By Laura Marler, professor and head, Department of Management and Information Systems
In March of 2020, many people were told to stay safe at home, wear a mask, and wash their groceries, among other advice to avoid COVID-19. Employers, on the other hand, found themselves with little guidance. While others were searching for toilet paper, business leaders were searching for personal protective equipment (PPE) such as masks and were quickly developing plans to ensure employee safety . At the same time, many of these business leaders faced revenue shortages and were trying to navigate how to get a Paycheck Protection Program (PPP; https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/p…) loan to cover costs including payroll, rent and utilities. In the blink of an eye, businesses of all sizes faced numerous unexpected human resource issues .
Whether a business closed its doors or remained in operation, many difficult HR decisions had to be made. The HR implications of COVID-19 ranged from tough staffing decisions due to limited budgets and new legal compliance with the passage of the Families First Coronavirus Response Act (FFCRA; https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave), to the need to develop new HR policy and workplace practices, as well as plans for a safe return to work. Ultimately, many business leaders were forced to make unpopular staffing decisions due to a lack of revenue (https://www.wsj.com/articles/companies-choose-furloughs-over-layoffs-to…; https://www.pnas.org/content/117/30/17656). Business leaders had to determine if there would be pay cuts or layoffs and which employees in the company would be affected. Some businesses were able to furlough employees, forcing them to take unpaid leave, but with the ability to keep benefits such as health insurance.
Businesses faced additional legal requirements related to the FFCRA which expanded family and medical leave for both part-time and full-time employees regardless of length of employment. Requirements for paid sick leave related to COVID-19 were also included in the FFCRA. Thus, new legal requirements created the need for new HR policy related to leave. Tax credits were available to businesses when employees took paid leave related to COVID-19 which created new accounting and payroll questions. In addition to new policy for leave, new policies for working remotely were needed due to the large number of employees who were working from home. HR departments and managers had to provide answers to new questions, such as--Should there be a dress code for WebEx and Zoom meetings? What type of technology and equipment would employees be allowed to take home? How would work hours be tracked?
Once employees began to return to work, businesses faced even more new challenges. They had to consider how employee questions would be answered and how employees could access COVID-19 related information. Many employers responded by creating plans for a safe return to work and often relied on the Centers for Disease Control and Prevention for guidance (https://www.cdc.gov/coronavirus/2019-ncov/community/guidance-business-r…). These plans often included information about COVID-19 screening and testing, social distancing and face covering requirements, revised policies (new types of leave), remote work policies, and accommodations. Some employees were reluctant to return to work, which raised the question of whether employers can require their employees to return to work. While the answer was generally “yes” once stay-at-home orders were lifted, there were unique situations such as employees with compromised immune systems or caregiving responsibilities due to their childcare providers being closed. Businesses leaders continue to navigate new issues related to the ever-changing effects of COVID-19.
To help leaders of small businesses in Mississippi navigate the twists and turns of COVID-19 on their business operations, Mississippi State University’s College of Business Family Business Education Initiative (FBEI; https://www.business.msstate.edu/faculty-research/research-centers/fami…) outreach program engaged in a joint effort with the Mississippi Small Business Development Center (https://www.mssbdc.org/) to create the FBEI Outreach Series – Responding to Covid-19 (https://www.business.msstate.edu/faculty-research/research-centers/fami…). The nine-part video series was funded by the Coronavirus Aid, Relief, and Economic Security (CARES) Act (https://home.treasury.gov/policy-issues/cares). This series addresses Paycheck Protection Program loan forgiveness, COVID-19 tax relief, as well as how to approach human resource and business insurance issues. The videos highlight the need for both survival and growth by including information about adjusting business models, conducting marketing research to better serve customers, considerations for new pricing strategies, and even how to reach new customers such as the U.S. Government (https://www.msstate.edu/newsroom/article/2020/08/msu-mississippi-small-…).
Ultimately, this global pandemic has shifted the nature of business in general and HR policy, in particular. Employers now actively plan for Covid-19 exposure both in and outside the workplace for the foreseeable future. Businesses, like many individuals, now operate with the understanding that the impact of COVID-19 will be for months and years rather than weeks.