key: cord-0072006-7l2g8b1i
authors: Abston, Kristie A.; Bryant, Phillip C.
title: Compensation and Benefits in a Pandemic and Post Pandemic World: Introduction to Compensation & Benefits Review Volume 53, Issue 1
date: 2020-08-21
journal: Compens Benefits Rev
DOI: 10.1177/0886368720953347
sha: 3a1c04fd5c2be14d8564d7ba0bd2da3cb33e7da0
doc_id: 72006
cord_uid: 7l2g8b1i

nan

and financial institutions were among the businesses deemed essential. Businesses such as salons, theaters, and gyms were among those deemed nonessential. 5 Many nonessential businesses adapted quickly and began offering services like curbside pickup and free or discounted contactless delivery. 6 Many colleges and universities transitioned to remote or online instruction in March 2020 and at least partially closed campus, 7 and school systems around the world sent 1.5 billion kids home. 8 Businesses that were allowed to continue operating had to quickly implement procedures, such as conducting health checks on workers, monitoring social distancing, and upgrading cleaning processes, to comply with guidelines. Employees who were deemed essential had to learn how to continue with work as safely as possible while also managing possible childcare issues and the prospect of reduced hours or layoffs among other stressful factors. 9 Massive layoffs and closures began soon after the first stay-at-home orders were issued. The unemployment rate in the US was 3.5% in February 2020. 10 By April, the unemployment rate had jumped to 14.7%-the highest since the World War II era. 11 Over 20 million jobs were lost in April, the largest decline since these data began being measured in 1939. 12 Small businesses were especially vulnerable to the effects of the stay-at-home orders. Special loan programs and grants from states, cities, and other organizations 13 were made available to help small businesses survive during COVID-19. In "Small Business Post COVID-19: Motivational Needs through Uncertain Times," Stefanie Ertel surveyed nine small business owners to learn what short-and long-term changes they expected to make related to COVID-19 after all businesses are allowed to fully reopen. Maslow's Hierarchy of Needs was examined using post-COVID-19 terms and perspectives and then discussed as it relates to the three emergent themes from the survey: cleanliness/ social distancing, funds/staffing, and online resources. Maslow's basic needs in a post-COVID-19 world include toilet paper, an unexpected hot commodity, and forgiveness of late payments as the unemployed masses struggled to pay for housing and other essentials.

Maslow's safety needs encompass cleanliness/ social distancing as well as both real and perceived commitment to health standards and to a safe environment from a racial and ethnic standpoint by both employees and customers. Love and belongingness are surprisingly important for small businesses as this need is where social media and other online platforms can be used post-COVID-19 to connect with employees and customers, making them feel included and accepted. These online tools can also be used to communicate how the business is addressing safety needs. Ertel questions whether most businesses are reaching the esteem need level as much trust is required here, in addition to all of the other needs being met first. While Ertel recognizes that most small businesses will be focused on meeting lower-level needs during these stressful times, she asserts that "knowing your employees" is the key to meeting self-actualization needs effectively. From a servant-leadership perspective, Ertel suggests that leaders should help employees meet and overcome challenges primarily for the employees' benefit and secondarily for the company. In small businesses, listening to and empowering employees are critical to staying connected and building relationships with employees, customers, and the community.

With key economic indicators taking hits during the pandemic, economic and financial experts are feverishly trying to model and forecast how severe the post-COVID-19 recession will be. The volatility of the stock market as a result of the pandemic has financial advisors cautioning people who were looking to retire in the near future to reconsider. 14 As the next article alludes, some state and local government pensions were already facing substantial challenges even before the pandemic.

John Kilgour, author of "State and Local Government Pension Funding on the Eve of the COVID-19 Recession," provides a simple but thorough overview of how both private and public pensions are funded. Kilgour does a deep dive into the current state of funding of public pensions, especially in light of the impact of the Governmental Accounting Standards Board's Standard 68's (GASB 68) accounting and reporting requirements and COVID-19. Kilgour describes the history of regulatory efforts and consequences that led to GASB 68, which aimed to bolster public pension plans and to protect workers' benefits. Data from the Center for Retirement Research at Boston College Public Plans Database were used to provide examples and statistics of the metrics that were affected by implementation of GASB 68. Four main implications are discussed: discount rates, amortization periods, asset valuation/smoothing, and actuarial cost method. While well-funded plans were not impacted significantly by GASB 68, underfunded plans saw a tremendous increase in their net pension liability, which reflects underfunding. As a result of COVID-19, Kilgour anticipates stormy seas for public-sector pension plans, especially those that were already struggling.

Another compensation and benefits area that will be impacted by lost revenue and increased costs as a result of the pandemic is employee benefits. In "Employer-sponsored Benefits in the United States: The Past, Present, and Future," authors Baskin, Lester, and Clinton explore benefits opportunities that will be available to human resource management (HRM) professionals as a result of the pandemic. This article presents a thorough but concise review of the history of mandated benefits (e.g., social security), employer-sponsored benefits and trends (e.g., retirement), and life-friendly and wellness programs (e.g, flexible work arrangements). Baskin and her colleagues preface the review with consideration of employment trends leading into 2020, including modifications to the traditional 40-hour, Monday-Friday workweek, adjustments in minimum and subminimum wage, and growth in the gig economy. Next, they examine the response to COVID-19 in the US, summarizing legislation (e.g., Families First Coronavirus Response Act (FFCRA)) and suggesting intervention opportunities for HRM professionals concerning the traditional workweek, worker classification, employee benefits, and workplace safety.

Ultimately, HRM professionals strive to protect both organizations and their workers. Martin, Lopez, Flannery, and Dixon describe HRM professionals as resilient. After all, they have helped their organizations by transforming the workforce when needed and persisting through financial crises and literal storms. The substantial challenges created by COVID-19 will require similar tenacity. In "Infectious Disease: Protecting Workers and Organizations-The Role of Compensation & Benefits," Martin and his colleagues issue a call to action for HRM professionals to protect both workers and their organizations in their responses to crises caused by infectious diseases. They review the legal, compensation, and insurance aspects of communicable infectious diseases, such as influenza, severe acute respiratory syndrome, and, specifically, COVID-19, to provide insights on what HRM professionals can do to make effective decisions. The authors describe the laws that have been passed in the US to assist workers, including the FFCRA and the Coronavirus Aid, Relief, and Economic Security Act.

Martin and his colleagues also review the relevant federal (ADEA, ADA, FLSA, FMLA, OSHA's General Duty Clause, and HIPAA) and state laws (workers' compensation and unemployment insurance). They discuss how state laws for workers' compensation and unemployment "lack uniformity" and give examples, such as one insurance company's stance on COVID-19 workers' compensation claims being determined on a case-by-case basis to establish that exposure happened due to employment.

Martin and his colleagues suggest a more strategic stance in the compensation aspects of infectious disease through considering the types of worker arrangements within the organization and reviewing the organizational responsibility continuum to reevaluate the compensation philosophy. They propose adding a P for protection during crises to Shah and Meyer's (2016) tenets for a strong compensation philosophy: attract (A), retain (R), and motivate (M). 15 Discretionary benefits, including paid sick leave, paid family leave, and disability benefits reveal important insights into whether an organization's practices encourage sick workers to stay home or to come to work despite the risk of infecting others.

As part of the insurance aspects of infectious disease, Martin and his colleagues promote expanding employee assistance programs to include both COVID-19 and general remote worker issues. Workers who have been tested for COVID-19 or are self-quarantined may experience mental health challenges, such as stress, anxiety, and panic. These challenges may also be associated with the loneliness found with remote work that was occurring even before COVID-19. Assistance can be provided using technology to support these workers safely. The authors also promote expanding workplace wellness programs to include communicable diseases. Hand hygiene training, vaccination programs, and infectious disease education are discussed as ways to help workers and their communities stay safe.

The global pandemic caused by COVID-19 and its aftermath have imposed many changes on us both professionally and personally. We must reflect upon what we have learned from the past in light of our pandemic experiences and recognize opportunities to innovatively move our organizations and our professions forward. This issue of CBR is particularly relevant to any leaders in organizations who will shape the vision and influence the policies and procedures used to support and reward workers during this time of recovery and revitalization.

The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

Coronavirus: DOD response timeline

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Chart: Each state's COVID-19 stay-at-home orders, reopening dates, and reclosings. COVID-19

Here's the difference between an 'essential' business and a 'nonessential' business as more than 30 states have imposed restrictions. Business Insider

Consumers overwhelmingly like curbside pickup, and more from a new COVID-19 survey

Columbia, Harvard, NYU, and other major US colleges and universities that have switched to remote classes and are telling students to move out of dorms to prevent the spread of the coronavirus

The pandemic sent 1.5 billion children home from school. Many might not return. The Wall Street Journal

Suddenly I have no paycheck': Layoffs and cuts for workers rocked by coronavirus. The Guardian

19.2 percent of the unemployed had been jobless for 27 weeks or more in

Labor force statistics from the current population survey. Databases, Tables & Calculators by Subject

Payroll employment down 20.5 million in

Your guide to the federal stimulus package

Coronavirus puts the squeeze on retirement hopes

Rethinking compensation philosophies

The author(s) received no financial support for the research, authorship, and/or publication of this article.

Kristie Abston attained her PhD in business administration from the University of Tennessee. Prior to joining academia, she worked in manufacturing and consulted in banking, health care, and other industries. Currently, she is an assistant professor of management in the