Case Study

Navigati g the HR impact of Covid19

— By Diksha Vohra

Claire Donnelly, a Business Growth and HR Strategist helping medium size companies to scale up using proven systems, discusses the tough challenges ahead from a HR perspective

The impact of the Coronavirus pandemic on companies has hit hard and fast. Business owners are having to look at innovative methods to manage their business and their workforce whilst considering the constant moving and updating situation and the financial impacts on their Profit & Loss.

Although it is unclear how long the measures and involving situation will impact businesses, companies are wise to take immediate action to reduce company financial loss, which unfortunately will affect employees.

With restrictions on travel in place and rumours of more travel restrictions ahead, this uncertainly could be an opportunity to change business practices whilst at the same time save costs to a company. Overseas business meetings can take place virtually, there are many solutions to holding virtual discussions, reducing the need to travel. Business travel should be limited to essential travel only, taking into con-

sideration the Coronavirus status in the country they need to visit and take as many precautions as advised, booking as close to the travel date as possible to avoid cancelation charges.

The changes in travel restriction may have left employees potentially stranded outside the UAE or unable to travel on pre-planned holidays. Employees looking to travel on holiday should ideally put their plans on hold for the time being and assess the situation just prior to needing to travel taking advice from the flight carrier prior and local Government notifications to making the decision to book their flight.

Employees may feel that they are left with no option, but to travel as they have elderly or sick family members that they need to see. The company should support last minute holiday requests to allow their employees to travel whilst flights are allowed, but access the pandemics impact in the country they wish to travel in prior to approving the holiday request.

For those that cannot travel, companies should also look at allowing employees the use of company phone to make international calls to their family members, a short call will often put minds at rest and keep the employee focused on their role’s responsibilities and accountability.

In some cases, an employee may want to leave the UAE urgently to return to their families in their home countries, forgoing their contractual notice period. My advice would be to consider these requests seriously and work with the employee to agree to a mutually suitable leaving date. This allows for a shorter than required handover of duties, but does negate the possibility of the employee absconding as they feel they have no option, but to return to family members.

Should an employee fall unwell and there be any concern as to their having the Coronavirus, companies should plan for self-isolation and allow the employee to work from home. For home working to work successfully, clear KPIs and company expectations should be put in

Claire Donnelly Business Growth and HR Strategist

place that the employee should achieve whilst not in the office. Companies should start thinking now about setting employees targets and tasks that can be completed at home that ensures that business continues to flow. Having these measures in place also allows for more a more flexible approach to working, helping employees who need some flexibility to help cover for childcare given school and nursery closures.

In these situations, it is also an opportunity to look at employees costs and how to make them lean and efficient. Ideas to temporarily reduce costs could include asking employees to work part time on a prorated salary, clear down their outstanding holiday entitlement or take unpaid leave.

However, unfortunately tough decisions may need to be taken and headcount reductions are required.

Although redundancies are not covered specifically in UAE Labour Law, redundancies are a reality that the UAE is having to face and has been since 2008. Business owners may need to resort to reducing their headcount in order to reduce staff costs. If this is the case, although the role has not been made redundant, the number of positions will have been.

If this is the route the company decides to take, they should prepare a business case to show why the decision has been taken. They should then prepare a criteria for redundancy selection – often last in first out is the main method of reducing, you could also add overpaid compared to market, however, this is likely to have those that have worked for you longer on the redundancy list, which may be seen as unfair selection. Also, if you do get to them, use appraisal rating as another criteria.

When communicating the decision to employees, the company should be open and honest to the team, explain to everyone what you are doing and why. Be open with those that you are making redundant, tell them why they were selected.

Make sure you put your arms around those that are staying, survivor guilt can close a business down if not addressed immediately redundancies are announced.