How has the business environment changed during Covid-19 Lockdown in Europe?
When I spoke to my friends and family in Asia, for many it was quiet hard to really comprehend the lockdown situation. Most people have heard about the changes, but how is it different to Asia? What should you consider when doing business?
For a start, it is important to understand what is meant by ‘Covid-19 lockdown’. In each country, the definition is slightly different. In Europe, for most countries, it means that people have to stay at home unless they are going out to buy grocery, to exercise once a day or they are a key worker (Key workers are primarily supermarket, pharmacy, transportation, hospital and care workers). In some countries, you will need a ‘certification’ to prove that you are allowed to go to work. Police are allowed to stop you and question your purpose.
Even with the lockdown easing in many countries, due to the heavy impacts from the lockdown, it still caused major changes in the business environment.
Remote working with Office Lockdown
During the lockdown period, offices had to be closed and people were asked by the companies to ‘work from home’ as much as possible. Many companies had to accelerate their IT migration and the number of Virtual Private Network (VPN) access to cater for this surge in demand.
With the lockdown easing, although some companies are asking employees to return, they are still restricting the capacity in the office and employees are required to register their attendance daily. Companies like Google and Facebook have already told their staff that they don’t need to go to the office until the end of the year.[1]. In general, people are expecting their employers to give them a choice to work remotely or not. This means, physical meetings are much harder to achieve than before.
Virtual Business and networking is the way forward
Face-to-face meetings are still prohibited due to social distancing. Although some companies are slowly allowing face-to-face meetings internally, external meetings and hosting external people are still very restricted. Even business trips are still banned for many people.
There has been a massive growth in the number of virtual meetings and virtual events using all the platforms you can imagine. Even Yoga, Music and dance classes are now conducted online. It is all about how to engage with people virtually. Be prepared for the virtual world.
Employment through Furlough Scheme
Furlough Scheme is when the person forced to takes a leave of absence but still remains employed by the company. Many governments around Europe are offering financial support to companies to help retain employees rather than laying them off until things are ‘back to normal’. Each country has its own rules and regulations. For example, in the UK, the government is paying 80% of the salary. It is estimated around 9.4 Million people are on furlough[2]; In Germany (Kurzarbeit), pays roughly 60% of salary and there are about 10Million workers on the scheme[3]; In France (Chomage Partial) the government pays 80% of the salary, with an estimate of 12.2Million works on the scheme[4].
This furlough scheme has been used by small to large enterprises in all industries and sectors, although some sectors are more affected than others. For most countries, the scheme will end around September, it means many people are either working part-time or have not worked for 4-6months. Moreover, it is clear that the economy will not return to ‘normal’ for a while, therefore companies will have to make adjustments to their operations, resources and cash flow. For many people, they are doubtful about their job security at the end of the furlough scheme. Be patient and mindful of the companies and people that you are dealing with.
Border closure for business
Many countries have shut their borders to other countries. In some countries, e.g. Italy, the shutdown could be regional. While in UK, each country (Northern Ireland, Scotland, England and Wales) have their own individual rules and regulations. It is important to watch out how each country operates. In recent time, although borders between some countries are open such as Germany, France and Netherlands, however, each individual country has its own set of rules about who will need or not need a 14-day quarantine. For Example, people in England can visit France without quarantine (to and from) but the English must isolate 14 days if they were to go to The Netherlands (only to, not from Netherlands). The rules are complicated and change can happen really quickly. It’s important to check regularly and make sure you check country by country and region by region.
All Expo, Conferences are cancelled
Many international companies go to these large events to promote themselves and to network. Unfortunately, most events are not expected to be back on track until 2021. This is due to regulation and border restrictions. Virtual networks and webinars are now the new norm to replace the physical events. This may be a good news for an overseas company as all the networking and sales activities can now be achieved directly online omitting the need to travel overseas. Should you be interested in any companies or international expos, it is recommended to check regularly for online events and information updates.
Conclusion
The points above are just some of the major changes in the business environment. The situation is complicated as each country and individual company has its own rules and regulations. These rules can change rapidly and quickly, therefore care must be taken depending on the needs of your business. The only thing we know for certain is the virtual meetings and webinars are here to stay. Do take advantage of it.