06Jun

While the US has so far seen few cases of the coronavirus, employers need to plan should the situation change, the Centers for Disease Control and Prevention said in a recent briefing.

“Now is the time for businesses, hospitals, community schools, and everyday people to begin preparing,” said CDC spokesman Benjamin Haynes. Employers should “begin to respond in a flexible way to differing levels of severity, to refine their business response plans as needed.”

Among the suggestions, the CDC urged businesses to “replace in-person meetings with video or telephone conferences and increase teleworking options.”

Officially designated COVID-19, the virus has killed almost 3,000 people, mostly in China, and has been detected in several dozen countries. In the US there has been one death among the 60 confirmed cases (as of late last week). Most of those were among passengers on the Diamond Princess cruise ship and those repatriated from China.

Last week the California Department of Public Health reported the first case of person-to-person transmission in which the infected person had not traveled abroad or was known to have been in contact with an infected person. Since then at least one additional case of unknown origin has been discovered.

It’s important, however, to put the situation into perspective. According to the CDC, since October, at least 32,000,000 Americans have come down with the common flu, killing 18,000. Flu has a fatality rate of less than 0.1%.

The coronavirus has a higher death rate, now estimated to be 1.4%, but that’s down from initial reports putting it at 2%. Even that may overstating the rate, infectious disease experts say.

What’s different is that the coronavirus appears to be more contagious, plus so much less is known about how and when infected persons can transmit it to others. The CDC warned of the uncertainty in its briefing Feb. 26. “During an outbreak with a new virus, there is a lot of uncertainty. Our guidance and advice are likely to be fluid, subject to change as we learn more.”

Companies in Europe have sent thousands of workers home and a British TV company has begun screening visitors at some of its European offices, barring those who recently visited countries where the virus has gained a foothold.

Few companies in the US have yet taken such extreme measures, though so many companies pulled out of the annual Games Developer Conference in San Francisco later this month that it was cancelled.

Should the virus spread – and the CDC said to expect it will — businesses could be ordered to close. Travel restrictions likely would be imposed.

“We are asking the American public to work with us to prepare with the expectation that this could be bad,” Dr. Nancy Messonnier of the CDC told reporters.

Joseph Deng, an attorney with Baker McKenzie in Los Angeles,told the Society for Human Resource Management employers should appoint a team to deal with the possibility the virus will disrupt operations. He recommends including HR, legal and IT.

If the company already has a disaster preparedness plan, the team should use that as a starting point, Deng said. Many disaster plans assume a short term event. With a pandemic, the impact is likely to be much longer, as we’ve seen in China. Thus it is essential employers plan both for the short and long term.

Attorney Mark J. Neuberger with Foley and Lardner has a list of specific steps businesses should already be taking. Besides banning travel to virus hotspots, he recommends appointing someone to check the CDC website daily for the latest news on the virus’ spread.

As important as developing or updating a response plan is communicating it to employees. Reassure them the company is taking appropriate precautions and have managers explain the plan and how it will work.

This is also a good opportunity to remind workers of basic sanitary practices including thoroughly washing hands and avoiding close contact. More specific details are available on the OSHA website.

Photo by Anton on Unsplash

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Filling Jobs Is Going to Get Even Harder This Year

With fears of a recession ebbing, job growth this year is expected to be a repeat of last year.

The non-profit business research group The Conference Board says that though cautious, employers will continue adding jobs in 2020. “We expect job growth to remain solid and the labor market to continue tightening,” said Gad Levanon, head of The Conference Board Labor Markets Institute.

The Conference Board’s Employment Trends Index, flat since mid-2018, tells us the pace of hiring hasn’t changed over the last 18 months. However, the nation’s readily available labor pool, reported by the Bureau of Labor Statistics in its U-6 rate is at a historic low 6.7%. U6 includes the officially unemployed, those working part-time who want full-time work and those who are out of work, but not included in the official unemployed count.

What this means for employers, even those who are dialing back job growth, is that filling openings is not going to be any easier in 2020 than it was last year. If anything, it’s likely to be even more difficult.

We’ve pulled the hiring and voluntary quit rates from the Bureau of Labor Statistics to illustrate the hiring difficulty. At a glance, the chart tells the story of what’s been happening. As hiring increased after the recession ended, the rate at which workers quit increased. At the pace workers voluntary quit during the first 11 months of 2019, the rate for the whole year will be about 31%. On average, almost a third of the nation’s workforce quit, most to take another job.

That gap you see between the quits rate and the hires rate explains why employers are having such difficulty filling vacancies. Up to now, the slack has been filled by hiring new workers, the unemployed and those who had been on the employment sidelines, not looking for a job, maybe not even wanting one, but now deciding to accept one.

But that has still not been enough to fill all the jobs, which is why the number of openings is at near historic highs and the time to fill is creeping up.

Consider yourself lucky if your turnover is low and filling openings hasn’t been especially difficult. Every industry is different. The numbers here are national averages.

The bottom line, however, is that retaining workers and filling jobs is not going to get any easier this year, and is likely to get even more difficult. Now would be a good time to give us a call here at Green Key Resources to discuss your hiring needs. You may not have an opening today, but it pays to be prepared. Because our recruiters are specialists, we know where the best people are. So when you are ready to hire, we can move fast.

Give us a call at 212.683.1988 and be prepared.

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