The EYE survey last week showed that 57% of people who work in the property sector think that it is too soon for agents to return to work.
I can only assume that these 57% are employees not business owners because business owners are completely free to ignore the government’s advice about re-opening their business.
They can decide to remain closed for a little longer or to keep their offices closed but start to arrange viewings, or to arrange viewings only on empty properties or take whatever other decisions they feel comfortable with.
But as a business owner, whatever you decide to do there will be many obstacles to overcome before business can return to normal.
One of your biggest challenges will be keeping the staff on side, and there are so many things to consider.
Most businesses will not be able to bring all their staff back to work immediately so how will you decide who to bring back to work and who to leave on furlough?
How will you deal with staff who want to return to work but can’t do so because they have no-one to look after their children?
How will you deal with staff who say that they cannot get to work because the trains or buses are not running or that they are too frightened to use them in case they catch the virus in an overcrowded carriage?
How will you deal with older staff or staff who have medical conditions which mean that they are at greater risk of dying from COVID-19?
How will you deal with staff who want to continue to work from home for all or part of every week?
How will you deal with staff who want to work flexi-time in order to make their journey to and from work quicker or safer?
Are you prepared to top up the salaries for staff on furlough once the government reduces the percentage of earnings that it will pay and where will the money come from to do this?
How will you deal with staff who refuse to come off the furlough scheme because they prefer being at home on 80% of their salary to being at work on 100%?
Will you need to make any staff redundant? If so, when will you do it and how will you fund the statutory redundancy costs which continue to be payable despite COVID-19?
These are just some of the HR decisions that you will need to make over the next few weeks and it will be a legal and moral minefield.
Already, there are examples of business owners getting it right and others getting it horribly wrong.
Who will ever forget how one of the UK’s largest pub chains told their staff that they would not be paid for six weeks until the government furlough money came through? (This was later retracted).
At the other end of the scale, the owners of some companies have won the admiration and respect of their staff by communicating with them openly, honestly and fairly.
The tiniest things can make a difference.
My neighbour’s son has been working at home for the last eight weeks and has been working four or five hours extra every day to do his own work plus the work of one of his colleagues who has been furloughed.
He was happy to do this for the long-term good of the company. However, they then told him that his salary would be reduced by 10%. This will save them about £1,500.
He was so incensed by this that he will now be looking for a new job as soon as the current crisis is over.
It will cost them many thousands of pounds to replace him in agency fees and the time necessary to train his successor.
It is also very likely that he will take many of the clients with him who bring in a quarter of a million pounds a year for the company.
All this to save £1,500.
I would urge every business owner to make time over the next few days to write a summary business plan that can be shared with every member of their staff.
It should include the following:
• A summary of the turnover of the business in 2019 and a projection of the turnover for 2020
• A brief analysis of how many houses will need to be sold and/or let to achieve this revenue
• A summary of the strategies that the business will employ to achieve these targets
• Some information about the role of every member of staff in achieving these things
• An honest prediction of how many staff will be brought back from furlough, and when
• Detailed information about how the company will do everything possible to safeguard the health of all its employees
• Reassurance that you will treat staff fairly if they are unable to work due to a lack of childcare arrangements
• Clarification of your policy on homeworking and flexi-time
The companies that treat their staff fairly over the next few months will win their respect and loyalty and will safeguard their most important asset for many years to come.
Those that do not will find that just as the upturn gets underway, their best staff will hand in their notice at the very time that they need them most.
Adam Walker is a management consultant and business transfer agent who has specialised in the property sector for over thirty years.
I think the key message is “Communication.”
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That’s an awful lots of IF’s.
As to what to discuss with employees about the business operations. No way should an agent be discussing turnover with his staff. All the staff need to know is what is expected from them for the future (you do an annual staff performance assessment with them!) and if the business is robust to carry them through or they need to start looking for new employment if you think you are going turtle.
Confidence and communication is necessary. You may wish to consider change in job descriptions with some employees but not until you as the business owner have planned what is best for the business.
If you do annual staff performance interviews it will have covered all those if’s. If you don’t, consider doing them from now on. It also has many fringe protection with ’employment’ but best of all leaves staff in no doubt where the company is going and their part to play in the business.
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