The world lockdown, in order to protect human lives, is a great measure in curbing COVID-19 but are we ready for the damages it will bring to our businesses, companies, and organizations?
When we hear damages, one might not know how far it will go, but this might eat into a lot of people’s livelihoods, jobs will be lost, production will reduce, the quality of the product in circulation might be below standards, and a lot of leadership might change because most companies will need a more constructive leadership skill to make difficult decisions.
These decisions will affect the number of materials bought, most companies might go for substandard quality in-order to meet up with their bottom line, which means that most suppliers will either reduce their prize or be out of business. it will be like a domino effect until there is a balance in the stock market.
Most companies’ first call of action is to reduce the workforce so as to meet up with the bottom line. That is not a bad idea but reduction of wages by cutting down overtime allowance should be the first. A community with a high rate of unemployment is susceptible to crime and fraudulent activities. Overworking the staff will lead to low production, untimely deliverable, and low profit. So in order to maintain a reasonable margin, companies should temporally cut down the wages, set higher targets within the work time provided, reduct executive allowances and treats, then gradually increase the wages as the economy stabilizes.
To achieve this, management of companies should meet with their employees to discuss these decisions and reassure and encourage them, loyalty is a tool to get over this time and employers have to give it in order to expect it from employees.