The COVID-19 pandemic is presenting extraordinary challenges to every business sector across the globe. As a result, millions of people are feeling the impact, including your employees, and those in their inner circles.
And that’s why your company’s response to COVID-19 especially important. The actions you take can shape public perceptions of your brand for years. And if the public considers your crisis responses negative, you may find it harder to recover from a mishap. Furthermore, it goes beyond the brand. Treating people with respect and sensitivity, and operating with integrity, is always the right thing to do. And that’s no truer than now.
A Patchwork Approach
Almost every state in the U.S. has ordered non-essential businesses to close (or allow employees to work from home) to slow the spread of the coronavirus. However, there is no standard definition for “essential business.” While the Department of Homeland Security released a memo to help states and businesses identify what is and is not essential, each state can decide what is and is not an essential business.
In some cases, states are leaving it up to the company to decide if they are an essential business or not. This, in turn, has created mixed corporate responses to the pandemic. Below are some examples.
- Yum Brands (which owns Taco Bell, KFC, Pizza Hut, and others), is providing $1,000 bonuses to managers at company-owned restaurants. To help pay for it, the chief executive, David Gibbs, has given up all salary compensation for the rest of 2020.
- On March 30, 2020, Instacart shoppers went on strike to demand better treatment. Not only do the shoppers want Instacart to provide safety items (like hand sanitizer and disinfecting wipes,) they want hazard pay and expansion of the coronavirus sick pay policy.
- Columbia Sportswear’s CEO, Tim Boyle, reduced his salary to $10,000 to help make sure the retail employees who can’t work right now can still get paid.
- Michaels Craft Stores and Joann Fabrics remain open, claiming they are “essential businesses,” and can remain open during the pandemic. Some, but not all stores, have shifted to curbside pick up only. This has resulted in mixed responses.
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- Trader Joe’s revised their sick leave policy so that any “crew member” that feels ill can stay home and still be paid. If, after seven days, the employee still feels ill, they can contact HR for a review of their situation.
- Hobby Lobby closed their stores on March 27, 2020, after backlash for keeping them open. However, many employees are also losing their jobs through permanent layoffs as part of the closures.
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People Want Companies to Care
External factors like a global pandemic can’t always be controlled. But a company does control its response. While you may think that means creating a soothing press release, research shows that what matters most to the public is how a company treats its employees.
Since 2015, JUST Capital has surveyed people to get their opinions on how they believe corporate America should behave. Their 2019 survey revealed that respondents want companies to “invest in their workers.” Specifically, they want companies to treat their employees with respect by paying a living wage and offering benefits that allow for work-life balance (such as health insurance, flexible work, and paid parental leave).
It’s About Trust
But how a company treats its employees isn’t the only “top of mind” issue that the American population is concerned with. Ethical behavior is the second-most-important thing to respondents (just behind paying a fair wage).
Pre-pandemic, Americans were feeling less positive that companies behave ethically and treat their employees with respect. Nearly 79% of those polled feel that companies prioritize shareholders over employees and customers. A matter of fact, it actually made national news when several leading companies said they would no longer prioritize shareholders over employees.
Ethical behavior and treating employees respectfully are two critical aspects that help define a company’s public image. If customers feel that a company behaves unethically or disrespectfully, they may view the company as less trustworthy.
Being trustworthy, in turn, can have a major impact on a company’s bottom line. The survey also found that when people trusted a company, 75% of them were more likely to use that company’s products or services, and 44% were more likely to invest in it.
A company that’s viewed as ethical, respectful, and trustworthy is better able to hire and retain staff. Of the people surveyed, 78% said they would accept 10% less pay to work for a company with a good reputation, and 66% were willing to take 20% less pay.
It’s clear from these results that the general public care about a company’s employees and, in turn, expect companies to feel the same. Companies that demonstrate they are respectful, ethical, and trustworthy at any time are more likely to come out ahead when it comes to brand perception.
How You Treat Employees Now Matters More Than Ever
Another survey by JUST Capital found that Americans are evenly split when evaluating corporate America’s response to the pandemic. While 50% of respondents feel that large companies are behaving appropriately, 50% feel that companies need to do more for the health, safety, and security of their staff.
The latter 50% want companies to provide work-from-home options, provide paid sick leave, and update or enforce safety and sanitation procedures. They also want companies to take care of their workforce by allowing staff to access health insurance during a furlough or after a layoff. And they want companies to pay hourly workers even when they are unable to work because the business is closed.
The Pandemic Response Can’t Be Window Dressing
No matter how you and your company respond to any crisis, it’s important to make sure it’s not just “window dressing.” For example, when the CEO of a major corporation says they’re forgoing salary for the rest of the year, it’s like the CEO is going to stand with employees and bear some of the financial burdens the crisis has created. However, is that gesture really meaningful, or merely symbolic?
In a large company, salary is only one part of a CEO’s compensation package. There is the base salary, which many CEOs are currently giving up. But base salary makes up just a part of the overall compensation a CEO earns in a year. Many compensation packages also include performance bonuses that include stock and other payments, which can be worth far more than base salary.
Even if the CEO gives up their entire salary package, it’s important to know what the company will do with that money. Will it go directly into employee paychecks or to help provide health insurance? Or, will it go toward other expenses, like paying the rent or utilities?
When multiple people give up their salaries to help with expenses, it still may not be enough to cover every employee’s paycheck. While not every boss has vast savings to dip into, that isn’t stopping some of them from helping their employees make ends meet during this crisis.
What Matters Most
Times are tough on everyone right now. While it may not be possible to forgo your salary to help employees with their expenses, the actions you take now to help your employees can impact public perception of your business once the pandemic is over and for years to come.
FlexJobs has been a leading voice in the remote workspace for more than 12 years. We’ve partnered with thousands of companies to provide support with recruiting and remote work consulting. If you’re looking for help and advice, get in touch with us today.
And, if you’re looking for more employer resources during the coronavirus pandemic, we’ve got you covered.
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