“Give, and it will be given to you. A good measure, pressed down, shaken together and running over, will be poured into your lap. For with the measure you use, it will be measured to you.” Luke 6:38
COVID 19 will have a major setback on the economy and as a result employers will have to make some drastic decisions such as to whether to remain open or not. Individuals and Employers will also be looking to Governments for some type of bailout or incentives. Governments too will be faced with uncertainty as this crisis looms over their countries
Despite the potential opportunity losses as a result of this COVID 19 crisis, we cannot panic and must remained focused. This is a time that if we are in a position to help others, we should. Luke 6:38 stated that “Give and it will be given to you. A good measure, pressed down, shaken together and running over, will be poured into your lap. For with the measure you use, it will be measured to you.”
I am not an expert but here are a few tips.
Shift hours for employees
If you are in a position to still be in business but your revenue is impacted, implement a shift hour scheme for your employees so at least everyone will benefit from some form of compensation even though it may be less than what they were getting previously.
Reduction in salary
While there are many people living from paycheck to paycheck, rather than laying people off, consider an agreement for a reduction in salary starting with a cut in the salaries of the management team. Eliminate all planned bonuses.
The average employee may only be entitled to two weeks vacations but this time when there is not much activity, use this time so that employees can take their vacation and get paid for it during this time. Some employees may even want to consider taking an extra two weeks leave off without pay if they can afford it.
Government stimulus packages
Some Governments are in a huge deficit positions while others are in surpluses positions. Despite the condition of the government, this will be an unprecedented time whereby governments will have to assist with some form of unemployment payouts to the employees in the private sector and some form of subsidy payments to businesses affected by the Covid 19. However, this will require honesty by employees and businesses. Increase the Invest TCI grants from 10,000 to 20,000 and expand the list for a period of three six months.
Review and decrease your margin
Most businesses have a certain margin they want to achieve. Consider reviewing your margin and in so doing reduced your markup so the prices you offered to consumers can be lower. This however, will also require the assistance of the Government. The government can assist by reducing their duty rate so that businesses can pass this savings onto consumers. I believe that businesses should pay for their licence fees but the Government can consider slashing the licence fees by 50%. Government should also eliminate the penalties on business licenses, instruct the Board of NHIB and NIB to eliminate late fee penalties for three months. The Fortis proposed 6.8% should also be suspended for about three months because businesses will pass this increase onto consumers.
These are some interesting times. I believe this COVID 19 has taught us some lessons and hopefully we will learned from it. This is time now for us to develop alternative industries rather than depending primarily on tourism. This is time for us to review and implement unemployment benefits legislation.
More importantly, this is the time for us to unite and truly help those in need. Government and Employers will feel some losses as a result of some of the above recommendations but ultimately it will pay off in the end.
I conclude with the scripture as I started off with Luke 6:38 “Give, and it will be given to you. A good measure, pressed down, shaken together and running over, will be poured into your lap. For with the measure you use, it will be measured to you.”