Pandemic response, new challenges differ by company size

The challenges of the ongoing COVID-19 era have resulted in significant workplace changes, a new report has found. The survey from Alera Group, a national insurance and financial services company, outlines how companies are responding to the ongoing challenges of a global pandemic that threatens to stretch into its third year.

The report confirms some of the findings of other analyses, such as an increase in flexibility with remote work and a new emphasis on employee mental health. But it also drills down into how companies of different sizes are responding to the pandemic in different ways. For example, 31% of small companies (fewer than 25 employees) said they will not develop a formal plan for responding to infectious disease, while only 2% of employers with 1,000 or more employees said they did not or will not have such a plan.

In addition, the study found that mid- and large-size employers in particular are dealing with employee burnout and mental health challenges, as well as issues with attracting and retaining employees.

“It’s no secret that the COVID-19 pandemic has forever altered the workplace, but it’s clear from these findings that large enterprises have faced the greatest adversity,” said Sally Prather, Executive Vice President and Employee Benefits Practice Leader at Alera Group, “Through this analysis, we hope to provide business executives with the tools and insights to adapt and meet employee needs while boosting workforce satisfaction and engagement.”

Having a plan, providing more flexibility

The survey found larger employers are increasingly putting formal plans in place for responding to infectious diseases. Overall, 67% of all companies now have a plan in place, and another 18% are putting a plan in place now or are considering developing a plan. In 2020, those numbers were 43% and 46% respectively.

Remote work continues to be a big area of emphasis for companies, as well. The survey found that prior to 2020, most companies did not have a remote workforce. Close to two years after the pandemic began, 26% of respondents said more than half their workforce is currently working remotely, at least part of the time. Again, the size of the company makes a difference, with larger companies providing more support for remote work.

Companies are also bringing employees back to the workplace. The study found that 74% of large employers have some, but not all, workers back in the workplace. In the large employer cohort, only 10% of companies have all workers back in the workplace. Companies under 500 employees are more likely to say they have all employees back, but only about 35% to 51% of smaller employers have all workers back in the workplace, depending on the size of the company.

One interesting finding is that that COVID vaccination or testing requirements are in place in only a minority of companies—mostly the largest employers. The survey found that 20% of all employers require workers to be vaccinated, while 18% are considering doing so.

Other workforce concerns

Attracting and retaining workers, at a time when labor shortages are common, is a main concern for companies. The survey found that 55% of companies were extremely concerned about attracting and retaining employees. Different companies are trying different strategies in this area, the report noted.

“Approaches vary by employer size, with many mid-sized employers (69% of those with 500-999 employees) offering hiring and retention bonuses and 81% of employers with 1,000+ employees shifting to hybrid recruiting and hiring practices. About a third of small businesses (fewer than 25 employees) surveyed have not made changes to their strategies,” the report said.

Large employers were much more likely to report concerns with mental health issues than smaller employers. The survey found that 83% of employers with 1,000 or more employees said that mental health has deteriorated among workers during the pandemic, while only 31% of companies with fewer than 25 workers said the same.

“The pandemic has brought mental health to the forefront, and many employers are acting in a variety of ways to address the growing concern,” the report said. The study found that the most common ways employers were addressing mental health and wellbeing during the pandemic included:

• Frequently communicating with employees and soliciting feedback and concerns (55%).
• Offering more flexible work schedules (51%).
• Providing mental health services and/or offering employee assistance programs (EAPs) (42%).

The survey also found that industries such as education, nonprofits, and health care were more negatively impacted by burnout and mental health issues than other industry sectors.