The latest survey results aim to assess the impact of Covid-19 on revenue and workforce, particularly in multinational corporations. Additionally, the survey addresses plans for future workforce transformation and business priorities in the face of a second wave of the pandemic and the potential for an economic downturn by the end of this year.
This survey gathered opinions from over 330 human resources professionals. Most of them are managers or directors working in multinational companies in Vietnam. 77% of survey participants completed all questions.
IMPACT OF COVID-19 ON REVENUE AND WORKFORCE
1. ABOUT THE SURVEY
According to the survey, 93% of companies were impacted by COVID-19 on their financial operations. Among them, 43% of severely affected businesses experienced revenue declines of 21-40%. The three hardest-hit sectors were Food & Beverage (47%), Real Estate (56%), and Manufacturing (44%).
Besides declining revenue and business activity, many companies faced difficult personnel decisions, including layoffs or salary cuts. 30% of businesses reduced their workforce by 1-20%, and 16% even had to cut 21-40% of their current staff.
To further mitigate pandemic risks, 58% of companies postponed all recruitment activities, especially large businesses (75%). Other labor cost reduction solutions included postponing performance reviews and salary increases (37%); canceling internship programs (28%); and reducing working hours (26%). Temporary unpaid leave requests (16.5%); indefinite contract renewals were suspended (12.46%). When making these decisions, 69% of companies had discussed or negotiated with their employees beforehand.
2. CHALLENGES IN OPTIMIZING LEADERSHIP STYLE
According to survey estimates, 31% of businesses expect to recover within the next 1-3 months, while another 29% expect it to take longer, from 3-6 months. 8% of companies indicated they will not return to normal until next year.
During this time, managers are valued for their collaborative spirit, problem-solving abilities, and adaptability (58%). This is followed by empathy and strong support (51%), and keeping employees aligned with the company's values and culture (46%).
Andree Mangels stated: "While most companies are strictly adhering to government guidelines to enhance workplace hygiene and disinfection and allow flexible working arrangements, a small percentage are supporting their employees emotionally. Only 24% of companies have conducted internal surveys to understand what employees are thinking and feeling, 21% have launched programs to improve employee mental health, and 12% have activities to recognize employee contributions during these challenging times.
With the recent surge in Covid-19 cases in Vietnam leading some cities back to social distancing and remote work, this is an opportunity for managers to reconsider their leadership approaches. High EQ is now the standard for leaders during this stressful period. I recommend investing time in listening deeply to employees, limiting judgment and giving orders." "Promoting a culture of empathy and care will help keep people motivated to engage and work more effectively."
Source: Adecco
