HR POLICIES RESEARCH REPORT UNDER THE NEW CORONAVIRUS OUTBREAK IN CHINA

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HR POLICIES RESEARCH REPORT UNDER THE NEW CORONAVIRUS OUTBREAK IN CHINA

Deloitte Consulting, Jan 29th 2020
Demographics
                                                                                                 Respondents by enterprise types
                           Respondents by industry                                                       Non-profit
                                                                                                            2%

                                     Others               Consumer
                                      14%                   12%                                                                          State
                                                                                                                                         owned
                                                                                                                                          27%
                                                                         Energy,                      Private
                Education                                               resources                      36%
                  10%                                                      and
                                                                        industrial
                                                                          14%                                                           Foreign
                                                                                                                                         35%

            Technology,
             media and                                                                                          Respondents by roles
              telecom
                12%                                                                                  Other mgmt level             Chairman/ CEO
                                                                                                        employees                      11%
                                                                                                           50%
                                                                Financial
             Life science                                       and real
             and medical                                         estate
                  5%                        Government            30%
                                             and public
                                                                                                                                             HR Head/
                                              service                                                                                      professionals
                                                3%                                                                                             39%

                                                                     Number of valid surveys collected: 1232

© 2020. For information, contact Deloitte China.                                                                                                           2
What is the biggest impact that the                                                  Observation
epidemics will have on your company?
                                                                     •   While the influence may vary due to
                                                                         different types of enterprises, private
                                                                         companies are expecting sales slowdown
                                                                         as the biggest impact;
                             Unable to serve
                                                               66%
                             customers/ clients
                                                                     •   The top 3 industries which chose “Unable
                                                                         to serve customers/ clients” are
                                                                         consumer, financial service& real estate,
                             Unable to continue normal                   and education industry;
                                                         47%
                             business management
                                                                     •   Energy, resources and industrial
                                                                         companies believe their top challenge is
                                                                         that they cannot have normal business
                             Sales slowdown&
                             cash flow       22%                         management;
                             challenges
                                                                     •   Other concerns included in the comments
                                                                         are:
                                                                          •     The difficulty of employees’ traveling
     Other
                                              14%                               back after the holiday
   Influence
                                                                          •     The logistics issues of raw materials
                                                                          •     Lack of systems or software for remote
                                                                                commuting
                                                                          •     Inadequate crisis awareness from
© 2020. For information, contact Deloitte China.                                                                  3

                                                                                management-levels
What do you think are the most important                                                  Observation
solutions in terms of workforce management?
                                                                            •   Energy, resources& industrial companies
                                                                                who participated the survey encountered
                                                                                the biggest constraints in offering
                                                                                flexible working and remote commuting
                              Provide flexible
                                                                      82%
                              working schedule                                  solutions, and their management
                                                                                currently focus on providing epidemics
                                                                                protection to ensure sanitation
                              Address employee                                  requirements and the safety of
                              psychological stress              46%
                                                                                workplace environment;

                                                                            •   90% of the MNCs believe it is urgent to
                                                                                provide their employees with flexible
                              Ensure employment &
                                                                44%
                              compensation package                              working schedule;

                                                                            •   More than half of government and public
                                                                                service entities focus on addressing
                              Offer emergency
                              assistance and additional   39%                   employees psychological stress at
                              insurance coverage                                current state;

© 2020. For information, contact Deloitte China.                                                                       4
What are the most needed actions in                                                       Observation
supporting workforce at current state?
                                                                           •   Companies, who have already implement
                                                                               its online commuting system, have to
                                                                               keep optimizing their online working

                               Provide employees with                          process and keep strengthening their
                                                                     67%
                               online working tools                            capabilities;

                                                                           •   Meanwhile, some companies who
                                                                               participated the survey believe that it is
                                Incorporate company
                                service to online platforms    59%             recommended to establish new customer
                                                                               service model and to form new
                                                                               approaches in customer/ client
                                                                               communication;
                                Offer trainings on
                                remote working           30%

       Others
                                         11%
       actions

© 2020. For information, contact Deloitte China.                                                                     5
Any plans on extending the CNY holiday?                                                  Observation
                                                                         •   The policies for going back for work:
                                                                             according to Contagious Diseases
                                                                             Prevention Law, the local government
                                                                             could restrict or totally stop mass
                             In accordance with the policy from
                                                                   73%
                             national and local government                   gathering, business and classes and the
                                                                             policies are compulsive. If there is
                                                                             conflict between national and local
                             In addition to the national policy,             policies, the local policies prevail;
                             employees could apply annual 38%
                             leave or sick leave                         •   The salary paid during quarantine: if the
                                                                             employees are required to be
                                                                             quarantined, according to term 41 in
                             Employees living in
                             epidemic areas could    30%                     Contagious Disease Prevention Law, the
                             apply for non-paid leave                        companies which the employees working
                                                                             for cannot stop paying the salary during
                                                                             employees’ quarantine.
       Other                             13%
       plans

© 2020. For information, contact Deloitte China.                                                                     6
Is there any plan on adjusting business
                                                                                                         Observation
performance target in 2020?(1/2)
                                                                                          •   46% participants plan to lower the 2020
                                                         14%                                  performance target;

                                                                     Chairman/CEO         •   14% of MNCs plan to greatly lower the
                                                   48%
                                                                                              target, higher than state-own
                                                              38%
      Total response                                                                          companies(9%) and private
                                                                                              companies(11%);

                           11%                                                            •   Chairman/CEO have highest percentage
                                                         8%
                                                                                              on expecting to lower the target
                                                                     HR                       significantly.
                                                               33%   Head/Professionals
    54%                              35%           59%

                                                         12%

            Lower the target significantly

                                                   51%
                                                                     Other
            Lower the target
            moderately                                         37%   management
                                                                     level employees
            Maintain the target

© 2020. For information, contact Deloitte China.                                                                                 7
Is there any plan on adjusting business                                                                                                       Observation
performance target in 2020?(2/2)
                                                                                                                              •   Different industries are impacted
                                                       5%                                                                         differently by the epidemic. Life science
                    11%                                                               14%                         12%
                                                                                                                                  and Medical industry is the one which is
                                                             33%                                                                  impacted the lightest compared to other
50%                                                                                               47%
                                                                       52%
                                                                                                                                  industries, while the Government and
                             39%               62%                                      34%                             41%
                                                                                                                                  Public Services industry is impacted the
                                                                                                                                  greatest;

                                                                                                                              •   Nearly 60% of private companies expect
       Consumer                             Energy, resources            Financial and               Government
                                              and industrial              real estate                 and public                  to maintain the performance target in
                                                                                                       services                   2020.

                   10%                                  8%                            16%                         10%

                             21%
                                                                                                   45%
                                              54%            38%       52%
                                                                                        32%                             45%
   69%

 Life science and                          Technology, media               Education                     Others
      medical                                 and telecom
                                         Lower the target          Lower the target         Maintain the target
                                         significantly             moderately
© 2020. For information, contact Deloitte China.                                                                                                                       8
What crisis management measures have                                                                               Observation
been taken?                                                                                        •   MNCs are the quickest in making
                                                                                                       comprehensive policies, in time
                                                                                                       communication and psychological
                                                                                                       counselling and material assistance;
                             Track current situation for all the employees and monitor the
                             status of employees in epidemic area                            72%
                                                                                                   •   State-own companies are the fastest in
                                                                                                       tracking employee status and setting up
                                                                                                       special committees for the epidemic;
                              Make comprehensive policies and
                                                                          52%
                              in-time communication                                                •   Some companies purchase medical
                                                                                                       equipment such as thermometer, track
                                                                                                       employees’ healthy and release epidemic
                              Set up special epidemic committee       49%                              warnings;

                                                                                                   •   Companies should keep frequent
                                                                                                       communication with employees. The
                              Provide psychological
                              counselling and other 30%                                                communication includes epidemic
                              assistance
                                                                                                       notification, prevention, psychological
                                                                                                       assistance and so on. It will greatly

 Other                                                                                                 enhance employees’ trust towards
                                  8%
Measures                                                                                               companies and also get prepared for the
                                                                                                       following work arrangement.

© 2020. For information, contact Deloitte China.                                                                                               9
EXTERNAL
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© 2020. For information, contact Deloitte China.
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