Without rapid immunisation, many experts believe that South Africa will experience a third wave of Covid-19 by the coming autumn or winter.
By Lyndy van den Barselaar, MD of ManpowerGroup SA
Although there is no clear-cut definition of what could constitute this surge it will become evident as we start to observe a continuous rise in new cases. As schools reopen and more workplaces feel the economic pressure to resume operations — combined with cooler temperatures that keep people indoors — we could see a resurgence of the virus.
Many businesses that were hard hit during the first lockdown and continue to suffer as a result of continuing restrictions worry that they won’t survive a second hard lockdown. For this reason it is vital that they make the necessary preparations now, should new restrictions be implemented.
Assess your initial response to the pandemic
With the benefit of hindsight, there are many lessons to be learned from your company’s initial response to the pandemic. Communicate with colleagues, employees, suppliers and clients in order to identify which practices were effective and which were less so.
If there are deficiencies it is important that one identifies the root causes of these shortcomings. Whether it be the promptness of action, absence of infrastructure, labour scarcity, or other external environmental issues, it is critical to take the time to assess what caused issues or bottlenecks during the height of the initial wave and what could have assisted in getting back up and running more swiftly. Small businesses, in particular, should consider the reliability of their vendors, their ability to store inventory, their access to skilled people and their ability to adapt manual business operations to digital procedures as business model resiliency will be an essential factor in surviving future waves.
Health and safety resources
Although ensuring the health and safety of employees should always be a priority for employers, now more than ever it is time to double down on some of the initiatives that may already be in place. As Covid-19 is likely to be with us for quite some time, companies should take the opportunity to focus on employee safety from both a physical and psychological perspective so as to solidify their position as a company that cares.
With this in mind, be sure to communicate clear standards for workplace safety, provide options that will minimise employees’ physical risk while at work and offer the necessary support to individuals who may be having a hard time adapting to the circumstances.
Remote work policies
The COVID-19 pandemic compelled businesses to shut their offices and call on employees who could work remotely to do so with very little notice. The rush to remote work brought with it a number challenges for organisations and employees. Leading the list of challenges, was technology. Having the technical infrastructure in place to enable secure access to the services and information necessary to support remote workers is of critical importance.
While it remains uncertain how long the pandemic will require employees to work from home or whether working remotely will become more commonplace, now really is the time to ensure that your remote work policies are airtight and accessible to those who need to refer to them when needed. While the ability to work remotely varies vastly from industry to industry, plans must be in place wherever feasible.
Alternate business models
When surveyed in June 2020 for PwC’s sixth COVID US CFO Pulse Survey, chief financial officers reported that “the ability for businesses to return to pre-COVID revenue levels is predicated on how they can adapt and be agile in this new environment.” Sixty-three per cent of respondents anticipated that changes in product and service offerings will be the most important part of rebuilding or enhancing their revenue streams.
The fact that many small and medium-sized organisations are focused on a single product, service offering, or target market increases the pressure placed on their business in the course of a global pandemic. During this time of crisis it is important to consider exploring alternative markets or new products and services for your existing customer base.
Mitigate financial risks
Although it is always advisable to have a financial cushion, many smaller businesses don’t have the funds necessary for this, especially after experiencing loss of revenue over the past year. Bearing this in mind, it is recommended that one look at developing an overall cost reduction plan, with the aim of converting as many fixed costs as possible into variable costs. Further to this, businesses should evaluate short-term liquidity and closely monitor cash flow to stay abreast of potential shortfalls, tighten up receivables collection and manage inventory build-up.
When Covid-19 first hit, businesses were ill prepared for the adjustments they would have to make. With the benefit of hindsight as a guide, however, organisations have been given the opportunity to learn from their initial responses to the pandemic and make improvements based on the experience gained. Regardless of whether or not South Africa experiences a third wave or how it will affect your company, now is the time to take action and ensure the future success of your business.