How employers can embrace the ‘Freedom Day’ delay

The vaccination rollout versus hospitalisations

The concerning increase in cases of the Delta variant and the impact on hospitalisations has been the driver for moving “freedom day” as some have termed it. The most severe cases have been amongst those yet to receive their second vaccine. The delay, based on the current rates of vaccination, will enable around 10 million second doses to be administered. This means around three quarters of adults will be fully vaccinated with both doses by 19 July.

Sector variation

However, many have warned that delaying lockdown will negatively impact so many sectors. With reports that 300,000 employees in the hospitality sector and 400,000 in the wedding sector alone are still on furlough, it is understandable that certain sectors will be frustrated by the evolving roadmap. However, more than 30 guests will be able to attend a wedding from 21 June, a welcome development for this sector.

Whilst the government accepts that we will have to learn to live with the virus, the Foreign Secretary Dominic Raab has said that ministers “don’t want to yo-yo in and out of measures”. The key restrictions to remain in place include:

• The number of people who can mix indoors and outdoors remain limited
• Pubs, clubs, theatres and cinemas still have to operate capacity limits
• Nightclubs stay closed
• Face coverings and social distancing remain in place

Financial support

As businesses have reacted to the delay, many have pointed out that whilst continuing restrictions are a very difficult choice, the roadmap was always subject to the data. UK Hospitality, a representative body of pubs, bars and restaurants, has called for greater levels of government support. Meanwhile The Night Time Industries Association, which represents nightclubs, said that many businesses were given insufficient warning of the delay and 54 per cent had ordered stock, 73 per cent had called in staff and 60 per cent had sold tickets out of the venues it surveyed. The delay is compounding the effect of the 15-month closure nightclubs have experienced.

“We would be calling for the government to provide further cash grants, at least equivalent to levels provided during the first lockdown, and to delay the tapering of government payments into the furlough scheme, planned for the start of July. The government should also look at extending the trade credit reinsurance scheme beyond the end of June to minimise possible disruptions in insurance coverage.” The British Chambers of Commerce co-executive director Claire Walker

In response, the Treasury has pledged its commitment to helping businesses and individuals through the extension by its decision to provide certainty over the summer through the furlough scheme and support offered to the self-employed being in place until September. Eligible businesses can also access business rates relief, VAT reductions and the Recovery Loan Scheme.

Whilst Chancellor Rishi Sunak accommodated lockdown easing delays when he extended these support measures until the end of September, it does mean that the level of support starts to decrease from July. From 1 July, employers will have to pay 10 per cent of an employee’s wage, rising to 20 per cent in August as taxpayer support is cut from 80 per cent. Similarly, retail, hospitality and leisure businesses have been offered 100 per cent relief on business rates which is due to be reduced to 66 per cent from 1 July and is set to remain until the end of March 2022.

 Challenges facing employers

Employee anxiety is being reported in numerous forms. From anxiety about returning into the physical workplace where some might be worried about catching Covid to worrying about returning to the commute on public transport, there are numerous aspects of the return to work that need to be addressed. Other employers are reporting that their people are concerned about the point at which they will be asked to return to the office and whether they have received their vaccinations. Whatever the concerns voiced by employees, ensuring that these are sought out and listened to is absolutely vital to a smooth transition to the office. Line manager training and open communication has a direct impact on the effectiveness of each team.

Virtual fatigue

Many employers have reported that whilst employees have been working hard and productivity has been maintained, some have hit a virtual brick wall. Some employees are reporting that they are not working as collaboratively, effectively or efficiently as they would be if they were allowed to return, as they actively miss the ad hoc social interactions with colleagues and general buzz of the office. Therefore, employers will have to accommodate flexible working requests whilst balancing these against the wider impact on their culture so that those who work remotely are not disadvantaged and become ‘out of the loop’.

Holistic support

With younger workers expecting a return earlier than their older colleagues, employees were more hopeful about their physical return to work than business owners in a recent survey by the Office for National Statistics. 85 per cent of adults currently homeworking wanted to use a hybrid approach of both home and office working in the future. The study also recognised the role that homeworking was playing as a recruitment tool going forward, with job adverts mentioning homeworking being posted at an increase of 307 per cent of the average in February 2020.

Research published by the Chartered Management Institute also highlighted the risk of a divided post-pandemic workplace. 24 per cent of managers say they will only work with those who have been double jabbed. Among those aged 55 and over, this rose to 33 per cent. 19 per cent of managers under-45 would only work with those who are fully vaccinated. Mutual respect of decisions across companies will be crucial as companies navigate what working post-pandemic looks like. Managers also report fears that staff will leave if some form of flexible working is not offered.