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Tag: Coronavirus

  • Effect of Coronavirus Crisis on Employment

    Since the World Health Organisation (WHO) has declared the Covid-19 or Coronavirus outbreak a pandemic, many companies are taking precautions against the impact and spread of the virus. The government also plans to close restaurants, bars and hotels nationwide along with non-essential stores. Companies are asking their employees to work from home for their safety. The Coronavirus outbreak has forced companies to slow or halt their physical operations, impacting production in the upstream sector. Meanwhile, downstream operations are upgrading their systems and pushing to work more flexibly. Many industries such as tourism, hospitality, retail, forestry and transport industry, etc. are facing great troubles. While many companies now allow their employees to work at home, telecommuting isn’t an option for many people. Restaurants also had to close except for pickup and delivery service. Also, vehicle manufactures Ford, General Motors and Fiat Chrysler are suspending production until the end of March.

    But many people are unable to work due to the ongoing coronavirus pandemic as their job or work profile does not allow this work flexibility. This is just making employers cut the jobs as the employers cannot pay the wages. This situation is really severe in many countries. Now, the Coronavirus outbreak is resulting into huge lay-off which is again not a good sign. While there are state and federal measures coming to help those impacted financially, in the more immediate future people can file for unemployment benefits. While some employers are asking their employees to take unpaid leaves as a solution to this. This is all resulting into a global economic slowdown.

    Also Read: 8 Tips to Stay Productive while Working Remotely

    Job Losses due to Coronavirus crisis

    Ronojoy Dutta, CEO of IndiGo – India’s largest airline, announced on March 19, that the airline was instituting pay cuts for their senior employees and he would himself take the highest cut of 25 % amid the novel coronavirus pandemic that has hit the aviation industry hard. Also the Apollo Tyres chairperson, Onkar Kanwar announced a 25 per cent cut in their remuneration. GoAir, Indian low-cost airline has already sent 80 of its expat staff home. Vijay Shekhar Sharma, CEO of Paytm, told that he would not take his salary of this month and next. Not only Indian companies but many foreign national companies have also decided to cut off wages.

    Many companies are laying off Employees due to coronvirus crisis

    U.S. airlines, which directly employ close to 750,000 people, are on edge about how quickly lawmakers will provide aid to the industry, dealing with a collapse in demand. The executives have described this collapse even worse than 9/11. United and its competitors have decided to slash flights, freeze hiring and ask employees to take unpaid leaves. In tourism industry, job losses could reach 67,000 as coronavirus sees international tourism dry up and consumers pocket their wallets. Tourism, hospitality, retail, forestry and transport sectors are all expecting to shed thousands of workers with claims 5000 jobs are on the line unless there is immediate assistance for 65 large tourism businesses facing full or partial closure. Westpac NZ chief economist Dominick​ Stephens has quoted that the overall unemployment is likely to rise from 4 per cent to 5.5 per cent or 45,000 unemployed people. He further added that the drop in jobs could reach up to 67,000 when “shadow unemployment” is taken into account. Kenya Flower firms have sent home more than 1,000 employees after huge losses following a closed European market.

    On the other hand, several companies also promised that they would not cut salaries of their staff and were not considering layoffs in the wake of the coronavirus pandemic. Rajiv Bajaj, managing director and chief executive officer of Bajaj Auto, has said, “I will cut my salary to zero before a single employee is laid off.” Similarly, other Indian business groups like The Aditya Birla group, the Vedanta group and the Essar group have also promised not to cut any jobs or salaries of their staff. U.S. airlines are asking for $58 billion in government aid, including direct grants.

    Also Read: How Hiring is Affected due to Coronavirus Outbreak?

    This unemployment will have direct impact on country’s GDP and will result into much slower economic slowdown. As due to unemployment, majority of the laid off people will totally refrain from buying or using new products or services. This is directly going to affect the economic progress of many nations. According to some reports, new claims for unemployment benefits climbed to 281,000 last week as the coronavirus pandemic shuttered businesses and left people out of work. The Labor Department said that it was the highest level since Sept. 2, 2017, when they totalled 299,000.

    Governments are helping companies Cope with Crisis

    At the same time, many governments are trying to help the affected businesses & people cope with the coronavirus crisis. For instance, the UK government said that it will subsidize the wages of any worker facing unemployment because of the coronavirus pandemic as it ordered the closure of pubs and restaurants to try to contain the outbreak. Their finance minister Rishi Sunak told reporters that the government will cover 80% of worker salaries for at least the next three months up to a maximum of £2,500 ($2,900) a month. The Danish government announced that it will cover 75% of the salaries of employees paid on a monthly basis who would otherwise have been fired, with companies paying the remaining amount. But as of now, many governments have not taken any action to deal with the issue of lay-offs. It will be interesting to see how Indian government will react to the this phase of lay-off and unemployment.

  • How Hiring is Affected due to Coronavirus Outbreak?

    Coronavirus outbreak has already affected many sectors of human life right from restaurants, food chains, tourism, airlines, sporting events to film industry also which is eventually leading to economic slowdown in many countries. While the various countries are continuing to prepare and practice social distancing and self-quarantine during this COVID-19 pandemic, companies are looking for workers to help restock empty shelves and deliver orders to home-bound customers.  In addition to this, of course, Coronavirus outbreak is also having a significant impact on the jobs market, employers plans to hire and the recruitment industry as a whole, experts have warned. Many industry executives & experts have stated their views towards coronavirus impact on  recruitment industry and hiring.

    What Experts say about Impact on Recruitment –

    Lee Biggins – CEO and the founder of CV-Library
    Lee Biggins has stated, “No doubt that the Coronavirus outbreak will have significant consequences for the recruitment industry as a whole”. He further added, “We’re already hearing feedback that employers​ are pausing their hiring plans while they wait for the worst to pass.”
    Steve Blank – a retired serial entrepreneur-turned-educator
    Steve has said, “It’s no longer business as usual for the rest of the economy. In fact, shutting down the economy for a pandemic has never happened. Millions of jobs may be lost in the next few months, as entire industries are devastated, something not seen since the Great Depression of 1929-39. I hope I’m very wrong, but the social and economic impacts of this virus are likely to be profound and will change how we shop, travel, and work for years.”
    Kamal Karanth – Co-founder of staffing solutions provider Xpheno
    Karanth has said, “Several India entry projects are getting or likely to get postponed. Senior-level hiring, which is considered as critical hiring in any industry and usually remains insulated from various other factors, is likely to be pushed back for some months.”
    Jamie Dimon –  CEO of JPMorgan Chase
    Jamie Dimon has quoted that it expected the U.S. economy to contract in the first two quarters of the year, which would meet a common definition of a recession.

    Also Read: Effect of Coronavirus Crisis on Employment

    Many companies to Freeze their Hiring operations

    According to reports, employment in Britain hit a record high in January before the Coronavirus outbreak but now the country is facing for a great wave of job losses. According to official figures, hiring of many firms & companies has been frozen there amid the crisis. Some companies have moved to freeze hiring until the economic impact of the virus is made clear, but many others are continuing to recruit in a bid to prevent a business slowdown. Several companies in India and across the world have already cancelled or postponed interviews. Some of them are turning to video calls, where possible, as they are unable to travel for face-to-face interactions, which is important in senior hires. Many reports state that hiring is likely to be delayed or pushed back by at least a quarter as the COVID-19 pandemic forces companies to suspend projects and find immediate ways to cope with the situation.

    Usually, hiring of senior or top executives such as chief executives and operations and finance chiefs is also likely to be delayed by quarter as companies and senior executives are unable to travel. As senior-level hiring needs significant face-to-face interaction to get known about the candidate, interviews are getting pushed and indefinitely postponed. Similarly, the startup are also going to be affected due to coronavirus outbreak.  For instance, in the startup ecosystem, hiring has been decided based on the growth plans they have but now many of them are unable to proceed further because They have fewer cash reserves and a smaller margin of error for managing sudden downturns. The ripple and feedback effect of all of these closures will have a major impact on country’s  economy as each industry that gets impacted puts people out of work  and those laid off workers don’t buy products and services. While according to some experts, the real impact of the COVID-19 outbreak on hiring in India will take 3-4 weeks to gauge.

    Many Companies are still Recruiting Candidates

    It’s important to note that the candidate market has always been competitive pre-coronavirus and companies have continued to take their time to process candidates and hire the best person for the job. That’s not going to change ever.  As the coronavirus pandemic continues to affect economies across the globe, few industries still have been left untouched by the fallout, and that’s having huge implications not only for the workforce but also the recruitment process. Many experts said that there is still hope for the recruitment industry, as many employers would continue to hire for essential roles and some sectors – such as health and social care and logistics were already recruiting more workers.

    Also Read: Companies are Asking their Employees to Work from Home due to CoronaVirus

    Lately, online e-commerce giant Amazon made headlines when the company announced it is looking to hire 100,000 workers for warehouse and delivery positions. Meijer, American Supermarket company, is also hiring additional seasonal team members in each of their stores to meet the demands of the business. Cosco says it to is looking for workers to help keep its inventory moving to meet customer demand. Walmart is looking for employees to add to its delivery drivers.

    All above information just comes down to the fact that Not every industry slows down in an economic downturn and not every company within an industry slows down. The bottom line is people get hired during layoffs and hires happen even when things slow down. Hiring will speed up or slow down within an organization based on their strategic plans for the year not solely because of a virus.

  • These Brands Are Generating Massive Revenue During The Coronavirus Outbreak

    Coronavirus has now spread to more than 157 countries all over the world and has been declared a pandemic. The number of coronavirus cases have crossed more than 3 million globally. In India, more than 30,000 cases have been registered with 1000+ fatalities. The coronavirus outbreak or COVID-19 has affected various sectors and industries, and many companies have taken the initiative to contain the spread of the pandemic.

    Apple shut down its stores in China and other nearby countries for implementing safety measures. The world’s second-biggest fashion retailer H&M has also closed stores Germany and the United States, the biggest markets. It also shuttered stores in Canada, Portugal, and Belgium. In India, the aviation and railway sectors are severely strained under the pandemic with revenues plummeting to record lows. Many airlines in India are unable to generate revenue in spite of lowering ticket prices.

    At the same time, the Indian railways has cancelled more than 70 trains for precaution and due to low occupancy. The consequent losses are mind-numbing and severe enough to cause heart attacks. The tourism industry worldwide has taken a severe hit. Many food chains and restaurants are struggling to sustain themselves as people are avoiding going out until and unless it’s an emergency. Not only this, several start-ups are bearing the brunt of the lockdown which is in place. In all, the economy has come to a halt and everything else to a standstill.

    On the other hand, the coronavirus outbreak is aiding several countries. The Chinese government gradually shut down public services, schools and several manufacturing plants since the mid of January, giving other countries an opportunity to step up their game in segments like manufacturing . China is the largest consumer and supplier of many products in the world which include spare parts, chemical, toys, lighting, base metals, oil, etc. Many countries, including the US and European Union, import these goods from China.

    Economic superpowers and behemoths are now reaching out to other countries to fulfill increasing demand. India is one such country which has seen a surge in exports in the wake of the coronavirus outbreak. Due to China’s temporary lockdown, the chemical sector will be amongst the biggest beneficiaries alongside other sectors like textiles, ceramics, sanitary ware, homeware, and engineering goods.

    These companies will benefit tremendously during the pandemic

    Although the novel coronavirus outbreak is crashing global markets and affecting everything from air travel and the film industry to local businesses, some companies will benefit from this situation. These include firms that sell deep-cleaning products, remote services like Peloton, Zoho, video conferencing tools like Zoom, and Purell, a popular hand sanitizer brand.

    According to a report, sellers of some lesser-known products also view the coronavirus as a unique business opportunity. These companies sell gadgets like air purifiers, robots, and even products like spit-shielding hats that help in combating the virus.

    Now, some of these vendors are actively promoting the link between their products and Covid-19. The result is strong brand value, publicity, and booming business. Not only this, the demand for face masks has increased significantly since governments, medical experts, and doctors are advocating the use of face masks to protect oneself from getting exposed to the virus.

    Hand Sanitizers
    Sale of Hand Sanitizers has seen a Boom like Never Before

    With people more worried about infection and germs, they are running towards disinfectant products such as hand sanitizers, hand wash, cleaning wipes, etc. People are turning to brands like Purell, Lysol, Clorox, Lifebuoy, and Dettol like never before. Consumer demand for hand sanitizers has grown by 1,400 percent from December to January.

    The demand is so high that Walmart stores, retailers, and pharmacies are short on stock, e-commerce platforms such as Amazon and Flipkart are also low on supply, and products are being sold at more than double their market rates. In fact, the black market for sanitizers, disinfectant wipes, gloves, masks, and PPEs is crazy! Manufacturers aren’t shying away from making the most out of the shortage of supplies. Meanwhile, even small firms selling such products are making considerable profits. It’s hard to believe but the shares of Clorox and other drug makers were on the rise in late February despite the economic slowdown.

    Also Read: 6 Must Follow Tips to Work from Home During the Covid19 Outbreak

    Phone and video conference software

    Even technology companies are reaping massive benefits in these trying times. Many phone and video conference software and tools are in high demand because organizations have chosen to implement work from home across offices and geographies. Famous work from home software & tools include:
    Webex – Web conferencing and video conferencing tool.
    Zoom – Team video conference tool.
    Skype – Online video calling tool.
    Slack – Team Communication and collaboration app.
    Zoho – Web-based business tools.
    GSuite  – Emailing and team communication applications.

    There are several other chatting & conference platforms in the fray as well. Due to massive demand, these companies are providing additional features at lower prices. Since a large number of companies are relying on these tools at the moment, this is a golden window for the providers of these tools and software to capitalize on the demand and stand out in the market.

    Online Streaming Platforms
    During Lockdown, traffic on Online Streaming platform will see Growth

    To no one’s surprise, the demand and traffic on many online streaming platforms like Netflix, Amazon Prime, Disney Plus, HBO Max, Hulu, etc. have blown through the roof. With strict lockdown measures in place and nothing to pass time, these streaming platforms have become a necessity. Without them, spending the day becomes arduous!

    Conclusion

    Every coin has two sides and the coronavirus outbreak is no exception. While a number of organizations and companies are reeling from decline in revenues and market value, others are profiting big time and witnessing a windfall hitherto unseen.

  • Companies are Asking their Employees to Work from Home due to CoronaVirus

    Since Coronavirus outbreak in Wuhan, China, the coronavirus has spread in many countries all over the world. As the number of infections and deaths from the coronavirus i.e. COVID-19 rise drastically, many governments, schools, and companies around the world are taking more drastic measures to restrain the virus’s spread. At this time, coronavirus has more than 118,000 cases and 4,290 deaths worldwide.

    As the number of infections and deaths from the novel coronavirus are still increasing day by day, people are advised to avoid public presence, social gatherings, etc. At present, India has over 60 confirmed cases of coronavirus with employees in IT companies affected and 9.41 Lakh people have been screened at airports. Similarly, there are at least 1,267 cases of the coronavirus with more than 29 deaths in the United States.

    Many major companies like Google, Microsoft, Apple & so on are also making sure that their employees do not get affected and stay safe during this outbreak. Google has advised all its employees in Europe, the Middle East and Africa to work from home starting March 12th, expanding a recommendation sent on March 10 to North America-based employees to work from home until at least April 10th.

    On Sunday, Apple CEO Tim Cook encouraged employees at several of its global offices to work remotely “if your job allows” from March 9th to 13th. And by the end of last week, Apple, Facebook, Microsoft, and many other tech companies asked their employees in the Bay Area and Seattle to work from home. Moreover, Google also confirmed that it would give its hourly workers their regular pay if they had to miss work due to coronavirus. The US Centres for Disease Control and Prevention is urging Americans to ask their schools and workplaces about contingency plans, like working from home, in case they have to shut down over coronavirus. Companies from Wuhan to Silicon Valley have changed how and where they do business as the virus spreads on.

    Due to drastic spread of coronavirus lately, many Indian corporations & startups are asking their employees to work from home. This includes Flipkart, Snapdeal, Swiggy, Paytm, Uber & Wipro and so on. Nithin Kamath, founder of stock broking startup Zerodha, stated that the entire team of 1,200 has been asked to work from home. Similarly, other Bengaluru-based startups like fintech startup Instamojo, edtech platform Unacademy, Byju’s, Bounce and  Meesho have asked their employees to strictly work from home to avoid any risk. E-commerce companies like Flipkart, Snapdeal, Paytm & also Swiggy are encouraging their employees to work from home by using technologies like videoconferencing to interact with their clients and colleagues. Also ride-hailing companies like Ola & Uber are asking their employees to work remotely especially if one is feeling unwell. Moreover, IT industries like Wipro & Tech Mahindra are taking necessary precautions by keeping employees,who travel overseas for their projects, in quarantine. Telecom major Reliance Jio Infocomm & Coal India have given their employees choice to work from home without any biometric attendance.

    Companies adopting work from home due to corona
    Companies adopting work from home due to Corona

    Many companies are looking for solutions to enable their employees work from home without compromising the efficiency of work. For this, they are adopting various technologies & software.
    The Chennai-based office suite provider Zoho also made the announcement that it also implemented a work from home policy for its own employees. The company states that over 8000 employees across more than 10 countries will be working from safety of their homes until the virus is brought under control. Zoho uses Remotely toolkit to run their remote operations. Zoho Corp CEO Sridhar Vembu has been running the company from a remote farm near Tenkasi, a town in southern Tamil Nadu with the help of Remotely — the company’s virtual collaboration and productivity platform. Now, Zoho is also offering the same tools to its business partners and clients for free temporarily. Zoho Remotely includes a selection of apps in advanced software suite which will enable communication and collaboration between colleagues and customers.

    Similarly, the networking giant Cisco is offering its remote collaboration tool Webex for free under 90-day licences to businesses who are not its customers. Cisco’s SVP and GM, Sri Srinivasan said that they would also be helping existing customers meet their rapidly changing needs as they enable a much larger number of remote workers by expanding their usage at no additional cost. He further revealed that that after the Covid-19 virus, traffic on the Webex backbone connecting China-based Webex users to their global workplaces has increased as much as 22 times.

    At the same time, other companies are relying upon video conferencing and chat software. During this outbreak, the demand for Microsoft, Google, and Zoom’s Video Conferencing Software has increased significantly all over the world. This demand is expected to increase even more as the number of cases rises. As the number of school closures and quarantines increases, video conferencing will become ever more & more important. According to reports, Microsoft’s Teams collaboration platform has seen a 500% increase in usage in China since end of January. This usage is increasing in the U.S. as well, with more employees working from home. While, Zoom CFO, Kelly Steckelberg has said publicly that its usage is up significantly from its 100 billion minutes run rate at the end of January. During the same time period, the company also saw four-five times as many users in Japan, South Korea and Singapore.

    Considering the risk and intensity of COVID-19, these companies are offering many services free of cost. All that demand has made the tech companies to make it easier and in some cases free to use their software. Microsoft announced that Teams is now free to anyone with an email address. Google said last week it’s offering access to its Hangouts Meet video conferencing service and all its G-Suite as well as to G Suite for Education collaboration platforms for free of cost. Even, Zoom has also lifted the 40-minute limit on meetings for its users in China. Now, it is being extended to schools and universities in the U.S. upon request. Slack, a messaging platform, already offers a free tier but the company is offering live Q&A and webinars free.

    In the middle of worldwide health and safety worries, the company and its team once again shows its agility and tenacity by offering free services. This is really good gesture in tech market.