COVID-19 is causing significant social and economic impact on organisations. This page provides information to help you prepare your organisation and respond to the coronavirus-crisis.
What you as a business leader and employer should know
From our experience, a strongly developed crisis response capability is required to ensure the efficient management of incidents in order to minimise associated negative impacts, meet government priorities around maintenance and confidence, and to ensure the continued delivery of critical national infrastructure. Many organisations have these plans in place for the workplace and supply chain but COVID-19 has already unveiled flaws in some. Given the unknown variables surrounding the outbreak, it is important to review crisis and business continuity plans, develop different scenarios and put them to the test.
With COVID-19 spreading across the globe, businesses face increased levels of uncertainty. Mitigation strategies such as social distancing can affect a business’s value chain on different levels.
In order to ensure the continuity of a business, a clear view on risks, weaknesses and causal relationships needs to be understood. So, we recommend establishing contingency plans to evaluate the impact of different scenarios on liquidity, and other financial and operational metrics
To develop a contingency plan suitable for your business and situation, our experts recommend the following:
Next to health and safety issues, liquidity is of great importance to any company. It’s at the core of any company-system and what keeps the company running. Make sure you consider the following three crucial steps, to preserve liquidity and safeguard business continuity:
1. Immediately discern your current financial position
2. Take action to protect this position and consider all means of help and funding
3. Manage internal and external stakeholders accordingly
For certain companies funding is becoming very tight, and there is a shortage of cash. Foreign exchange rates and commodity prices are very volatile, and credit risk is increasing, both for clients and possibly banks.
With COVID-19 spreading across the globe, businesses face increased levels of uncertainty. Mitigation strategies such as social distancing can affect a business’s value chain on many levels.
In order to avoid liquidity-shortages and covenant-breaches, the implications of COVID-19 on your business’s financials need to be understood. So we recommend assessing the short- and medium-term financial implications of COVID-19.
To assess your financial situation and ensure business continuity, our experts recommend the following:
1. Unlocking trapped cash
2. Improving working capital
3. Drawing credit-lines
4. Applying for government loans
5. Identifying possibilities of coverage and compensation (insurance)
Managing disruption to people and productivity from the Coronavirus.
The impact of COVID-19, as well current and preventative measures taken against it are a major workforce concern of businesses around the world today. Many organisations are facing different challenges, including:
For further information, please find more details in the sections below.
COVID-19 significantly affects the established employment processes and routines. It’s a major challenge to quickly adapt to this extraordinary situation to the best benefit of the company and its workforce, all in compliance with the Swiss employment law framework.
How do I keep my workforce and still be able to reduce salary costs despite less workload?
Short-time work compensation: We can guide you through the entire procedure of submitting a request for short-time work, and all related legal matters.
We can support you in all employment-related issues, including:
Many organisations do not have contingency plans in place if key roles become vacant. Potential replacement(s) have not been identified or may not have the skills, experience or training that is required for the role.
Many organisations don’t have contingency plans in place in case key roles become vacant. Potential replacement(s) have not been identified or may lack the required skills, experience or training for the role.
Some organisations do not have the policies, processes and tools to drive and support a productive, motivated and healthy remote workforce. Working from home and leading virtual teams is not just about having the right technology in place, it requires a certain mindset, behaviours and training.
Companies need to proactively review their workforce costs (e.g. overtime, annual leave, short time, salary reduction).
In the mid-term, they may need to carry out more significant workforce cost reductions: downsizing, targeted workforce reduction or generic workforce cost reduction.
Communication is crucial during the COVID-19 crisis. It is absolutely vital that you communicate with your employees promptly and in an appropriate manner. With Beekeeper’s app, you are always in contact with all your employees, even those on the front line and without a fixed workplace.
Thanks to the Beekeepers app, you are able to manage the crisis period better and more securely thanks to:
For employees involved in cross-border activities – whether business travel, secondment, cross-border commuters, local transfers, or regular activities in multiple states – it is necessary to clarify whether the measures taken by their employers and regulatory authorities in response to COVID-19 may put the company as well as its employees unintentionally at risk in terms of their social security, immigration, and/or tax positions.
Where clients are reliant on supply chains in affected areas, rapidly depleting stock levels are becoming a significant risk and clients are working through strategies for alternative sourcing. In certain cases, clients are showing signs of distress and stakeholders (e.g. lenders) are concerned about the future viability of the business. We are discussing different potential scenarios and what these mean for their operations, for example, as cases of viral transmission emerge in different territories.
“Navigating Your Business Through Turbulent Times” - a practical guide to continue supply chain and operations in the face of the COVID-19 crisis
Consumer buying behaviour, driven by media news and governmental conditions, is very hard to predict. Many clients face significant changes in market demand.
Supply interruptions due to factories with workforce- and/or supply-shortages, supplier bankruptcies, delayed processing at borders drive unreliable supply chains. Additionally, clients face workforce capacity challenges and the need to quickly adopt new ways of working.
The externally-driven challenges require immediate action in adjusting the demand/supply agreements. Business processes, as well as master data, set in place to control a “business-as-usual” environment, should reflect the needs of the current, radically different environment.
Julie Fitzgerald Wieland
Partner and Growth & Markets Leader, PwC Switzerland
Tel: +41 58 792 26 80
Head of Marketing & Communications, PwC Switzerland
Tel: +41 58 792 1885
Partner, Advisory, PwC Switzerland
Tel: +41 58 792 14 19
Leiter Familienunternehmen & KMU, Mitglied der Geschäftsleitung, PwC Switzerland
Tel: +41 58 792 63 63