The WorldatWork COVID-19 Employer Response Survey · 31% 38% 39% 47% 55% 68% 70% Other We have not...

©2020 WorldatWork

©2020 WorldatWork

The WorldatWork COVID-19 Employer Response Survey

April 2020

©2020 WorldatWork

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Content Directory

Methodology……………………………………………………….. 2

Key Findings……………………………………………………….. 3

Benefits/Pay……………………………………………………….. 4

Workforce Planning……………………………………………….. 15

Performance Measures…………………………………………… 19

Office Planning……………..……………………………………… 22

Communication……………………………………………………. 29

Respondent Profile/Contact Info………………………………… 35

©2020 WorldatWork

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Methodology

Identify

Collect

Analyze

WorldatWork invited its broader membership and customer base to participate in an electronic survey. Email invitations were sent directly to participants on 3/31/2020 and results were collected over a 5-day period.

A total of 1,510 responses were received, representing organizations of different sizes and across multiple industries. Results have not been weighted, but respondent profiles have been included to assist with interpretation of results. Results are skewed to be more representative of mid-large employers, but statistical differences have been highlighted when present.

The survey has a 3% overall margin of error at a confidence level of 95%. The error rate was based on how representative the results are for medium-large organizations.

Sample sizes vary by question. Please note that statistical reliability will fluctuate based on sample sizes.

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Key Findings• Over a third of participating organizations stated they will provide full pay for employees unable to work

due to illness/caregiving needs

• Among organizations making plan changes, waiving co-payments/deductibles was most frequently cited

• Most organizations are not offering additional support to those in caregiver roles or hazard pay

• Over half of the organizations surveyed are already making changes to staff/operational hours

• Organizations that are implementing layoffs/furloughs are optimistic that they will be able to return to normal in less than 3 months

• Most organizations that have open office space are not planning on changes; however, the vast majority of organizations that had plans to transition to an open office format have temporarily/permanently paused plans

• There has been a 415% increase in the percent of employees working remotely part or full-time

• Most organizations are sending frequent (daily or every few days) COVID-19 related communications to associates

• Respondents indicated associates are highly interested in company financial information, but only a third of organizations are providing that information

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Benefits/Pay

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n = 1,279

Over a third of participating organizations stated they will provide full pay for employees unable to work due to illness/caregiving needs

47% 45%

37%

8%13%

Apply applicable existingleave policy or benefit

Apply applicable newleave policy or benefit

Provide full salarycontinuation

Provide partial salarycontinuation

Other

What approach has your organization taken to pay impacted employees who remain employed with the organization but are not able to work or telework due to illness or

caregiving needs? Please select all that apply.

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n = 1,150

Most organizations are focused on communicating existing benefit info, though some are making changes

11%

26%

36%

93%

Validating actively at workclauses

Creating/providing additionalresources to at-risk

populations

Making plan changes/increaseaccess

Communicating existingprograms

Currently, which of the following benefit actions is a focus for your organization? Please select all that apply.

• Employers with 1,000 or more employees are more likely to be making changes

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n = 337

Among organizations making plan changes, waiving co-payments/deductibles was most frequently cited

14%14%15%19%

28%30%30%

60%

OtherFormularyupdates

Waiving out ofnetwork

Networkexpansions

Mail order limitchanges

Change inprescriptionaccess (e.g.

home delivery)

Implementingtelemedicine, if

not in place

Waiving co-payments ordeductibles

What plan changes/increasing access are being made? Please select all that apply.

• Non-profit organizations are more likely to waive co-payments/deductibles

• Organizations with fewer than 100 employees are more likely to waive out of network provisions

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n = 1,168

The majority of participating organizations do not have plans for additional hazard/battle pay

65%

5% 8% 10%5% 8%

No, not planned No, no cash-actionsplanned, but perks

(meals, daycare,etc.) instead

Yes, cash incentivesthat are a flat dollar

amount

Yes, cash incentivesthat are tied to

hours/shifts worked

Yes, cash incentivesthat are based onanother formula

(e.g. percentage ofsalary)

Other

Is your organization planning incentives/spot bonuses (battle pay/hazard pay) for employees that are required to work on-site during the pandemic?

• Retail and healthcare workers are most likely to receive some form of hazard pay,

• 46% retail organizations • 29% of healthcare/pharmaceutical

organizations

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n = 1,176

The majority of organizations have already paid or are still planning to move forward with salary increases

35%

21% 21%

6% 3%

14%

We have alreadypaid out salary

increases in 2020

We haven't paid outyet, but are still

planning to pay outsalary increases in

2020

We are on hold andwaiting to decide

We are cancellingour plans to pay outsalary increases in

2020

We had no plan topay out salary

increases

We don't know yet

How is your organization moving forward with planned salary increases in the next three to six months?

• Private sector/publicly traded companies are more likely to have already paid out salary increases vs. government and non-profit organizations

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n = 1,104

Most organizations are not offering additional support to those in caregiver roles

4%

11%

13%

23%

60%

Providing partial or full expense reimbursementfor those who are required to work

Access to or subsidy for daycare needs

Other

Designing resources for those who are strugglingto work remote while caring for others

We are not offering additional support to thosein caregiving roles

How is your organization supporting (beyond pay initiatives) those in caregiving roles? Please select all that apply.

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n = 1,146

Aside from promoting EAP resources, employers are sharing tips on well-being and virtual socialization

1%

11%

31%

38%

39%

47%

55%

68%

70%

Other

We have not taken additional steps to support workerwell-being

Make tools available for virtual workouts, yoga,mindfulness, etc. from home

Leadership accountability to be tuned into staff well-being

Focus on social connection through work forums (lessfocus on productivity)

Encourage physical activity

Encourage social connection (while maintaining physicaldistance)

Sharing tips for physical and emotional well-being

Promotion of EAP resources

What is your organization doing to support worker well-being, whether actively working or not? Please select all that apply.

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n = 1,080

Most organizations are not providing financial relief programs beyond mandated leaves/pay policies

1%

2%

4%

7%

8%

17%

69%

Providing free daycare vouchers

Grocery delivery services

Employee loan programs

Waive or subsidize premiums for benefit programs

Other

Free resources (e.g. hand sanitizer)

We are not implementing additional relief programs

What financial relief programs (beyond mandated leaves or pay policies) is your organization doing to support worker financial well-being, whether actively working or not?

Please select all that apply.

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n = 1,125

As expected, most travel plans have been suspended, but most have not frozen employee learning and development budgets

29%

55%

74%

86%

Freezing/limiting educational resource/plans (forstaff)

Non-essential projects are delayed

Freezing/limiting conference travel (for staff)

Travel bans, except critical needs

How are professional growth and travel plans being impacted by the pandemic? Please select all that apply.

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n = 1,490

In general, respondents felt their organization is prioritizing workers, or balancing needs equally

7%

25%

9%

53%

4% 2% 0%

We are onlyprioritizing

workers

We are mostlyprioritizing

workers

We aresomewhatprioritizing

workers

We are balancingthe needs equally

We aresomewhatprioritizing

revenue/profit

We are mostlyprioritizing

revenue/profit

We are onlyprioritizing

revenue/profit

How do you feel your organization is balancing the needs of employees versus the need to generate revenue/profit?

• Government/non-profits were more likely to say they were prioritizing workers

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Workforce Planning

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n = 819

Over half of the organizations surveyed are already making changes to staff/operational hours

3%

8%

13%

18%

20%

22%

22%

25%

39%

72%

Full business closure

Investment in more automation

Organizational redesign

Partial business closure

More rotational staffing options

Better workforce continuity planning

Shift to more ongoing virtual work

Layoff

Furlough

Hiring freeze, except critical roles

If your organization is planning any of the following, please tell us the initiatives you plan to implement. Please select all that apply.

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Organizations are already taking action; however, many organizations stated they won’t start layoffs/furlough activities for another 30-60 days.

44%

55%

56%

67%

70%

72%

73%

79%

90%

28%

26%

33%

24%

15%

8%

12%

13%

8%

17%

11%

8%

10%

6%

5%

5%

5%

60%

11%

5%


Layoff

Furlough







Already in progress One to two months Two to three months Three to four months Four or more months

Please tell us when you anticipate implementing the initiatives.

n = 819

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Organizations are optimistic that furloughs and closures will last less than three months

14%

16%

17%

21%

29%

33%

47%

48%

50%

30%

6%

28%

36%

28%

42%

37%

37%

33%

12%

11%

8%

20%

15%

15%

11%

7%

12%

45%

67%

47%

24%

29%

11%

5%

7%

5%





Layoff




Furlough

One to two months Two to three months Three to four months Four or more months

Of the initiatives you have in place or expect to implement, for how long do you expect each will last?

n = 819

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Performance Metrics

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n = 1,137

Most organizations are still not sure whether performance metrics will be adjusted due to COVID-19

21%

2% 1% 1%

42%

12% 11% 9%

We are still inthe process of

settingperformance

metrics

Yes - we'velowered

performancehurdle(s)

previously set

Yes - we'veadded new

performancemetric(s)

Yes - we'veadded a

discretionarycomponent

We areconsidering but

have not yetdecided

Weconsidered,

decided not toadjust now,but plan torevisit later

We consideredand/or we will

not adjust

Other

Are you adjusting performance metrics in your annual incentive compensation plan(s) in response to COVID-19 and economic uncertainty?

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n = 957

Among those adjusting annual incentive plan metrics, company performance was the most cited adjustment

17%

7%8%10%

13%14%

31%

39%

OtherQualityEfficiencyQuantityDiscretionaryDepartment ororganizational

unitperformance

Overallorganization

financialperformance

Metrics are notbeing adjusted

What metrics are being adjusted in your organization’s annual incentive compensation plan(s)? Please select all that apply.

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Office Planning

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The number of organizations with employees working remotely (part or full-time) has already increased by 415% and could increase further before the COVID-19 pandemic ends

23

n = 1,325

Prior to the COVID-19 pandemic, approximately what percent of employees

worked remotely?

What percent of employees at your organization are currently working

remotely?

13% 67%n = 1,328

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n = 1,237

Prior to the COVID-19 outbreak most office space was mixed, 25% was traditional format, and 21% open format

21%25%

55%

Open office format (few barriersbetween departments and desks)

Traditional office format (privateoffices/areas to work)

Mixed office format (e.g. private officesfor leadership, barrier-free workspaces

for all else)

Do you have an open office space or traditional cubicle style office space?

• Government employers are more likely to have traditional space, while the private sector had a higher incidence of open office format

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Organizations currently operating in an open office format mostly plan on keeping existing office design

n = 250

4%

12%

14%

70%

Considering cubicles or other barriers toprovide protection

Considering providing more spacebetween associates

Other

No impact at all

How, if at all, has COVID-19 impacted your plans for workspaces?

©2020 WorldatWork

3%

46%

51%

We are cancelling our plans totransition into an open office format

No change, we are still planning totransition

We are pausing our transition plansuntil the pandemic is over

Yes12%

No73%

Not sure14%

26

n = 975

Organizations planning to transition to an open office format are pausing plans

Prior to the COVID-19 pandemic, was your organization planning to transition into an open office format?

• Among the organizations without an open office format, 12% indicated they are planning to transition

How has the pandemic impacted plans transitioning to open office space?

• The majority of organizations that had planned to switch format have decided to pause or cancel plans

n = 119

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n = 1,478

Most organizations are expecting to be back to normal operations by summer

10%6%

39%

24%

9%

32%

4% 1% 0% 0%4%

Currentlyoperatingnormally

April May June July August September October November December Not thisyear

Based on everything we know at this point, when does your organization plan on resuming “normal” operations?

• Retail was more likely to indicate they plan on returning to work in April vs. other industries (14% vs. 6% average)

• Smaller companies are more likely to currently be operating normally vs. larger organizations (18% among companies with less than 100 employees)

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n = 1,083

Organizations are keeping/introducing regular team meetings and 1:1’s, and virtual social events are becoming popular

4%

34%

71%

77%

87%

Other

Virtual social events (e.g. happy hours)

Continuing or establishing one-on-one meetings

Encouraging use of or establishing platformcollaboration tools (e.g. Slack, Zoom)

Continuing or establishing regular team meetings

How is your organization building or keeping up employee culture during this period?

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n = 1,271

The majority of organizations are sending out COVID-19 related communications daily or every few days

1%

3%

11%

19%

32%

35%

Not currently sending anycommunications related to COVID-19

Less than once per week

Every other day

Once a week

Every few days

Daily

How frequently is your organization communicating to employees regarding COVID-19?

• Large organizations are more likely to send daily communications

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n = 1,257

Email and virtual meetings are cited as the most effective way of communicating COVID-19 information

28%

54%

63%

65%

81%

89%

12%

12%

17%

10%

7%

9%

2%

2%

4%

2%

2%

59%

32%

15%

24%

11%

Text

Executive presentations

Intranet

Platform collaboration tools (e.g. Zoom)

Virtual meetings

Email

Effective Neutral Ineffective N/A

How would you rate the effectiveness of the communications method you use?

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n = 1,267

Health tips, benefit info, and remote work tips are the types of information shared most frequently

5%

19%

33%

40%

54%

73%

78%

81%

84%

Other

Personal finance guidance/tips

Company financial information

Resources (e.g. list of open stores)

Motivational articles/messages

Government reports and guidance

Work from home tips

Company benefit information

Health tips

What type(s) of information are you sharing with your employees? Please select all that apply.

• Most organizations are not sharing company financial information

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n = 1,140

Company financial information is of high interest among employees, but is not frequently shared

Of the information your organization communicates, please rank which drives the most interest among your employee population?

1

2

3

4

6

7

8

5Company benefit information

Government reports and guidance

Company financial impact/planning information

Work from home tips/adjusting to the change

Health tips

Motivational articles/encouraging messages

Resources (e.g. list of open stores, care options)

Personal finance guidance/tips

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n = 1,039

EAP, telemedicine, and coverage are the biggest focus areas when communicating benefits to employees

3%

14%

16%

29%

31%

35%

63%

82%

83%

Other

Network limitations

Dependent care claims process

Prescription fulfillment

Access to urgent care

24-hour nurse line

Covered medical and mental health services

Telemedicine

EAP

Which existing programs are being communicated? Please select all that apply.

• Companies with more than 100 employees are more likely to offer telemedicine, EAP, and dependent care claims process

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Company Sector

35%

40%

8%

17%

Private, publicly traded Private, privately-held Government/ Publicsector

Nonprofit/ Not-for-profit

n = 1,510

Your organization is:

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Company Industry and Size

8%

24%

42%

18%

9%

Fewer than 100 employees

100 to 999

1,000 to 9,999

10,000 to 39,999

40,000 or more employees

n = 1,510 n = 1,510

Under which industry does your organization fall?

How many full-time equivalent (FTE) employees does your organization have?

23%

5%

6%

7%

8%

13%

14%

17%

Other

Retail

Energy

Information technology

Consulting/professional…

Financial services

Healthcare/pharma

Manufacturing

Only industries with at least 5% of responding organizations are listed here.

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