Hastily adopted by some entities in the region as an emergency response to the advent of COVID-19, “remote work” is likely to become “a permanent option” for jobs that so allow, with more than half the Chief Financial Officers (CFOs) in the Caribbean saying they plan to improve the remote working experience, a recently released report on a June 8-11 study undertaken by international business consultancy firm, PricewaterhouseCoopers (PwC) says.
And while revenue losses resulting from the closure or significant scaling down of businesses operations continues to be an important preoccupation of both business owners and employees in the region, the study asserts that the top concern among CFOs even as return-to-work plans are rolled out is that a poorly planned move in that direction could spark a fresh wave of COVID-19 infection.
Respondents to the survey intended to gauge the business and economic impacts of COVID-19 included 44 CFOs and finance leaders from some of the leading business organisations in The Baha-mas, Barbados, Bermuda, Jamaica, St Lucia, and Trinidad and Tobago.
The findings of the study suggest that 64% of the CFOs in the countries surveyed are wary of the likelihood of a new wave of COVID-19 infection while 61% are concerned about the effects of a global economic downturn.
One of the immediate concerns of regional CFOs according to PwC Jamaica Territory Official, Leighton McKnight, is with the responsibility of having to manage, simultaneously, the twin responsibilities of having to bring employees back into work spaces while having to reorganize in a manner that takes account of the safety of both employees and clients. It is a matter, McKnight is quoted as saying, of companies “implementing the right measures to keep employees and clients safe” and taking “a phased approach” to reopening for business.
PwC says that most regional CFOs anticipate that their bottom line will take a considerable ‘hit,’ with 39% expecting a decrease in revenue and/or profits of between 10% and 25% as a result of the COVID-19 crisis while 20% expect a decline of 25% to 50%.
But McKnight is of the view that its negatives aside, COVID-19 has created “new opportunities” for businesses in the region, asserting that post-pandemic business strategies are likely to see the unveiling of plans by 70% of the region’s CFO’s to direct their attention to product innovation. “COVID-19 has created opportunities and it will be good to see businesses evolving and adapting to remain profitable,” McKnight is quoted as saying.
While PwC says that the COVID-19 experience is likely to see company cuts in “general capital expenditure” rather than “other investment types,” none of the businesses surveyed plan cuts to “digital re-search and development or cyber security.”
The study says that over the few weeks since countries have embarked on phased re-openings, CFOs have been preoccupied with navigating return-to-workplace plans, determining when and how – and to what extent – to bring employees back. The surveyed entities say that they feel confident about their organisations’ ability to provide a safe environment for both employees and customers.
