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COVID-19 Employer Pulse Survey Results April 8, 2020
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Page 1: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

COVID-19Employer PulseSurvey ResultsApril 8, 2020

Page 2: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

34579

10151822

Introduction

Key Findings at a Glance

Response Planning

Education & Communication

Business Status

Employment Status

Company Policies

Pay Policies

Business Outlook

Table of Contents

Page 3: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

IntroductionThe impact of the novel coronavirus (COVID-19) has yet to be fully realized as the virus continues to spread globally. At the time of this report, confirmed cases of COVID-19 double in the United States every six days. Health authorities have identified more than 383,000 COVID-19 cases throughout the United States and over 12,000 deaths since January 2020.

Millions of Americans are now working from home or are out of work as a result of the pandemic, with stay-at-home orders issued for all but a handful of states. Employers throughout the country are grappling with both the health and economic impact of COVID-19, as many continue to operate remotely with full or partial staff and many needing to layoff and furlough employees due to losses.

The Alera Group COVID-19 Employer Pulse Survey explores the impact of the pandemic and offers insights into how employers throughout the country and in various industries are navigating employee health, benefits and human resources issues in the changing landscape. The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions. The results are broken down by employer size, region, and industry where there are sufficient differences and sample sizes.

ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results 3

Page 4: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

Planning is ParamountLarge employers and those in the Healthcare and Education industries had formal infectious disease response plans in place before the outbreak. As a result of COVID-19, over half of employers surveyed with 100 or more employees will have such policies in place moving forward.

Focus on Employee EducationMost employers regardless of size, region, or industry are educating their employees several times a week about prevention techniques, COVID-19 symptoms and employee benefits. They are also turning to the Centers for Disease Control and Prevention (CDC) and local authorities for updates.

Social Distancing and Hiring Freezes PrevalentAt the time of the survey, most respondents have suspended travel, in person meetings and conferences, and office visits. Just over a third of respondents have implemented hiring freezes, 20% have furloughed employees, 17% have laid employees off, and over half of companies are delaying or changing their onboarding approaches.

Flexibility and Support CommonTo support employees during this very challenging time, some employers are assisting with childcare issues and 18% are offering telemedicine benefits. Most companies are allowing employees to use their paid time off in whatever manner that is convenient for them.

Impact Varies by IndustryAlthough COVID-19 is expected to have a negative impact on most businesses in the next 12 months, survey results indicate that manufacturing, non-profit, healthcare, professional and finance/insurance firms have a slightly more positive outlook.

Key Findings at a GlanceThe survey verified that employers throughout the country are focused on some common issues:

4 ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results

Page 5: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

Differences by Employer Size

Does your organization have a formal infectious disease response plan?

27%

18%

20%

27%

29%

37%

48%

47%

20%

11%

22%

20%

26%

26%

21%

32%

35%

42%

36%

33%

33%

32%

24%

13%

19%

29%

22%

19%

13%

5%

7%

8%

Yes, we have one in placeNo, but we are putting one in place nowNo, but we are considering putting one in placeNo, we are not considering putting one in place

Total Employees

Less than 25 Employees

25-49 Employees

50-99 Employees

100-249 Employees

250-499 Employees

500-999 Employees

1,000+ Employees

Response PlanningCOVID-19 has elevated the focus on response planning, particularly among smaller to mid-sized organizations. About a quarter of respondents have a formal infectious disease response plan in place and over half are putting one in place now or considering doing so. The propensity to have a formal infectious disease response plan increases with employer size, with about 2 in 10 employers with under 50 employees having one in place, compared to almost 5 in 10 employers with 500+ employees.

ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results 5

Page 6: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

By Employer Industry

When it comes to industries, employers in the Healthcare and Education sectors tend to have formal plans in place more so than others. Non-profit and Service organizations are most actively putting them in place now. Retail and Wholesale, Real Estate and Professional firms are least likely to consider putting formal infectious disease response plans in place.

Does your organization have a formal infectious disease response plan?

Total

Healthcare

Education

Government

Finance/Insurance

Transportation/Warehousing

Non-Profit

Manufacturing

Construction

Retail & Wholesale

Services

Real Estate

Professional/Scientific/Technical

27%

54%

52%

43%

38%

31%

29%

22%

20%

17%

3%

25%

15%

19%

30%

27%

35%

19%

31%

29%

28%

42%

29%

33%

19%

11%

14%

4%

18%

8%

11%

18%

Yes, we have one in placeNo, but we are putting one in place nowNo, but we are considering putting one in placeNo, we are not considering putting one in place

20% 19% 38% 23%

18% 16% 32% 34%

7% 13% 44% 37%

11% 11% 44% 33%

12% 31% 40% 17%

6 ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results

Page 7: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

The type of information communicated to employees varies by size of company. Employers of all sizes are commonly focused around COVID-19 prevention techniques and symptoms. Employers with 25-99 employees also provide employee benefits and legal information. Companies with more than 50 employees, and especially those with 1,000+ employees, tend to provide employee benefits, employee assistance program (EAP) and wellbeing guidance.

Differences by Employer Size

With regard to COVID-19, how often are you educating your employees?

Total Employees

Less than 25 Employees

25-49 Employees

50-99 Employees

100-249 Employees

250-499 Employees

500-999 Employees

1,000+ Employees

DailyOnce a weekSeveral times per weekBi-weekly or less frequentlyWe are not providing communication

22%

29%

18%

18%

17%

23%

16%

32%

20%

17%

26%

23%

19%

14%

27%

16%

47%

37%

48%

52%

51%

59%

50%

50%

8%

11%

6%

7%

10%

4%

5%

3%

2%

0%

0%

3%

1%

3%

7%

3%

Education and CommunicationMost employers, regardless of size, region, or industry, are educating their employees several times a week. Larger employers (1,000+) and those in the healthcare industry (45%) tend to communicate with their employees about COVID-19 on a daily basis. Very few employers are not communicating with their employees.

ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results 7

Page 8: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

Total EmployeesLess than 25 Employees25-49 Employees50-99 Employees100-249 Employees250-499 Employees500-999 Employees1,000+ Employees

84%76%84%87%85%91%81%95%

77%68%75%80%76%89%86%92%

62%44%59%72%72%73%72%79%

35%21%41%40%41%48%37%37%

39%19%25%40%52%63%58%79%

20%13%13%16%33%25%19%32%

Prevention techniques

COVID-19 information e.g. symptoms

Employee benefits components

Employee Assistance Program (EAP) and wellbeing guidance

Legal components

Claim filing instructions

Differences by Employer Size

Types of Information Included in Educational Communications to Employees

The Centers for Disease Control and Prevention (CDC) and local authorities are the most common sources of information and updates that employers are using about COVID-19. Not surprisingly, almost half of 1,000+ size employers leverage internal legal counsel. Additional differences by company size include:

• Employers 50+ tend to look to their broker or consultant for guidance compared to smaller employers• Employers 100+ also turn to the World Health Organization (WHO) and external legal counsel • Employers 250+ also use their carrier or TPA vendor partner(s) (e.g. health insurance or disability

carrier/TPA) for information and updates

Other sources of information that respondents mentioned include the Society for Human Resource Management (SHRM), their accounting/CPA firm, and other industry associations.

8 ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results

Page 9: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

Business StatusBased on state or federal guidelines, 70% of respondents are considered “essential.” This is more often the case for larger employers (500+ employees) and those in the Government, Healthcare, Transportation/Warehousing, and Manufacturing industries. Smaller organizations with less than 25 employees, as well as those in the Northeast, are less often considered “essential”, with 27% and 31% being classified as “non-essential” respectively.

Total

Government

Healthcare

Transportation/Warehousing

Manufacturing

Finance/Insurance

Retail & Wholesale

Services

Construction

Non-Profit

Real Estate

Education

Professional/Scientific/Technical

70%

93%

92%

88%

88%

77%

73%

67%

21%

4%

5%

5%

15%

18%

29%

9%

4%

4%

12%

7%

8%

9%

5%

YesNoNot Sure

63% 25% 12%

53% 32% 15%

44% 43% 13%

45% 48% 6%

50% 33% 17%

Differences by Employer Size

Is your business considered “essential”?

ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results 9

Page 10: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

66%

19%

15%

YesNo, but plan toNo, do not plan to

Has your company furloughed any employees as a result of COVID-19?

Furloughed EmployeesAt the time of this report, approximately 2 in 10 employers have furloughed employees as a result of COVID-19. Furloughing is more common among employers with 500+ employees, companies in the Northeast and West, and those in the Healthcare, Retail/Wholesale, and Construction industries.

Employment Status

10 ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results

Page 11: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

Has your company furloughed any employees as a result of COVID-19?

Total

Healthcare

Retail & Wholesale

Construction

Services

Transportation/Warehousing

Real Estate

Manufacturing

Non-Profit

Government

Professional/Scientific/Technical

Education

Finance/Insurance

19%

33%

31%

27%

24%

23%

22%

17%

15%

13%

16%

14%

19%

17%

16%

66%

54%

53%

59%

57%

77%

61%

67%

YesNo, but plan toNo, do not plan to

12% 15% 74%

7% 7% 86%

3% 8% 90%

6% 23% 71%

7% 19% 74%

Companies that have already furloughed employees vary on the percentage of their workforce impacted. A third have furloughed less than 10% of their workforce, and another quarter have furloughed more than 75% of their workforce. On the other hand, those companies that have not furloughed employees, but anticipate having to furlough employees in the future, say they will furlough 25% or less of their workforce.

Differences by Employer Industry

Percentage of Workforce That Has Been Furloughed

Percentage of Workforce Anticipated to be Furloughed

Less than 10%

10% to 25%

26% to 50%

51% to 75%

More than 75%

35%

34%

12%

13%

6%

31%

18%

15%

10%

26%

Less than 10%

10% to 25%

26% to 50%

51% to 75%

More than 75%

ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results 11

Page 12: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

YesNo, but plan toNo, do not plan to

17%

72%

11%

Has your company laid off any employees as a result of COVID-19?

LayoffsThe survey also asked if respondents have laid off employees as a result of COVID-19 and found that 28% have laid off employees or plan to do so. Companies that have laid off employees tend to be locations in the Northeast or those that do business in the Transportation/Warehousing, Construction, Services, or Retail/Wholesale industries.

Continuing benefitsRequiring furloughedemployees to go on COBRA

13%

87%

Is your company continuing benefits for furloughed employees?

Of those that have furloughed employees, the majority of companies are continuing benefits, rather than requiring furloughed employees to go on COBRA.

12 ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results

Page 13: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

Has your company laid off any employees as a result of COVID-19?

Total

Transportation/Warehousing

Construction

Services

Retail & Wholesale

Real Estate

Manufacturing

Healthcare

Non-Profit

Professional/Scientific/Technical

Education

Finance/Insurance

Government

17%

38%

34%

29%

27%

22%

13%

13%

11%

8%

19%

14%

9%

6%

11%

12%

72%

54%

47%

57%

64%

72%

76%

75%

YesNo, but toNo, do not plan to

11% 11% 77%

11% 11% 78%

4%4% 93%

5% 5% 90%

10% 13% 77%

Differences by Employer Industry

ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results 13

Page 14: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

Percentage of Workforce That Has Been Laid Off

Percentage of Workforce Anticipated to be Laid Off

Less than 10%

10% to 25%

26% to 50%

51% to 75%

More than 75%

45%

13%

17%

8%

17%

31%

47%

9%

9%

3%

Less than 10%

10% to 25%

26% to 50%

51% to 75%

More than 75%

38%72%

13%

14%5%

35%15%

Less than 50%

50% to 69%

70% to 89%

90% or More

8%

Salaried EmployeesHourly Employees

Percentage of Employees That Can Effectively Do Their Job Working From Home

Remote WorkersPrior to COVID-19, less than 25% of respondents’ employees worked remotely. Given the current state, employers are fairly split on whether employees can effectively do their job working from home. For hourly employees, the majority (72%) feel that less than 50% can do so. For salaried employees, 38% feel that less than 50% can do so while 35% feel that 90% or more can effectively do their jobs from home.

Most companies that have laid off employees due to COVID-19 have laid off less than 10% of their workforce. Almost half of employers that have not laid off employees, but anticipate having to do so in the future, say they will lay off between 10% and 25% of their workforce; another third of respondents anticipate laying off less than 10% of their workforce.

14 ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results

Page 15: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

In general, the propensity to implement policy changes due to COVID-19 increases with employer size. At the time of this survey, the most common policies that have been implemented in response to the COVID-19 pandemic include:

• Suspend attendance at in-person meetings/conferences• Disseminate protective gear to employees• Suspend all business travel• Restrict all visitors from entering the office• Require employees to notify HR if they or a family member traveled to an area

with a COVID-19 outbreak• Request or require self-quarantine for those that have traveled within 14 days

Most organizations at the time of this survey are planning to remain open. Closing operations for a period of time, with or without pay, is the least commonly implemented policy.

Company Policies

ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results 15

Page 16: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

Currently Doing Considering Not Doing and Not Considering Not Applicable

79%

69%

67%

66%

65%

60%

55%

54%

52%

52%

46%

42%

42%

40% 17% 13% 30%

39% 17% 16% 27%

28%

18%

16%

9% 14%

15% 45%

45% 31%

25%

25% 36% 21%

12% 29% 31%

13%

11% 9% 38%

13% 32%

18% 18% 18%

13%

11% 13% 24%

15% 19%

2%

2%

42%

7% 8% 30%

3%

3%

34%

13% 13% 9%

12% 9% 13%

5% 5% 23%

7% 9% 15%

7% 4% 10%Suspend attendance at in-person meetings and/or conferences

Disseminate protective gear to employees

Suspend all business travel

Restrict all visitors from entering your o�ce

Require employees to notify HR if they or a family member have traveled to an area with a COVID-19 outbreak

Suspend non-essential/some business travel

Suspend all domestic travel

Suspend all international travel

Request self-quarantine for employeeswho have traveled in the last 14 days

Require all employees to work from home(if job, technology allows)

Require self-quarantine for employees who have traveled in the last 14 days

Screen all visitors

Optional work from home arrangement

Implement a shift schedule to rotate sta� and minimize the number of people at the worksite

Flex hours for employees with jobs that require them to be at the worksite

Provide financial subsidies to cover expenses for employees who do not typically work remotely

Check temperatures of employees in the workplace

Close operations for a period of time with pay

Close operations for a period of time without pay

Currently Doing Considering Not Doing and Not Considering Not Applicable

79%

69%

67%

66%

65%

60%

55%

54%

52%

52%

46%

42%

42%

40% 17% 13% 30%

39% 17% 16% 27%

28%

18%

16%

9% 14%

15% 45%

45% 31%

25%

25% 36% 21%

12% 29% 31%

13%

11% 9% 38%

13% 32%

18% 18% 18%

13%

11% 13% 24%

15% 19%

2%

2%

42%

7% 8% 30%

3%

3%

34%

13% 13% 9%

12% 9% 13%

5% 5% 23%

7% 9% 15%

7% 4% 10%Suspend attendance at in-person meetings and/or conferences

Disseminate protective gear to employees

Suspend all business travel

Restrict all visitors from entering your o�ce

Require employees to notify HR if they or a family member have traveled to an area with a COVID-19 outbreak

Suspend non-essential/some business travel

Suspend all domestic travel

Suspend all international travel

Request self-quarantine for employeeswho have traveled in the last 14 days

Require all employees to work from home(if job, technology allows)

Require self-quarantine for employees who have traveled in the last 14 days

Screen all visitors

Optional work from home arrangement

Implement a shift schedule to rotate sta� and minimize the number of people at the worksite

Flex hours for employees with jobs that require them to be at the worksite

Provide financial subsidies to cover expenses for employees who do not typically work remotely

Check temperatures of employees in the workplace

Close operations for a period of time with pay

Close operations for a period of time without pay

Which of the following policies has your company implemented or is considering implementing in response to the COVID-19 pandemic?

Childcare and School ClosuresThe Families First Coronavirus Response Act (FFCRA) had not gone into effect at the time of the survey, so most companies (78%) responded that they are not providing assistance to their employees. Larger employers (1,000+), companies in the southern region of the country, and those in the Government and Non-Profit sectors tend to help with childcare needs in some way, such as expanding benefits to cover childcare needs, distributing lists of childcare providers and allowing employees more flexibility to work from home.

16 ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results

Page 17: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

Is your company assisting employees with childcare issues due to school closures?

Are you offering telemedicine benefits to employees who are not eligible for group health plans in the short term during the COVID-19 pandemic?

Total Employees

Less than 25 Employees

25-49 Employees

50-99 Employees

100-249 Employees

250-499 Employees

500-999 Employees

1,000+ Employees

5% 2% 16% 77%

5% 14% 32% 49%

11% 15% 71%

1% 20% 75%

2% 20% 75%

13% 84%

14% 84%

3% 17% 78%2%

2%

3%

3%

4%

2%

Yes, we are distributing lists of childcare providersYes, we are expanding benefits to cover childcare needsYes, in some other wayNo

Total Employees

Less than 25 Employees

25-49 Employees

50-99 Employees

100-249 Employees

250-499 Employees

500-999 Employees

1,000+ Employees

5% 2% 16% 77%

5% 14% 32% 49%

11% 15% 71%

1% 20% 75%

2% 20% 75%

13% 84%

14% 84%

3% 17% 78%2%

2%

3%

3%

4%

2%

Yes, we are distributing lists of childcare providersYes, we are expanding benefits to cover childcare needsYes, in some other wayNo

Total Employees

Less than 25 Employees

25-49 Employees

50-99 Employees

100-249 Employees

250-499 Employees

500-999 Employees

1,000+ Employees 45% 53% 3%

27% 61% 11%

22% 58% 21%

10% 70% 19%

17% 64% 19%

20% 62% 19%

18% 65% 17%

13% 71% 16%

Yes No Not sure

Differences by Employer Size

Differences by Employer Size

TelemedicineIn response to COVID-19, a portion of employers are temporarily offering telemedicine benefits to employees who are not eligible for group health plans (e.g. part time employees). Expanding telemedicine benefits is more common as employer size increases, starting at 500 employees but especially at 1,000+. When it comes to region and industry, companies in the southern region and the Finance/Insurance, Government, and Manufacturing sectors are more commonly offering telemedicine benefits during the pandemic.

ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results 17

Page 18: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

For “essential” hourly employees, most employers are continuing to pay their regular hourly rate, with large employers (1,000+) more commonly offering increased rates and temporary hazard pay when compared to smaller employers. Differences by industry for hourly employees are:

• Healthcare, Education, and Non-Profit sectors more commonly pay increased hourly rates• Education sector tends to pay increased overtime rate and temporary hazard pay• Retail/Wholesale industry more commonly pays a special lump sum bonus

Allow employees to use their paid time o� in whatever manner is most convenient to them

Continue pay for employees who test positive for COVID-19

Continue pay for employees who have cold or flu-like symptoms and voluntarily stay home

Continue pay for employees who can’t perform their job duties at home but are involuntarily

required to stay home due to quarantine

Continue pay for employees who stay home because they do not have childcare

Continue pay for employees whose workplaces mandated a closure

Continue pay for employees who are uncomfortable coming into work because they fall into an age bracket

identified as having an elevated risk

22%66%2%10%

9% 1% 39% 51%

9% 1% 37% 54%

8% 28% 63%

9% 1% 37% 54%

11% 44% 45%

9% 47% 44%

Hourly OnlySalaried Only Both Salaried and Hourly Don’t Know/Not Applicable

Allow employees to use their paid time o� in whatever manner is most convenient to them

Continue pay for employees who test positive for COVID-19

Continue pay for employees who have cold or flu-like symptoms and voluntarily stay home

Continue pay for employees who can’t perform their job duties at home but are involuntarily

required to stay home due to quarantine

Continue pay for employees who stay home because they do not have childcare

Continue pay for employees whose workplaces mandated a closure

Continue pay for employees who are uncomfortable coming into work because they fall into an age bracket

identified as having an elevated risk

22%66%2%10%

9% 1% 39% 51%

9% 1% 37% 54%

8% 28% 63%

9% 1% 37% 54%

11% 44% 45%

9% 47% 44%

Hourly OnlySalaried Only Both Salaried and Hourly Don’t Know/Not Applicable

Pay Policies Implemented

Employee Compensation, Hiring and OnboardingGiven the current environment, the survey asked several questions about potential changes to company policies regarding pay, hiring, and onboarding. As shown in the chart below, the majority of respondents allow employees to use their paid time off in whatever manner is most convenient to them, and roughly half continue pay for employees testing positive for COVID-19 or if they have cold or flu-like symptoms.

Pay Policies

18 ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results

Page 19: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

Similarly, 90% of survey respondents are paying the regular salary for “essential” salaried employees. Some employers with 500+ employees also pay a special lump sum bonus.

Although few respondents plan to change incentive pay policies at the time of this survey, up to 13% of large employers (1,000+) and up to 14% of those in the Service industry are making such plans.

When it comes to implementing a 2020 merit increase, respondents vary in their approach. Most employers with 500 or more employees and those in the Finance/Insurance industry already implemented a merit increase (prior to the COVID-19 outbreak) or will make a merit increase as planned (regardless of COVID-19).

Regular hourly rate

Increased hourly rate

Increased overtime rate

Special bonus, lump sum

Temporary hazard pay

Reduced incentive/commission targets

83%

2%

3%

1%

1%

1%

Pay for Hourly Essential Employees

YesNoNot sure

63%

32%

5%

Do you plan to change incentive pay policies at this time?

ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results 19

Page 20: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

Total Employees

Less than 25 Employees

25-49 Employees

50-99 Employees

100-249 Employees

250-499 Employees

500-999 Employees

1,000+ Employees 13% 16% 53% 18%

30% 14% 26% 30%

35% 15% 33% 16%

37% 17% 25% 22%

43% 8% 17% 32%

35% 11% 18% 36%

36% 11% 10% 43%

36% 12% 20% 32%

Yes, across all rolesYes, across all roles except replacement hiresNo, but we have changed recruitment practices to only conduct virtual interviewsNo changes to recruitment practices

Differences by Employer Size

Has your company implemented a hiring freeze as a result of COVID-19?

When asked about hiring and recruitment practices, slightly more than a third (36%) of respondents have implemented a hiring freeze across all roles within their organization. The most notable difference by size is that only 13% of employers with 1,000+ employees have instituted a hiring freeze, and 53% have changed to screening new applicants through virtual interviews only. Differences by industry include:

• 62% of respondents in the Services industry have a hiring freeze across all roles• 25% in the Government sector have a hiring freeze for all roles except replacement hires• 33% of respondents in the Professional/Scientific/Technical industry have changed to only

virtual interviews

Yes, we implemented prior to the COVID-19 outbreak

Yes, we will implement on the planned e�ective date

No, we have delayed merit increase implementation

No, there is a company-wide salary freeze for 2020

No, we are considering delaying merit increase implementation

29%

17%

16%

16%

22%

2020 Merit Increase Implementation

20 ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results

Page 21: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

Differences by Employer Size

Has your company delayed onboarding activities as a result of COVID-19?

With respect to onboarding activities, over half of companies are delaying or changing their approaches. Although companies with less than 50 employees are not making changes, those with 50-99 employees are delaying onboarding activities during the COVID-19 pandemic and large employers (1,000+) are changing to a virtual experience.

Onboarding changes by industry include:

• Services and Transportation/Warehousing are more commonly delaying onboarding activities• Education and Finance/Insurance are shifting to virtual activities• Construction, Retail & Wholesale, and Manufacturing are making no changes to onboarding

Total Employees

Less than 25 Employees

25-49 Employees

50-99 Employees

100-249 Employees

250-499 Employees

500-999 Employees

1,000+ Employees

YesNo, but we have changed onboarding to a virtual experienceNo changes

21% 63% 16%

30% 39% 32%

42% 28% 29%

49% 20% 31%

44% 17% 38%

28% 19% 53%

34% 8% 58%

38% 20% 43%

ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results 21

Page 22: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

Impact of COVID-19 on Your Business in the Next 12 Months

4%3%

11%

42%

41%Significantly positive impactSomewhat positive impactNeither positive nor negative impactSomewhat negative impactSignificantly negative impact

4%3%

11%

42%

41%Significantly positive impactSomewhat positive impactNeither positive nor negative impactSomewhat negative impactSignificantly negative impact

Business OutlookWith no clear end in sight and disruption to normal business operations across many industries, over 80% of respondents across all employer sizes, regions, and industries feel that COVID-19 will have a negative impact on their business in the next 12 months. Organizations that say COVID-19 will have a positive impact tend to be in the Healthcare or Education sectors. According to survey respondents, the biggest impacts of COVID-19 on their business will be uncertainty and loss of revenue.

22 ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results

Page 23: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

Differences by Employer Industry

Impact of COVID-19 on Your Business in the Next 12 Months

Positive Neither Negative

Total

Healthcare

Education

Transportation/Warehousing

Professional/Scientific/Technical

Manufacturing

Real Estate

Finance/Insurance

Retail & Wholesale

Non-Profit

Construction

Services

Government

6%

11%

10%

8%

7%

7%

6%

5%

4%

3%

3%

2%

17%

12%

12%

14%

85%

86%

86%

80%

4%

13% 82%

92%

6% 89%

11%

13% 80%

82%

8% 85%

3% 87%

8% 81%

11% 83%

Positive Neither Negative

Total

Healthcare

Education

Transportation/Warehousing

Professional/Scientific/Technical

Manufacturing

Real Estate

Finance/Insurance

Retail & Wholesale

Non-Profit

Construction

Services

Government

6%

11%

10%

8%

7%

7%

6%

5%

4%

3%

3%

2%

17%

12%

12%

14%

85%

86%

86%

80%

4%

13% 82%

92%

6% 89%

11%

13% 80%

82%

8% 85%

3% 87%

8% 81%

11% 83%

ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results 23

Page 24: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

Respondents range in size from less than 25 to more than 5,000 employees, with less than 25 being most prominent.

The most common industries of respondents include Manufacturing, Other (such as Veterinary, Agriculture, Entertainment, Food Service/Hospitality), Non-Profit, and Healthcare.

Respondent ProfilesThe majority of survey respondents (61%) are Human Resources/Benefits professionals, and all have some involvement in decision-making related to COVID-19.

How involved are you in decision making in response to COVID-19?

Very involvedSomewhat involvedSlightly involved

71%

21%

8%

Total Number of U.S. Employees

Less than 25

25-49

50-99

100-249

250-499

500-999

1000+

31%

14%

17%

17%

11%

5%

5%

24 ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results

Page 25: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

Less than 5

5 to 10

11 to 20

21 to 50

More than 50

3%

3%

80%

9%

5%

Manufacturing

Non-Profit

Healthcare

Professional/Scientific/Technical

Construction

Retail & Wholesale

Services

Finance/Insurance

Real Estate

Other

15%

12%

10%

9%

8%

5%

5%

5%

2%

19%

Industry

Number of Company Locations

20%

31%23%

26%

MidwestNortheastSouthWest

Respondents by Region

Respondents represent all regions of the country, with Pennsylvania (21%), Illinois (16%), New York (13%), and Washington (12%) as the most highly represented states.

The majority (80%) of respondents have less than 5 company locations. This is expected given the small size of most of the responding companies.

The information contained herein should be understood to be general insurance brokerage information only and does not constitute advice for any particular situation or fact pattern and cannot be relied upon as such. Statements concerning financial, regulatory or legal matters are based on general observations as an insurance broker and may not be relied upon as financial, regulatory or legal advice. This document is owned by Alera Group, Inc., and its contents may not be reproduced, in whole or in part, without the written permission of Alera Group, Inc. Due to rounding, not all graphs will equal 100%. Updated as of 4/8/2020

ALERA GROUP 2020 COVID-19 Employer Pulse Survey Results 25

Page 26: COVID-19 Employer Pulse Survey Results · The survey was conducted online from March 27 to April 6, 2020, and consisted of 831 employers across various sizes, industries and regions.

NATIONAL SCOPE. LOCAL SERVICE.

Three Parkway North | Suite 500 | Deerfield, IL 60015D 847-582-4501 | aleragroup.com


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