HR Management in the COVID-19 Environment

Preamble

Human resource managers around the globe are challenged with a set of new issues amidst the COVID-19 environment. Iqbal Institute of Policy Studies (IIPS) organized a webinar with eminent HR and management professionals to discuss the challenges that organizations are facing amidst the ongoing pandemic, and how human resources management can play its part in addressing these problems. This blog presents the major issues of Human Resource Management (HRM) emerging from COVID-19, and the successive impacts of remote working on business productivity. 

Research Questions

1. What are the major issues in human resource management emerging from COVID-19?
2. What are the impacts of remote working on business productivity?
3. How to create a productive work environment during the pandemic and for a post-pandemic world?
4. What are the legal implications of COVID-19 on employees and employers?
5. To deliberate on viable policy options for sustainable human resource management in Pakistan.

Introduction

COVID-19 pandemic has created a challenging environment for human resource management (HRM). Companies across the world are downsizing as a strategy to counter revenue losses incurred due to global lockdowns. Global unemployment stands at twenty percent, which means that one-fifth of the total global workforce is currently unemployed. It is, therefore, vital to understand the implications of COVID-19 for working practices and find new solutions to the challenges arising across many areas of human resource management.

Major Issues in Human Resource Management Emerging from COVID-19

Amir Niazi, Chairman PMEA Governing board, identified three key areas that are posing significant challenges to human resource management amid the current pandemic. The first is related to flexibility and managing a workforce in response to supply and demand situations. The second revolves around the rapid shift to remote working and the third is linked to the future expectation of people from employees in the post-COVID-19 world. These challenges exist worldwide, and companies must find ways to manage their human resource in ways that do not necessarily involve layoffs. There is a need for companies to come up with creative ways to reduce HR costs, such as rescaling businesses and human resources. Organizations around the globe are beginning to see traditional governance models as obsolete and are shifting to remote working. 

In terms of expectations of employees from their organizations, it is vital how companies manage human capital at this time to ensure that their employees are looked after, given emotional support, and kept motivated. Resilience, resolve, return, reform, and re-imagination are some of the traits that top leadership must possess to steer the organization through any crisis. There are also many leadership challenges in COVID-19 environment which go hand in hand with the stresses of life and wellbeing. A focus on health and mental wellbeing before worrying about jobs and livelihood are required. How the world reacts and responds to this pandemic will have an impact on both, life and livelihood of people, for years to come. 

Impacts of Remote Working on Business Productivity

Mr. Ijaz Nisar, CEO Club Pakistan and CEO Today Magazine, talked about leadership challenges in COVID-19 environment. While stressing the importance of life and wellbeing, a focus on health and mental wellbeing before worrying about livelihoods and jobs is required. Secondly, how we respond in the current pandemic will impact both life and livelihoods for years to come. There have been massive layoffs globally due to the Covid-19 pandemic, however, in developed countries, the social welfare system is very strong and is able to support the poor and unemployed. Contrarily, in Pakistan, owing to the weak social welfare system, and government inefficiencies, the laid-off employees fail to make ends meet and find it challenging to secure new jobs. Pakistan is a relationship-based society, so we must look at the social dimension of human resource sustainability. Another important aspect to consider here is the overseas Pakistani workers are coming back to Pakistan in large numbers due to COVID-19. The loss of remittances will surely overburden the already fragile economy; however, Pakistan will surely benefit from this highly skilled workforce.  

Legal Implications for Employees and Employers

Ms. Iqra Musaddaq, Head of Legal and Corporate Affairs, Imarat Group of Companies, explained the legal implications of COVID-19 on employees and employers. Since 2010 the subject of labour and employment has been devolved to provinces. Each province has had to enact its laws to deal with labour and workforce. The workforce is generally divided into white-collar workers and blue-collar workers. Laws are dealing with the blue-collar workers in Pakistan; however, no laws cater to the white-collar workers, which make up a large chunk of the country’s human resource. The white-collar workers are governed entirely by the provisions of their contract. It is, therefore, essential to understanding employees’ rights and obligations from a legal point of view. 

An employer has the right to direct its employees to work from home provided that they are equipped with the right resources to perform tasks from home. In the case an employer wants an employee to come to the office, but the employee prefers to work from home, then the bottom line is that employee has to go to work. A more policy-oriented solution would be to talk to the HR department and come up with an arrangement that is workable for all parties involved. However, suppose that cannot be arranged. In that case, the employer has the right to take action against the employee refusing to come to the office, including terminating the job contract. With regards to the confidentiality of company data, it is the responsibility of the employers to ensure that necessary safeguards are put in place to protect company data.

Moreover, in the case of unfair termination, courts mostly rule in favour of employees so companies must consider this aspect when planning for risk mitigation. There are specific laws in Pakistan for protecting the rights of blue-collar workers. In the case an organization faces shut down for a consecutive period of 14 days due to any pandemic or unforeseen circumstances, the workers are entitled to full paid leave for 14 days. However, suppose the shutdown goes beyond 14 days. In that case, the employer must issue a one-month notice before terminating the service of the employees. 

Creating a Productive Work Environment Amid the Global Pandemic 

Oystein Bakken, Chief People Officer, Telenor, Pakistan, highlighted the challenges in human resource management amidst an ongoing lockdown. He stated that, at Telenor, employees were asked about their expectation from HR and the company’s leadership in the time of COVID-19. Based on that information, Telenor formulated an engagement plan which focused on five main areas. The first area is related to engagement and how people can be made more consistent while working from home. The second deals with wellness and takes care of employees’ physical and mental health. The third area is enablement, and the fourth area deals with online learning and rescaling. The last area focuses on how to enhance leadership capacities in a remote working environment. Telenor’s consistent efforts to ensure the wellbeing of its employees by sending out safety packages, allowance for field staff, and setting up of a 24/7 hotline for employees dealing with any mental stress or problem can also be used as a model for other companies. In terms of remote working, employees are pleased in working from home as it allows them to maintain good work-life balance and cuts down travelling cost. At Telenor, engagement rate went up since shifting to remote work arrangements. However, a significant challenge for leadership is whether or not it can trust people to work from home. 

There are three things to consider with regards to planning a response. The first is understanding the situation. The second is preparing the response, and the last is obtaining results. The situation and results are beyond control, so we must focus on the response. There is a need to manage the response positively. Staying mentally strong and starting re-training of human resources to adapt to the new normal is also needed. The proactive role of leadership in a crisis is imperative for effective management of human resources. Leadership must possess empathy for employees who are under immense stress due to Covid-19. A coping strategy for stress management has been formulated. It is called the 4As. The first A is avoiding a negative situation. If that cannot be done, move on to the second A, which is altering the negative situation. The third A is adapting to the situation followed by the last A that is accepting the situation. 

Viable Policy Options for Sustainable Human Resource Management in Pakistan

Mr Amir Younus, Managing Director, Business Dynamics, elaborated that for the survival of businesses, the optimization of human resources is essential. Covid-19 is not going to end suddenly; therefore, organizations must plan and be fully prepared for any scenario. There are essentially two phases to plan for any crisis. First is the crisis response. When the COVID-19 pandemic began, businesses started shutting down due to global lockdown restrictions, resulting in loss of revenues and massive layoffs. Rightsizing must be prioritized over downsizing. The optimal utilization of existing human resources is essential at this time. The second phase is the recovery phase. Companies must accept the new normal and reimagine their workforce and workplace. During these uncertain times, the workforce is under tremendous pressure. Hence, the role of leadership is critical for motivating and training employees to cope with changing circumstances under Covid-19 efficiently. Remote working is new for many companies in Pakistan, and it is proving a good strategy in some places. However, some companies require a hybrid form of arrangement and need workers on the field to perform daily tasks. 

Mr Shafaat R. Hashmi, CEO Brandbeat Advertising & Teckross, elaborated on innovative approaches to human resource management amid COVID-19. He explained that this pandemic was more like the titanic hitting the iceberg and leaving countries searching for lifeboats. The first response to this pandemic came in the form of a global lockdown pushing people to shift to remote working. The service industry can go into work from home mode, but the manufacturing and agriculture sector cannot have its workers working remotely. So, they need the right SOPs and social distancing guidelines to protect their workers. Furthermore, contact mapping has become crucial now. More cameras must be installed in offices to monitor employee’s movement and to gather contact information to prevent the spread of Covid-19. Global unemployment stands at 20%, which means that one-fifth of the total global workforce is currently unemployed. In the developing world, the issue of unemployment multiples manifolds because there is one hand that feeds ten mouths and fifty percent of the world population is practically at the risk of starvation.  The 5E model, which encompasses five essential traits needed to respond to the current pandemic. These traits include empathy, efficiency, energy, empowerment and ease. Empowerment in terms of delegating more tasks and authority to employees and trusting them to work efficiently from home is pertinent to running a smooth business amidst the pandemic. Micro-managing people will have negative fallouts including but not limited to job dissatisfaction, increase in turnover rate, and mental stress. In regards to an easement, companies need to make it easy for employees to work from home. This includes taking appropriate measures, such as providing internet access and investing in UPS systems to cater to electricity shortages.

Key Findings

1. There is a need for companies to come up with creative ways to reduce HR cost through rescaling businesses and human resources.
2. Organizations around the globe are beginning to see traditional governance models as obsolete and are shifting towards remote working.
3. Resilience, resolve, return, reform, and re-imagination are the traits that top leadership must possess to steer the organization through any crisis
4. Working from home allows employees to maintain the right work-life balance and cuts down travelling cost.  However, a significant challenge for leadership is whether or not it can trust people to work from home.
5. Rightsizing must be prioritized over downsizing. The optimal utilization of existing human resources is crucial at this time. Companies must accept the new normal and reimagine their workforce and workplace. 
6. There are laws related to blue-collar workers, but no rules cater to the white-collar workers who make up a large chunk of Pakistan’s human resource. White-collar workers are governed entirely by the provisions of their contract.
7. With regards to the confidentiality of company data, it is the responsibility of the employers to ensure necessary safeguards are put in place to protect data. 
8. Although there is a shortage of legal provisions for protecting employees’ rights, in the case of unfair termination, courts mostly rule in favour of employees. 
9. If an organization is shut down for a consecutive period of 14 days due to any unforeseen circumstances, the blue-collar workers are legally entitled to full paid leave for 14 days. However, if the shutdown goes beyond this period, then the employer must issue a one-month notice before terminating the service of the workers.  
10. The manufacturing and agriculture sector cannot have its workers working remotely. They need proper SOPs and social distancing guidelines.
11. Contact mapping is vital to curb the spread of Covid-19. More cameras can be installed in offices to monitor employee’s movement and to gather contact information.
12. Empowering employees by delegating more authority and trusting them to work from home is pertinent to running a smooth business amidst the pandemic.
13. Micro-managing people is demeaning and will have negative fallouts including job dissatisfaction, increase in turnover rate and mental stress.
14. Companies need to ensure that their workforce can work from home; this includes providing them with internet access and investing in UPS systems to cater to electricity shortages.

Reference:

IIPS Webinar: HR Management in the COVID-19 Environment: Available at https://www.facebook.com/144287616215098/videos/276633503783135