COVID-19 - Implications and BCP Guidance for Businesses

This is a guest contribution from REC business partner QX.

Our guest for this podcast is Ian Knowlson! You may know him as 'a Global Influencer', 'a Growth-Coach', 'a Business-Mentor', or 'an Employment Futurist' in the global business landscape, especially the recruitment landscape.

This global COVID-19 pandemic is hurting people; it's hurting their health and their ability to earn bread and butter. Industries globally are taking a serious hit as well! Do you see them coming back from this?

It's a global tragedy, the likes of which most people haven't experienced, since, I suspect, the Second World War. On a global mortality scale, historians recall the 1918 Spanish flu virus which spread across the world and had a fatal impact on human lives.

To answer your question, I'm optimistic. I think the world will bounce back, but I don't think it will be the same world. Most industrialised nations around the globe are in lockdown. Most countries in Europe, and the US, most probably, are moving into lockdown, many countries in Asia, including you guys (India), are in lockdown andChina is is still healing from their initial experience with COVID-19.

I believe that being forced into lockdown is causing people to reflect and think about their life, their business, how they do business. And I think when we all emerge from this, maybe in 12-18 months, the world will be different.

But I am positive. I do think civilisation will bounce back from this. But will it be same? No, I don't think it will.

What support are businesses, especially the small and medium-sized enterprises (SMEs), receiving from authorities in the UK?

Okay. So, the UK government has introduced a package to support the furloughed staff. As companies are making people redundant, albeit temporarily, because of lack of income, the UK government has agreed to pay the wages of staff that are laid off whose salary is around £30,000 a year; they will pay 80% of the salary. So two and a half thousand pounds a month, certainly for the next two to three months. And maybe beyond that if that is what is needed.

That basically means most employees in the UK companies will be receiving their wages through the support of the UK government for the foreseeable future. So that takes care of the average employee. In addition to that, we have about 5 million people in the UK who are self-employed. They may include people like freelance designers, carpenters, builders, bricklayers, scaffolders, tradesmen etc. The government has agreed to give them £2,500. Obviously, there are conditions to be met around this as well. Different authorities have also come out and offered support through the banks, building societies and financial institutions loans.

I am aware of some businesses that I'm supporting have been given a £100,000 overdraft at meagre interest rates. One figure, I heard quoted the other day, was at 0.1% interest, and that's for 12 months, that's £100,000, no strings attached!

There is provision for the support of up to £1 million, but the banks are looking for some guarantees; the government will also guarantee to underwrite 80% of that money. And for the bigger businesses, there is additional capital support available. So the liquidity in the UK economy is being underwritten by the UK government.

For more information about the UK Government support to employers and businesses, click here.

What should be the priorities of these businesses during this pandemic?

So I'll share what I've been advising business owners in the last three weeks, and I've done a lot of it.

What we've done is we've run a scenario. We've looked at the cost of the business. The first thing every business owner has a responsibility to do is to ensure the longevity of the organisation. And that includes protecting your workers, your workforce. That may mean stopping work where social distancing isn't possible in the workplace. If people can't work from home, you potentially have to close down your business, but you have to do it in such a way that it can be restarted.

A critical step for preservation of the business is cutting down on costs. In my case, I have suspended software licences for things I'm not using. Like my marketing software, I've cut that down, and I'm not spending on marketing at the moment. I don't think it's appropriate. I suspect other businesses are doing the same.

Also, the organisations should, if they could, pivot their resources to support their nations. Now there are businesses we just talked about like Jaguar and formula one Mercedes car who can turn their manufacturing business from making motor cars into making ventilators. So businesses across the world that can do that must do that. That's key and quite important. I heard last week that Louis Vuitton is making hand sanitizers. My daughter is involved in the fashion industry; she's working for a brand that's been making bags and materials for the NHS. This is where resources and businesses can pivot and support.

A great concluding message, Ian.  Well, thank you again for speaking with us. I wish you good health, and I hope we get to catch up again soon.

Ian shares his thoughts on skill shortages and future workplace:

This is a guest blog contribution for the REC website. The views expressed by guest writers reflect the individual's personal opinions.