Nearly Half of Employees Fear Losing Their Jobs – Study

Nearly half of employees fear losing their jobs. How COVID-19 is changing the market and business

The pandemic is increasingly affecting the global economy. New data collected during international Salesforce Research Consumer and Salesforce Workforce Research studies show the enormous scale of the phenomenon. On the one hand, it is clear that entrepreneurs have doubled their efforts in implementing innovations and remodeling their methods of operation. Technology needed for remote work, e-commerce development and electronic payments is becoming increasingly important. On the other hand, however, it is clear that major changes are coming to the labor market. More than 50% of employees work remotely, and nearly as many (48%) fear layoffs. The same number plan to change employers to work in an industry that is more stable during the pandemic.

The GDP of most countries this year will be significantly lower than forecasts set at the beginning of the year. According to the International Monetary Fund, in 2020 the global economy may record a decline of 3% instead of growing. How deep this decline will be depends on when the pandemic ends and how quickly individual countries' economies emerge from the crisis.

What the studies say about employees' fears

Salesforce conducts systematic observations of changes caused by the pandemic – analyzing data, opinions and behaviors of customers from various industries around the world. Conclusions and data from the studies are published in recurring Salesforce Research Consumer and Salesforce Workforce Research reports. To convey even part of the picture that emerges several months after the outbreak of the pandemic, it is worth providing at least the key information from global studies:

Impact of COVID-19 on the labor market

• 69% of employees believe the pandemic has permanently changed the nature of work,
• since the pandemic was announced, 62% of employees work remotely, including 51% from home,
• 86% of employees rate their productivity while working remotely as good, including 37% as very good,
• 79% of employees say their employer provides adequate technology, including 34% who rate it as excellent,
• 24% of employees admit that their companies have invested in new technologies or improved existing solutions to streamline remote work,
• 48% of employed people fear losing their jobs,
• 43% want to change jobs and work in a more stable, secure industry,
• as many as 36% of employees fear that their jobs will be automated.

How the pandemic changed retail

Impact of COVID-19 on retail
Shopping methods used more often now compared to the period before the pandemic:

• 38% increase in contactless deliveries,
• 37% increase in the number of electronic payments,
• 23% increase in the use of self-checkout counters,
• 23% increase in online purchases with in-store pickup (buy online, pick-up in store – BOPIS),
• 20% increase in turnover in the services subscription segment,
• 16% increase in orders through social media channels.

Impact of COVID-19 on business

• 45% of surveyed SME representatives say they are changing their current business model,
• 38% are also changing their customer service tactics and marketing activities (35%),
• 35% of surveyed people know small business owners who have suffered because of the pandemic,
• 27% of surveyed people know companies that have been permanently closed as a result of the pandemic.

Changing the business model usually involves the need to use appropriate technologies. A positive effect of the crisis will therefore be the acceleration of digitalization, also in small companies.

The economy after the pandemic – four scenarios

Digitalization and four economic scenarios

Today it is not known what losses companies will suffer or what awaits us, but entrepreneurs have certain options to prepare for various scenarios. COVID-19 caused changes in the way work is provided and business is conducted – among other things, it forced companies to make greater use of technology. Many of the new trends that emerged during the pandemic will stay with us permanently, such as the spread of remote work. Accelerated digitalization is a trend visible in all countries, including Poland. According to data from the Ministry of Entrepreneurship and Technology, three years ago digital services accounted for 6.2% of Poland's GDP. In 2020, the impact of digitalization on GDP may be twice as large.

The report prepared by Salesforce and Deloitte, "The world remade by COVID-19. Scenarios for resilient leaders, 3-5 years," presents four scenarios for the development of events. In the optimistic variant, economic recovery will occur at the end of 2020; in the most pessimistic one, only in the second half of 2022.

Scenario 1, Passing Storm – The economy recovers at the end of 2020 and accelerates in the second half of 2021. The virus is eliminated earlier than expected thanks to coordinated actions by global players. Although the pandemic is relatively short-lived, it causes long-term economic effects. Financial shields help temporarily, but they cannot reverse the losses most acutely felt by small businesses and people with relatively low incomes.

Scenario 2, Later rebound changes existing operating models – economic recovery begins at the end of 2021. It is slight in early 2022 but accelerates in the second half of 2022. The pandemic persists, which places an increasing burden on governments around the world. New ecosystems and public-private partnerships emerge, cooperating to respond to key needs and introduce necessary innovations.

Scenario 3, Far Eastern Direction – economic recovery begins at the end of 2021, although in the East it is faster and more decisive. The West deals with the virus more slowly and less consistently than the East, causing the global center of power to shift to China and East Asia. The East becomes the leader in global coordination of healthcare and business systems.

Scenario 4, Lone Wolves – global economic recovery appears in mid-2022. The virus mutates, and the pandemic lasts longer than expected. Countries isolate themselves, cooperation between them is difficult, resulting among other things in the introduction of strict controls over imports. Governments take greater control over business, exerting strong influence on internal capital flows. Countries focus on energy and food independence. Businesses and consumers increasingly fear frequent market shocks, and their savings decline due to rising commodity prices.

Employees want to work remotely and are fleeing industries hit by the crisis

Effects of the pandemic for employees and e-commerce

During the pandemic, employees spend significantly less time commuting to work because 51% of them work remotely. As many as 86% of remote workers rate their productivity highly. 67% of employees surveyed by Salesforce would like to have the option of working remotely also after the crisis ends, which creates consequences for employers. Many employers have already equipped employees with appropriate IT tools. As many as 79% of employees admit that their employer provided them with excellent (34%) or good (45%) technology. The ability to work remotely, which can be done from anywhere, not only in one's area of residence, may also make it easier to find employment in connection with the expected large wave of layoffs – 48% of employees fear losing their jobs. Representatives of the youngest working generation (millennials) fear losing their jobs the most. In some industries, employees feel relatively secure, while many are looking for new employment opportunities. Those most interested in changing jobs are employees who found themselves on the front line in the fight against the epidemic and those whose workplaces were affected by problems. Currently, employees from the tourism and hospitality sector (52%), transport industry (52%), healthcare (49%), retail (47%) and manufacturing (47%) are thinking about changing or taking a job.

More and more conveniences for consumers buying online

E-commerce is undoubtedly a "winner" in difficult times. Traditional retail suffered considerable losses. According to the Salesforce Q1 Shopping Index from 2020, total retail sales in the US fell by 8.7% in March compared with the previous year (in Poland, according to GUS, it decreased by 9% year-on-year at that time). At the same time, e-commerce grew by an average of 20%, and in the period from the beginning of the pandemic to the end of March, purchases in online stores increased by 200%.

During the pandemic, the main challenge for retailers is deliveries and supply. That is why various order pickup options are appearing more and more often, reducing the delivery time of goods to a minimum. These include in-store pickup, as well as same-day delivery – usually carried out through third-party companies. The option of online shopping with pickup in a physical store (BOPIS) enjoyed the greatest success among customers. Retailers offering online shopping and BOPIS pickup achieved the largest increases in e-commerce revenue during the pandemic. According to data from the Salesforce Shopping Index in Q1 of this year, stores offering the BOPIS shopping model increased sales by 27%, compared with a 13% increase for stores not offering BOPIS.

More information can be found at:
https://www.salesforce.com/company/news-press/stories/2020/5/salesforce-research/

Summary

Salesforce Research studies show that the COVID-19 pandemic is fundamentally changing the labor market and retail. Nearly half of employed people (48%) fear losing their jobs, and 43% plan to move to more stable industries. At the same time, 62% of employees work remotely, and 86% rate their productivity outside the office well.

In retail, the importance of e-commerce is growing – online sales increased by 20%, and stores offering BOPIS pickup recorded a 27% increase in revenue. Experts predict that accelerated digitalization will stay with us permanently, and the future of the economy depends on the pace of emerging from the crisis.