Reward professionals make major changes in response to COVID-19, REBA survey results show

This is a huge proportion of employers planning to make significant changes. We at REBA would expect that proportion to rise unless there is an external reassurance or support coming from government, or a medical breakthrough leading to the halting of the spread of coronavirus.

The most notable changes expected to employee contracts would be:

• deferred/reduced pay rises (44%)
• cancelled pay rises (31%)
• reduced working hours (25%)
• extended sabbaticals on offer (25%)
• deferred or reduced bonuses (19%)
• cancelled bonuses (13%)
• reduced pension contributions (13%)
• enforced unpaid leave (6%)

Just as we saw in the 2008 economic downturn, some employers are being quick to turn to reduced hours and enforced unpaid leave as a temporary way to reduce wage bills. However, the smaller number of cancelled bonuses perhaps indicates that employers see the current situation as temporary, and they will need to retain vital staff to prepare for a post-coronavirus business recovery.

Whether employers can reduce pension contributions will depend on being able to change employment contracts, or if this would fall foul of auto-enrolment legislation. However, this use of contribution holidays can suit both employees needing more cash in hand and employers wanting to reduce bills, and could be a better short-term solution rather than a long-term change.

The REBA survey also found that employers have been proactive in using employee benefits and wellbeing programmes to support employees. Adding virtual GP services to employee benefits packages or extending these services to all staff is proving popular. Employers have indicated that they are putting out communications to remind workforces what employee benefits are on offer and how to access them.

Employee assistance programmes (EAPs), which are common in the UK, are being extended to more workforces globally or being upgraded to a better quality service. Again, signposting and re-communicating the existence of the EAP is a popular action by many employers.

The full results from the survey into how employers are responding to the outbreak of COVID-19 have now been released. Read the full report.

Please follow our running blog for the latest updates and developments on how employers are addressing COVID-19 and preparing for the coming weeks.