2020 Workforce Planning: Coronavirus and Beyond - Machins ...
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2020 Workforce Planning: Coronavirus and Beyond Background The COVID-19 pandemic has created unprecedented challenges both societally and economically. More than a fifth of the world’s population has been in lockdown, in a drastic attempt to minimise the spread of Coronavirus1. This has, inevitably, had a significant impact on globalised supply chains and economic systems – the full consequences of which remain to be seen. The effects of lockdown have led the Bank of England to predict the worst economic downturn in 300 years2. While all employers will experience the effects of this downturn differently, with some even enjoying an uptick in revenue if they are fortunate enough to provide ‘in-demand’ goods or services, sadly many will experience declining sales revenues for some time to come. In conjunction with lockdown, the World Health Organization has strongly recommended the introduction of social distancing as a key measure to help limit the rate of disease transmission3, until a vaccine has been found. In an effort to ‘flatten the curve’ of the virus, workers who can perform their role from home have been urged not to travel to work. Those who cannot work from home have been asked to try and limit their contact with others and to avoid public transport where possible. Professor Chris Witty, the UK’s Chief Medical Officer, has indicated that social distancing measures will be required until at least the end of 20204. Ongoing social distancing requirements will have wide-reaching repercussions for how businesses operate, even once lockdown measures are fully relaxed. Employers must, as a matter of urgency, take steps to incorporate flexible and socially-distanced working arrangements into their organisations, for the foreseeable future. UK Government has produced guidance for employers who are considering reopening their workplaces.5 By adopting these guidelines, most employers will find that they cannot continue to operate in the same way as they did before lockdown measures were implemented. 1 https://www.telegraph.co.uk/news/2020/04/16/countries-in-lockdown-denmark-germany/ 2 https://www.theguardian.com/business/live/2020/may/07/bank-of-england-interest-rates-covid-19-downturn- us-job-losses-business-live 3 https://www.who.int/emergencies/diseases/novel-coronavirus-2019/advice-for-public 4 https://www.theguardian.com/world/2020/apr/22/uk-will-need-social-distancing-until-at-least-end-of-year-says- whitty 5 https://www.gov.uk/guidance/working-safely-during-coronavirus-covid-19 Page 1 of 6
How organisations respond to the pandemic crisis in the months ahead will have significant consequences for their own survival, and in tandem, for the longer-term recovery of the wider UK economy. This paper highlights a number of considerations for UK business leaders, that pose both challenges and opportunities. We hope to kickstart a discussion about how business can emerge from lockdown optimally. Employers will need to approach this from the viewpoint that the wider economic landscape has changed irreversibly. The very nature of business itself must adapt to this new ‘nobody knows’ world. This requires embracing new ways of working to enable the best possible outcomes post- Coronavirus. Consideration 1: Changing work patterns and practices Social distancing precautions will significantly impact the daily activities of most organisations. Employers will need to ensure that social distancing measures comply with Government guidance, and also that workers feel safe. Failures to do so could give rise to legal claims, so revisions to operating practices must be robust. Employers should bear in mind that their obligation to provide a ‘safe’ working environment will extend to taking ‘reasonable steps’ to prevent their workforce, customers and visitors contracting coronavirus. Changes to work patterns and practices should meet the needs of each individual employee. While some workers will feel comfortable returning to a shared workspace, many others will not. As such, while time-consuming, careful one-by-one consultations will ensure that no employee feels coerced into a revised working practice that they don’t feel comfortable with personally. On the upside, 2019 research data showed accelerating worker demand for flexible working6. Largely an umbrella term, flexible working includes job-sharing, flexi-hours, compressed hours, a nine-day fortnight, annualised hours, a four-day workweek7, and any number of permutations in between. It’s increasingly clear that modern workers were, prior to the pandemic, on a quest for improved work-life balance. The ability to offer flexible working arrangements was already emerging as a key bargaining chip for employers seeking to attract top talent. Growing demand for flexible working was already one of the primary trends set to shift the nature of our complex relationship with work during the 2020s8. The pandemic has fast-tracked this trend, bringing something that was forecast to play out over a number of years into a ‘here and now’ reality. 6 https://www.forbes.com/sites/joyburnford/2019/05/28/flexible-working-the-way-of-the-future/#4aea51e48745 7 https://www.forbes.com/sites/nextavenue/2020/02/06/the-4-day-workweek-has-its-time-come/#2c0e6a5551d0 8 https://ec.europa.eu/knowledge4policy/foresight/topic/changing-nature-work/developments-forecasts- changing-nature-work_en Page 2 of 6
When crafted with care and consideration, revised work styles and patterns can help to cement ‘on- demand’ agile working, improve staff retention and in turn, keep the UK economy working. Progressive organisations looking beyond the pandemic, are likely to offer a variety of flexible working options that optimally meet the complex and divergent needs both of customers and employees alike. Lockdown has demonstrated that remote working can be successfully implemented, and that not all workers need to be office-bound to be effective. The opportunity is to build on this in a way that encourages organisational productivity and results. In the short term, the introduction of flexible working options into the mainstream inevitably requires investment in in-depth consultation with workers, employment contract renegotiations, and evolution towards new leadership and management styles. Over time, however, adaptation to flexible working patterns enables and facilitates organisational agility, to meet emergent market demand. Consideration 2: Changing workforce requirements Prolonged social distancing requirements will inevitably impact core business activity in multiple industry sectors. Sadly, this is likely to lead to a sharp rise in redundancies, as organisations are forced to pivot business models and change the shape of their workforces to survive. It’s possible that the government furlough scheme, which will remain available in some form until the end of October, may help reduce the need to make redundancies. It’s unlikely however to remove it altogether. Even for those businesses that don’t need to consider redundancies, the need to comply with social distancing measures will mean that many offices cannot reopen to the same capacity of employees as they did when the restrictions were imposed. As public transport will be unable to carry the same number of commuters as it did before9, employees may not be able to get to work as easily as they did previously. Equally, as many employees have proven themselves to be able to successfully work from home over the past few months, employers will find it increasingly difficult to argue for mandatory office-based working once restrictions are eased. These new realities drive the requirement for employers to consider alternatives to traditional office- based models of employment. For progressive organisations, the options available here are thankfully no longer binary. Increased demand for flexible working may indeed offer a life-raft to many businesses and workers alike. It makes little sense for organisations to shelve established and trusted talent, unless absolutely 9 https://www.independent.co.uk/news/uk/home-news/coronavirus-london-underground-tube-buses- overwhelmed-lockdown-report-a9491756.html Page 3 of 6
necessary. Flexible working contracts have the potential to offer a viable alternative to redundancy, alongside the means by which to bounce back faster, organisationally, once the economy starts to recover. A workforce that’s been invested in over the years and that has baked-in organisational knowledge is a highly valuable asset. Thoughtful consultation may well establish that employees hitherto on full-time employment contracts are prepared to flex, and explore reduced hours contracts, in return for ongoing job security and the opportunity to continue to be connected to an organisational ‘family’. Exploring the viable employment alternatives to large scale redundancies is surely better for the inevitable wider economic recovery. Consideration 3: Changing workplaces Evolution of work patterns, practices, and workforce numbers will naturally go on to alter the type and size of space required by the modern workforce. As organisations update working patterns and practices to accommodate continued social distancing, and embrace agile working to better manage the ebbs and flows in customer demand, it becomes inevitable that what we need from our physical workspaces will also change. The first two decades of the 21st Century saw a shift away from office cubicles towards open-plan workspaces. Hot-desking also became popular (if perhaps less so with those who were expected to work that way). But few of these trends were grounded in any behavioural science behind optimal workforce productivity. And as the type of work we do has evolved, it turns out that we need a variety of different spaces for a variety of different work activities. Just as the makeup of the 21st Century workforce is complex and diverse, so too is the kind of space required for the different kinds of thinking that goes into 21st Century work. After the enforced period of remote working, it’s entirely feasible that many organisations will seek to continue home-working wherever possible, in a bid to reduce cost. But making such decisions purely based on cost is short-sighted. The more ambitious organisation will analyse the types of work undertaken within its operations, and design workspace around that. Since continuous product and service innovation, and complex problem- solving, are predicted to be key activities for sustained organisational resilience, it makes perfect sense to design workspaces that enable design-thinking activities to flourish. Natural daylight, acoustics, air quality, biophilia – 21st Century workspaces are increasingly designed for optimal wellbeing, which of course has a positive effect on engagement and productivity. Page 4 of 6
Creating shared spaces that potentially respect ongoing social distancing measures, embrace workforce neurodiversity, and the evolving types of work being undertaken by humans in the modern age, will accelerate long-term organisational performance. Consideration 4: The psychology of change It’s impossible to say how long it will take to find a viable vaccine to protect against COVID-19. For as long as the virus remains a threat to human life, our day-to-day existence will continue to be ‘post- normal’. Businesses and organisations are, at their most simple, representations of group collective endeavour. How we adapt, individually and collectively, to uncertainty as a constant will underpin our future successes. Many of the challenges that lie ahead are as yet unknown. They’re certainly likely to be multiple and varied. Viable 21st Century businesses will need help to embed human behaviours that support ongoing change, as we continuously adapt to rapidly evolving marketing contexts. Successful organisational leadership in the 21st Century will look very different to anything that has preceded it. The size, scope and complexity of the challenges that lie before us will require new competencies that support and encourage collective intelligence. Business resilience will come from the contribution of the many human collaborators within an organisational ecosystem. Team and workforce dynamics - how to maximise human potential for enhanced performance and results - will be a primary topic of boardroom conversation in the coming years. Identifying, embracing, and embedding the new business competencies will require sustained effort. Successful cultural change takes time. Fortunately, we have at our disposal all that’s been learned in the past twenty years about human neuroscience, psychology, behavioural economics, and socio-cultural and technological shifts. Smart businesses will leverage these insights to their organisational advantage as part of their efforts to extrapolate an interpretive bridge to the future. Page 5 of 6
What can we conclude from all of this? The pandemic has turned business upside down in short order. How business leaders respond and adapt to very different trading conditions in the months ahead, will impact on our society and economy for generations to come. If the past weeks have shown anything, it’s that UK business is about more than simply maximising revenues. Brand reputations have already crashed and burned on the initial responses to the pandemic. Similarly, some businesses have gained huge social reverence by pivoting to support the NHS. The long-term recovery of our country will depend on an altogether more holistic and reasoned approach to business, and its role within the fabric of our society. However, business leaders should consider that the solution to their success post-coronavirus is likely to come from their own initiative rather than a centralised top-down roadmap. Each business will need to consider the specific factors relevant to their market positioning, to devise a strategy that works for them, their employees, and their customers. Those with their eyes on the horizon, and ‘foresight focus’ will succeed. Those who fail to embrace the new market dynamics will struggle. At a societal level, work provides routine, structure, and boundaries – three things that promote human wellbeing. Good work also provides us with a sense of connection, belonging and purpose. The idea that we’re each part of something bigger has sustained civilisations over millennia. How we work, lead, and optimise our organisations is on the cusp of dramatic transformation. We hope this paper encourages some thoughtful consideration of the path ahead. Those organisations that have the foresight to see beyond the constructs of traditional business operations, and adapt accordingly, will weather what downturn lies ahead. Those that don’t adapt will struggle. We’re here to help you embark on your transformation journey. For a complimentary discussion and ideas on how to get started, please contact: Working the Future Machins Solicitors We help UK businesses in the areas of: We provide specialist legal advice and assistance to both businesses and individuals, including: • Foresight focus and business intelligence • Organisational / cultural / behavioural • Employment Law change • Commercial Property • 21st Century workforce planning and • Company and Commercial optimisation Web: www.workingthefuture.com Web: www.machins.co.uk E: Cathryn@workingthefuture.com E: David.rushmere@machins.co.uk M: 07788 718823 Tel: 01582 514370 Page 6 of 6
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