Can businesses return to 'normal', post-pandemic?

Few businesses have been able to avoid the impact of the COVID-19 pandemic -- the necessity of strict social distancing and national lockdowns including closure of non-essential retail created a major financial strain on organizations across the country.

Recent figures paint a promising picture of businesses’ recoveries. Indeed, the ONS recorded an increase of 9.4 percent in investments made by businesses in Q3 2020. However, there is still a tremendous distance ahead on the path to recovery; the latest figures show Q1 2021 investment levels still 18.4 percent lower than Q4 2019, the last wholly pre-pandemic quarter.

Of course, recovery from the pandemic is not a purely financial matter -- it has taken a significant emotional toll on individuals. Indeed, a recent survey conducted by Nerdwallet of over 900 management staff in UK businesses found that a majority (54 percent) would describe the past year as the most challenging of their careers. Even more (57 percent) reported having enjoyed their job "significantly less" than they had in the past.

Considering the breadth of the devastation caused by the pandemic, it is creditable that so many have successfully navigated these unique and unexpected set of challenges. As restrictions begin to ease and 'normality' returns, employers should look to take in the unique lessons of the past year and determine where "business as usual" may not be the best course of action going forward.

Office space

The social distancing measures brought about by the pandemic forced many organizations to embrace remote working overnight. And for the most part, employees have embraced this chance; a recent survey found that 85 percent of employees hope to continue working from home in some capacity. Accordingly, some business leaders may consider whether there is any need to return to offices at all.

Renting office spaces comes paired with significant initial and running costs. Far from simply renting the location, there are additional expenses including utilities, cleaning, and furnishing which can render it a burdensome overhead. In fact, recent research showed that 70 percent of UK small and medium enterprises (SMEs) were making a cost saving of up to £840 each month while working remotely through the pandemic. Such savings could go a long way for businesses looking to quicken their financial post-pandemic recoveries.

None of which is to suggest that remote working comes with its own costs to consider. Ensuring each employee is supplied with the furniture and technology to create a comfortable remote working environment is essential; while moving in-house operations to online platforms will require substantial investment in major tech and cyber security provisions. Cutting corners here can prove costly, as data breaches cost UK companies an estimated average of £2.48 million per instance.

The suitability of each business to remote or office working is best assessed by those managing it -- but with employees reporting enjoying the flexibility and balance afforded by remote working, and employers may consider experimenting with a hybrid working model; investing in a smaller, cheaper office space whilst allowing employees the flexibility of remote working.

Employee wellbeing

As mentioned previously, employee wellbeing should also be a crucial element in management decision-making.

Revisiting Nerdwallet’s survey, a majority (56 percent) of respondents said they had been 'regularly' working longer hours than before the pandemic, while 53 percent said they had frequently worked out-of-hours during the weekend. Indeed, the ONS found that home working had caused a sharp uptick in unpaid overtime, reporting that remote staff averaged 6 weekly hours while office workers put in just 3.6 weekly hours.

Evidently, merging work and home life instigated by remote working has, in many instances, resulted in a more casual attitude to overworking which could become a headache for employers and staff alike in the long run.

With this in mind, decision-makers assess and refine their communications around staff wellbeing as a priority. Appropriately limiting out-of-hours contact and discouraging work after official hours have been completed would be a positive step to encourage employees to take a proactive role in their professional wellbeing, with less screen time and more confidence in taking regular breaks.

Business leaders may also look to invest in bolstering this approach. Providing regular 1-2-1 sessions to keep in touch personally with team members, funding "socials" to build unity and collaboration amongst teams in a non-professional atmosphere, or even dedicating budget to ensure counseling is available for staff could all help to improve the mental health of employees.

In any case, it is natural that businesses leaders will begin to diverge quite radically in their approaches going forward. After more than a year of trading environment which would most broadly be seen as ‘survival mode’, the reopening of society marks a moment of opportunity most will seek to seize. Some consideration, though, should be given to the lessons of the past year, and reviewing now where financial tweaks and communications overhauls can be applied to 'normal' operations will surely pay dividends in the longer term.

Photo Credit: gpointstudio / Shutterstock

Nic Redfern is the finance director for NerdWallet UK. NerdWallet is on a mission to provide clarity for all of life's financial decisions. As an independent financial comparison website, NerdWallet provides consumers and businesses with useful tools and insights so they can make smart money moves. From choosing a bank account or breakdown cover to buying a house, NerdWallet is there to help individuals make financial decisions with confidence. Users have free access to our comparison tables and expert content, to help them stay on top of their finances and save time and money, giving them the freedom to do more. For more information, visit NerdWallet.com/uk/.