Has your company identified its critical point of survival?
Some 20% of companies say they've already passed the point at which they would need to make drastic cuts to their operations or close altogether.
Companies across the board are feeling the pressure from COVID-19, leaving some scrambling to stay afloat amid the current market conditions, and prompting many to bolster and rely on technology to do so, at least one survey suggests.
In their recent report, “The Impact of COVID-19 on the Future of Work,” WorldatWork and Greenwich.HR surveyed 523 organizations across multiple industries, ranging in size from fewer than 100 employees to more than 40,000. The companies sought to ascertain whether organizations are estimating how long they can survive in their current state before making drastic cuts to their operations or closing altogether; and, if so, when their organization will reach this critical “point of survival.”
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The survey, conducted between April 29 and May 5, found that 34% of respondents have established such timelines of survival. Among those that have, 20% said they had already reached that point of survival at the time the survey was taken, while 27% said they were projected to reach that point by July. Another 32% expect to reach that point sometime in 2021.
The survey also analyzed whether investments in technology have been accelerated due to COVID-19 and what the key driver is to do so. Among the survey respondents, 37% reported that COVID-19 had prompted them to accelerate their technology investment, while 17% indicated a deceleration in tech investments. The remaining 47% are leaving their investment stable, possibly indicating it may be too early to tell the impact, the report noted.
More specifically, about 26% of survey respondents reported that COVID-19 has prompted them to accelerate investment in technologies that support automation efforts, while 61% said it has not. But among those who have, service enhancement was the top driver behind automation efforts, with 84% reporting it as extremely or very influential. Production capacity and quality enhancement followed, with 73% and 72%, respectively, reporting these factors as extremely or very influential. Time savings, labor reliability and financial savings trailed behind.
Further, with the continued rise of virtual meetings, 62% of organizations using Zoom Meetings reported tightening security protocols as a result of recent security concerns by issuing instructions to associates on how to better protect meeting links and access.
“Many aspects of companies’ cultures are being rapidly challenged and revised,” Cary Sparrow, Greenwich.HR CEO, said in a press release. “Norms about remote work are changing, and we expect many companies to be permanently adopting much more flexible approaches to working from home. Companies are experiencing first-hand how this can open the doors to many positive benefits to both employees and employers. But these changing expectations can cut both ways.
“In the past, offering flexible work at home policies was often seen as a positive differentiator to a company’s employment brand,” Sparrow continued. “Going forward, not having such policies will likely be a negative differentiator for many more types of jobs.”
Sarah Tincher, based in Austin, is the managing editor of BenefitsPRO sister brands, The National Law Journal and Corporate Counsel.