A Collapsing Economy and Covid-19

Is it possible this economy will be a bigger long term problem than the current pandemic? It is being asked by the conservative right and the liberal left today. I’m sheepish to ask these questions, but here I go...

What is it going to be like when the Covid-19 lockdown is lifted?

I like to read a lot. I’m never stuck on one point of view, By listening to opinions from both sides of an argument, I’m able to form a thesis and show leadership in my company. I must confess, I’m really concerned about the fate of founder-led company’s like mine that do not have friends in Washington or Ottawa, but that employ in our case a couple of thousand people, deploy advanced technology like Artificial Intelligence, and supply essential services including the last mile to e-commerce.

Boeing, the auto sector, banks and others who have had questionable stewardship, are going to get their money. But as for small-medium sized businesses - the company’s that need help too, the engine of the economy - I do not hear of things like payroll tax relief, help with banks, etc. Not today at least. Every day is like a year in the new normal. 

To say the least - various levels of the government are operating by the proverbial seat of their pants. Should we listen to leading epidemiologists or health experts and doctors, or leading economists that warn of dire consequences, or both? Our company is quickly pivoting and adapting (80% of our workforce is now available to work from home) and we are scaling up.

Was taking our kids out of school the right move: Why not send them back? Was school called for the year? Can we devise viable trade-offs?

If you have kids in college, you now have them at home. Would they have been better off staying in school where they can continue educating themselves? Or are they better off at home with multi-generational people who could suffer more from the virus, should they be exposed?

“Young people of indeterminate infectious status are being sent home to huddle with their families nationwide. And because we lack widespread testing, they may be carrying the virus and transmitting it to their 50-something parents, and 70- or 80-something grandparents."

Society’s response to Covid-19, such as closing businesses and locking down communities, may be necessary to curb community spread but could harm health in other ways, costing loss of lives. Imagine a patient with chest pain or a developing stroke, where speed is essential to save lives, hesitating to call 911 for fear of catching the coronavirus, or a cancer patient having to delay chemotherapy because the facility is closed.

We are not counting on zero spread after two weeks; we cannot achieve zero spread under any scenario. What we are counting on is the minimization of severe cases by sheltering the most vulnerable from spread the spread.

There will be a major shift between demand and supply of labor.

In any event, what will be the new normal? If you have been a business manager you know for the past few years demand for labor has exceeded the supply. Help wanted ads were everywhere. In our business segment, contact center services we expect there to be an abundance of talent. Contrary to public belief, our field is not threatened by Artificial Intelligence or chatbots, quite the contrary, these tools pair well with humans to create a more optimized customer experience.

What would be great is if the biggest users of contact centers had an America or Canada first strategy. Right now 100,000’s of jobs go to offshore markets. Maybe it is time to be altruistic, to squeeze a little bit less profit, to worry less about a stock buyback and more about getting our domestic economy running. 

My guess is that big companies will freeze hiring when things return to the “new normal”. Buy North American please, sacrifice short term shareholder value for long term economic growth. It could be a public relations windfall for those that stay true to their customer base. 

We are living in an unsettled time. Our first priority is the safety of our people. We also must prioritize helping our communities, and our countries, fight this virus. We are in a war of sorts and we all need to continue to take this seriously.

What we shared with our company yesterday: 

As we all adjust to these unprecedented developments, I have some asks and recommendations for you: 

1. Be human. We all miss our daily interactions with our co-workers. Please check in with colleagues, including our partners and customers, to ask how they are doing. Demonstrate your concern for the real fears and anxieties that they are experiencing, not only professionally and economically, but also socially and personally.
2. Be persistent. We don’t know yet exactly how long this will last, and for some of us adapting to these changes is challenging. Don’t give up, do all that you can to take care of yourself, your family and your work.
3. Be creative. We will all need to find creative solutions to the problems we are facing. Also please share your creativity, whether it’s a remote working solution or any other experiences dealing with this situation.

To close, be kind to yourself and others. Find something every day to lift your spirits. We need positivity for ourselves, our loved ones, our colleagues and our customers. Keep safe and stay engaged.