Covid-19 Business Resilience Study - Financial Times · 2021. 1. 5. · COVID-19 BUSINESS...
Transcript of Covid-19 Business Resilience Study - Financial Times · 2021. 1. 5. · COVID-19 BUSINESS...
August 2020
Covid-19 Business Resilience Study
Commercial Insight Division
COVID-19 BUSINESS RESILIENCE STUDY 2020 I METHODOLOGY
MethodologyOn the 12th August 2020, the commercial insight division of the Financial Times conducted a short pulse survey to our panel. The aim of this study was to shed light on how business leaders within Hong Kong multinational organisationsapproached the Covid-19 crisis and whether their resilience throughout was exemplified internationally.
To qualify for the survey, respondents had to be currently working in an office based in Hong Kong, as well as working for a multinational organisation.
Company Size
Industry Sector
Total Respondents
44% (1-250 employees)
17% (251-1,000 employees)
39% (1,000 employees)
29% Financial Services
25% Professional Services
16% General Services
11% Manufacturing/Engineering
19% Other
103
Hong Kong based business leaders employed by a multinational organisations = 103
Hong Kong based business leaders employed by a multinational organisations = 103
COVID-19 BUSINESS RESILIENCE STUDY 2020 I SUMMARY OF FINDINGS
The majority of respondents admitted their companiesexperienced a decrease in productivity because of thepandemic, with 42% saying they saw a decline in revenues.Despite this, 57% said their headcount had been retained.
74% of respondents said they measured the success of theircrisis management plan by seeing little to no impact onheadcount.
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A focus on employee retention was reflected in the choice ofmeasures undertaken by the companies. Most had less than aquarter of employees put on unpaid leave and very few salaryreductions were introduced.
50% agreed their Hong Kong operation’s approach to the crisis influenced their organisation's global response; with working from home being the key measure adopted. Other initiatives included the use of face masks, increased sanitary measures and improvedcommunication.
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Summary of Findings
40% said they encountered customer related barriers to theircrisis approach, but few experienced issues as a direct result of the employees lack of collaboration.
5Half of respondents felt their local response had been superior toother offices. Cultural differences, previous experience with healthcrises and disciplined staff are some of the key reasons mentioned.
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Impacts on BusinessCOVID-19 BUSINESS RESILIENCE STUDY 2020 I IMPACTS ON BUSINESS
How have Hong Kong multinationals been affected by thepandemic?
COVID-19 BUSINESS RESILIENCE STUDY 2020 I IMPACTS ON BUSINESS
of respondents said theircompany experienced adecrease in productivityas a result of the pandemic.45%
6% 57%
39%
34%
42%
Headcount
Revenue 11%
Impact on Revenue and Headcount
Increased Stayed the same Decreased
Revenues suffered the most but employee retention seemed to be a focus for most, with 57% ofrespondents claiming their company’s headcount stayed the same.
Hong Kong based business leaders employed by a multinational organisations = 103
12%
Approaches to the crisisCOVID-19 BUSINESS RESILIENCE STUDY 2020 I APPROACHES TO THE CRISIS
What measures were taken by your office in Hong Kong to mitigate long term damage to the business?
COVID-19 BUSINESS RESILIENCE STUDY 2020 I APPROACHES TO THE CRISIS
13%
15%
17%
17%
18%
87%
Reduced working week (no. of days)
Other
Unpaid leave
Salary reduction of board members
Salary reduction across the wholebusiness
Working fromhome
% of staff put on unpaid leave
0 - 25% 75% + 50 - 75%
Working from home was the most popular measure taken by Hong Kong companies.
The provision of work equipment free ofcharge was deemed as a key factor toensure a smooth management of thisprocess.
Hong Kong based business leaders employed by a multinational organisations = 103
36% of respondents said their HR department led their outbreak response
COVID-19 BUSINESS RESILIENCE STUDY 2020 I APPROACHES TO THE CRISIS
17%
17%
13%
15%
87%
6%
8%
8%
13%18%
31%
63%
Unpaid leave
Salary reduction of board members
Reduced working week (no. of days)
Salary reduction across the whole business
Other
Working fromhome
Which of the measures adopted by your company during the pandemic have or will become morepermanent in the long run?
Measure to become permanent in thefuture Measureadopted
Hong Kong based business leaders employed by a multinational organisations = 103
How are you measuring the success of your crisismanagement plan?
COVID-19 BUSINESS RESILIENCE STUDY 2020 I APPROACHES TO THE CRISIS
74%of respondents said their crisismanagement plan meant they
saw little to no impact onheadcount
67%of respondents said their crisismanagement plan meant they
saw little to no impact onproductivity
50%of respondents said their crisismanagement plan meant they
saw little to no impact onrevenue
When asked how their companies managed the expectations of clients or customers when they couldn'tbe met; over a third of respondents said they focused their efforts on improving their
communication lines; particularly through video conferencing tools for meetings and training.
Hong Kong based business leaders employed by a multinational organisations = 103
International influenceCOVID-19 BUSINESS RESILIENCE STUDY 2020 I INTERNATIONAL IMPACT
More than half of respondents said they felt their Hong Kong operation’s approach to the crisis influenced their organisations global response
COVID-19 BUSINESS RESILIENCE STUDY 2020 I INTERNATIONAL INFLUENCE
17%
19%
19%
19%
26%
87%
Salary reduction across the wholebusiness
Reduced working week (no. of days)
Unpaid leave
Salary reduction of board members
Other
Working fromhome
Initiatives mirrored by company internationally
Working from home and temporarily shutting offices was replicated internationally by most of the respondents’ companies. Among
other initiatives, respondents mention the adoption of face masks; increased sanitary measures, improved
communication and split teams.
Despite this, more than 40% of respondents said theyencountered some issues with customers; which made
their crisis approach harder to tackle.
On the other hand, not many felt that their employees hadposed a barrier to achieving a successful pandemic response.
Hong Kong based business leaders employed by a multinational organisations = 103
74% of respondents said they were satisfied with their Hong Kongoperation’s response to the crisis
COVID-19 BUSINESS RESILIENCE STUDY 2020 I INTERNATIONAL INFLUENCE
Similarly, 50% of respondents thought it had been much more or somewhat more effective than other international offices’. We asked them why;
“Cultural differences. Asians have wornmasks when possibly ill for years.
Westerners… feel wearing a mask is apolitical statement”
“Our response was buttressed by asupportive culture here – e.g. in the
wearing of masks”
“From previous SARS experienceespecially with community transmission” “Staff in Hong Kong were more disciplined
and compliant with protective measures, while maintaining a high level of
productivity”
“An understanding by management of localconditions that made measures more difficult
in Hong Kong (smaller flats, multigenerational households, crowded transit) allowing a pragmatic response”
“Asian acceptance of the inconvenienceof the virus made responding to it more
practical and less emotive” Willingness of our employees tocomply with the message. They are
more willing here than ourinternational offices.
Hong Kong based business leaders employed by a multinational organisations = 103
Thank youIf you require any further information, please contact:
James LeesHead of Content, [email protected]+852 5969 1574
COVID-19 BUSINESS RESILIENCE STUDY 2020