HR Implications of COVID-19

HR Implications of COVID-19

A Survey of Senior Leaders at MNCs in Korea

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Copyright ? 2020, Stanton Chase Korea

March 6, 2020

HR Implications of COVID-19

Contents

1. Key Findings & Implications 2. Survey Results 3. Participant Profiles 4. Survey Methodology 5. About Stanton Chase Korea

HR Implications of COVID-19

2

Key Findings & Implications

1. Key Findings

167 senior level executives of multinational companies in Korea were surveyed between

March 2 ? 4 on HR related implications of COVID-19 outbreak in Korea.

Business Impact

Decreased

77% demand for products and services

Remote Work

65% Provide work from home/alternative work arrangement options

Productivity

42% Remote work arrangement thought to be less productive

Restrictions on Meetings

64% Restrict face-toface meetings, but on a caseby-case basis

Future Changes in HR Policies In Case of Prolonged Difficulty

30% Not determined

Company-Initiated Health Measures

92% Provide personal protective equipment such as masks and hand sanitizers

Hiring/Recruitment Plans

39% No change in hiring plans

COVID 19 Internal Communications

40% HR department 39% Senior management

Salary/Compensation Plans

71% No change

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Key Findings & Implications

1. Key Implications

The following inferences can be drawn and implications gleaned from the survey results:

Due to the sudden unprepared nature of remote-work arrangements implemented by the COVID 19 outbreak, organizations are experiencing overall perceived decrease in productivity

Organizations across industries and geographic base are generally flexible and accommodating to employee needs during these uncertain and challenging times

When it comes to recruitment and employee compensation plans, most organizations are taking a wait-and-see approach, not making uninformed decisions

Leaders should consider ways to optimize organizational structure, technology infrastructure and leadership capabilities in order to maintain efficiency and drive seamless business continuity in order to minimize overall risk

HR should consider the longer-term morale of

the employees in order to ensure further

decrease in motivation (thus productivity) doesn't

occur due to prolonged lack of

social/organizational contact caused by remote-

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work arrangements

Survey Results

Q1. How has your business in Korea been affected by the COVID 19 outbreak?(Check all that apply)

? ( )

Decreased demand for products / services

28%

Inability to make business and investment decisions

15% Cashflow challenges

77%

12% Other 11% Inability to meet contractual delivery deadlines due to

disruption in decision making 6% Increased demand for products/services 0% 10% 20% 30% 40% 50% 60% 70% 80%

77% Decreased demand

for products and services

28% Inability to make

important business decisions

6% Increased demand for

services and products

The 6% who reported an increase in service/product demand consist of consumer product and e-commerce related companies.

Q2. What types of alternative work arrangements have been made at your company? (Check all that apply)

? ( )

Work from home/remote work options

65%

65% Implemented an

optional remote-work policy

Flexible arrangement based on individual employee

56%

28% Mandated work from home policy

15% Reduction in office hours

8% Temporary business/office shut-down

7% No changes / no special arrangements

7%

other

0%

10% 20%

30%

40%

50%

60%

70%

56% Flexible arrangement

based on individual employee

28% Mandatory work-

from-home policy

7% Business as usual, with

no special guidelines for employees on alternative work arrangements

56% provided employees with the decision-making authority to determine whether

working from home/ remote work is suitable for individual work situations.

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Survey Results

Q3. If your company has implemented a remote-work policy, what is your perceptionof its overall productivity?

, ?

50%

42%

40%

30%

20%

34% 18%

42% Less productive 18% Not sure 34% No difference

10%

0% Less

productive

About the same

Not sure

2%

More productive

4%

Other

34% of those who have implemented remote-work policies feel that there is no perceived difference between working from home and working at the office/being onsite. 2% report increased productivity

Q4. Has your company implemented (face-to-face)business meeting restrictions?

?

64% Flexible, case-by-

case basis

24% Mandatory work

from home policy

No 2%

10%

Yes,

for all

24%

employees

10% No changes

Yes,

but on a

case-by-

64%

case basis

Majority of respondents have implemented face-to-face meeting restrictions. 24% of

companies restrict all face to face meetings, while 64% have a flexible yet cautious

policy

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Survey Results

Q5. Hasyourcompanymadechangestoitshiring/recruitmentplansfor2020duetothecoronavirusoutbreak?

2020 ?

No change 39%

Reduced headcount

for new hires

1%3% 10%

Hiring freeze

18%

Delayed Decisionmaking

39% No change 29% Not yet determined

18% Delayed decision

making

29%

10% Hiring freeze

Not yet determined

Nearly 1/3 of respondents report unpredictability in their hiring plans. 18% already saw a delay in the hiring plans that were already in progress. 3% have adjusted down their headcount for new hires for 2020. Some have stated that all interviews are being conducted through online methods

Q6. Has your company made changes to its in salary/compensation plans for 2020 due to the COVID 19 outbreak?

2020 / ? 1% 1%

71% No change in

salary/compensation

28% Not determined

28%

Not determined

0% Salary reduction

71% No change

Over 2/3 of respondents reported that they have not made any changes to 2020 compensation/salary adjustment plans, while 28% seem to be uncertain about any possible changes. 1% of companies reported a salary freeze, with no one reporting any salary reductions.

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Survey Results

Q7. What other measures has your company taken to ensure the health and safety of employees? (check all that apply)

?( )

Personal protective product assistance

92%

Mandatory mask-wearing policy in office

74%

92% Provide personal

protection products such as masks and hand sanitizers to employees

Temperature check

55%

7% Mental health support (counseling, training)

4%Others

74% Require all

employees to wear masks at all times in the office

2...Financial assistance to employees

2% No special measures

0%

20%

40%

60%

2% Have not

implemented any special measures

80%

100%

Companies have been very active in providing support for the health and wellbeing of employees. 92% of companies are providing personal protection product assistance, while 55% provide temperature checks for employees working in the office. 7% provide mental health support including counseling and training

Q8. WhowithinyourcompanyisinchargeofCOVID19relatedemployeecommunications?

?

Other

2%

11%

Corporate communications / 8%

PR

Korea-based

39%

senior leadership

(CEO, Managing

Director, President)

40%

Human resources

40% Human resources

department

39% Senior

management

11% Rely on corporate

headquarters and/or functional leaders within each business for COVID 19 related communications

Almost 80% of all employee communications related to COVID 19 is being delivered by the

local senior management team and human resources

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