Local business advisory specialists, Grant Thornton Channel Islands, in association with the Jersey Chamber of Commerce, recently launched a COVID-19 business impact survey for Jersey. Its purpose was to measure the impact COVID-19 has already had on local businesses and the self-employed.
The results have now been collated and an analysis is provided below:
Turnover, cash flow and profits seriously depleted
50% of those who responded to the survey believed their turnover had reduced by more than 50%, while profit and cash flow had also reduced by a similar amount. The key issues facing businesses include business uncertainty, reduced operations and a fall in customer demand.
Employers are considering salary reductions
60% of respondents said they would consider making staff redundant or reduce contractual working hours and salaries in order to ensure their business could survive post pandemic.
High demand for Phase 2 of Payroll Co-Funded Scheme
While Phase 1 of the Government’s Payroll Co-Funded Scheme has received a limited number of applications, nearly 60% of those who responded to the survey have said they will apply for financial support from Phase 2 of the Scheme.
Businesses commit to buy local in recovery
To stimulate the economy and keep businesses afloat, 90% of all respondents stated they would only buy local whenever possible, rather than purchase goods and services from elsewhere.
Employers are adopting new ways of working that will change the future of work
Nearly 75% of respondents stated that they have adopted remote working, with many employers stating they will continue to offer their employees the opportunity to work remotely and apply flexible working hours to their day.
Managers need to consider the wellbeing of their staff and adopt new ways of coaching and mentoring
70% of respondents believe the wellbeing of their staff has been negatively impacted by the pandemic, citing difficulties working remotely, uncertainty for the future and social isolation. as grounds for impacting their mental health.
Adam Budworth, Managing Director of Grant Thornton Channel Islands said: “The results from our survey indicate that businesses remain resilient in the face of this crisis and by implementing the various measures available, they are confident they will survive.”
“But, we cannot assume the future is guaranteed for all – there is no doubt that the pandemic will have a lasting impact on how we work and also how we interact, both socially and commercially. Businesses will need to continue to innovate and adapt their practices to ensure they can continue to operate in the future.
“On a personal level, I think it is critically important that we don’t focus purely on the numbers, but instead place the wellbeing of our staff as a top priority too. Without an active, happy and engaged workforce, we will not be able to operate effectively, be that during or post crisis. This means active engagement with staff on a regular basis and a different approach to how we coach and mentor our people remotely.
“There is no silver bullet. No single measure will ensure any business’ survival. Instead, it’s a combination of buying local whenever possible, strong financial management, seeking government financial support (if applicable), making your staff’s wellbeing a priority and continually seeking to innovate and adapt. We now need to build on the positives and begin to instil confidence in our community.”
Jennifer Carnegie, President of the Jersey Chamber of Commerce said, “This is a great example of private industry and professional associations working together to collate meaningful data on the pandemic. It’s great to receive feedback from Chamber members and non-members alike, which can be used in our thinking and strategies as we move towards recovery.”
Jersey Chamber will be hosting a webinar on Friday 22 May 2020 with Jennifer Carnegie, President of Jersey Chamber, Adam Budworth, Managing Director, Grant Thornton Channel Islands, Susie Crowder, Director of Human Capital Advisory at Grant Thornton, Martin Holmes, President and Chair of the Jersey Construction Council and Simon Soar, CEO of the Jersey Hospitality Association. They will discuss the findings from the survey and what we can learn from these insights to support the Island’s recovery.
