An overwhelming majority of businesses are bracing for heavy profit losses following the Covid-19 pandemic, according to a new survey we completed in June 2020.
What we saw within the survey is rising concerns across the world that Covid-19 will have a devastating impact on business life.
I spoke to the owner of major food and bar chain, and they are predicting a reduction of 33% in revenue and a 40% reduction in staffing numbers, whilst another CEO – a major supplier to airports – told me that the shock to their business is so great that achieving financial stability will result in over 60% staff reductions. Another CEO of a major resource global industry told me that demand was so weak that they would have to change their whole operating model with serious impact on revenue and staffing. A CEO at one of the big sporting institutions told me that the loss of revenue was going to need a five year recovery plan and the leader of a large City Council said the likelihood is that they would go bust.
These worries about COVID-19 and the potential of a new wave of infections are the major concern for 58% of leaders that we surveyed in June 2020.
The findings show clearly that the virus is putting a serious brake on growth plans and the risk outlooks, remain a top concern.
In our survey of 10,000 leaders we have coached in 31 countries over the past 5 years we found:
- On staffing levels, 38% of survey respondents said they had reduced their headcount in Q2, with only 4% increasing their workforce numbers, and in Q3, a further 45% anticipate more staff reductions in the coming three months
- Almost 40% of leaders had imposed extended payment terms during COVID-19
- Two in five leaders laid off staff and instigated furloughs
- Only 30% of respondents applied for some kind of Payment Protection Program loans.
- Their outlook was a new world of work – 69% which will include: social distancing, virtual work forces, daily deep cleaning, screening, temperature tests and work-life balance.
- More than half of respondents believe they will return to the office in June or July.
- 79% were either very likely or quite likely to travel when safe
- 42% to travel for leisure within the next three months – if safe
The assessment was send to over 10,000 of our Leaders who have been through out coaching programmes, typically C level. The survey was open between May 18th and June 19th. The survey went to 31 countries, with 6175 responses coming from 20 countries with the majority of responses coming from UK, Australia, US, China, India, Canada and South Africa. The data shown above will be split by country in the final report.
How economic recovery will look in 2021 is uncertain and now is the time for all businesses to look under the bonnet in a strategic way.
About Dr Maurice Duffy
Irish. Author, Professor, Coach and Business strategist. The person Australian Captain Steve Smith credited with helping him back from his cricket ban. Coach to two Ashes wins. Coach to CEOs, Politicians and some of the best know international sports starts including Olympians. BBC ‘Thought for the Week’. Coached business leaders and organizations in 80 countries. Works with charities to do with Mental Health. Lives in North East England with his wife and 11-year-old son.