What’s Going On Out There?

What's Going On Out There?

Hungry for up-to-date data on how your competitors are handling the Human Resource components of the Covid-19 pandemic? Aon (including Radford) just published data collected from April 7 to 10, 2020. This “point in time” report is called “Adjusting Total Rewards Programs, Workforce Strategies and Sales Force Effectiveness Practices in Response to COVID-19” and it has some valuable insights into how companies are (or are not) adjusting their people strategies to the current environment. The participants include a nice mix of essential businesses (56% of participants), non-essential (24%) and mixed (22%).

If you think that the findings can’t possibly apply to a company like yours, participation ranged from companies with fewer than 250 employees (15%) to over 50,000 (9%).

To whet your appetite, here are some of the key findings:

  • 22% of participating North American companies are cancelling salary increases and 17% are deferring or postponing increases.
  • 18% of survey participants offer special pay programs, typically in the form of flat amounts, for those in high-risk roles. 93% of these participants are essential businesses.
  • 58% report that their Executive/Officer group is taking voluntary base pay reductions.
  • 23% are planning to make benefit changes and 14% are planning to make retirement changes. Given these findings, it seems limited revisions are planned for Total Rewards.
  • More than half of participating companies have special programs to help those working from home deal with equipment purchases and membership fees. Most are offering help on an as-needed basis.
  • 88% of participants have increased the number and frequency of communications from senior leadership, including topics like business continuity — with 77% using video and web conferencing as well as email, and 33% using texting, among many communication channels.

I think it would be useful to understand what’s going on outside your doors, if only to help you feel more confident about the way you are handling the tsunami of challenges that you meet every day. This is a well conducted survey covering a point in time that can be confusing and sometimes even disturbing.

Posted by Margaret O’Hanlon CCP