Business Update - Weekly Digest (June 30, 2021)
As the pandemic recedes and businesses reopen, millions are quitting their jobs rather than return to their pre-pandemic routine. Some are seeking out positions where they can be fully remote, while others, particularly in the leisure and hospitality sector, are seeking better work-life balance, higher pay, or a less stressful work environment. The lengthy experiment with remote work has changed what people think about where and how they want to work. Many people are seeking work that accommodates their desired lifestyle, rather than adapting their lifestyle to the demands of their jobs.
THE AMERICAN RECOVERY PLAN ACT (ARPA)
Shuttered Venue Operators Grant
Even though the SVOG was signed into law December 27, the SBA has only recently begun sending money out. By the SBA’s own most recent report, only 1,445 grants have been awarded out of the 14,416 applicants. A total of $11.6 billion has been requested, but so far, only $833.4 has been awarded. Unlike the Paycheck Protection Program, which got funds in the hands of business owners quickly, this program has been plagued with bureaucracy. Some venue operators have even been incorrectly notified that the SBA had deemed them dead. No mechanism exists to appeal the SBA’s decisions, so some venue operators are hesitating to sign off on awards out of fear of locking in the wrong amount.
Monthly Child Tax Credit Payments
The IRS has created a portal for parents to update their information for the advance Child Tax Credit. At this point, the portal only allows parents to check on their eligibility, view their upcoming payments, or to unenroll from receiving advance payments. According to updated IRS FAQs, this portal will eventually allow parents to update mailing addresses, update banking information, add or subtract qualifying children, report changes to marital status, and report changes to income. Starting in July, the IRS will be sending out monthly cash advances of up to $300 per qualifying child for the child tax credit. For more information, taxpayers should consult the IRS webpage for this credit.
REOPENING THE OFFICE
Did you bring on new employees during or shortly before the pandemic? Now, as offices begin to re-open, is a good time to consider re-onboarding hires who started remotely. A solid process for onboarding improves retention and orients employees to company culture. Bringing this group of new hires together allows them to bond with each other. When they come back to the office, leave a small gift at their desk to make them feel welcome. Make sure to give them a tour of the facilities, and encourage their managers to have an in-person one-on-one and to check in with them regularly.
LIFE IN THE POST-COVID ERA
The pandemic forced many organizations to quickly pivot and find new ways to serve customers. Some of these changes may persist, as they provide a better customer experience, and may allow organizations to pursue a blue ocean strategy in an area where there are few competitors. The Four Questions Framework is a blue ocean tool to help rethink strategy and create a more powerful company for the future. Briefly, the four questions are:
Which factors that the industry takes for granted should be eliminated?
Which factors should be reduced well below the industry’s standard?
Which factors should be raised well above the industry’s standard?
Which factors that the industry has never offered should be created?
Considering these four questions can help organizations develop new ways to reduce costs, and provide better service to customers.
CYBERSECURITY
While working remotely last year, nearly a third of employees picked up bad cybersecurity habits or workarounds to circumvent internet security protocols. This may mean that when an employee returns to the office, they may inadvertently introduce a virus or another cyberthreat by connecting an infected personal device to their corporate network. While educating employees about the dangers of clicking on links in phishing emails goes a long way towards eliminating many threats, IT leaders need to also create a security culture to support safe work behaviors.
Those bad behaviors can leave companies vulnerable to ransomware attacks. While attacks on large targets receive extensive media attention, the majority—50-70%—are aimed at small and medium-sized businesses. Nearly 60% of those businesses fail, and about 80% are attacked a second time. A few simple tips can help keep your business safe. First, recognize that every industry and every size of business is vulnerable. Keeping all files backed up can help return to normal quickly. Make sure remote workers know how to spot phishing attempts, use two-factor authentication, and keep security software updated. Create a plan beforehand for dealing with a ransomware attack. Even if you comply with the hackers’ demands, you will almost certainly lose some data. Don’t rely on law enforcement to recover your ransom payments.
ECONOMY
The CDC has extended a federal moratorium on tenant evictions through July. However, landlords are also feeling the pinch as they are unable to pay their bills. Delivery of the $47 billion in rental assistance has been slow and uneven.
Workers in states that have already cut off expanded unemployment benefits are returning to work more quickly than in states that are continuing those benefits. However, some workers are not returning due to challenges with daycare and continuing fear of contracting COVID at the workplace.
Things are still uncertain in both the retail and food service industries. Today Panera announced that it was selling off their Au Bon Pain eateries—for a second time. Au Bon Pain is not as well known on the West Coast, where there was literally only one located in the Northridge Mall in the 1990s; however, they do have great muffins and soups, so if you are visiting the east coast, drop in and treat yourself. The blueberry muffins are the best.
If you’re going to the United Kingdom or Ireland anytime soon, forget about dropping into a GAP location to buy an emergency T-shirt. They have just announced that they’re closing all 81 locations there and selling solely online.
Happy Animal News
In case you’re in the mood for learning about orphaned baby lambs who are getting knitted sweaters from strangers, make sure to check out the story.
Some care home residents in the UK requested a cat to help cheer up the place. The home happily responded and now there is a new resident, admittedly the youngest ever: Dave the Kitten.
