In extraordinary circumstances, thinking about Employer Branding is essential – so take care of your employees
What does being an employer in a crisis mean, and how can you adapt your operations to new realities?
While healthcare is on the frontlines in situations like these, economic stability is equally crucial. Without efforts to preserve the economy, the impact of the COVID-19 pandemic will be far greater on everyone.
Beyond tracking daily statistics of cases, recoveries, and deaths (unfortunately), we must also monitor the economic consequences. Despite the uncertainty, making long-term plans is currently challenging, with most strategies covering a week, or at best, a month.
How does a state of emergency affect employers?
Lockdowns and curfews are effective measures for protecting public health, but they also leave deep marks on industries directly tied to the general population. Companies must now find a balance between managing costs, revenue, and planned budgets and activities. Crisis management has surged, with budgets frozen and activities canceled, causing a ripple effect on partners and collaborators.
It’s difficult to assess the full impact of COVID-19 on the economy, but one thing is clear: we will all face significant challenges. No sector will remain unaffected, directly or indirectly.
However, the key question is how to mitigate the blow as much as possible. Survival is paramount, and only time will reveal which companies manage to endure, driven by cautious decisions in the months ahead. The challenge of adaptation lies in the fact that as companies grow, so do their fixed costs, which are essential for future operations. Revenues are falling, yet these costs remain and must be addressed.
These costs already present a significant burden, and it’s critical how companies respond to adapt. Taxes, wages, office rents, loans – these are just some of the factors to consider. Drastic measures are often required, typically involving cost optimization through workforce rationalization. But I believe it’s essential to preserve jobs (though this isn’t always feasible) for the sake of labor market stability during unforeseen circumstances.
Yet, salaries are a major expense, especially when a job is tied to direct revenue generation (which may currently be limited). Labor costs are effectively higher under these conditions. Many employees are unaware that taxes and contributions amount to about 65% of their wages, a cost borne by the employer. This means that the wage is not just the amount paid to the worker but an additional 65% on top of that.
A solid strategy during a crisis enhances long-term Employer Branding
Stabilization measures taken by some companies have been strict but also show solidarity – aligned with their structure and aimed at mitigating the crisis’s impact.
Many companies are striving to maintain headcount, and preserving jobs directly enhances the company’s reputation. We can now talk about a new subcategory, “Crisis Employer Branding,” which will reveal its effects (positive or negative) once the dust settles.
To illustrate, consider a positive example of crisis management from a company with around 50 employees. To preserve all jobs, they temporarily reduced salaries for higher-level positions, thereby avoiding layoffs at lower levels.
Understanding is key, and everyone’s efforts are crucial in maintaining stability, even for a short period. It’s a fact that they cannot function without each other, making this approach sensible. Additionally, all planned salary increases and bonuses were postponed until the situation stabilizes.
Why is this approach ultimately positive?
Had management rejected the temporary salary cuts, layoffs would have been necessary to reduce costs. This would disrupt the organization’s ecosystem, even though it might appear financially stable in the short term. Such measures only provide temporary relief, as the company would eventually need to rehire for the same roles when the crisis subsides.
The challenge isn’t just finding qualified talent again but also reintegrating them into the company’s operational framework. This would place a heavy burden on restoring processes and resuming high-level operational efficiency.
Even though the situation seems dire, there are steps all employers can take
The first obvious reaction during an emergency is to have employees work remotely, which works well in certain industries, particularly IT. But what options remain for large systems that can’t shift all employees to remote work? Retail, distribution, and telecommunications face different challenges.
Large systems with complex operational networks, sometimes involving thousands of employees, must adapt in their way. Retailers, despite seeing revenue (even growth), are exposing their employees to health risks and must implement measures focused on hygiene and health preservation. They continue to operate for the public’s benefit, and we are grateful for their service.
Their “Crisis Employer Branding” involves maintaining store operations with measures such as distancing in checkout lines, regular sanitation, and adjusted shift schedules.
Another example comes from a telecommunications company. Though this industry doesn’t provide essential goods like retail, their response to the crisis was commendable. Besides offering customers free channels during the #stayhome campaign, they also focused on their employees in retail stores. By reducing the number of employees working per shift, they opened up flexible scheduling options. Now, instead of two shifts with many employees, only three work in one shift, rotating with a day off in between.
This allows them to remain operational and support customers while optimizing workflows in line with market conditions and government health directives.
To conclude:
While the top priority is health, let’s not forget the economy during this period. We must protect each other in every sense and act responsibly.
Text originally published on www.netokracija.rs.
