by Wayne Forster          July 2020

For the vast majority of businesses, its people are its most valuable resource. And ensuring the effectiveness of that resource is arguably the most important responsibility of owners and managers.

Managing your human resources is a complex task. The variables seem endless. First, every employee is unique, each with their own personality, skill set, capabilities, motivations, and personal circumstances. And then there are all the responsibilities an employer has towards its employees – to provide fair and competitive compensation, to provide a safe and healthy work environment, to develop reasonable performance expectations, and to meet all labour laws and regulations.

At the best of times, it’s a challenge for any business. But how about if we throw in a pandemic? Call it COVID-19. What then? How much more challenging is human resource management in that environment?

The impact of COVID-19 on businesses is already being referred to as the “new normal.” This suggests there’s an expectation that the virus will be with us for some time to come. Or even if the virus disappears, many of the changes being made will not. In other words, going forward, businesses will not operate the same way they did prior to COVID-19.

In terms of human resource management, I see 5 principal areas for which the impacts of COVID-19 may be permanent, or at least with us for the foreseeable future.

Health and Safety Policies and Procedures:

It’s been a busy time for health and safety staff in businesses, whether it’s been establishing social distancing protocols, enhancing PPE requirements, or implementing virus testing procedures. In general, businesses have had to examine all of their health and safety policies and procedures in light of COVID-19. Some of the changes being made may become permanent.

COVID-19 has also increased attention on mental health issues, and their impact on employee performance, job satisfaction, and overall well-being. It’s been a stressful time for everyone. The focus on employee mental health that has been building over the past few years is bound to intensify moving forward.

And then there’s the issue of employees refusing to return to work for fear of catching the virus. Every province in Canada has some type of “right to refuse unsafe work” provision. The refusal typically must be “reasonable,” but the definition of reasonableness is often in the eye of the beholder. If the employee fears they may catch the virus, adjudicators may find in their favour. Owners and HR staff will likely be dealing with many more such cases in the future than they did in the past.

Work From Home:

In April 2020, 5 million Canadians were working from home, an increase of about 300% from pre-COVID-19 figures. While many of these will return to their workplaces as restrictions are lifted, many will not. COVID-19 has proven that WFH is actually feasible in many cases, and many businesses will like the savings in office rents.

But WFH will present a number of challenges. How do you assess performance and productivity of remote workers? How do you monitor hours of work? How do you validate claims for overtime pay? Then there are the health and safety issues. Home-based workers are still covered by Worker’s Compensation, so businesses will still have to ensure a safe work environment. Do WFH employees have the proper work space and equipment to prevent back problems, or eye strain, or carpal tunnel syndrome? And finally, there’s the technological issues, everything from communication procedures, to security issues, to confidentiality concerns. In summary, every business will need something few have ever had before – a formal Work From Home policy.

Employee Benefits:

COVID-19 is likely to result in demands from employees for enhanced benefits, particularly with respect to sick leave or parental leave to attend to children whose schools are closed. Businesses will be under pressure to provide more flexible leave policies, including changing any unpaid leaves to paid leaves. Governments will also likely face pressure to enhance leave provisions in their labour standards codes. In general, businesses will need to completely re-examine their benefit packages to ensure they align with the new reality.

Performance Management:

I touched on performance management earlier when discussing the Work From Home issue. But COVID-19 will impact on performance management in a broader sense. Many businesses are projecting a decrease in revenues as a result of the pandemic, possibly for some time to come. This will undoubtedly have an impact on employee performance expectations, especially for sales and service staff. Despite their best efforts, it may be impossible for them to achieve the results they obtained pre-pandemic. In addition, new safety and social distancing measures will likely impact performance and productivity in many businesses, especially in manufacturing and production facilities, where close interaction is key. Some measures may also cut into the amount of work time, further reducing productivity.

Staffing Levels:

Of course, one of the most consequential impacts of COVID-19 may be its affect on staffing levels. If revenues drop due to market conditions, or if production declines due to new health and safety procedures, will you need as many people? Who will you let go and who will you keep? Will you need to reduce some people to part-time hours? Will you need to re-design jobs, or restructure the entire business? And timing will be key. Too early and you may strip your business of valuable people you’ll need if revenues rebound. Too late and the business may be in jeopardy. Tough decisions.

All this talk about the “new normal” may be an over-reaction. The virus may run its course soon, or a vaccine may be developed. Then we can all get back to the way it was before COVID-19. But I doubt it. Even if COVID-19 disappears completely, or a vaccine is developed, fears of future pandemics may lead businesses to maintain many of the measures they are now putting in place. As well, some of the changes may turn out to be improvements over the way things were done before. In any event, being aware of some of the possible impacts of COVID-19 on human resource management can help your business prepare for either eventuality.