Preparing for the Next ShutdownWhat HR leaders learned from the first COVID-19 shutdown and how to stay prepared

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The first wave of COVID-19 hit small businesses hard. More than 100,000 businesses closed their doors permanently due to the first wave. As of July, 90% of business owners surveyed by the United States Chamber of Commerce reported that they were open, but 65% were concerned about a second closure.

With national cases increasing and showing no sign of slowing down, it’s likely that another shutdown could be on the horizon.

The good news is that we’ve learned a lot from the first lockdown. HR leaders have learned the importance of sick leave policies, crisis plans, remote work, and investing in technology for their businesses. If a second complete shutdown goes into effect, HR departments can be better prepared to weather the storm, and can more effectively lead their workforce to a place of productivity and engagement.

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Contents

1. HR lessons from the first shutdown 4

Cash flow is king 6

Remote work is possible 7

Streamline and integrate HR 8

Battle pandemic fatigue 8

Omnichannel delivery is a safe alternative 9

Maintain a backup plan for supplies 10

Follow CDC guidelines as a minimum 10

2. Shutdown readiness checklist 11

Physical store 12

Secure your store 12

E-commerce considerations 13

Finish the paperwork 13

Control your cash 13

Client and employee communication 14

Remote work ready 14

3. Moving forward even under a shutdown 15

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HR lessons from the first shutdown

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Before we get into our comprehensive Shutdown 2.0 checklist, there are a few things businesses should take to heart from their experience with the first nationwide shutdown. From managing cash flow to remote work, the small and big businesses alike have had to adjust their selling strategy and operations.

But before we even get into that, your first step is to make sure you’re aware of where your state, city, and county are in relation to COVID shutdowns or regulations. Changing requirements will be tough on small businesses, but take the few extra minutes and Google your local government news updates — bookmark it!!! — and you’ll have the information you need at hand.

Then, and if, your area is re-closing you’ll be first to know and can activate your re-closure plan quickly, minimizing downtime and staff confusion.

Okay, so what were some of the most important things we learned from last time?

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CASH FLOW IS KING

The first shutdown highlighted a major problem most businesses face: Cash flow. Even before COVID, over 80% of businesses fail because of cash flow issues. Cash flow is not your company’s profit, but the money that runs your business. And if you don’t have a steady cash flow or an emergency fund, staying afloat is hard — pandemic aside.

COVID-19 and the following closures made us more aware than ever on the importance of keeping a steady cash flow and emergency fund. But now several months into the crisis, emergency funds are deleting and cash flow remains irregular.

When preparing for the next shutdown, some things to consider are:

• Build solid relationships and communications with suppliers

• Keep a bit of extra inventory in case your supplier misses a shipment or closes

• Reduce expenses through cutting subscriptions, negotiating rent freezes or decreases, and other avenues

• Create another revenue stream to supplement your business

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REMOTE WORK IS POSSIBLE

You may have never ushered a transition to a remote workforce as quickly and as urgently as you did in March/April of 2020. For many industries and offices, remote work has allowed businesses to keep working despite widespread closures. It’s hard to know which industries or states will be subject to another shutdown. But one silver lining is that the colossal shift to remote work at a massive scale has left us with some scars of learning that will enable us to do it quicker, easier, and less stressfully the next time.

Even if your office is allowed to reopen, it may not be time to return to the office. Your employees may be reluctant to return. Keep your remote practices in place in case of another shutdown. Based on the fact most states are still restricting gathering sizes, the more remote, the better.

Or even better, allow employees to keep working from home until we are sure the worst has passed.

Your employees might agree with the idea. According to a recent Gallup survey, ²/₃ of remote workers would like to continue to work from home.

The more your employees work remotely, the more you can lower or eliminate costs related to your office space. Desks, pens, internet, office security, paper filing, coffee, catered lunches — all of these items are expendable. Some of those savings might dip into digitizing your workspace, but a considerable number of popular software have free versions that are perfect for small businesses.

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STREAMLINE AND INTEGRATE HR

Breakthroughs in streamlining and integrating HR with employee life have affected all parts of the department. From using email templates for communication and shifting all scheduling to an online environment to creating innovative games and virtual social gatherings to keep employees connected, HR is the glue keeping your employees together.

Some solutions HR professionals have turned to during COVID are:

• Increased health insurance coverage

• Digitizing the HR paper trail

• Online scheduling and feedback

• Streamlined payroll (which results in better cash flow monitoring)

• Moving new employee and contractor onboarding online

BATTLE PANDEMIC FATIGUE

Everyone is tired of the virus, their new disrupted lifestyle, and staying home all time. For businesses, it’s HR that takes the brunt of employee frustrations. But after grappling with the issues, HR professionals have come up with creative solutions.

• Mental health benefits

• Helping employees cope with loneliness through check-ins and online interaction

• Remote or social-distancing health and wellness programs

• Resolving disputes regarding COVID and politics

• Assisting employees in getting help for their financial goals and issues

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OMNICHANNEL DELIVERY IS A SAFE ALTERNATIVE

Businesses who didn’t just survive but thrived during the first shutdown had to innovate. And it was rarely by creating a new product. Instead, they focused on new avenues for communication and delivery.

Curbside pickup has been the biggest winner so far — with a 734% increase in Q2 alone.

Depending on the type of business you run, consider how you can adopt the following pandemic-proof solutions to your business:

• Offering takeout or curbside delivery

• Buy online, pick up in store (BOPIS)

• Start an e-commerce store

• Take orders through Facebook

• Instead of cash or credit cards, consider digital payment apps like Venmo or Zelle

These solutions work for businesses in the restaurant and retail industries. If you’re in an industry that doesn’t lend itself particularly well to retail solutions, like construction or hospitality, don’t give up hope. Here are some innovative ways a few companies are switching gears:

• The construction industry is turning to technology, and will likely see an increase in productivity tools due to the pandemic, such as: 4D simulation, digital workflow management, real-time progress tracking, and advanced schedule optimization.

• Hotels and other hospitality businesses are also relying more on technology. Some are pivoting to using touchless payment methods, offering virtual travel experiences, and turning lodging into workspaces for remote workcations.

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Employees may lean on HR more for training or general communication about these new business approaches.

MAINTAIN A BACKUP PLAN FOR SUPPLIES

Remember how most major stores ran out of toilet paper within weeks of the first COVID shutdowns?

Your state might be open, but what happens if your supplier or manufacturer is located in an area under lockdown or worse — located in another country and under a harsh shutdown.

If you are continuing business, whether it’s from home or from your store, you’ll want to keep some extra supplies on hand in case there’s a delay. Customers will appreciate that you still have items on hand.

FOLLOW CDC GUIDELINES AS A MINIMUM

By now, most businesses are required to comply with Centers for Disease Control and Prevention guidelines. This means maintaining social distancing, cleanliness, and requiring PPE equipment from employees and customers alike.

To make things easier, the CDC now provides a Business Toolkit to ensure your workplace is as safe as possible.

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02 Shutdown readiness checklist

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To minimize losses, it’s better to have an action plan for the next potential shutdown. Depending on your business setup, you may have different steps. We try to cover all the situations here with this ultimate shutdown 2.0 preparedness checklist:

PREPARE YOUR BUSINESS

□ Inspect and deep clean your sales floor

□ Prepare your store for reopening

□ Take photos of your store and sales floor as a record in case of a break in or other disaster

□ Test your fire alarm, sprinklers, and security system

□ Forward mail to your home

□ Turn off all electronics and set the thermostat to a safe level

□ Put up a sign and announce on any social network that you will be closed until further notice

SECURE YOUR BUSINESS

□ Remove all valuables from the store

□ Deposit cash into your business bank account

□ Remove high ticket items from the sales floor

□ Ensure security alarms and cameras are working

□ Take inventory before leaving

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E-COMMERCE CONSIDERATIONS

□ Let customers know your COVID safety precautions

□ Notify customers of any shipping delays caused by the shutdown

□ Ensure your products and packaging are sanitized before shipping

FINISH THE PAPERWORK

□ Finish agreements with your vendors. This means cancelling or making other arrangements for shipments.

□ Explain to your employees why you are closing

□ Help your employees get unemployment is necessary

CONTROL YOUR CASH

□ Review how much cash you have on hand and how long it will last

□ Stop spending

□ Ask your landlord or lender, in case of a mortgage, to lower payments until the shutdown ends

□ Contact creditors and refinance if it can get you a lower payment

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CLIENT AND EMPLOYEE COMMUNICATION

□ Communicate with customers via social media, email, or any other tool

□ If you still offer some services, let them know immediately

□ Sell gift cards for when you reopen

□ Use email templates to make client communications more efficient

□ Use HR email templates to communicate to your staff

□ Set up a communication plan for crises and test it out in advance of a problem

REMOTE WORK READY

□ How will you communicate with customers and employees? Some options are Slack, Discord, Bootcamp, Social media group, or even a group chat.

□ Choose an accessible video conference software for employee check-ins, like Skype, Zoom, or Google Hangouts.

□ Establish an online or mobile-ready workflow for your team.

□ Create a system for selling, packing, and delivery. This can include local-only deliveries, take-out, or curbside pickup.

□ Regularly check-in on employees to see how they are doing and their feedback on the remote setup.

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REDUCE REMOTE FATIGUE

□ Let employees know that social meetings are opt-in events and not mandatory

□ Don’t set up a video meeting if an email or Slack messages will do

□ Use simple, distraction-free backgrounds for video-conferencing

□ Consider using video meetings for group calls and phone conversations for 1-1 meetings

□ Stick to work hours when communicating with employees

Finally, you’ll want to have a reopening checklist ready for when the shutdown ends.

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03 Moving forward even under a shutdown

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It can feel overwhelming to comply with so many requirements, especially after seeing the devastation of the first shutdown. The best bet for getting back to business as usual is staying safe. For HR leaders it may take some creative ways to manage payroll, engage workers, stay in compliance, and keep staff and customers safe. But with everything we’ve learned from the first shutdown, it should be easier this time around.

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Here at Zenefits, we believe the entrepreneurs and employees in small and mid-size businesses power the American economy. Their tenacity, perseverance, and dreams represent the backbone of our workforce.

But these businesses face challenges disproportionate to their size and resources. And technology providers largely focus on the needs of large businesses, creating services out of touch and out of reach for small and mid-size businesses.

At Zenefits, our mission is to level the playing field for the other 99.7% — the underserved small businesses that fuel our economy. We provide innovative and intuitive HR, benefits, and payroll software and services purpose-built for these small and mid-size companies.

With our technology, you can focus more on your business and staff instead of spending too much time on HR. Streamline onboarding, benefits, payroll, PTO, and more with our simple, intuitive platform.

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