The COVID-19 pandemic has forced most companies to rethink their business strategies and create one that incorporates social distancing and isolation. In the meantime, enterprises are beginning to realize that it’s time to support the return to work while making necessary changes in the months ahead.
The COVID-19 outbreak affects the ability of some businesses to repay outstanding debts, and the functionality of such companies will still be compromised after the pandemic. A high absenteeism rate among staff and the resulting effects of this are other challenges that businesses should expect. And ultimately, businesses risk low motivated workforce due to the uncertainties brought by the pandemic. COVID-19 is changing purchasing decisions and forcing businesses to re-design their customer experiences.
High Absenteeism
The COVID-19 pandemic has presented challenges unlike anything experienced before, such as extreme absenteeism. As the demand for goods and services rises, companies will need to hire and train new employees to fill in for employees who had to leave due to Coronavirus exposure or contraction. COVID-19 is reshaping how firms do business and their ability to recruit and retain employees.
If an employee is confirmed sick, they will quarantine at home for at least a month. More so, anyone in contact with the infected people may be isolated at home for at least two weeks. The entire workplace will require sanitizing, which means closing down for several days to clean and sanitize. Over time, such kind of absenteeism increases, affecting productivity. Most organizations predict absenteeism rates of 10% and more, making it hard to maintain regular, efficient operations.
Businesses will have the re-strategize their hiring process to address the challenge of high rates of absenteeism alongside increased demand for goods and services. Amazon has dropped several steps in its hiring process while Walmart has reduced the process to 2-3 days. Since these employees require training, companies are turning to a digital e-learning solution to allow the rapid recruitment of employees.
Changing Consumer Habits
The COVID-19 pandemic has forced businesses to rethink how workers deliver relevant customer experiences due to changing customer behaviors and buying patterns. In addition to that, the pandemic is changing what and how customers buy, leading to structural changes in businesses.
The aftermath of the health crisis will require companies to consider the effects of these changes on how they communicate, build, and design the experiences that customers need and want. Contactless delivery is an example of a structural change that most businesses will implement.
Debt and Insolvency
Hundreds of businesses are worried about their inability to stay afloat due to accumulating debts and falling revenues. Unfortunately, it remains unknown how much longer businesses will remain in debt even as markets reopen. The worst affected companies will have to file for bankruptcy as their debt challenge spirals and their financial stability quivers under the pressures the current situation has presented.
Helplines are overworked with queries from businesses wanting to know the available options due to the limited access to government support schemes. Insolvency experts predict that thousands of companies are at risk of collapse and the situation is forcing firms to lay-off employees or requesting workers to accept pay cuts. As a result of all of these lay-offs, companies will resort to overworking the employees left on staff, which leads to job dissatisfaction.
Early financial intervention can help businesses avoid the worst as the economy reopens, so if your business is facing insolvency, talk to a debt expert soon. A company offering debt relief programs is also an excellent start to your financial problems. Look for a financial planning and debt relief company that offers risk-free debt relief and protects you.
Conclusion
With these predicted challenges, businesses have an opportunity to plan wisely and potentially remain afloat. If your business is facing financial difficulties and risks closure or having to file for bankruptcy, engage a professional debt expert soon. Consider enrolling in a debt settlement program before filing for bankruptcy. Since every financial situation is different, consult with a trustworthy debt relief company and know the debts that qualify you to enroll in the relief program. Begin your debt-free journey today with debt relief.
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