Angela's Blog

As the pandemic of COVID-19 continues to sweep globe, there are a plethora of negative repercussions affecting employment. Individuals employed in both the service and retail industry are the most susceptible to these repercussions. The two most substantial problems, resulting from the COVID-19 outbreak, within these industries, are: the dire need for amended health and safety policies within these establishments and the loss of income copious employees in service and retail positions are facing. People currently employed in a service or retail position are the most vulnerable to the ramifications associated with the Coronavirus outbreak.

The first issue facing these individuals is the desperate need for amended policies within their workplace. Inadequate and outdated health and safety policies within the service industry is the main driver of this issue. COVID-19 merely brought this issue to light in a powerful, yet devastating fashion. Individuals in the service industry are directly, and physically serving and interacting with the public.

“Whether you are a cashier at Walmart or a server, these workers are constantly interacting with the public. And that brings a lot of concern from a health and safety standpoint, especially since symptoms of the coronavirus may not show up for days or weeks,” – John H. Chuang, founder and CEO of Aquent (the world’s largest creative staffing agency)(1)

Therefore, it is imperative to ensure that all workers on the front line of the outbreak are protected from infectious disease agents, so they can yield the essential services the public depends on (1).

“It’s a concern not just for the employees, but for the general public in light of this outbreak.” – John H. Chuang, founder and CEO of Aquent (the world’s largest creative staffing agency) (1)

Multifarious organizations and services, such as Chipotle, have implemented new policies to address this problem and to protect their employees. According to Laurie Schalow, chief of corporate reputation office of Chipotle, their new health and safety policies include: wellness checks, paid sick leave starting on the first day of employment, air treatment systems, Purell sanitizer for employees and guests, personal hygiene requirements like handwashing every hour, and more (1).

The second issue facing individuals employed in the service and retail industry is loss of income. This can be as a result of a temporary closure of the establishment, decreased sales, employment insurance (EI) qualifications and associated loss of gratuities (2). All establishments within this industry, except for essential services, were closed in the past week. Consequently, thousands of people were out of a job abruptly and are scrambling to find immediate solutions (2).

The average wage for a front of house employee is $12.20/hour. (3). As a result, if the worker does in fact clear the threshold for EI, that only pays 55% of their hourly rate. (3). Gratuities usually account for two thirds of a service worker’s take-home pay (3).

“We’ll make a fifth, maybe a quarter, of what we made before, if we are eligible for EI” – Will Dean, a bartender at a popular up-town bar in downtown Toronto (3)

To alleviate this calamitous loss for thousands of employees, business and organizations have created and executed a variety of mitigation strategies. These strategies are epitomized by Starbucks, Walmart and Uber. Starbucks has implemented a financial support plan, different from their existing sick pay, available to employees, regardless of if they show symptoms of COVID-19, for up to 14 days (1). Walmart has enacted an emergency leave policy. This offers two weeks of full-pay, waives their attendance occurrence policy, and a potential 26-week pay replacement for those diagnosed with COVID-19 (1). Uber has effectuated a two-week compensation for any driver or delivery person who has been infected to self-isolate with no financial burden. (1) Countless other businesses have implemented financial support plans to aid their employees in this time of uncertainty.

Individuals employed in the retail and service industry are the most drastically devastated as a result of the COVID-19 pandemic. They are extremely susceptible to the ruinous combination of their workplace’s inadequate health and safety policies and COVID-19. They are impecunious due to a dramatic loss of income as a result of repercussions of the Coronavirus. Multitudinous companies and businesses have enacted, implemented and executed diverse mitigation strategies to address these two issues. Nevertheless, it is vital to note that these employees’ suffering (both health and financial) should not be seen as a small economic repercussion of this pandemic; they are people who matter and deserve appropriate assistance and compensation.    

References:

1. McCarthy, K., Thorbecke, C. (2020, March 13). What companies are doing to protect vulnerable hourly workers amid coronavirus outbreak. ABC News. Retrieved March 27, 2020, from https://abcnews.go.com/Business/companies-protect-vulnerable-hourly-workers-amid-coronavirus-outbreak/story?id=69555759
2. Shecter, B. (2020, March 26). ‘It will no doubt get worse’: Canadian unemployment rate may already top 10 percent, as global jobless claims surge. Financial Post. Retrieved March 27, 2020, from https://business.financialpost.com/news/economy/it-will-no-doubt-get-worse-canadian-unemployment-rate-may-already-top-10-per-cent-as-global-jobless-claims-surge
3. Manzocco, N. (2020, March 22). COVID-19: Toronto service workers fear for the future. Now Toronto. Retrieved March 27, 2020, from https://nowtoronto.com/food-and-drink/food/toronto-service-layoffs-covid19/

Featured images sourced from:

Parfitt, J. (2020, March 19). The Oregon Employment Department says that it adopted new rules today in response to the many people now out of work due to coronavirus. KDRV. Retrieved March 27, 2020, from https://www.kdrv.com/content/news/Oregon-eases-unemployment-requirements-as-COVID-19-response-causes-lay-off-boom-568915181.html

Thomas, B. (2020, March 21). COVID-19 Live Updates: 31 new cases for Alberta | Liquor stores feeling the effects of COVID-19 slowdown. Calgary Herald. Retrieved March 27, 2020, from https://calgaryherald.com/news/covid-19-live-updates-49-new-cases-in-alberta-more-than-1200-albertans-exposed-at-dental-conference/

Mental health is a prevalent, salient, and historically stigmatized topic within our society. Mental health has affected every individual directly or indirectly at some point in their lives. This corollary may be perpetuated by a plethora of triggers; whether it be familial stress, financial pressures, work tensions, etc. A common cause of persistent stress and poor mental health for Canadians is rooted in the workplace. As a result, each week, 500,000 Canadian employees are unable to work due to stress and poor mental health; causing a significant loss of productivity (1). This loss of productivity creates a notable economic cost – $6.3 billion annually (1). To mitigate such negative outcomes, concurrently with destigmatizing mental health issues, many companies have made noteworthy monetary investments into mental wellness programs.  There is a return on investment for not just people but for the businesses when investments are made into workplace mental health and wellness programs.

A study, orchestrated by Deloitte, rendered a median return on investment of $1.62 for every $1 spent on mental health and wellness programs (1). This figure increases to $2.18 for the programs that been ongoing for three years or more (1).

“We know inherently that investing in workplace mental health is good for our people, but this report tells us it’s actually good for business as well”-Sarah Chapman, director of Deloitte’s sustainability and social impact advisory practice

The study undertaken by Deloitte examined 10 Canadian companies with well-established wellness initiatives from diverse industries resulting in both reliable and unwavering results (1). Thus, regardless of the industry, mental health and stress take a toll on employees everywhere everyday.

The graph above illustrates the results of a survey conducted by Morneau et al. which surveyed working Canadians (2). There results depict that most Canadians (77%) have or have had a mental health or stress condition (2). The survey also drew a notable connection between a mentally healthy workplace and high achievement of business objectives (2). The survey found that the majority (87%) believe that a mentally healthy workplace directly impacts their personal ability to meet business’ needs/goals, loyalty, talent attraction and retention (2). These results clearly demonstrate that investing in mental health and wellness programs is a good investment of company resources.

“Some things just make human sense and business sense. This is one of them” –Sevaun Palvetzian, CEO of CivicAction

Proactive approaches and investment into mental health and wellness are normalizing towards being the standard.  Sevaun Palvetzian, the CEO of CivicAction, believes that “mental illness and stress have been called “the second-hand smoke of this generation” (1). Millennials are the future workforce. This generation are actively seeking work environments that have mental health support prior to committing to work there (1). Consequently, companies and employers willing to make investments into such support will be victorious in the war for talent (1).

One eminent company to make such a bold step and investment is Starbucks (1). Starbucks announced in October of 2016 that they will donate $5,000 annually to their employees to cover the cost of mental-health and wellness therapy (3). This has been highly praised socially, touted economically as a cost-effective investment and has been tremendously exalted by the millennial workforce (3).

Proactive approaches pay off. Investing into mental health and wellness programs generate an array of benefits including economic gain ($1.62: $1), diminished loss of productivity, employment satisfaction and pre-eminence in the war for talent. Nevertheless, it is imperative to note that employees are more than just a statistic, they are a people who matter and deserve apposite care and resources to promote their health and wellness.

References:

1. Weikle, B. (2019, November 7). Workplace mental health programs deliver healthier bottom lines | CBC News. Retrieved February 6, 2020, from https://www.cbc.ca/news/business/workplace-mental-health-programs-deliver-good-roi-1.5346872?__vfz=medium=sharebar
2. Morneau, S. (2015, May). The impact of workplace mental health on business. Retrieved February 7, 2020, from https://www.morneaushepell.com/ca-en/insights/impact-workplace-mental-health-business
3. Anderssen, E. (2018, May 17). Why Starbucks Canada’s investment in mental health therapy matters. Retrieved February 7, 2020, from https://www.theglobeandmail.com/life/health-and-fitness/health/why-starbucks-canadas-investment-in-mental-health-therapy-matters/article32252755/

Featured images sourced from:

Morneau, S. (2015, May). The impact of workplace mental health on business. Retrieved February 7, 2020, from https://www.morneaushepell.com/ca-en/insights/impact-workplace-mental-health-business

The Skill Collective (2015, October 30). Mental Health + Wellbeing at Work: Why is matters and what you can do about it. Retrieved February 8, 2020 from https://theskillcollective.com/blog/wellbeing-mental-health-work