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  • Writer's pictureDr. Eric Bischoff

Analysis of the effect of the coronavirus on Human Resource Management of enterprises

Updated: Apr 22, 2020


The impact of the COVID-19 epidemic on the economy will spread over time
The impact of the COVID-19 pandemic on the economy will spread over time

To discuss the impact of the Coronavirus pandemic on HR work, we must first understand the impact of the pandemic on the enterprise. After all, all HR work is served for the purpose of the enterprise. The impact of the pandemic on the enterprise is not static, but a process of continuous fermentation over time. The process starts with a flat surface and then spreads out horizontally and vertically at the same time.

Catering and Hospitality industry

First look at the catering industry. In order to reduce the possibility of infection in crowded places, consumers who originally booked New Year's Eve dinners have unsubscribed, and even many businesses are actively informing consumers to cancel the reservation.

Will the online (takeaway) be better? It may just be better, under the combined effect of the buyer's principle of reducing contact with people and things as much as possible, and the seller's lack of raw materials and manpower to operate normally. The major food delivery platforms are basically in a situation where they appear to be in stock and cannot be placed on the order.

Retail industry

What about the retail industry? I guess the biggest shopping for many people in this Spring Festival may be masked.

To make a joke, the retail industry seems to be slightly better than the catering industry, after all, occasionally you can see some supermarket shelves that have been emptied. But the story behind these empty shelves is also not optimistic. The key to the profitability of the retail industry is "to have enough goods to sell to enough customers at the right price."

If there are not enough customers (not only refers to the number of people, but also refers to the number of consumption), the goods are heavily squeezed, the cost is high, the profit is low, and even the money is lost. If the goods are not enough, then you won't make much money, and you will lose money even after taking into account space and labor costs. Of course, it is obviously not allowed to drive up prices at this stall. The short-sold shelves were originally prepared by residents in order to cope with short-term home hoarding. Obviously, supermarkets are not prepared for this emergency, and they are sold out due to insufficient stock. So these supermarkets did not make extra money. Instead, the door court was left out for the next period of time.

However, the supermarket is already the best in the retail industry. No matter if the goods are not delivered, as long as the house is home, you have to go out, even the convenience store shop at the door, you need to summon the courage to be a squad. Not to mention going to the mall. All major shopping malls are all shortening business hours, or even stop business, which is not only a preventive measure to control the Coronavirus pandemic, but also a helpless business with a cold business. Many domestic stores in IKEA stores have been suspended, Wanda stores have reduced rents for merchants, etc. The gloom of offline retail can be seen.

Online Retail

How about online retail? In fact, the Spring Festival has never been the favourite holiday of e-commerce, the reason is very simple-logistics. Regardless of whether it is self-operated or a third party, all merchants face a problem, that is, no one delivers during the Spring Festival. This normal consumer has become accustomed to-do not shop online during the Spring Festival. Even if individual merchants promised to ship as usual, but out of fear of delivery time. Consumers will still avoid this time window.

The coronavirus pandemic will impact millions of employees across the globe, including HR professionals.
The coronavirus pandemic will impact millions of employees across the globe, including HR professionals.

Tourism Industry

The tourism industry is a little better. After all, travelling abroad during the Spring Festival is a bit out of my mind. However, some tourists will cancel their original itinerary because they are worried that staying in domestic airports and other crowded places will increase the possibility of infection. Maybe someone will say no, do you need to be so careful? I have to say, really, there are a few around me. Especially for families travelling with babies or the elderly, they would rather lose the deposit or advance payment, rather than take the risk. But overall, there are relatively few foreign influences.

However, the domestic tour is different.

Travel agencies and hotels will take the initiative to call consumers to advise them to unsubscribe. After all, passengers are infected during the trip, which will be a very difficult problem for travel agencies At present, states and cities have strictly controlled the movement of people, and the mentality of the people at this time is also to minimize going out, which not only cooperates with the state to control the COVID-19 pandemic but also reduces the risk of infection.

The above three areas constitute what I call "face", and then these influences will start to be transmitted in time.

Horizontal will lead to more areas, such as the service industry. The Spring Festival is the traditional trough of the service industry because as a labour-intensive industry, the main productivity comes from front-line service personnel, whether or not these service personnel return to the hometown during the Spring Festival, at least most of them enjoy the Spring Festival holidays (to keep these Employees continue to stick to their positions during the Spring Festival, in addition to the material methods of overtime pay and festive red envelopes, often also need the owner's emotional card). Therefore, the normal operation of the service industry usually needs to wait until the 15th day of the first month and after the employees return to work one after another. However, it is not yet known when these employees will return to work this year.

The vertical direction will be conducted upstream and downstream in these areas. For example, the upstream manufacturing industry of the retail industry. It has to be said that the impact of the manufacturing industry may be more serious. He needs to face the double pressure from the performance pressure caused by the decline in retail sales and the production capacity pressure of the first-line workers' return time is uncertain. Some friends may say, how can these two kinds of pressure exist at the same time? If the sales volume is low, the required production capacity will be low. Don’t you need so many people? Where does capacity pressure come from? In fact, the relationship between the two is very delicate. The low sales volume leads to the shutdown of the production line. Whether the piecework or timekeeping workers' workload is not saturated, wage income will decline. When the return labor force is not returned, there is a shortage of labor force in the entire market, so the in-service employees will naturally flow to companies with guaranteed sales and higher income. After the loss of staff, there is no way to replenish it in time, resulting in the only order cannot be delivered on time, a vicious cycle of travel. Of course, the above is only one possibility, and companies can indeed have some measures to alleviate, but the huge challenges facing the manufacturing industry are indisputable facts.

Here, we just took a very rough look at the short-term impact of the Covid-19 on enterprises. In addition to the industries or fields mentioned above, the impact is or will soon affect most areas, transportation, foreign trade exports, beauty salons, pet grooming, etc. Of course, not all fields and industries are not good. During the time at home, the traffic of various video sites has surged.


Summary

Coronavirus has inhibited the flow of labour and the consumption behaviour of residents. The decline in consumption behaviour and lack of productivity will seriously affect the performance and income of most companies for a period of time (3-6 months).

Is the analysis of the impact of the pandemic on the enterprise over here? Not at all. All things plus the dimension of time will become a process. This process is about to appear even before us.



Work from home in the Coronavirus crisis has been a fruitful strategy by HR departments.
Work from Home strategies have been implemented by many organizations' HRM departments.

Quarterly Analysis

After experiencing a decline in performance in the first quarter, it is inevitable that some companies will not survive the second quarter. This is not alarmist. Those industries and enterprises that cannot obtain bank loans have very high financing costs. In order to expand the production scale, some small and medium-sized private enterprises do not hesitate to obtain funds through private loans. The reason for doing so is to stabilize or even continue to increase sales. A quarterly sales decline is likely to result in a broken capital chain. . In addition to the manufacturing industry, let's take another example-the film industry that was greatly affected by the pandemic. Some of these films have reached break-even of 2.4 billion at the box office or more, and now they are basically nowhere to be found. You have to know that once the movie’s schedule is missed, it’s hard to make up for it. There are so many screens in total, and many movies are waiting in line to be released. Those companies that have invested in other films, and even those that packaged certain films as investment products, are bound to lose their lives.


Businesses will not sit still

What will those companies that have survived the first wave of blows do? The market will certainly not continue to slump, at least not always like the end of January and the beginning of February. The company's expressive power after the COVID-19 has passed will be the key to its continued success in 2020 or even a long time.

I simply classified the strategies that companies may adopt into the following categories:


Find new opportunities

What I mean by looking for new opportunities is not to abandon the field that the company was originally engaged in and enter a new and unfamiliar field (although it is possible that very few companies will make such an attempt, but there is a "shot" in the organization's fundamental tone. Change a place ", so it is not in our discussion). The new opportunities mentioned here are through innovation or extension to allow companies to get more opportunities in related fields. There are two internal and external factors for companies to do this, internal business sensitivity and self-driving power, and external pressure including capital markets and competitors. They will let them never give up no matter what difficulties they face.

Challenges for the companies in the crisis

The first is the issue of resources, regardless of whether the company does budget or the strictness of budget execution. But when the first-quarter performance fell sharply. If you do not want to affect the existing business, it is best to be able to make an extra budget to do R & D, innovation, experiment, and promotion in new fields.

At the same time, the personnel level is also faced with the same problem. The first manpower will affect the existing business more or less, and usually, the best players in the respective fields are selected. In addition to the cost of external recruitment, the cost of time is more important, from the beginning of recruitment to onboarding, ranging from two to three months, and half a year. Enterprises may not be able to wait.

Finally, companies also face the risk of transformation or change. Do they need new systems, processes, and even organizational structures to support new businesses? The impact of these changes on existing businesses needs to be treated with caution.


Adhere to the original plan

It is really a coping strategy to change from one to the other. When the future is not clear, and those industry leaders have not undergone major changes in business fundamentals, there is really no need to do too much. There are also those companies that habitually follow the tactics and there is no financial pressure, will also choose to wait and see the changes. Wait until the trend is clear, see the opportunity before you start.

There may not be a few companies that adhere to the original plan. But these companies may have several things in common:

Will not increase investment. The investment here includes funds, personnel, etc., at least not more than the original plan or budget. Interestingly, resources have not changed, goals have not changed, but time has changed. The time to achieve the goal has changed from 12 months to 9 months (although many business owners have assumed that the performance can be reduced this year, he will still strive to adhere to the established goals when communicating with him). This intangibility also puts pressure on the organization, and the second point comes with it.

Practice internal skills. The internal power here is usually the “organizational ability”. From culture, system flow, to the continuous improvement of each individual employee is what the organization must do as long as it exists, but whether these periodic work are ranked the highest priority of the company. Especially when the performance is very poor and the performance is very good. Businesses can't take care of it, or they can't take care of it. These changes caused by Coronavirus have given enterprises time to practice.


Shrink the front and hide the light

The biggest difference between this type of company and the second type of companies that adhere to the original goal is that they have some pressure on capital. They can make less money, but they cannot lose money. When the negative impact of the pandemic on performance is irreversible, it may be a frustrating choice for many companies to achieve profitability or reduce losses through shrinking front lines to reduce costs.

The most influential part of these enterprises is employees, and layoffs are the main way to reduce costs. Although it is possible to sell assets, if you want to resume business and then buy back those assets that have been sold, the cost may be much more than the previous number sold. But people, especially front-line employees, still have the opportunity for companies to recruit back in the market relatively easily without a significant increase in salary. However, layoffs are a far-reaching decision. Unemployment will inevitably reduce the consumption power of residents and even households, and the reduction of consumption power will continue to transmit enterprises through the chain of economics and have a negative impact on the performance of enterprises.

In fact, the country and even local governments have realized this problem. The term "subsidy for stable positions" has been endless since last year. In order to avoid or layoffs. If an enterprise is willing to retain its employee position, it can get a job stabilization subsidy from the government. And just a week after the outbreak, the governments of various regions have announced this policy to enterprises again. This shows that a considerable number of companies will adopt a shrinking front approach. Of course, some of them are paid by the government.

Some of the slowed-down companies will look for hot spots in new markets. Careful partners may have discovered that in the past few days, many companies have tried to use their products or services to fight the pandemic. I am supportive of this approach. On the one hand, this is a manifestation of corporate social responsibility. On the other hand, after the baptism of the COVID-19, the products and services of these companies will prove to be effective. Of course, the acuity of these companies is also very high, especially when the pandemic is over, companies with a high degree of acuity are bound to find new hot spots and opportunities to make up for.


HR 2020

Having said so much, it is the environment in which HR people 2020 are located. So the next point is coming. In 2020 or even longer, what does HR need to do to cope with these changes and help companies achieve their goals?


There has been a global panic observed within the population, leading to hoarding and panic buying.
HR can help relieve the panic.

Jobs related to employee relations and salary and benefits have many changes and details in the short term.

I believe that the HR of each company and even the highest decision-making level, the biggest question mark in my mind now is when employees can be returned to work. Although there are still a considerable number of enterprises that are still operating normally, the employees of the enterprise adhere to their posts, such as power supply, water supply, medical institutions, mask factories, public transportation, and news media. But basically they are some companies that maintain the most basic operation of society. Most other companies have now closed down or reduced their business scale. I believe that returning to business as soon as possible is the most thing most companies want to see.

At present, local governments still have some small differences in when enterprises can resume normal operations. But the vast majority is set for February 10, but employees returning from the pandemic area need an additional 14 days of home isolation. Not to mention whether this date will be postponed, a long list of questions at this time alone will follow. I listed a few of you feel the following:

Is postponing return to work a national holiday?

  • Do I have to pay for overtime work at home?

  • Can the company use annual leave to cover extended holidays?

  • How to deal with the salary during the quarantine period?

  • Is sickness during a business trip a work injury?

  • Is it possible to request additional subsidies for business trips in pandemic situations?

  • What should I do if the company has difficulty paying because of the Coronavirus?

  • Can employees detain without cooperating with prevention and control be able to terminate the labor contract?

  • Can the proportion of flexible employment increase during the pandemic?

  • Employees ask our company to provide masks, shuttles, disinfection and other measures, otherwise, they will not come to work, what should we do?

  • Are the employee's wedding and maternity leave extended by 3 days?

The company and employees have confirmed the leave, how to deal with the extended Spring Festival holiday now released? After the new policy is released, does it count?

These questions are just the tip of the iceberg, and I am not going to do a policy interpretation. If you have a need, give everyone a connection.

The questions covered here are also fully answered. People who don't do HR for these questions will not even realize their existence, but if the HR of the enterprise does not understand the answers to these questions, then the business owner may need to face hundreds of thousands or more of the employees' questions every day.

Staff retention

Different companies may be responsible for different roles such as employee relations or BP, but the same is that many companies will face whether employees are willing to return to work and continue to work in their units. At first glance, this is not a problem? Coronavirus is only temporary. In the past, everyone must still work, work, make money, and support their families. But in fact, this pandemic changed the mentality of many workers. It is more important to find relatives through this COVID-19 situation, preferring to choose a relatively low income but can stay in the original job. There are also people who want to stay at home for two more days and wait for work after the pandemic has passed completely-there are especially many first-line blue-collar employees. These employees themselves are not sufficiently constrained by their enterprises, and the demand for employment has been very strong. look for a job.

Whatever the reason, companies and HR always hope that all employees will return to work as required after the holiday. To achieve this goal, many HRs have begun to intervene in advance. One by one to understand the status of employees, appease emotions, and may even need to do psychological counselling (yes, many HRs are studying psychology). Of course, HR also needs to make two-hand preparations. If it is found that some employees may not return to work as required, on the one hand, they must make preparations for the termination of labor relations and achieve legal compliance. On the other hand, you need to be prepared to start a recruitment plan or a flexible employment plan. To ensure that the loss of personnel to the company's losses are minimized.


Challenges caused by changes in work style

Remote office, home office, these terms that are usually only heard in some foreign companies, with the outbreak of the Coronavirus into the eyes of most companies. It can even be said that everyone was forced to accept this way of working. After all, there are nearly 10 days more vacations (and possibly more) than normal vacations, and employees returning from the pandemic area need 14 days of home isolation. The loss of all employees of the company not working for half a month to a month is almost unacceptable to all enterprises. The best and only way is to let employees work at home.

Working from home is simple to say, but it is also a lot of details to be solved. For example, company mailboxes, systems, and shared materials cannot be accessed at home. What if some employees didn't take the computer home? How to check attendance at home? How to measure the effective working time and output of employees? How do employees in the quarantine report? As well as all supporting and processes required for remote office work, someone needs to solve it. Who will solve it, as the HR in the company that handles human-related matters is not allowed.

As an HR practitioner, I think there are some objects that can be learned, referenced, and learned from. For example, many Internet companies, their own division of labor model is based on tasks, independent contracting to a certain employee to complete. Together with team collaboration software. Then they do not need face-to-face work. Planning, execution, tracking, feedback, and even delivery of all work is done online. Everyone is a netizen in the company. It's rare to sit down and have a meeting together. HR partners in need can go and find out.


Aftermath

Some employees may suffer from illness or even die. At this time, HR still has a lot of things to do. As a newly discovered virus, there may be no precedents for reference in the identification of some insurances and the level of humanitarian care of the company. It seems that HR can only cooperate with professional institutions and cross the river by feeling the stones.

Of course, in addition to the challenges I listed above, there are still many problems facing the work to be handled by employee relations and compensation and benefits. Fortunately, it can be imagined that these are directly caused by the COVID-19, and will also ease as the pandemic passes. The working year in 2020 will be a very busy and hard time for related HR colleagues. After adding the tax, the first settlement and payment after the tax calculation for the whole year (has been notified of the extension). HR may even be understaffed, and partners of other HR functions may be seconded to assist with temporary work. However, it should slowly return to normal in the second half of the year. Of course, I will say later that by that time, there will be greater challenges waiting for our HR colleagues.


Recruitment meeting is a staged focus

Jobs related to employee compensation and benefits generally face different pressures and challenges in the first half of 2020. Recruitment work in different industries, different companies, and challenges at different stages are different. As mentioned, anything plus the dimension of time becomes a process. Let's see how this process occurs.


Phase 1: Holiday extension phase (February)

The biggest challenge for recruiting team partners at this stage is that vacations disrupt the original work plan. The original work plan includes: candidates in the recruitment process, candidates to be recruited, and how to respond to candidates who are or will need to be recruited.

Do candidates in the recruitment process need to continue to recruit? If the recruitment process needs to be stopped, is this position no longer recruited or temporarily suspended? When will it be temporarily suspended? If you need to continue, how can you continue the two-way process of recruitment/job search without face-to-face communication? Is there any contactless way or information tool to provide support? Do you need to temporarily establish a new workflow or tool for the workflow that has always dealt with this stage?

how about it? Do you feel the distress of the recruiting team? In fact, these are the problems for our professional HR partners, but there are ways to solve them. What they worry about most is the candidates waiting to join the job. Because enterprises cannot resume normal production and office, the on-job dates of employees to be recruited can only be postponed. This will give employees a variable whether they are still waiting for employment. It is important to know that the smooth recruitment of employees or even the probationary period is considered to be the completion of the recruitment team. The company has found talents that meet their needs. Otherwise, the recruitment team needs to continue to recruit talents in this position, the previous work is almost a waste.

Now that the two sides have negotiated, why do you regret it? This speaks of the suffering of the recruiting team. If the reasons for the Turn Down Offer are to be collected, a book may be published. Others said that the postponement of employment has left the employee in the previous company for a few days, and he is facing the embarrassing state of no income. If the previous company has sincere retention, this is definitely the best time. At this time, HR partners can actually do very limited. I see HR sending messages and chatting with candidates every day, from caring about the health and alleviating anxiety, to pushing company news and even talking about gossip news. Insulation ". Of course, if you can compete with the company to sign the contract and pay the salary according to the original entry date, then the candidate must have taken a big heart. Of course, at this time, HR may need to use electronic contracts, electronic signatures and other tools to help it complete the signing work with legal effect.

The above problems exist among employees at all levels. Of course, the higher the level, the lower the chance of occurrence. First, the proportion of senior-level positions is definitely relatively small. Second, the process of recruiting or changing jobs at the high-level Longer, there are more relevant factors for decision-making, and it is unlikely that the fine-tuning of a certain variable will affect the final decision of both parties. But first-line blue-collar employees may be different. The factors that affect the recruitment or job-hopping of these positions are relatively simple. Salary income, whether the time is connected or not, are not the most important factors. However, because of the large number of such people, HR has no time to do "insulation" one by one. At this time, if the company chooses a third-party service organization, it can effectively share some of the workloads, whether it is a headhunting company, a job agency, or labor dispatch. Companies, they all hope that candidates can successfully join the company, and they will also actively intervene and influence candidates during this special period.


Human resource management departments of hospitality and tourism companies are going to be the most affected in COVID-19 pandemic.
The HR employees of hospitality and tourism industry are going to take a hit in the Pandemic crisis.

Phase 2: Return to work and resume work

Partners who have recruiting experience know that the peak year of recruitment is from March to April. The reason is from two aspects of supply and demand. Once the company has started a new year of work (although many companies make budgets according to the natural year, the actual start of implementation will often start after the Spring Festival), and there will be new jobs when there are new plans. At the same time, the employees had finished the mid-year bonus of the previous year, and they wanted to find a bigger stage. They also wanted to change the platform for their own play. And job-hopping has created a new job vacancy in the original company, so both supply and demand have contributed to the recruitment peak of gold, silver and silver.

This is the situation in previous years, but this year there is some more uncertainty.

Labor Contracts

First of all, as mentioned before, there will be some employees who cancel their labor contracts because of reluctance to return to work. This is because of the staged situation caused by the COVID-19 Coronavirus this year. Those who do not have employees returning to their posts are bound to face the need for recruitment, and even his urgency is very high. This part of the staff loss is unplanned, even if there is no regular employee leaving. One-month preparation period. Therefore, this puts forward relatively high requirements for the recruitment team's collaboration with employee relations, BP and other front-end teams. It can predict that high-risk job positions will gain a little more initiative for recruitment.

Existing recruitment plans

The second is the existing recruitment plan. At this time, different industries and different companies will have different choices. It has been analyzed that companies that have a negative impact on the performance of the pandemic in the first quarter may have three coping strategies. 1. Look for new opportunities; 2. Adhere to the original plan; 3. Shrink the front and keep a low profile. The recruitment strategies of HR corresponding to these three strategies are quite different.

For companies looking for new opportunities, it may be necessary to set up new BUs and new departments, at least a new team will be built. At this time, the recruitment team needs to shoulder the heavy responsibility of recruiting these positions. The challenge is that this part of the enterprise will ultimately form such a decision, from clarifying that it needs to find new opportunities in the market in 2020 to clarify its own direction of attack, and even clarifying what kind of team it needs to build. This process can be as short as 1 month and as long as several months.

It may have been missed when the process was transferred to the recruitment team to actually start recruiting, and the peak of candidates' willingness to change jobs in March and April was over. Some candidates have found their next home and will not move easily. Another part of the candidates searched the market and found that the current position is more suitable for themselves. Unless there are particularly attractive offers, it is difficult to change their minds. Therefore, the supply and demand relationship of recruitment at this time may be the situation of recruitment needs, but the shortage of suitable candidates.

Recruitment demand after the pandemic crisis

And for those companies that adhere to the established direction, the impact on recruitment demand on the demand side is not small. Enterprises that adhere to a given direction do not mean that they will not work hard to recover the pandemic. Then it is imperative to increase investment in existing fields. Resources must keep up, and the staff must keep up. Such enterprises will also have a considerable number of new recruitment needs. Such a decision-making cycle is much shorter than an enterprise that needs a clear future direction. After a few rounds of rapid budget revisions, the recruitment team has a good chance of getting the updated recruitment requirements in early March. At this time, you may be able to step on the tail of gold, silver and silver (usually the layout of recruitment in March and April from the previous one) It may begin in December).

Downsizing and the Coronavirus

As for the downsizing companies, I cannot say that they have absolutely no recruitment needs. In particular, some key posts need to be replenished in time after they are lost. The challenge of recruitment at this time is not the quantity, but the difficulty. After all, candidates switch jobs, and in all dimensions they value, industry development, enterprise prospects, company development opportunities, and even salary income are not so competitive in these companies.

Of course, the three stages mentioned above are companies that have negatively affected the pandemic. But it must be found that this market is balanced, and there must be some industries that have not been affected or even promoted for faster development. For example, Internet-related companies, especially pure online companies, have the opportunity to grow at a high speed again as the demand for "houses" erupts. It is reported that some companies have already started plans for rapid expansion, and the recruitment teams of these companies have been busy. Just need to pay attention to how long this wave of growth will last.

Stage 3: Post-pandemic stage

This stage is also my most pessimistic stage. Although the economy must be improving in the long term. However, the impact of the Coronavirus on the economy will still slow down and restrain the economy for a period of time. And the real impact through the transmission of various industries and regions may not be fully visible to us until May or June. These influences are concentrated in the recruitment process in the reduction of candidates' willingness to apply for jobs. During the economic downturn, a small number of people will strive to find new growth points, and the crisis is an opportunity for them. This group of people is keen, brave, and eager to succeed and challenge. They will naturally not be many, and at the same time, they will choose to start their own business and realize their own judgment. Most people in the workplace will choose to be conservative in this environment, and the external environment is unclear. If the current job can meet their basic expectations, few candidates will choose to change their jobs in 2020.

Therefore, the difficulty of recruiting in 2020 will become the norm, and the supply side will continue to slump. The new students in 2020 may become the target of everyone's robbing. It is an early response for enterprise HR to deploy schools as soon as possible. At the same time, making good use of social networks is also one of the ways to win. Although very early there are many companies with many tools to do social network-based business recruitment. However, as the recruitment relationship leans toward the supply side (candidates) this year, I believe that every way to get companies to reach those few potential candidates is the biggest competitive advantage. Recruitment is a battlefield. The recruitment team needs to be more creative and use information tools to win this battle.


The effectiveness of OD work will determine the future of the enterprise

In fact, OD in a broad sense covers many dimensions and functions, from organizational to group to individual, from architecture, process, culture, to behavior and ability, and even technology. Some of these HRs are only method providers or just the role of cooperation or supporters. Therefore, the narrow sense of OD mainly includes corporate culture, organizational structure (strictly speaking, the more organizational structure design is the company's senior decision-making, will determine some job systems and supporting salary structure, etc.), talent development, and performance management.

The reason why the effectiveness of OD work (here) will determine the future of the company, we still have to go back to what we said before. There are three main ways for companies to decline their performance in the first quarter or even longer due to the pandemic. When the organization is doing these responses, the work of HR is naturally about how to assist and support the enterprise to achieve these goals. In the two areas we discussed earlier, it can be said that the contribution is not very obvious. Then let's see how OD exerts his value.


Organizational culture will not be subverted but will be reinterpreted

Why do organizations need culture? Because the essence of hiring employees in an organization is: hiring is the behavior of employees! The essence of culture is people's behavior and habits. Some of the corporate cultures is formed naturally during the development of the company (there are a lot of personal characteristics of the owner or founder) and then extracted by the professional, clearly described and then returned to the employees' daily work behavior. There are also companies that have reached a certain stage to go up the stage and need to transform. There is no way to support the enterprise's goals in the original behavior, so the organization culture is clarified based on the goals and finally solidified into the behavior.

It takes a relatively long time to build the organizational culture of a company, and this process is usually recorded in years. Especially when a company has formed its own organizational culture-usually one of the reasons for their success if you need to change or even reshape it will take longer, more complex processes, and even companies will face many challenges and risks. But we can find that no matter where the organizational culture of a company (to some extent it represents the goal or direction of the company) comes from, it still needs to fall into daily behavior in the end. In other words, let employees know clearly what kind of behavior is recognized and encouraged by the enterprise, and what kind of behavior the enterprise does not want to see.

Looking back at the current COVID-19 situation in 2020 and its impact on the economy, the author always believes that this is a sudden event that does not change the overall upward trend of the economy. He will not directly change the structure of various industries. The changing trend is already there. For example, the Internet and the further deepening of e-commerce (I plan to discuss this process in the next article).

Therefore, based on this judgment, there is no need for companies to change their organizational culture for a short period of time. But the challenges faced in 2020 are different, the things to be done are different, the scenes faced are also different, and the responsibilities undertaken are also different. The very important thing that OD colleagues need to do is to reinterpret what the behaviors show under each new scenario and responsibility.

Give an example. For example, a company's culture has a "customer first" (I believe many companies have). Then when this company is a physical retail company, there will be a smile service in the behavior standards of the first-line tellers, appropriate behavior, and some will be refined to the point that female employees must wear makeup at work. However, when he gradually migrates to the online, the online customer service team may reflect the customer first in the first place.

The process of these interpretations is definitely not at the level of HR's closed-door manufacturing. It is more derived from the business department, but HR needs to guide them, teach them the methods of refining, how to determine the priority, how to accurately describe, and so on.


Organizational structure adjustment is imperative, even in some industries will become the norm

I remember that I was in charge of human resources informatization in an Internet company. We have a task every month to adjust the organizational structure in the system, usually involving hundreds of people. Almost a quarter to six months there will be a major adjustment involving thousands of people.

You may ask, is this company alive? All-day long, the business shouldn't be a mess. In fact, on the contrary, such frequent changes are because the environment is changing, competitors are changing, the market is changing, customer needs are changing, and technology is updating. Without adjustment, without response, it will be eliminated. The adjustment of the organizational structure is a way to cope with changes (of course there are many others, but the organizational structure is one of the most basic skeletons of the company, and how other parts change may affect it). But as you are worried about, the frequent adjustment of the organizational structure and the continuous growth of the business, this whole test is the ability of the OD team.

This year every one may face the same situation as the Internet company. When I wrote this article, I always had a fear in my heart-how can I analyze the course of the year at this time point, and the reason why I still mention the pen is only that we all need a starting point, a direction. The starting point of the future also needs an object, a straightforward, iterative object. So I have the courage to lay down so many words. It's far away, and back to the three coping strategies that companies may take this year that we might take this year. Isn't a company going to black according to one strategy in this year? Will he change his strategy if the environment changes again?

So change may become the norm, and all we can do is to ensure that these structural changes are scientific, reasonable, and at least thoughtful. At the same time, it also needs to ensure the stability and smoothness of the landing process. There are many specific methods that I will not expand here. I would like to make an analogy, that is, the foundation of the organizational structure of the job system and salary system is sufficiently comprehensive and solid, then the organizational structure as a superstructure changes more easily.


Recruitment cannot fill the gap in the company's personnel capabilities. Companies should start by developing internal employees.

The first two as a response measure have one thing in common, which is the improvement of the capabilities of the existing personnel of the organization. Under the current economic environment, it is difficult to recruit people as the main means for enterprises to improve their capabilities. On the one hand, the company's budget is reduced, recruitment costs and salary budget will have an impact. On the other hand, when the economic environment is not good, more candidates choose to be conservative and stable. At this time, companies need to turn their attention to internal. Whether it is to open up new business areas or improve the original performance, we need to take the ability to develop prior employees as a starting point.

Personnel development in this coronavirus crisis

Personnel development is first and foremost a systematic process. Many companies only focus on one point of training, but they neglect the establishment of different standards for different groups of people—assess and determine the needs of different groups of people—targeted development content and the full The chain has little effect on talent development. If the past external environment has given a space for ineffective training, then we believe that this year is the time to really produce results. At this time, companies need both methods and tools.

A good information system can help companies in this pandemic

For enterprises, a good information system combined with a scientific talent development method is a guarantee for talent development. It can make the organization's talent development work more scientific and systematic. Focus on the goal in each link, and also consider the connection and landing of the upper and lower processes. He can also form a mechanism for internalization of the organization, making the development of talents sustainable. Don't let the work go to a halt because of the departure of an HR, or omission in an execution link.


Talent development is no longer a matter of spending money, but a matter of saving money.

When it comes to talent development, many companies feel that they spend a lot of money but the effect is difficult to measure. The reason is not that a certain job is not done well. It’s because the environment we are in is changing too fast. We use traditional methods—offline workshops to build job models, and a large number of offline meetings to do talent inventory—these events are semi-annual, and the annual rhythm is exactly the same. Not meeting business needs. Often the content produced by these activities has expired.

Invalidity is expensive after the coronavirus.

Enterprises need agile practices. Inventory the current status of the organization's talents as needed to respond to business changes in a timely manner. Iterative thinking, quickly establish a starting point, and continuously optimize through data. Probably in digitalization, informatization needs some investment. But in terms of the results obtained, we are more aware of what we have done right, what we have done wrong, what results and experience has been achieved, and what to do afterwards.

Of course, neither offline fees nor system fees are the top priority for companies. When companies face the shrinking front, they want to rebuild their glories one day. At this time, if the right person is not retained, such losses cannot even be measured by money, and what may be missed is another chance to succeed. At this juncture, companies need precise and objective decisions. It is the most important thing for a company to set aside the factors of the organizational environment and find those whose abilities, willingness and performance do not meet the requirements. At this time, only system tools can eliminate the interference of "people" and say the correct answer.

We will find that 2020 is a year in which companies have more internal power than internal power. It may be that the employee relations team will scratch their heads very much in the first few years, and then the pressure of recruitment will increase sharply, but in the end it is also the most important thing to see if the OD team can help the enterprise to input that "true energy"

Attributes that will save companies in this crisis

What really allows companies to survive or even make profits in the era of VUCA may include the following:

The mentality of the company

The mentality of the company, positively and actively respond to all changes. Of course, what we are saying here is that mentality is not a practice. The practice can be to adjust the enterprise's existing strategies without careful consideration and analysis. But these changes cannot be ignored. Of course, the business mentality is mainly determined by business owners and major shareholders. Not within the scope of our discussion.

Companies with Agile Organizational capabilities

With a healthy mentality, companies also need agile organizational capabilities. Including the design of the structure, the mechanism of collaboration, the ability of talents to make blood, etc. HR and the entire enterprise need to be sufficiently agile to build these dimensions.

HR management in crisis like Coronavirus can prove its worth.

Conclusion

All of the above are thinking from the current point of time. I believe that the country will introduce corresponding measures to boost the economy and reduce the impact of the Coronavirus on our economy. Compared with the SARS period, the following measures are likely to be activated again.

  • Implement appropriate credit tilts to industries and regions that are heavily affected by the pandemic.

  • Actively cultivate new consumption hotspots and economic growth points.

  • Manage and use agriculture-supporting re-loans well, and provide funds for a summer harvest and agriculture Preparation work, etc.

According to the industry, some government funds and taxes are exempted. The industry is mainly distributed in catering, hotels, tourism, entertainment, civil aviation, highway passenger transportation, water passenger transportation, and taxis.

The reason why I wrote this article at this time is also that I feel that the combination of Internet innovation and capital has promoted the business model of nearly 10 years to an important time node, and may face a deeper change. Change may occur at the level of the relationship between people and organizations. That is, the production relationship will change or be upgraded. The reasons for this change involve many factors, which I will not expand here, but vaguely feel that the pandemic may have caused the change.

The organizational form of "company" may be restructured at a faster rate. The "platform + individual" model will become popular. With the empowerment of digital tools, the number of freelance practitioners has doubled. That is, the boss and employee are no longer an employment relationship, but a cooperative relationship. People no longer make money by selling their labor time but rely on themselves to help others solve practical problems to get rewards, and this model has been verified by more scenarios. As for how long you work and where to work, it is no longer the point.

In short, there are many things to be done by enterprises in 2020, and many things to be done by HR. But in fact, the direction and trend have not changed, we just realized them along the way.

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