Employers in Ireland are bracing themselves for negative impacts to their business and employees due to the COVID-19 pandemic. Such impacts will be evident in cost management measures, salary and staffing levels, as businesses prepare to weather the expected economic downturn.

This is according to the Willis Towers Watson COVID-19 pulse survey. A total of 996 employers based in Great Britain and Western Europe took part in the Survey which was conducted during April 2020. A total of 104 employers with Irish operations responded to the survey.

The research shows that while overall 64% do anticipate a large negative impact in the next 12 months, many businesses are being proactive in taking measures that will contribute toward future sustainability.

Merit-based salary increases are likely to be reconsidered with 47% of organisations having taken, or are considering, measures to reduce or delay such increases. This does not mean that organisations are reducing salary on an arbitrary basis as the research indicates that 1 in 5 employers (21%) have implemented or are considering implementing base pay reductions for corporate functions such as finance, human resources, IT, procurement, legal, and facilities management.

Employers are also planning action on annual bonuses across their business, with 47% again considering or actively planning a reduction in 2020. The research does however show that 2 in 3 business are not adjusting sales incentive pay outs while others will make discretionary adjustments, suggesting that employers want to continue to reward and retain performing staff.

With the economic impact of COVID-19 continuing to take effect many employers are searching for ways to retain staff through furlough schemes. 58% of organisations have offered or are planning to offer voluntary unpaid leave of absences to interest employees, while 44% have, or are considering, making such measures involuntary for staff.

Commenting on the survey results, Senior Director Talent and Rewards at Willis Towers Watson, Ian Milton said, "Already many tough decisions have been taken to postpone annual bonuses and, for many, hiring plans have also been placed on hold. For the most part however, employers are ensuring that jobs and conditions are retained where possible, making use of furloughing and the government Covid-19 payment scheme to maintain current jobs. The survey shows that employers are developing a long-term view of the current situation and focusing on retaining and motivating their employees."

Source: www.businessworld.ie