Changes in Business Cycle Post-Pandemic
The business cycle is an important concept in the business and entrepreneurship sphere. The business cycle refers to the fluctuation in the economy in terms of output and business growth. During the COVID-19 pandemic, there is a major impact on the business cycle and it has some after-effects as well. This is discussed in detail in the article below.
Impact of COVID-19 on Businesses
The coronavirus has transformed businesses. It’s been a huge challenge for many major industries and organizations. However, there are some opportunities as well. Some of the major impacts are briefly discussed below:
1. Remote Work
Working remotely is what most businesses have experienced. They have to appoint people who can only work from home due to the COVID-19. Now, many businesses are planning to take the entire business services on a remote basis only. However, this cannot happen with every business. As many businesses require physical productivity only. But the best solution to this can be, people can make the best office environment at home only. This way they don’t have to move out of the home, also physical office work can be done with the office equipment as well. So businesses need to rethink that at this point of the pandemic, people really need appropriate office equipment such as proper chairs and computers and can do work easily with mental peace too.
2. Business Model Innovation
What businesses do reflects on what do they offer their customers. How do the businesses operate and how do they provide their best services to their loyal customers. Many industries have been entirely transformed during 2020. We can see this in the hospitality industry, in the events industry and businesses that have been carried on thriving are the ones that have been able to react to this quickly.
If you are a restaurant and on day one of lockdown, you rethought your restaurant and made sure that you have take-out abilities and there are several companies like even the formula one company that were producing ventilators then this is something businesses have always been required to do. So think about how the market is shifting and how you can transform your business model and innovate your business.
If you are a business leader or CEO, you will have to transform the business model according to the changing factors and variables due to the pandemic. As Jon Purizhansky says, “The myth is that the CEO does nothing and tells other people what to do all day! The CEO is the person who is very often, especially in a startup environment, the DNA and engine of the company.”
Global Labor Crises:
There is a huge global labor crisis due to the COVID-19. People have simply quit their jobs and refused from going to the office to work. However, in Canada, the most popular country, holiday destinations have looked a little different during the pandemic. This is because the pandemic has forced closures and modifications at restaurants and stores and there is a labor shortage. Immigration is at a relative standstill and most workers are opting for government support or moving on from the service industry. They may have child care or safety concerns and with students returning to school in the fall, hiring is expected to become even tougher.
Many places have suffered from labor crises such as in Alberta, there are many job losses in the oil patch. The pool of candidates has shrunk during the COVID-19 and the business council of Alberta says that organizations are finding it difficult to employ suitable candidates for various positions. There are severe labor shortages, particularly in hospitality, mainly due to immigration and temporary foreign workers. Overall, the immigration numbers have been reduced, the conference board of Canada’s top economists says that salaries for new employees have gone up by 7% as compared to the pre-pandemic levels in some fields like healthcare and technology departments.
Research showed that there is an immense need for qualified and skilled tech workers. A high national unemployment rate along with a growing skills gap and new labor shortages are all symptoms of how work has changed during the pandemic. The government needs to keep a check on all these factors or risks ahead to maintain a proper balance in the upcoming pandemic situations.
The Rise of Remote Employment in the Post-Pandemic Work Life
Tomorrow’s picture of the job market can be easily identified with the growing era of the pandemic. As more people get vaccinated, workers and companies are figuring out what post-pandemic work life will look like and how it may change permanently. The team of Making Sense reports that working from home turns out to be highly productive in more ways than one.
The remote employment paradigm will also give rise to hiring international employees, especially from diverse groups. Jon Purizhansky, the CEO of Joblio, is popularly known to say that “There’s a simple and obvious answer for why it’s so important for a business to champion diversity — you literally cannot succeed otherwise. Business success is only possible when executives make decisions based on merit and fact instead of dealing with their personal preferences.”
People find it much easier to work remotely as they do not have focus all day long. Working from home allows them to take intervals in between and then get back to work. It gives them more flexible hours to work and apparently, work done from home is much more efficient as compared to working from the office. Also one of the greatest advantages is that working remotely allows you to travel anywhere you want, all you need is your laptop and your data inside it.