We wanted to take a snapshot of the challenges that coronavirus was presenting to people and businesses, so we created and distributed a survey to more than 7,000 BKL clients and contacts across a number of sectors. It was also shared on our website and through social media. We received 214 responses.
Unsurprisingly, the two biggest impacts were on turnover and working practices. However, businesses are feeling confident and are embracing the changes to working practices.
Key findings
- Almost half have seen their businesses affected “a lot” or “a great deal” by the pandemic, with the main impact being turnover
- Confidence about future sustainability is relatively high, with 48% very or extremely confident
- Despite the greatest negative impact being on turnover, 72% have not applied for a business support loan from the government. The main reason for this was because it wasn’t required
- Applying for the Bounce Back Loan Scheme (BBLS) was easy and quick, whereas for the Coronavirus Business Interruption Loan Scheme (CBILS) it was laborious and slow
- Applying for the Coronavirus Job Retention Scheme (CJRS) has been easy or very easy, but 50% don’t intend to use it
- 80% haven’t made redundancies and don’t intend to
- Although the majority are prepared for the future, 38% don’t have a business continuity plan
- Changes to working practices are here to stay
Impact and sentiment
Our first question asked about the negative impact businesses have experienced due to COVID-19. Half of respondents said that they had been affected only moderately, a little or not at all.
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For 70% of those that said they had been affected a great deal or a lot, the main impact was loss of turnover. When considering all responses, loss of turnover was the main impact for more than 46%.
While working practices were also impacted, there seemed to be a sense of exploring the positives: using it as an opportunity to assess how businesses want to work in the future. Identifying the potential for longer term improvements – lower costs, higher efficiency, greater use of technology and remote working – has helped to offset some of the negative impact.
Despite a negative impact on businesses, confidence seems high, with 48% very or extremely confident and 36% somewhat confident.
Loan schemes
72% have not applied for a business support loan. Even among those where turnover has been the biggest impact, only a third have applied for a loan.
Overall, 14% have applied for a Bounce Back Loan and 14% for a Business Interruption Loan. BBLS was considered much easier and straightforward to apply for than CBILS. Of those that haven’t applied, 53% gave not needing a loan as their main reason.
How do the loan schemes differ and how effective have they been so far? Read our analysis here.
Furloughing and redundancy
The government’s Coronavirus Job Retention Scheme received a strong positive response. 91% felt they had enough information about it; of those who’ve submitted a CJRS claim, 59% found the process easy or very easy and only 8% found it difficult or very difficult. However, 50% said that they hadn’t furloughed any employees and didn’t intend to.
80% are clear that they haven’t made redundancies and don’t intend to. Since the survey, the government has announced its plans for phasing out CJRS in August-October, so organisations may find their attitudes towards redundancy changing as the year goes on.
If you are considering redundancies, our HR and employment law specialists can help: find out more here.
Working practices
28% cited working practices as the area of their business most affected by COVID-19. In the face of such a sudden and drastic change, the good news is that 88% said their team is coping well or very well.
For those experiencing a negative impact on working practices, it’s not just about working from home but the broader implications: how we work, office space, headcount and outsourcing. We will be curious to see how much of lockdown’s enforced changes to business’ working practices are kept and adapted into voluntary changes.
Looking to the future
After the initial jolt from lockdown, our survey suggests that our clients and contacts are confident about the futures of their businesses. Many haven’t needed to make use of the government’s support schemes, which suggests a good financial position. 38% have yet to put a business continuity plan in place.
At the same time, with coronavirus and lockdown having such broad, deep consequences for the economy, ‘sustainability’ and ‘futureproofing’ feel less like buzzwords and more like things that require attention. Many of you are taking actions to make your businesses more efficient (e.g. for cash management, cost cutting, credit control, billing); some are also keen to adapt and to explore opportunities (new services and other revenue streams).
While the situation continues to develop with further challenges ahead, the greatest certainty is around working practices: dramatic change has been met with a positive response, suggesting that a fresh perspective on how we work will be at the heart of ‘the new normal’.
We look forward to continuing to work with you as both efficient and forward-thinking advisers, and to supporting you in the months and years ahead.
If you’d like to discuss how we can support your business through coronavirus, please get in touch with your usual BKL contact or use our enquiry form.
You can also download our coronavirus survey results as a pdf report.