change or enabling BAU.
Few business and political leaders have had to lead through
a pandemic of this nature nor deal with the economic fallout. Several factors will come in to play
including, how they deal with uncertainty, the structure and adaptability of
their businesses, how they are affected personally and how agile they can be to
what will be a new world.
Perhaps now is the time to bring in the help to have any
chance of survival and hold open the jobs, ride the return to normality wave
and go on to prosper. Panic is not the
answer and indeed more consideration should be given to working through this. Change,
transformation, restructuring and turnaround experts who can quickly get to
grips with the issues, have expertise in crisis management, can advise Boards
on the best course of action and implement and deliver the plan. Waiting is not a strategy. Adaptability, innovative thinking and
willingness to change might just be the survival strategy that’s needed.
By utilising the experts, many of whom are available,
organisations of all sizes will be stronger and more resilient for the future
upturn that will come.
Let’s talk. Please get in touch for further discussion.
Keep safe.
