What a difference 12 months makes…
Mustard HR has been trading for a full year now. It is fair to say in that short period, the world of work (actually, the world full stop) has changed significantly and further changes look set to continue.
The first six months of setting up as an Independent was all about getting established, keeping updated with changes to employment law, with everyone’s eyes being firmly set on Brexit and the impact it might have. Early 2020 saw a mad scramble with employers wanting to ensure compliance with impending changes to the IR35 (off payroll working) rules.
Then the Covid-19 pandemic took hold in the UK and everything changed.
The IR35 changes were put on hold until 2021. All talk of Brexit had to take a back seat (at last) and we all learned a new language, which only a few months ago would have sounded alien. Almost overnight the terms “social distancing”, “shielding”, “furlough”, “self-isolation” became part of our everyday vocabulary.
The impact on employment
Most workplaces have been affected in some way due to the government advice to work from home where possible or to implement social distancing measures. Many non-essential businesses in industries such as retail, leisure and hair and beauty were forced to shut, as were schools – meaning many working parents have had the near-impossible task of juggling homeschooling with work responsibilities.
The government took the unprecedented move of introducing the job retention scheme through which, as of 21 June 2020, 9.2 million jobs had been furloughed at a cost of £22.9bn. A similar scheme was introduced for the self-employed and as of the same date, had a take up of 2.6m claims worth £7.6bn with a second and final grant being promised in August.
The situation has affected almost everyone, from all walks of life – although some more than others:
- Key workers – not just the amazing doctors and nurses caring for the most serious of covid-19 suffers but those in other essential roles who are often the lowest paid (such as carers, postmen, binmen, hospital porters) – who have no choice but to put themselves at risk. These workers have at last been recognised and celebrated for their efforts.
- There have been reports to suggest that women are picking up more than their fair share of the domestic load and childcare responsibilities, which can’t be helping to close the gender pay gap. Furthermore, self-employed mothers are also more likely to lose out from having taken maternity leave during the calculation period of the governments self-employed income support scheme (at the time of writing it appears that changes are being implemented by the government to address this, with more details to be announced shortly).
- The psychological impact of the pandemic is thought to be wide-ranging, from those with pre-existing mental ill health, to those who live alone for whom social interaction can be a lifeline or worse, trapped at home in a domestic abuse situation. Those struggling to juggle caring responsibilities with work commitments, the medical workers whom it is likely will suffer trauma from the scenes they have witnessed and of course, the many thousands who have lost loved ones during this awful period.
- There has also been found to be an increased risk of those from Black and minority ethnic groups dying as a consequence of Covid-19. Furthermore, during the pandemic, we heard the news that George Floyd, a Black African American man was unlawfully killed on the streets of Minneapolis by white police officers. This was unfortunately not the first time such an atrocity has been reported but this time it caused outrage, not just in America but across the world. Despite the lockdown restrictions, demonstrators have been protesting against injustice and inequality in many of the major cities worldwide. The #BlackLivesMatter movement, perhaps compounded to by the current climate, has put anti-racism firmly on the agenda.
Employment predictions
Whilst it is impossible to predict how things will pan out, one thing is clear – life is unlikely to be quite the same again. For a start, as well as the wider psychological and social aspects, the everyday actions we take for granted will be affected – for example it’s probable we will all be more conscious of our physical interactions with others for a long time ahead. We will of course also be dealing with the huge economic fallout the pandemic has caused.
In terms of the workplace, it is an unfortunate reality that many employers and employees alike are in for a painful time before things can start to improve. The most recent changes to the furlough scheme are more costly for employers and the rules more complex. It is therefore likely that some employers will now start to review their current workforce and may need to consider restructuring.
With the end of the furlough scheme in October, it is likely that unemployment numbers will rise significantly over the coming months, even years. Maybe the gig economy will become more widespread and eventually become the norm, with the traditional employment model no longer realistic? Whilst some businesses will manage to hang on in there, others will no doubt find the new world unsustainable and unfortunately will become a casualty of the pandemic, especially if predictions of a second wave prove to be correct.
A more positive prediction is that some of the companies who manage to stay afloat may, for the first time, realise the benefits of flexible working, especially those who have had to adapt to a new ‘home working’ model. If and when schools return properly, the option of home working offers a mutual benefit for works and employers (employees cut out the commute, employers may not require the same level of office space; everyone is more productive). Longer term, this can only be a benefit, particularly for working parents. If a more level playing field can be created, this may well also have a positive impact on the gender pay gap.
Will our perception of the worth of certain job roles or careers change as a result of this pandemic? We have already seen an outpouring of love and appreciation for NHS and carers who have put themselves at the front line to care for the poorly and vulnerable. Those obscenely paid football players and overpaid executives pale into insignificance when compared to those in vocational roles, the supermarket workers and the farmers growing our food. Perhaps we will collectively change the value we place on these roles and start to consider what are essential jobs against those which are ‘nice-to-have’s’ and reward accordingly?
Whist there has been much emphasis on mental health awareness in the workplace in recent years, it is believed the impact of the pandemic will have had a huge psychological impact for a variety of reasons. Employers will need to be more aware of mental health than ever and be open to supporting their people in the long and short term – especially in a restructure situation where the environment may be more strained than in normal circumstances.
When it comes to the Black Lives Matter movement, it is clear that regardless of our background we could all take a closer look at our own values and beliefs and as uncomfortable as it might feel, look introspectively and confront our own unconscious bias. It is clear that to drive change and tackle racism head on, it takes more than just “not being racist”. The movement, which has grown prominence in the middle of a global pandemic, is set to permeate society. Those employers simply paying lip service to diversity and inclusion will need to pull their socks up and really look to embrace the ethos of inclusivity, with a strong focus on race.
How can employers prepare?
Short term, most employers will now be considering their current workforce and the impact of covid-19, especially with the impending end to the furlough scheme. They should consider whether they can sustain their current structure and/or business model or if changes are needed. If a staffing restructure is on the cards, employers should first consider how redundancies might be avoided or minimised before making rash announcements.
Employers who are fortunate enough to continue to trade should take this opportunity review their current stance on flexibility. Has covid-19 impacted this? Can things be done differently? We have all had to adapt and there is no longer a place for the outdated notation of presenteeism in the workplace. If not already doing so, employers should start to measure performance on outputs rather than hours sat at a desk.
As daunting as the prospect of a second wave of the virus may be, it would be foolish of employers to ignore this possibility and fail to plan (as far as possible) for the various scenarios which might play out over the coming months.
Employers of essential workers should take time to celebrate their people and if possible, reward them in any way possible. This doesn’t always mean financially – often genuine words of appreciation mean as much, if not more. Employers should take the opportunity to look at longer term ways to show how valued their people are for the role that they play.
In terms of mental health support, employers should be mindful of the psychological impact the pandemic has and is likely to continue to have on their people. They should ensure that adequate support mechanisms are in place for individual circumstance and allow a period to adjust to the new normal as far as possible.
Employers should be aware of the impact the Black Lives Matter movement has had and will continue to have and should not underestimate their influence as a business. A forward-thinking employer will see this as an opportunity, not just a tick the box exercise but a chance to re-evaluate their current ethos and values as an organisation to consider making changes to encompass the movement, not only to the benefit of existing and future employees but in order to fulfil their responsibility to make a positive impact on wider society. The CIPD have recently released the following useful FAQ / guidance.
Whatever situation employers find themselves in over the next few months and years as a result of the pandemic (and no doubt we are all in for testing times), it also looks likely that we are set for a period of significant societal change. From an employment perspective, there is certainly a lot of work to be done.