One Year In:
U
Undoubtedly, the past year presented employers with unprecedented challenges. Employee safety, mass shut downs, remote work, return to work protocols, and basic business survival have been top of mind for employers since the COVID-19 pandemic hit with full force in March 2020.
In the last year, more than 30 million Americans have become unemployed and eligible for unemployment. According to the Department of Labor (DOL), in the last year, more than $144 billion in unemployment benefits have been provided to American workers in need. The average duration of unemployment of an American employee during the pandemic is 15.55 weeks. Despite this statistic, many jobs have been permanently lost due to the pandemic. According to the monthly DOL jobs report, more than 4 million people have been unemployed for six months or more. Those who are long-term unemployed account for 41 percent of all currently unemployed people in the United States. This is a level of long-term unemployment not seen since the height of the Great Recession. Low-income workers, people of color, and women have been disproportionately impacted by the pandemic job losses. Since the peak on the pandemic, the unemployment rate has slowed but not all sectors of the economy have recovered equally. It is estimated that as many as 10 million jobs may be permanently lost. It is also no surprise that the leading sector of job loss is in the leisure and hospitality industry. Other hard hit sectors of the economy include mining and oil extraction, travel and transportation, construction, the motion picture and music industry, personal services, manufacturing, and self-employed jobs. The survival of many businesses during the pandemic hinged on the programs and tax incentives provided by the federal government. The Paycheck Protection Program is credited for providing a lifeline to over 5 million companies. The most recent reports from the Small Business Administration indicate the agency has processed more than 1.1 million loan forgiveness applications totaling $100 billion, with millions of additional applications for forgiveness pending. The impact of the pandemic has affected employers in dramatically different ways, not only based on industry, but also due to the area of the country in which the business operated. State differences in closure orders have had a vastly different impact on workforces. One key factor in workforce impact has been school closures. The Bureau of Labor Statistics estimated in 69.9 percent of married families with children, both parents worked outside of the home. In total, 72.3 percent of women with children work outside of the home. The closure of schools and the use of virtual learning has drastically impacted working parents, particularly women who typically bear the weight of childcare. 42
www.HRProfessionalsMagazine.com
The Pandemic’s Impact on Employers and Their “New Normal” By ASHLEY CUTTINO
The Vaccines Have Arrived.
With the arrival of multiple vaccines, there is hope that the end of the pandemic is near. Many states are now lifting pandemic closure orders partially, and in some states completely. There is also momentum to vaccinate teachers and reopen schools across the country. The lifting of closure orders allows those areas of the country and industries that have not reopened to begin the re-opening process.
What’s Next: The “New Normal”
Reality tells us that life post-pandemic will not return to normal. Many lessons have been learned during the pandemic. Business have been forced to rethink and re-evaluate operations from top to bottom. How work is done has changed, in some ways, forever. The “new normal” provides an opportunity to apply the lessons learned to operational functions that, in turn, benefit the employer and employees in the future.
Return to Work: Safety is the Number One Priority.
An employer’s number one priority upon the return to work is providing a safe work environment for employees and other individuals who enter their premises. The Centers for Disease Control and Prevention (CDC) and the Occupational Safety and Health Administration (OSHA) have provided clear guidelines for how to re-open safely. An employer’s first job is to develop a plan for re-opening that is compliant with the CDC and OSHA guidelines. It is critical for employers to continue to evaluate the guidelines as they continue to change and evolve with the pandemic. An essential piece of any safety plan is communication with the workforce. Ensuring management and employees know and understand the safety plan in place is essential for successful re-opening.
Remote Work: The Wave of the Future.
Post pandemic, many employers intend to allow employees to continue to work remotely on a full or part-time basis. If the employee lives in a jurisdiction that is different from the workplace, employers need to consider tax and other financial implications applicable to the remote worker. This includes the impact of a
