POST COVID-19 RESPONSE - RETURN TO WORK CONSIDERATIONS MAY 2020 - PWC
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Business leaders are acutely aware of the impacts COVID-19 has had on their business Leaders have responded by... ...recognising the need 85% 81% 29% and 37% to manage costs and expect decrease in consider to implement cost anticipate layoffs and furloughs, containment1 respectively1 workforce revenues/profits1 37% 33% ...settling in to new Anticipate a change in staffing anticipate productivity loss due to ways of working due to low/slow demand1 lack of remote working capabilities1 76% 65% 48% ...preparing for the Change workplace safety Reconfigure work sites to promote Accelerate automation and new return to work measures and requirements physical distancing 1 ways of working1 (e.g., wearing masks, offering testing to workers) 1 1. Source: PwC COVID-19 Global CFO Pulse Survey (link) Data as of May 11, 2020, including Vietnam respondents PwC | Post COVID-19 | Return to Work Considerations 2
How to prepare, respond “ and emerge stronger Evaluating when and how Below are the six areas of response which need to be addressed appropriately to manage to gradually bring the impact of COVID-19 crisis and your business recovery: employees back to the workplace represents one of the most critical challenges Crisis Management Workforce Operations & Supply Chain your organisation will need to address. Finance Strategy & Tax & Trade & Liquidity Brand PwC | Post COVID-19 | Return to Work Considerations 3
Return to work (RtW) decision criteria This is a complex issue with many questions to consider: “How can we ensure the health “How should we sequence and safety of our people?” and pace the ramp up?” Health & Safety PwC weighs return to work “Are workers comfortable “How can we best generate Type of Work (Sequencing) decisions across returning to the workplace? revenue in the wake of these four Do we even return?” COVID-19?” decision criteria: $ Financial (Cost & Revenue) Worker Needs / Preference “What are the unique “What will it cost to considerations for each appropriately bring people country, city, site?” back to work?” This complexity is amplified for organisations that operate diversified and international businesses, as the impact of COVID-19 may vary across business units, and the return to work timelines will differ substantially across jurisdictions. PwC | Post COVID-19 | Return to Work Considerations 4
Most companies have already pivoted to a “new normal” as part of RtW Prepare for increased demand via workforce planning and strategy Mobilise a RtW task force and set up a Transition Office to review response effectiveness to date, scenario plan for key decisions, define and manage action plans. A situation assessment will be key to understand the organisation’s risk appetite across each of these dimensions1. RtW Transition Plan Mobilisation Mobilise Key decision criteria Transition Office Health & Safety Operations Type of Work (Sequencing) Transition Plan $ Financial (Cost & Revenue) Facilities Worker Needs / Preference Health & Safety Change Management 1. More detail on the dimensions of work by which companies are already managing through crisis is available in the appendix PwC | Post COVID-19 | Return to Work Considerations 5
There are four key decision areas to be assessed prior to bringing back subsets of the workforce $ Financial (Cost & Health & Safety Type of Work Revenue) Worker Needs /Preference Ensure compliance with Identify critical / contractually Understand costs incurred or Assess workers’ attitudes Government and HSE obliged services and related saved in bringing people towards health and hygiene 1 1 1 1 guidelines roles back to work (e.g. on-site in the current climate security, cleaning fees, PPE) Ensure work environment is Identify roles that require Identify and stand up new Understand worker personal safe and sanitary. Establish interaction with other people revenue streams or expand situations (e.g. childcare, 2 protocols for the use of 2 (on-site or field), or with 2 2 existing offerings (e.g., new financial) and implications of shared equipment or shared technology or products/services) same on productivity workspaces. machinery Understand where risk and Evaluate comfort with Evaluate appropriate medical Plan for fluctuations in compliance issues are remote working and protocols to form part of a RtW 3 typical business demand 3 magnified if jobs are not 3 3 perceived effectiveness of process (e.g. anonymised during the COVID-19 managed on-site collaboration tools/remote temperature checks) recovery period ways of working Review environment, health Assess where productivity 4 and safety and emergency 4 decreases significantly if protocols to align with HSE work is performed off-site guidance PwC | Post COVID-19 | Return to Work Considerations 6
Mobilise a team to build and implement the transition plan Mobilise RtW Transition Plan RtW Mobilisation Transition Office Operations Facilities Health & Safety Change Management Establish baseline and set Coordinate return to work Ramp up operations to meet Design a workplace that Implement policies and protocols Manage adoption of intention response to promote demand enables safe distancing to ensure a safe changes and employee welfare, compliance and • Develop a site-level schedule • Introduce mechanisms to work environment sentiment • Evaluate effectiveness of efficiency week-by-week and day-by- • Build change management COVID-19 six areas of avoid overcrowding in reduced • Design and implement sanitation response (Crisis • Build return to work project day, based on volume workspaces, e.g. skeleton protocols and schedule more strategy to drive awareness, Management, Workforce, plan forecasts, national regulations, workforce, staggered work stringent, regular cleaning of work understanding, commitment Operations & Supply Chain, • Monitor Government and and remodelled schedules shifts, rotating teams environment and adoption among your Tax & Trade, Finance & HSE guidelines and drive • Establish operating hours by • Remodel the office • Design and implement physical workers Liquidity, Strategy & Brand) compliance site (e.g. for manufacturing infrastructure (e.g. retrofitting distancing and personal protective• Develop communications • Evaluate effectiveness of • Execute and manage the plants, stores, contact desks with plexiglass shields equipment use guidelines and engagement plan that COVID-19 response across return-to-work strategy and centres) to limit close contact between addresses both returning • Determine and enforce appropriate five workforce dimensions plan • Identify roles to ramp back up workers) workers and workers mechanisms to control human (Protecting People, Secure & and roles to stay temporarily • Redesign individual remaining remote • Monitor and measure return traffic flow e.g. staggering work Productive Work, Cost Mgmt. to work progress laid off or continue working workspace configuration to shifts, break allocations • Design and execute training Recovery Readiness, remotely create space between on new processes, policies, • Establish health assessment Communication) • Establish return-to-work employees and operational procedures methods (e.g. temperature • Design and facilitate return- schedules at the employee • Redesign/close collaborative checking, self-declaration of • Understand your cultural to-work strategy workshop level by site, including spaces to allow for distancing fitness for work) in line with privacy strengths and leverage them with key stakeholders selection of employees if • Invest in tools/infrastructure and policy considerations as a source of energy and • Monitor two-way feedback return is oversubscribed focus. Be prepared to lead that continue to securely • Engage with any medical supports channels to check-in on the • Consider cyber security enable virtual collaboration that may be available with empathy and address workforce review as a shift to remote (e.g. collaboration software, arising concerns • Define visitor protocols / screening • Develop and align on return working and prioritising network bandwidth, laptops, processes; review contingent • Establish insights on to work strategy business operations will bring wifi / vpn access, identity and employee preferences and workforce management practices immediate cyber risks access management, data perspectives on ways of • Stand up transition office to ensure understanding of who is • Establish incident trust, threat detection and working on site and where they have management team, tools and response) travelled from processes PwC | Post COVID-19 | Return to Work Considerations 7
Consider medium- and longer-term actions Business Premises Vendor & Contingent Virtual & Remote & Tax Workforce Management Workplace Supply Chain • Identify future requirements in terms • Review contingent workforce • Develop training around leading • Consider moving some offshore of business premises based on management practices and managing staff in a remote production facilities onshore utilisation and commercial property • Assess ability of vendors to model (e.g., motivating, coaching, • Align staff location plans with management practice continue delivering work in light of managing performance) and public policy and incentives for • Consider consolidating business disruption developing own personal/manager local employment as these evolve premises footprint and allowing more • Review flexibility/ability of staff to resilience to the challenges of new post-pandemic flexibility regarding the place of work execute work during the crisis; ways of working • Adapt supply plans to account for Considerations • Rethink the role of headquarters; evaluate mix of fixed vs. flex talent • Enable virtual delivery of all talent risks in availability of key materials consider whether functions need to and alternative staffing model processes (e.g. interviews, • Assess and update inventory be centralised (e.g., consider needs onboarding, training, offboarding) strategy to ensure readiness for mitigating outbreak risk by • Consider offshore/outsourced • Reimagine face-to-face meetings future crisis and readiness to establishing dual headquarters) providers and local lockdown and sales interactions rapidly scale up or down • Evaluate changing tax policies and implications on business • Consider implementing a • Enhance supplier diversity regulations across your geographic continuity; evaluate opportunities rotationary system that combines strategy to prioritise small, local footprint to influence changes in to redistribute work on a remote working with a return to the suppliers to demonstrate location and supply chain strategy temporary or permanent basis workplace. investment in community • Evaluate ability to report employee • Consider establishing proper • Ensure continuity with technology rebuilding work location and impact on local notices and transparent policies for and operational resilience • Enhance scale with rapid ability to and global taxes consumers and workers if sharing strategies assess third parties and supply their data with third parties chain partners Consider the Resilience within your organisation on an ongoing basis, with a focus on building, maintaining and reviewing the resilience of your: Leadership | Cyber Security | Crisis Management | Business Continuity Planning | Employee Welfare PwC | Post COVID-19 | Return to Work Considerations 8
Consider your internationally mobile workforce and business travellers Don’t forget that a Return to Work (RtW) may involve cross-border movements for your employees. Knowing where your people are, and where they may be moving to, as they return to work is key. ● Establish RtW task force ● Identify employees who may ● Identify any employees ● Identify any tax return to liaise with HR, be working from home, which currently on an filing extensions for may be in another country. mobility and project employment permit/visa relevant countries and/or teams to identify ● Consider the impact of in any country - do tax payment extensions employees currently or restricted travel on these need to be or holidays that your anticipated to work assignees and employees extended? organisation may be able overseas. working not in their usual to avail of. location for an extended ● Create a heat map of period on their tax and social countries your security position as well as employees are any compliance or payroll currently in. withholding filings triggered. ● Ensure all business ● Assess potential permanent travellers are tracked establishment exposure for as employees RtW. your organisation. PwC | Post COVID-19 | Return to Work Considerations 9
Where to begin You can kick-start Return to Work (RtW) planning by beginning with the following items: 1 Establish RtW Task Force Identify internal leaders / stakeholders who will lead the mobilisation of the RtW response, who may already be in place managing the crisis Establish Guiding 2 Principles for RtW Transition Align with RtW Task Force Leaders on the primary goals of the transition including the target experience for stakeholders 3 Assess Effectiveness of COVID-19 Response Identify areas for improvement across six areas of response (Crisis Management, Workforce, Operations & Supply Chain, Tax & Trade, Finance & Liquidity, Strategy & Brand) 4 Conduct Workshop to launch RtW Planning Design and facilitate return-to-work strategy workshop with RtW Task Force to address considerations across the four RtW decision categories (Health & Safety, Type of Work, Financial, Worker Needs / Preference) PwC | Post COVID-19 | Return to Work Considerations 10
Appendix: Detailed return to work decisions PwC | COVID-19 | Return to Work Considerations
“Health & Safety” Key Activities / Considerations Health & Safety Type of Work $ Financial Employee Preference (Sequencing) (Cost & Revenue) 1 2 3 Evaluate medical protocols to 4 Review environment, health and Ensure compliance with Establish a safe work environment Government and HSE guidelines form part of a RtW process safety and emergency protocols to align with HSE guidance • Monitor and ensure compliance • Update health and safety policies and • Against HSE guidelines, investigate • Develop processes to respond to with Government and HSE protocols PPE use new infections/outbreaks quickly, guidelines • Consider a shift to a more stringent, • Consider health verification methods including communication • Consider offshore/outsourced regular cleaning of premises (e.g. temperature checking, self- channels, protocols to close down providers and global service • Consider remodelling the working declaration via questionnaire) and facilities/office space, etc. delivery as local lockdowns have environment, e.g. retrofitting with balancing them with privacy and • Establish protocols to identify and implications on business continuity plexiglass shields to limit close policy considerations track workers and their contacts • Understand and balance need to contact between workers • Consider whether it is possible to that have been diagnosed with safeguard protected personal data • Communicate physical distancing have medical staff on premises, or the virus; consider leveraging while implementing due diligence guidelines on a regular basis train first aiders to help implement mobile tracing technology. measures to collect, use, and • Establish mechanisms to control some of these measures share applicable data to identify, human traffic flow • Define visitor protocols and mitigate, and/or protect against a • Liaise with unions and staff screening processes; review direct threat to workplace health representatives on revisions to contingent workforce management and safety. workplace policies and procedures to practices to ensure your aid physical distancing organisation has an understanding • Consider staggering work times to of who is in your building / systems de-synchronise commutes and where they have travelled from • Consider staff mental wellbeing, recognising the impacts of COVID 19 and the fear it may bring PwC | Post COVID-19 | Return to Work Considerations 12
“Type of Work” Considerations Health & Safety Type of Work (Sequencing) $ Financial (Cost & Revenue) Employee Preference 1 Identify roles that require 2 Identify roles that require in- 3 Understand where risk and 4 Assess where productivity in-person interaction with other person interaction with compliance issues are magnified if decreases significantly if work is people (on-site or field) technology or machinery jobs are not managed on-site performed off-site • Consider how in-person • Evaluate which roles are carrying • Understand the risk profile of jobs • Evaluate the success of remote interactions evolve given new out work that cannot continue to be and whether risk or compliance work during the crisis, which may ways of working; will as much effectively performed without access monitoring is significantly improved vary due to a variety of factors face-to-face customer interaction to machinery or technology that is when work is executed on site (e.g., (functions/roles, personal be required? (e.g., Sales, located on-site trading) situations, technology), in an effort Relationship Managers) • For roles where work can only be • Evaluate the data privacy / cyber to understand where productivity • For roles where work can be performed on the work premises like security risks associated with various dropped significantly or remained performed remotely, consider a manufacturing environments, roles and functions working via VPN / stable during the COVID-19 crisis splitting time in the office and consider developing consistent / remote working remotely, for example fixed shift teams, or staggered • Evaluate job functions that were not teams that rotate weeks or shifts working times to limit the number of impaired by remote work, for future in the office people your employees interact with alternative work arrangement planning, with adequate supporting technologies and resources PwC | Post COVID-19 | Return to Work Considerations 13
“Financial” Considerations Type of Work $ Financial Employee Preference Health & Safety (Sequencing) (Cost & Revenue) 1 Understand costs incurred or saved by bringing 2 Identify and stand up new revenue streams or 3 Plan for fluctuations in typical business demand people back to work (e.g. on-site security, expand existing offerings (i.e. new products/ during the COVID-19 recovery period cleaning fees) services) • Consider the new costs associated with returning • Explore and identify opportunities for revenue • Scenario plan for increased or decreased demand to workers to the workplace in a post COVID-19 society. generation in a post COVID-19 society, including your business as society gradually transitions back Examples include: retrofitting manufacturing plants to develop to normalcy. o Routine deep cleanings, frequent sanitation products in need, expanding services in need, • Understand the financial and operational implications o The use of personal protective equipment create new offerings, etc. this may have for your organisation. (i.e. restaurants o Additional on-site health and safety training • Consider end to end business strategy in context of may only operate at 50% capacity) o Remodeling of work locations (offices, factories, new reality, from employee working preferences to work sites) changed customer habits and outsourcing choices o Cost of carrying out any medical protocols in the wake of COVID-19 (e.g., more basic models / o Food expenses and allowances services than pre-pandemic) • Identify areas where costs can be saved if work is continued remotely. Examples include: o Costs of in-person training o Utilities, food consumption, on-site security, cleaning fees o Office services and supplies PwC | Post COVID-19 | Return to Work Considerations 14
“Employee Preference” Considerations Type of Work $ Financial Employee Preference Health & Safety (Sequencing) (Cost & Revenue) 1 2 3 Evaluate comfort with remote working and Assess attitudes towards their health and Understand worker personal situations (i.e. perceived effectiveness of collaboration tools hygiene in the current climate childcare, financial) and remote ways of working • Consider at-risk populations who may need to stay • Understand how our employees’ personal • Consider the need to prioritise investment in at home for extensive or indefinite periods (and the situation, as well as the availability of societal tools/infrastructure that continue to enable inclusion and isolatory implications of this) provisions may impact on their desire and remote/virtual collaboration (e.g. collaboration • Recognise the impacts on employee well-being. willingness to return to work (i.e. if schools are software, network bandwidth, laptops, Wifi / VPN Understand and address anxieties and fears while closed, less individuals may be able to return to access, secure remote access, identity and promoting the mental health supports available work due to lack of childcare) access management, threat detection and • Understand where your people are and what modes • Consider how an individuals’ financial situation response) of transport they use to gauge their level of exposure may impact their propensity to return to work • Assess whether virtual collaboration is productive during their daily commute • Recognise employee preferences in terms of and maintains employee engagement • Assess the needs for business travel vs. virtual ways of working, and acknowledge the anxieties meetings that may exist from their perspective - e.g. the • Review and expand your employee feedback social isolation that may be felt while remote channels working, or the fears and stresses experienced in o Gain insights into employee sentiment during anticipation of a return to the workplace the recovery period o Take appropriate action addressing any concerns expressed and acknowledge successes in managing the crisis PwC | Post COVID-19 | Return to Work Considerations 15
Other Core workforce domains to be addressed... Manage people & productivity and run the business throughout the crisis Responding to the Crisis Ensuring Work Gets Done Managing Liquidity Preparing for Recovery Protecting People Secure and Productive Work Workforce Cost Management Recovery Readiness Lead with responsive, empathetic New ways of working and new forms of Assess short and long-term workforce Prepare for increased demand via communications and policies connectivity cost measures to plan for sustainability workforce planning and strategy • Implement two-way feedback channels • Determine remote workforce • Assess roles and functions (supply vs. • Refresh workforce strategy, including to check-in on the workforce programme effectiveness demand) and opportunities to re-deploy org design • Manage workforce data to help enable • Develop and build secure remote • Assess and identify workforce measures • Determine which aspects of the ways accurate employee tracking working capabilities (employees and ahead of headcount reductions (e.g. of working will be continued post-crisis • Implement policies to protect and leaders) employee benefits, occupational pension • Continue momentum for digital ways support workforce and comply with • Measure workforce productivity and arrangements, shortened work week, of working through investment in guidance and regulation engagement temporary lay off, opportunities for job upskilling and specific skills and • Reinforce respect and inclusion, • Refine priority HR programmes (e.g., sharing or part time work) capabilities support employee wellness planning for critical roles, performance • Analyse the implications around • Maintain/establish access to key talent • Refine or establish employee well- and rewards, talent management) introducing some of these shorter term pools and sources being programs and supports • Accelerate new ways of working measures versus utilising the Covid-19 • Establish transformational change through digital upskilling Aid Package from Government • Measure return on experience (RoX) • Identify opportunities to re-deploy • Lead and engage differently to inspire workforce to help meet increased the workforce through change and demand and critical functions uncertainty • Engage and inspire retained workforce to focus on the vision for the future beyond the crisis PwC | Post COVID-19 | Return to Work Considerations 16
For further insight, contact a member of our team Dinh Thi Quynh Van Johnathan Ooi Siew Loke General Director/Partner, Partner, Deals Services Leader Tax and Legal Services PwC Vietnam PwC Vietnam johnathan.sl.ooi@pwc.com dinh.quynh.van@pwc.com +84 28 3823 0796 +84 24 3946 2231 Nguyen Thanh Trung Mai Viet Hung Tran Partner, Tax Services Leader Partner, Assurance Services Leader PwC Vietnam PwC Vietnam nguyen.thanh.trung@pwc.com mai.hung.tran@pwc.com +84 28 3824 0103 +84 28 3824 0104 Tan Siow Ming Grant Dennis Partner, Deals Services Leader General Director/ Partner PwC Vietnam PricewaterhouseCoopers Consulting Vietnam siow.ming.tan@pwc.com dennis.a.grant@pwc.com +84 28 3824 0127 PwC | Post COVID-19 | Return to Work Considerations 17
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