Businesses planning to postpone bonuses and pay reviews into 2021
One in five Irish companies are planning to postpone bonus payments due to staff because of the Covid-19 impact on businesses.
A survey of more than 400 Irish businesses found that a further third of businesses were also planning to postpone pay reviews to later this year or even into 2021.
Business group IBEC conducted a survey on Monday and Tuesday of this week which reported unprecedented levels of uncertainty around business continuity.
Almost nine out of 10 businesses (86%) cited the uncertainty around the continuity of their business as a challenge at this time. Cost containment (78%), reduced/lost sales (72%), supply chain disruption (68%) and difficulty with remote working (64%) were also key challenges currently facing Irish business.
Fergal O’Brien, Director of Policy and Public Affairs, said: “The outbreak of the Covid-19 pandemic has had a profound impact on business and society globally.
"The impact on business in Ireland has been dramatic on a macro level and in our survey the most immediate challenge facing many businesses is how to continue to operate in a vastly altered business landscape.
“Even with the best planning and risk management in the world, the nature of this pandemic is very different to previous economic shocks.
“The sweeping nature of the restrictions imposed by the public health imperative has resulted in a huge supply-side impact which has widespread implications in terms of lost sales, supply chain disruption and the need to contain costs."
The survey found that 20% of businesses plan to defer annual pay reviews until later this year and a further 9% plan to move them back to next year.
Twelve per cent of companies plan to delay bonus payments to workers until later this year with a further 7% moving them back to 2021.
Speaking to the Irish Examiner, Arnold Dillon the director of Retail Ireland, a part of Ibec, said retailers forced to close their businesses were dealing with a range of issues such as supporting staff and putting in place agreements with landlords, banks and suppliers to ensure they can resume operations when safe to do so.
“Businesses have never been hit with such a range of problems in such an incredibly short time span,” he said.
“The impact has been nearly overwhelming. Most are now in the process of trying to shut down their business into a holding pattern that will allow them to reopen,” Mr Dillon said.
The Ibec survey also asked employers about the range of supports they are offering employees with 44% of respondents providing additional supports to employees working remotely, 40% providing online technology training to employees, and 35% offering additional supports to employees with childcare responsibilities.
