Results of 2nd Pulse Survey Impact of COVID-19 on Rewards ... April 2020.pdfKorn Ferry conducted a...
Transcript of Results of 2nd Pulse Survey Impact of COVID-19 on Rewards ... April 2020.pdfKorn Ferry conducted a...
Geography : Global
Industry : All
April 2020
Results of 2nd Pulse Survey
Impact of COVID-19 on
Rewards & Benefits
1 INTRODUCTION AND KEY HIGHLIGHTS 3
2 KORN FERRY PERSPECTIVE 4
3 PARTICIPANTS OVERVIEW 5
4 PANDEMIC EFFECT ON BUSINESS IN 2020 7
- Global, Geographical & Industry Impact
5 REWARDS & BENEFITS MEASURES IMPLEMENTED 17
- On Salary & Benefits
- On Incentives / Bonuses
- By Employee Groups
- By Geography & Industry
6 WORKFORCE MEASURES IMPLEMENTED 24
- Leave Management & Hiring
- Cost Reduction Measures : Short Term & Long Term
- Workforce Accommodations
7 CHALLENGES FACED 30
8 LEADING THROUGH & BEYOND COVID-19 33
TABLE OF CONTENTS
Geography : Global
Industry : All
x
INTRODUCTION AND KEY HIGHLIGHTS
© 2020 Korn Ferry. All rights reserved 3
20%
34%
29%
42%
SALARY CUTS SALARY FREEZE
March COVID-19 Survey April COVID-19 Survey
% Organizations that have implemented, or are considering to implement, these measures
Korn Ferry conducted a second pulse survey to understand the impact of COVID-19 on
business and human capital management practices. The pulse survey ran from 15th to
24th April 2020. This was conducted four weeks after our initial pulse survey.
The biggest shift since our first survey is an increase in the use of salary cuts and
salary freezes. Simultaneously, organizations are considering both permanent layoffs
and/or temporary measures to reduce the workforce capacity, many of which are
supported by state intervention in participants' countries of operation.
This report covers responses from the following organization profiles:
▪ Geography: Global
▪ Industry: All
Geography : Global
Industry : All
x
© 2020 Korn Ferry. All rights reserved 4
KORN FERRY PERSPECTIVE
These global findings provide a broad indication of the initial impact that COVID-19
has had on global business. However, we wish to note that:
▪ Countries, regions and sectors are impacted differently by the pandemic:
− The number of participants who are uncertain of the impact on their business has declined
with more organizations taking actions on labor cost and reward management. The
perception of the severity of the impact has become more negative.
− Sectors impacted most significantly include: Travel, Retail, Transportation, Oil & Gas,
Construction, and Consumer Durables. Least impacted sectors include:
Healthcare, Utilities, Insurance, FMCG, Telecommunications, and Public Sector.
− Salary freezes are the most prevalent form of wage control. Salary cuts are less
prevalent. Executives are most impacted by reductions in compensation.
− There is an increasing trend for premium pay for front-line essential workers in sectors where
their presence is critical for operations.
− A strong majority of organizations anticipate profound changes to workforce management
practices going forward, including more disciplined cost management, a more virtual
workforce and better communications with employees.
▪ These survey findings will likely continue to evolve over the coming weeks. Korn
Ferry will conduct a third survey in May to identify these shifts.
Geography : Global
Industry : All© 2020 Korn Ferry. All rights reserved
5
PARTICIPANT PROFILE
By Organization size By Ownership type
Publicly held, 23%
Privately held/family held, 62%
Govt/public sector/state/NFP,
9%
Other, 6%
Less than 100 people, 12%
101 -250 people, 13%
251 - 500 people, 12%
501 - 1,500 people, 20%
1,501 - 5,000 people, 20%
5,001 - 20,000 people, 14%
More than 20,000 people,
9%
© 2020 Korn Ferry. All rights reserved
PARTICIPANTS OVERVIEWRespondents are typically from the Compensation and Benefits function (manager level and above), HR Business partner, CHRO
& Finance areas. A wide range of organization size and ownership is represented.
# OF RESPONDENTS = 3880
Geography : Global
Industry : All © 2020 Korn Ferry. All rights reserved 6
PARTICIPANT PROFILE
By Industry (% of sample)
Banks 3%
Chemicals 5%
Construction and Materials 4%
Consumer Durables 2%
Education 1%
Fast Moving Consumer Goods 11%
Financial Services 5%
Healthcare 2%
High Technology 6%
Industrial Goods 8%
Insurance 4%
Leisure and Hospitality 1%
Life sciences 2%
Media 1%
Natural Resources 3%
Not-for-Profit 2%
Oil and Gas 6%
Other 16%
Public Sector 2%
Retail 6%
Services 5%
Telecommunications 2%
Transportation 3%
Utilities 2%
By Country (where no of respondents >50)
USA 340
Mexico 187
Turkey 177
Czech Republic 143
United Kingdom 142
Brazil 138
Poland 138
Romania 129
Canada 117
Argentina 117
Australia 114
New Zealand 108
Russian Federation 106
Malaysia 101
Thailand 93
Hungary 90
Portugal 84
Ukraine 79
Singapore 74
Italy 70
Belgium 70
India 67
United Arab Emirates 62
Slovakia 60
Hong Kong 61
Indonesia 57
Peru 56
PARTICIPANTS OVERVIEWThere is strong representation globally across all major regions and industries.
PANDEMIC EFFECT ON BUSINESS IN 2020
Geography : Global
Industry : All
Clarity over the
economic impact of
COVID-19 has
increased since our
first survey with
“Don’t Know”
declining from 33%
to 21%.
69% of organizations
expect a decline in
revenues indicating
a very significant
decline in the global
economy.
Whilst a greater
percentage of
essential
organizations see a
positive impact,
nearly 2/3s consider
the impact will be
negative.
8© 2020 Korn Ferry. All rights reserved
GLOBAL IMPACTMarket perception of pandemic effect on business in 2020
Annual revenue is expected to…March Survey
All Organizations
April Survey
All Organizations
April Survey
Essential
Organizations *
Positive Impact… increase by more than 10% over budget 2% 2% 7%
No Impact… be in line with budget 5% 7% 6%
Small Impact… decline by 5%~15% 15% 17% 15%
Significant Impact… decline by 15%~30% 28% 33% 37%
Serious Impact… decline by 30%~50% 17% 13% 15%
Very Serious Impact… decline by more than 50% N/A 6% 7%
Don’t know yet 33% 21% 15%
# OF RESPONDENTS 2950 3880 124
*Participants self-reported if the organization was considered an ‘essential’ service during COVID-19
Geography : Global
Industry : All
There is less certainty
concerning the
economic impact of
the virus in North
America.
There is consistency
amongst
organizations seeing
the economic
impact as significant
(a decline by 15%-
30%) irrespective of
organizational HQ
location.
Annual revenue is expected to… Global APAC EMEANorth
America
South
America
Mexico &
Central
America
Positive Impact… increase by more than 10% over budget
2% 1% 2% 3% 2% 2%
No Impact… be in line with budget
7% 7% 8% 6% 6% 5%
Small Impact… decline by 5%~15%
17% 18% 18% 14% 15% 17%
Significant Impact… decline by 15%~30%
33% 33% 34% 33% 33% 34%
Serious Impact… decline by 30%~50%
13% 13% 12% 11% 14% 15%
Very Serious Impact… decline by more than 50%
6% 9% 5% 4% 8% 7%
Don’t know yet 21% 20% 21% 28% 22% 21%
# OF RESPONDENTS 3880 757 1895 457 465 317
9© 2020 Korn Ferry. All rights reserved
GEOGRAPHICAL IMPACTMarket perception of pandemic effect on business in 2020
Geography : Global
Industry : All
More FMCG
organizations (6%)
see a positive impact
than the global
average, and nearly
a quarter believe that
there will be a small
impact (a decline of
less than 15%).
All Leisure &
Hospitality
organizations are
seeing significant
impacts to
revenues. A majority
are reporting very
serious impacts.
Whilst Retailers who
have reported as
“essential” are more
positive about
revenues, a majority
still think there will be
at least significant
decline.
Annual revenue is expected to … GlobalConsumer
DurablesFMCG
Leisure &
Hospitality
Retail
Essentials
Retail
Non-
Essential
Positive Impact… increase by more than 10% over budget
2% 2% 6% 0% 7% 1%
No Impact… be in line with budget
7% 3% 10% 0% 6% 0%
Small Impact… decline by 5%~15%
17% 9% 23% 0% 15% 5%
Significant Impact… decline by 15%~30%
33% 43% 25% 16% 37% 36%
Serious Impact… decline by 30%~50%
13% 18% 10% 21% 15% 31%
Very Serious Impact… decline by more than 50%
6% 9% 3% 53% 7% 16%
Don’t know yet 21% 15% 24% 11% 15% 12%
# OF RESPONDENTS 3880 87 442 38 124 120
INDUSTRY IMPACT : CONSUMERMarket perception of pandemic effect on business in 2020
© 2020 Korn Ferry. All rights reserved 10
Geography : Global
Industry : All
The majority of
Industrial
organizations across
all sectors (except
Utilities) are
expecting a
significant decline in
revenues.
Utilities are faring
better with a slight
majority reporting a
relatively small
decline or no impact
on revenues.
Annual revenue is
expected to …Global Chemicals
Const. &
Materials
Industrial
Goods
Natural
Resources
Oil &
Gas
Transport-
ationUtilities
Positive Impact… increase by more than 10%
over budget2% 3% 0% 2% 1% 0% 0% 0%
No Impact… be in line with budget
7% 7% 2% 8% 8% 5% 2% 15%
Small Impact… decline by 5%~15%
17% 20% 14% 11% 18% 14% 11% 37%
Significant Impact… decline by 15%~30%
33% 34% 45% 41% 35% 28% 35% 22%
Serious Impact… decline by 30%~50%
13% 10% 17% 15% 10% 20% 17% 7%
Very Serious Impact… decline by more than 50%
6% 2% 7% 5% 5% 9% 18% 1%
Don’t know yet 21% 24% 14% 18% 24% 25% 17% 18%
# OF RESPONDENTS 3880 179 149 308 101 224 116 83
INDUSTRY IMPACT : INDUSTRIALMarket perception of pandemic effect on business in 2020
© 2020 Korn Ferry. All rights reserved 11
Geography : Global
Industry : All
The Financial sector
is moderately
impacted with
around a third of
organizations
impacted by a
15%-30% decline in
revenues, with the
exception of banking
where the impact
has not yet been fully
assessed.
Annual revenue is expected to … Global BankingFinancial
ServicesInsurance
Positive Impact… increase by more than 10% over budget
2% 0% 2% 0%
No Impact… be in line with budget
7% 4% 8% 6%
Small Impact… decline by 5%~15%
17% 20% 19% 28%
Significant Impact… decline by 15%~30%
33% 31% 35% 34%
Serious Impact… decline by 30%~50%
13% 8% 8% 8%
Very Serious Impact… decline by more than 50%
6% 2% 4% 0%
Don’t know yet 21% 36% 24% 25%
# OF RESPONDENTS 3880 124 184 144
INDUSTRY IMPACT : FINANCIALMarket perception of pandemic effect on business in 2020
© 2020 Korn Ferry. All rights reserved 12
Geography : Global
Industry : All
Healthcare providers
sector see a slight
positive impact on
revenues – more
than in any other
sector, however the
majority are seeing
a decline.
28% of Life Sciences
respondents see
either a small or no
impact to revenues.
Annual revenue is expected to … GlobalHealthcare
Providers
Healthcare
Other
Life
Sciences
Positive Impact… increase by more than 10% over budget
2% 8% 0% 1%
No Impact… be in line with budget
7% 0% 0% 27%
Small Impact… decline by 5%~15%
17% 20% 39% 29%
Significant Impact… decline by 15%~30%
33% 37% 32% 22%
Serious Impact… decline by 30%~50%
13% 14% 11% 3%
Very Serious Impact… decline by more than 50%
6% 4% 7% 0%
Don’t know yet 21% 16% 11% 19%
# OF RESPONDENTS 3880 49 28 79
INDUSTRY IMPACT : HEALTHCARE & LIFE SCIENCESMarket perception of pandemic effect on business in 2020
© 2020 Korn Ferry. All rights reserved 13
Geography : Global
Industry : All
This sector
is moderately
impacted with a
majority of
organizations
reporting 15%-30%
decline in revenues.
Telecoms businesses
expect less of a
relative impact,
although one third of
respondents are
unsure at this stage.
Organizations in the
Media and Services
sector are reporting
a more serious
impact within this
group.
Annual revenue is expected to … Global High Tech. Telecom Media Services
Positive Impact… increase by more than 10% over budget
2% 2% 0% 0% 2%
No Impact… be in line with budget
7% 7% 12% 3% 5%
Small Impact… decline by 5%~15%
17% 21% 25% 7% 16%
Significant Impact… decline by 15%~30%
33% 36% 28% 47% 38%
Serious Impact… decline by 30%~50%
13% 9% 2% 13% 15%
Very Serious Impact… decline by more than 50%
6% 3% 1% 10% 9%
Don’t know yet 21% 22% 32% 20% 16%
# OF RESPONDENTS 3880 250 87 30 191
INDUSTRY IMPACT : TECHNOLOGY, MEDIA & SERVICESMarket perception of pandemic effect on business in 2020
© 2020 Korn Ferry. All rights reserved 14
Geography : Global
Industry : All
The Public sector is
less impacted within
this group, although
there is a very high
level of uncertainty in
expected impact.
Not-For-Profits (NFP)
and Education
sectors are
significantly
impacted.
Annual revenue is expected to … Global EducationNot-for-Profit
(NFP)
Public
Sector
Positive Impact…increase by more than 10%
2% 4% 2% 1%
No Impact…be in line with budget
7% 2% 11% 14%
Small Impact…decline by by 5%~15%
17% 21% 14% 13%
Significant Impact…decline by 15%~30%
33% 36% 31% 26%
Serious Impact…decline by 30%~50%
13% 15% 12% 6%
Very Serious Impact…decline by more than 50%
6% 9% 8% 6%
Don’t know yet 21% 13% 23% 34%
# OF RESPONDENTS 3880 47 65 80
INDUSTRY IMPACT : EDUCATION, NFP & PUBLIC SECTORMarket perception of pandemic effect on business in 2020
© 2020 Korn Ferry. All rights reserved 15
Geography : Global
Industry : All © 2020 Korn Ferry. All rights reserved 16
INDUSTRY IMPACT: Most selected responseMarket perception of pandemic effect on business in 2020
Very Serious Impact…decline by more than 50%
Significant Impact…decline by 15% - 30%
Small Impact…decline by 5% -15%
Annual revenue is expected to ….
Healthcare other, Life Sciences, Utilities
All other organizations
Leisure & Hospitality
Serious Impactdecline by 30%-50%
Don’t Know Yet Public Sector, Telecom, Banking
-
REWARDS &
BENEFITS
MEASURES
IMPLEMENTED
Geography : Global
Industry : All
The majority of
organizations continue to
report they are not yet
considering salary
reductions.
The proportion of
organizations
implementing salary cuts
has increased from 4% to
15% since our last survey.
The percentage of
organizations
implementing a salary
increase freeze has
nearly doubled, going
from 12% to 21%.
29% of participants have
implemented or are
considering implementing
additional temporary
payments for attending
work.
18© 2020 Korn Ferry. All rights reserved
15%
21%
23%
11%
22%
17%
7%
15%
21%
19%
22%
16%
12%
11%
71%
58%
59%
68%
62%
71%
82%
Sal ary cut s
Annual sa l ary i ncreases: cance l l ed / sa l ary f reeze
Annual sa l ary i ncreases: def er ra l / de l ay
Annual sa l ary i ncreases: ad j ust ed p l anned average i ncrease %
Prom ot i on i ncreases: suspended
Addi t i ona l t em porary pay f or a t t endi ng work ( e . g . suppl em enta l bonus, hazard pay, hero pay)
Reduct i on of benef i t s ( e . g . re t i rement /capi tal accum ul at i on)
Already put measures in place Considering putting these measures in place Not currently considering these measures
IMPACT ON SALARY & BENEFITS
N = 3880
Geography : Global
Industry : All
A majority of
organizations are not
yet considering
changes to their
incentive / bonus
programs – particularly
in LTI programs.
The proportion of
participants that have
reduced, deferred or
delayed STIs has
increased from 8% to
14% since our last
survey.
The percentage of
organizations that have
made adjustments to
sales incentives has
increased from 6% to
11% since our last
survey.
19© 2020 Korn Ferry. All rights reserved
14%
9%
11%
7%
5%
2%
3%
2%
22%
29%
26%
15%
18%
5%
5%
5%
64%
62%
63%
78%
77%
93%
92%
93%
Shor t - t e rm i ncent i ve / annual bonus: reduct i on , defer ra l or de l ay
Shor t - t e rm i ncent i ve / annual bonus: per f ormance t arget ad j ust ment
Sa l es i ncent i ves: per f ormance t arget ad j ust m ent
Long- term i ncent i ve (per formance based) : reduct i on , def er ra l or de l ay of awards
Long- t erm i ncent i ve ( per f ormance- based) : per f orm ance t arget ad j ust m ent f or cur rent award
cyc l e
St ock - based awards: grant i ng l a rger num ber o f shares because of l ower share pr i ce
St ock - based awards: grant i ng t he sam e num ber o f shares as l as t year
St ock - based awards: ho l d i ng of f on schedul ed grants unt i l l a ter i n the year
Already put measures in place Considering putting these measures in place Not currently considering these measures
IMPACT ON INCENTIVES / BONUSES
N = 3880
Geography : Global
Industry : All
Geography : Global
Industry : All © 2020 Korn Ferry. All rights reserved 20
▪ In line with Korn Ferry’s perspective on Leadership from the Top, there is a greater prevalence of salary and bonus adjustment
targeted at Executive and middle manager levels than at front line or manufacturing / operational employees.
▪ Salary freeze is the most consistent action across all employee groups.
67%
56%
49%
41%
33% 34%
62%66%
64%
58%
48% 50%
67%65%
56%
45%
36%38%
EXECUTI VES M I DDLE M ANAG ERS PRO FESSI O NAL/ SUPERVI SO RY RO LES
CLERI CAL RO LES M ANUFACTURI NG / O PERATI O NS
CUSTO M ER- FACI NG STAFF ( EG SHO P FLO O R
/ SALES/ SERVI CE)
Salary cuts Salary freeze Short term incentive/annual bonus reduction
IMPACT BY EMPLOYEE GROUPSRewards and Benefits measures implemented, or considered to be implemented, as a result of the pandemic
N = 1128
Geography : Global
Industry : All
Geography : Global
Industry : All © 2020 Korn Ferry. All rights reserved 21
29%
34%
25%
38%
28%
39%42%
38% 39%
58%
42%
48%
37% 38%35%
37% 37%
42%
G LO BAL NO RTH AM ERI CA EM EA SO UTH AM ERI CA APAC M EXI CO & CENTRAL AM ERI CA
Salary cuts Salary freeze Short term incentive/annual bonus reduction
IMPACT BY GEOGRAPHYRewards and Benefits measures implemented or being considered as a result of the pandemic
N = 1128
▪ There is a high degree of regional consistency in compensation reduction measures.
▪ Salary freezes are the most prevalent actions across regions, especially in South America.
▪ Salary cuts are least prevalent in EMEA, driven by the nature of employment protection in Europe.
Geography : Global
Industry : All
Geography : Global
Industry : All © 2020 Korn Ferry. All rights reserved 22
29%
21%
36%
40%
30%32%
8%
42% 41%
47%
55%
50%
30%
19%
37%39% 39%
37%39%
34%
22%
G LO BAL FI NANCI AL I NDUSTRI AL CO NSUM ER TECHNO LO G Y HEALTHCARE LI FE SCI ENCE
Salary cuts Salary freeze Short term incentive/annual bonus reduction
IMPACT BY INDUSTRYRewards and Benefits measures implemented or being considered as a result of the pandemic
N = 1128
▪ Healthcare and Life Science organizations have made far fewer adjustments than those in any other sectors.
▪ Consumer organizations have so far been most active in making adjustments with over 50% implementing salary freezes and
40% implementing salary cuts.
Geography : Global
Industry : All
Organizations implementing or considering support
over and above standard work support indicates a
real boost for wellness programs
© 2020 Korn Ferry. All rights reserved 23
ADDITIONAL WORK SUPPORTSUPPORT FOR SICK EMPLOYEES
42%
4%
7%
5%
42%
Ful l pay
Reduced pay
Government subsidy
Unpaid leave
Not appl icab le
The approach to paying employees who are
diagnosed with COVID-19 and are unable to work
(assuming sick leave has been exhausted) tends to
be generous
N = 3815 N = 3823
93%
15%
39%
8%
3%
11%
18%
10%
4%
74%
43%
82%
Accelerating working from homearrangements and building support
systems
Allowance/expense to cover Wi-Fiand/or cost of utilities for office-basedemployees who now work from home
Virtual wellness moments for remoteworkers eg. mental counselling, yoga
etc
Enhancing employee debt relief
Already put measures in place
Considering putting these measures in place
Not currently considering these measures
WORKFORCE
MEASURES
IMPLEMENTED
Geography : Global
Industry : All
3%
21%
9%
63%
6%
15%
29%
16%
91%
63%
62%
22%
Increase of outsourcing , contractors
Decrease of outsourcing , contractors
Restructuring / organizat ional
change
Delaying new h i res
Already put measures in place
Considering putting these measures in place
Not currently considering these measures
© 2020 Korn Ferry. All rights reserved 25
HIRING MEASURESLEAVE MANAGEMENT
42%
15%
16%
14%
42%
71%
Act ive management o f paid leave
Voluntary leave/ sabbat ical o f fered
(unpaid)
Already put measures in place
Considering putting these measures in place
Not currently considering these measures
N = 3815
N = 3815
Delaying new hires has become a more prevalent
action since the last survey increasing from 53% to
63% of participants
Active leave management has accelerated significantly
since our last survey with over 55% of organizations
implementing or considering implementation
Geography : Global
Industry : All
Geography : Global
Industry : All © 2020 Korn Ferry. All rights reserved 26
9%
13%
14%
12%
35%
9%
11%
15%
14%
12%
82%
76%
71%
74%
53%
T emporary layof f / fur lough (wi thout subsidy by Local /Fed Govt)
T emporary layof f / fur lough ( leverag ing government subsidy)
Reduced hours (wi thout government subsidy)
Reduced hours ( leverag ing government subsidy)
Reduced overt ime
Already put measures in place
Considering putting these measures in place
Not currently considering these measures
COST REDUCTION MEASURES – SHORT TERM
29%
Temporary/furlough workforce reduction:
Approx. average % of staff layoff
N = 3815 N = 684
▪ 47% of organizations have implemented or are considering overtime reduction.
▪ Organizations have reported an average 29% temporary/furlough workforce reduction
Geography : Global
Industry : All
27
© 2020 Korn Ferry. All rights reserved
When no government subsidies are
available , payments for employees
temporarily unemployed/
furloughed due to COVID-19
When government subsidies are
available, additional salary guarantee
for employees temporarily unemployed
due to COVID-19
Estimated length of temporary
layoff/furlough/reduced hours programs
Less than one month,
5% 1 month, 8%
Two or three months, 36%
Four or more
months, 5%
Don't know yet, 25%
Not applicable,
21%
Fully close the gap, 15%
Partially close the gap, 22%
No additional pay, 63%
No pay, 15%
Reduced pay, 24%
Full pay, 23%
Not Applicable,
39%
COST REDUCTION MEASURES – SHORT TERM
N = 1313 N = 1312 N = 1820
Geography : Global
Industry : All
Geography : Global
Industry : All © 2020 Korn Ferry. All rights reserved 28
COST REDUCTION MEASURES – LONG TERM
7%
3%
2%
17%
7%
7%
76%
91%
91%
Permanent staf f layof fs/ redundancies
Early ret i rement (w i thout penal ty)
Early ret i rement wi th lumpsum buyouts/ incent ives
Already put measures in place
Considering putting these measures in place
Not currently considering these measuresPermanent workforce reduction :
Approx. average % of staff layoff
13%
N = 3815 N = 477
▪ 24% of organizations have implemented or are considering staff layoffs/redundancies.
▪ Organizations who are implementing or considering the permanent layoff measure have reported a 13% reduction in workforce
Geography : Global
Industry : All
Geography : Global
Industry : All © 2020 Korn Ferry. All rights reserved 29
34%
20%
60%
14%
43%
31%
60%62%
51%
14%
26%
12% 11%
15%
27%
48%
54%
29%
19% 19%21%
11%
19% 21%
45%
50%
32%
Have not s t ar t ed t o cons i der t he re turn to work
No changes ( bus i ness as
usual )
Work f rom hom e ( vo l unt ary)
Reduced work i ng hours
F l ex i b l e work i ng hours
Spl i t t eam s Soci a l d i s t anc i ng I ncreased saf e t y m easures
I ncreased ava i l ab i l i t y o f
t echnol ogy and equi pm ent
Head office (Corporate Staff) Manufacturing / Operations Customer-facing staff (eg shop floor/ sales/service)
N = 3880
WORKFORCE ACCOMMODATION ACTIONS TAKEN/CONSIDERING ON RETURN TO WORK
▪ The top 4 accommodations that have been or will be enforced are voluntary work from home, social distancing,
increased safety measures and increased availability of technology.
▪ Generally, actions are consistent across the workforce except for much higher prevalence of work from home and flexible
hours for head office (corporate) staff.
CHALLENGES
FACED
Geography : Global
Industry : All 31© 2020 Korn Ferry. All rights reserved
Smallest challenge
Biggest challenges for the HR Department during the pandemic
March
COVID-19
Survey
April
COVID-19
Survey
Measuring and improving the work efficiency of remote workers 23% 20%
Inadequate resources to aid the control and prevention of an outbreak within the premises (masks, disinfectants,
training, etc)5% 6%
Difficulty in predicting the future workforce needs in response to the evolving economic landscape 30% 32%
Lack of relevant work regulations and practical rules during a pandemic outbreak (such as overtime pay, leave
benefits, employee assistance, etc)11% 8%
Acting as a trusted advisor to management in times of crisis 7% 10%
Maintaining employee engagement levels and trust with the leadership team 14% 16%
Getting a consistent flow of information and updates out to employees 10% 9%
# OF RESPONDENTS 2814 3741
HUMAN RESOURCES CHALLENGES
Geography : Global
Industry : All
The vast majority of
organizations expect
significant changes to
workforce management
practices going forward.
Nearly two thirds of
participants will continue
to operate more virtually
once the crisis is over.
47% of organizations feel
they will be more
disciplined about cost
management once the
crisis is over.
42% of organizations are
committed to more open,
transparent, and frequent
two-way employee
communication.17%
63%
42%
32%
21%
16%
47%
34%
31%
21%
16%
2%
Return largely unaltered to existing operations, systems,processes and policies
Continue to operate more virtually
Encourage more open, transparent and frequent two-wayemployee communication
Add crisis leadership traits to our leadership profile expectations
Restructure our business and/or shift our business focus
Be more selective in launching internal initiatives
Be more disciplined about cost management
Be more focused on employee engagement
Operate with a more flexible approach to managing people costs
Adopt a nimbler/more flexible approach to reward management
Adopt a more consistent/structured approach to rewardmanagement
May not emerge from the crisis
% Participant respondents
32
N = 3880
WHAT ORGANIZATIONS PLAN TO DO DIFFERENTLY AFTER THE CRISIS
© 2020 Korn Ferry. All rights reserved
Geography : Global
Industry : All
x
LEADING THROUGH AND BEYOND COVID-19.
© 2020 Korn Ferry. All rights reserved 33
Managing the challenges of this global pandemic requires innovation and agility amidst
unprecedented uncertainty. Korn Ferry will continue to share timely and helpful perspectives on
important and emerging issues.
Read about Executive Pay Actions Arising from COVID-19
A New Compensation Committee Game Plan – AVAILABLE NOW!!
In this brief guide, we share Korn Ferry’s perspective and point of view on many of the key
questions that Compensation Committees are asking about possible adjustments to executive
compensation. Download your copy here.
Webinar series: Accelerating Through the Turn
Starting 29 April, 2020
Many organizations are thinking about recovery and what the future of their business looks like.
Join our webinar series, ‘Accelerating Through the Turn’, where we look at the likely changes
post-COVID that will impact leaders, their people and organizations.
We will continue to run ‘pulse’ surveys to provide up-to-date data on the impact and actions
resulting from the crisis. In the meantime, please feel free to contact us via your local Korn
Ferry office or kornferry.com
Geography : Global
Industry : All© 2020 Korn Ferry. All rights reserved 34
▪ For specific technical questions about this survey please direct your email to
[email protected] and we will find the appropriate person to reply
▪ Global and North America Don Lowman, [email protected]
▪ EMEA Mark Quinn, [email protected]
▪ South America Marco Santana, [email protected]
▪ Asia Pacific Trevor Warden, [email protected]
Mary Chua, [email protected]
Contact us
Geography : Global
Industry : All