The Covid-19 virus is still travelling around the world, already having infected almost 4 million people and having killed more than 250.000. In the meantime governments are working around the clock on exit strategies, while citizens are getting anxious about resuming life (and work). However the news headlines aren’t very optimistic about the future as economists around the globe are warning for the worst recession since the Great Depression. Economics 101: depression is worse than recession.
What will life look like after Covid-19?
We are all curious about what life will look like after the pandemic but we can’t deny the impact of Covid-19 on the economy. Recession is a fact. But recessions come in many shapes and forms. Since economists are warning for the worst recession since the Great Depression, as a consequence a lot of companies are preparing for a U shaped recession which is long with a slow return to growth. We don’t agree. We believe it will be limited to a V shaped recession where the economic recovery is much faster after a sharp but brief period of economic decline.
Who are we to not agree with world renowned economists? We are part of the optimistic millennial generation that doesn’t (want to) believe that things will come that far. The previous generations are traditionally more conversative. If things go south, they stop spending and cut back on their lifestyle. But luckily for us they are retiring (or their way of thinking is anyways). The MTV generation, the millennials and the digital natives have one thing in common: #yolo. They were raised with MTV and social media. They are creative, innovative, entrepreneurial and digital. Getting the most and best out of life is their reason for existence. They are travelling the world, combining multiple passions, interests and jobs. They don’t limit themselves, they are slashies. They want it all and nothing can stop them. This #yolo mindset fueled the transformation over the last decade where we moved from a service economy to an experience economy. It’s no longer about products but about the quality of life and value adding experiences. This makes the economy pick up growth faster than ever before. And If Covid-19 proved us something, then it’s definitely that people and businesses are resilient, adaptive and innovative.
Want additional proof?
- Local coffee bars and hipster joints are opening shops and people are lining up around the corner. They sell out before closing.
- eCommerce is booming. Forget Christmas shopping, Corona shopping is the busiest time of the year.
- In 2020 supermarkets are the new place to be. Where you even meet friends (in case you decided against the local Covid-19 guidelines).
- Local businesses are being creative in order to survive. And the creative ones, who reinvented themselves during the crisis, will survive.
- Social media showed us the world and changed the travel mindset forever. Covid-19 won’t change this.
- We have money to spend but local businesses are closed. Hence eCommerce has a shortage of resources and stock to meet demand. During previous recessions it was the other way around: businesses were open, but there was no money to spend. And we all know millennials love to spend money.
- Millions of people have been laid off amid the Covid-19 outbreak. Not so different from previous recessions you might think? Think again. Some big corporations are finally taking CSR seriously (thumbs up!!) and are doing everything they can to avoid naked layoffs. With Airbnb being the perfect example. And instead of throwing in the towel, people are taking matters into their own hands. They are vocal about the layoff experience, joining forces and setting up businesses.
What does this mean for the future?
Some traditional businesses or even business models will go under if they weren’t able to reinvent themselves in order to survive. But the silver lining is that businesses are adapting to new forms of operating. Yes, life after Covid-19 will be totally different. But will it be for the worse? Probably not. Covid-19 breaks with the old and is the catalyst for new ways of working and doing business. Even local bars are delivering cocktails to your doorstep. All you need to do is mix the ingredients.
What does this mean for HR?
When new ways of working emerge, HR is at the forefront of it to facilitate the change but often fails to do so. What are the future opportunities for HR?
- Don’t do digital. Be digital.
- Embrace the new ways of working. Don’t be the last in class.
- Lead the transformation of your organization. Be a strategic business partner.
- Reassess the functions and the job profiles of your organisation. Transformations often require new talent.
- Working remotely requires you to reimagine collaboration and information sharing. By nature, HR data is sensitive and confidential. The HR department of the future will find a way to handle and share this information in a digital and secure way.
Employer branding will remain a hot topic. The experience economy and growing influence of millennials in the workplace drive the consumerization of HR. Employees are more demanding than ever. More than just a job, they want a great on-the-job experience. The employee experience your organisation provides has a direct impact on your organization’s success. And now more than ever, you will need your employees to be your brand ambassador. Make sure they represent the brand the right way. A strong employee experience drives a strong customer experience.
Start your transformation wise and assess your current situation. Make sure you invest where most business value is created to avoid costly mistakes.
