Pandemic Aftermath – “New Normal” –Corporates navigating the Future of Work

Over the past few years, the COVID-19 pandemic has globally tested the grit and foundation of our economic, financial, and social institutions whilst exposing our resilience in various key manufacturing and services industries, especially in healthcare and social welfare management.

?Globally, we had to explore, enable, adapt, and adopt a different lifestyle with new and innovative ways of engaging, socializing, and working in the corporate environment. It has been a transformational paradigm shift-termed "NEW NORMAL".

?The "NEW NORMAL" has resulted in several challenges that must be mastered. However, it has also presented opportunities across Industrial Automation, Pharma and Healthcare, ecommerce, Electronic Payments, Third Party Logistics, Information Technology, Cyber-Security, Social Welfare, Educational systems, and Co-working Facilities.

?Large multinational corporations/industries that had diversified their operations in multiple key markets and made advancements and investments in process automation (manufacturing; inventory management and supply chain; third party logistics), technology and cyber-security were more resilient to the pandemic's impact.

?During the early phases of the COVID-19 pandemic, notwithstanding the potential risks and consciously acknowledging employee welfare, businesses were compelled to fast transition to the Remote Working Model. Initially, business managers were wary about the success of the Remote Working Model. After that, however, the change to a new way of working was relatively swift and smooth.

?While the model was effective, it negatively affected individuals, corporations, and critical industries. People, being social beings, were isolated from a physical working environment and placed in a virtual environment. Psychologically, it started taking a toll on their social lives and simultaneously adversely impacting their family through a visibly skewed "Work Life Balance".

?Due to the virtual way of working, people started gravitating and migrating to their native towns and/or locations with lower living costs. As a result, corporates that did not adopt the virtual working model started witnessing higher attrition and an adverse impact on customer-centric functions.

?Changes in remote work have been particularly significant. We predict that more people will continue to work from home than before COVID-19. According to polls, 72% of CEOs claim their companies have begun models for permanent remote employment. In addition, 70% of workers believe that one of the essential factors in choosing their future employment is the ability to work remotely for at least some of the week.

?According to a McKinsey analysis, in the field of computer-based office work, up to 70% of time might be spent working remotely without sacrificing effectiveness, as opposed to the 5 to 10% that could be done in most other fields.

?The next hurdles to overcome in the remote working model are employee loyalty and social engagement. Businesses realise their success is dependent on their employees. During the pandemic, businesses, irrespective of size and industry, were impacted – and needed to devise innovative ways of employee engagement and loyalty with particular emphasis on "Employee Welfare" and "Work from Home" initiatives. As a result, a new working model evolved – the "Hybrid Model".?

?The researchers looked at how work might change due to patterns that the epidemic has hastened. In eight nations with various economic and labor market structures—China, France, Germany, India, Japan, Spain, the United Kingdom, and the United States—we need to examine these trends through 2030. Together, these eight nations make up over 50% of the world's population and 62% of its GDP.

?In fact, according to data from the McKinsey Global Institute, 17 million people in the U.S. alone may need to change jobs by 2030—not just their employers but their entire line of work, which is more difficult, disruptive, and likely to require retraining. This is a 28% increase in workers shifting jobs compared to what was anticipated in pre-Covid-19 studies.

Businesses will need to make a continuous strategic investment to evolve their working model, and employees will need to change their way of thinking and actively participate to improve corporate culture.

?Due to the hybrid and virtual model of working, it became evident that demand for travel and commercial/office real-estate reduced substantially. This has significantly impacted the commercial/office real estate market, the hospitality and travel industries, and ancillary industries such as transportation and office logistics. It is unclear if these will continue until the economies have recovered.

?Office vacancy rates rose dramatically in all major cities in 2020, including by 91% in San Francisco, 45% in Edinburgh, 32% in London, and 27% in Berlin. In smaller cities like Glasgow and Charlotte, office vacancy rates have decreased in the same period. Some businesses are considering establishing satellite offices in smaller locations, to draw more customers.

?India's economy is heavily dependent on agriculture, labor-intensive manufacturing industries (organized and unorganized sector), and services industries (technology; business process out-sourcing). The Indian economy, too, was not immune to the perils of the pandemic.

?The pandemic majorly impacted MSMEs and SMEs. The Indian labour workforce migrated back to their native places – and it has been difficult to keep operations running and profitable.

?India's manufacturing sector has undergone various development phases in recent times. The sector contributes to approximately 16–17% of the GDP and provides employment to almost 20% of the country's workforce. However, lockdown-imposed restrictions on the movement of goods and people severely impacted workforce capacity and disrupted supply chains, bringing nearly all manufacturing activity to a standstill.

?The downturn in economic activity and the overall slowdown in production caused employment losses. Moreover, these supply-side impacts were further compounded due to the demand-side facing issues such as reduced disposable income, savings, and increased uncertainties.

?Many businesses are struggling with severe slowdowns in their operations while others are trying to accelerate to keep up with demand in crucial sectors like food, household goods, and paper products.

?The impact of the pandemic on small businesses has been the worst. According to surveys, 82% of small businesses experienced a negative impact in 2020. Manufacturing businesses faced a severe cash crunch as the manufacturing of non-essential items was restricted in 2020. Moreover, businesses that could not leverage the e-commerce medium were almost shut down for a long time. Since small businesses have always been the most integral cogs in India’s growth engine, their loss directly impacted the economic downturn.

?Travel demand will be reduced by at least 11% in 2020 compared to 2019. This is only a rough estimate, and the number could likely be higher. Regardless, it shows how much of an impact COVID-19 has had on the transport sector.

?The mobility sector is amongst the worst hit due to COVID-19, and both Ola and Uber have lost revenue. MAUs for Ola and Uber fell 25.2 percent between March and May 2021, compared to a 44 percent drop between March and April 2020.

?In support of state governments and essential services, the government of India started an effective and efficient vaccination program—which continues to be the backbone of our economic recovery. As a result, we have seen positive industrial production metrics and financial market recovery trends. It is a clear indicator of economic recovery in India.

?We, as a country, have been heavily reliant on other countries for our domestic needs both for end-user consumption and industrial operations (raw materials, minerals, metals, semi-finished goods, etc.). A pandemic precipitated the matter, and at a macro-level, it became evident that India had to take some revolutionary steps to counter dependencies on other countries. There has been an impetus given by the government of India through "Atmanirbhar Bharat Abhiyaan" as well as "Startup India" culture to become self-reliant.

?The extent and pace of the coronavirus disruption suggest significant changes are on the horizon, yet no one can anticipate what the next new normal will look like. The use of Artificial Intelligence (AI) to better anticipate the spread of COVID-19, the spirit of invention unleashed to discover a treatment, and the extraordinary advancements in telemedicine have all provided intriguing hints as to the contours of that transition. CMSOs will need to consider new capabilities, procedures, and methods of operation if they want to succeed in this environment.

?In conclusion, crisis response activities are still underway in practically all nations. Numerous public-health interventions have been implemented. The explicit goal of healthcare systems is to expand the number of beds, supplies, and qualified personnel. There are initiatives underway to address the lack of critical medical supplies. Plans for employee safety and business continuity have been intensified, and remote work has been made the default method of operation.

?It is crucial to understand that reframing the human element of work is a journey, not a destination. It is a strategy for transformation and evolution that places a strategic emphasis on work and the meaning, purpose, and value of the company. Organizations can develop resilience, take advantage of their capacity to evolve with dynamic stability, and begin to thrive by changing the way we think about work, the workforce, and workplaces—and by focusing on re-architecting work, unleashing human potential, and adapting the workplace environment.

?There is no one entry point into this evolution; it is a continuous process. Each company will experience its unique combination of obstacles and chances to advance. However, the destination is clear: a future that is built around the human aspect of work, one that promises to release the vitality and limitless potential of people and, as a result, produce lasting value for employees, their companies, and society as a whole.

?We have never seen a virus like this before, so we need an unprecedented reaction. It stands to reason that, under these circumstances, other entities may have given the same facts a different interpretation. There must come a time when we can ultimately reflect on this pandemic to comprehend how it began, how it quickly spread destruction around the world, and how everyone involved responded to the disaster. The experience acquired will be crucial for dealing with similar problems as they may appear in the future.

?But that time is now. The time is now for cooperation, and it is obvious that pandemics are already a reality in our world; therefore, we must be ready for them.

?Madhvi Gupta

Shambhavi Sharma

Muskan Puri

Kanika Sharma

Pratham