Organisations large and small, in the public and private sectors,
have expressed deep concerns about the impact of Covid-19 on their people,
productivity and cashflow, according to ACCA’s new global research among 10,000
finance professionals, including an expert panel of 353 in Pakistan.
Head of ACCA, Pakistan, Sajjeed Aslam, said: ‘Our research shows
the most severe impact on businesses is employee productivity being negatively
affected, with 56% of respondents saying this is the case. Also 46% of business
leaders suggest their organisations are facing significant cash flow problems.
‘Only 31% of businesses have managed to do
a financial reforecast, and 39% of these consider a worst-case scenario will be
negative revenue growth of 50% or more compared to the previous financial year.
With 34% of organisations already freezing recruitment, businesses are looking
to gain help from banks and debt providers.’
Sajjeed Aslam revealed the survey’s aim was to explore
difficulties faced by organisations of all sizes across the country.
He said: ‘This research aims to understand the business and
financial blows to organisations across the country. It is seen through the
lens of ACCA Pakistan’s members – finance professionals supporting a wide range
of businesses and organisations at this hugely difficult time.
‘The findings gauge the short to medium term implications, while
also looking at the measures being undertaken and considered by organisations
to mitigate the damage. It also looks at what lessons we can all learn from the
pandemic.’
Mr Aslam highlighted crucial advice for firms to follow in these
unprecedented times, adding:
‘ACCA’s recommending that organisations follow the ‘three As’ of
crisis planning – Act to respond in a sustainable manner and
focus on employees and stakeholders; Analyse the different
information sources to secure your organisation; and Anticipate the
business impact and future trends.’
Jamie Lyon, the report’s author, explains: ‘Everyone is hurting,
but particularly the smaller organisations. Financing and cash flow are
concerns to everyone, but even more so for small organisations. For many of us,
the ‘face of work’ has changed overnight. In the short term, leaders are facing
a very difficult operating environment when it comes to employee productivity
and engagement, alongside a number
of compounding and wide-ranging challenges - stifled and stalled customer
demand, supply chain disruption, people mobility issues, product and service
delays or deferments, investment challenges and so on.
‘All this is of course translating
to the financials being affected because fundamentally all of these blows are
interconnected. But what’s heartening to see is many organisations’ commitment
to ensuring the health and wellbeing of employees, customers and
other stakeholders first and
foremost.’
The main findings for Pakistan show:
·
56% - Employee productivity negatively
affected
· 46% - Cash flow problems
· 31% - Customers stopped / reduced purchase – customers impacted by the virus
· 37% - Having to defer launch of new products and services
· 23% - Customers stopped / reduced purchases – supply chain disrupted
· And 69% of organisations have not been able to do a financial reforecast, perhaps due to the fast-evolving scale and duration of the Covid – 19 pandemic alongside the extent of necessary social distancing controls put in place by governments, which have created vast uncertainties for businesses.
· 46% - Cash flow problems
· 31% - Customers stopped / reduced purchase – customers impacted by the virus
· 37% - Having to defer launch of new products and services
· 23% - Customers stopped / reduced purchases – supply chain disrupted
· And 69% of organisations have not been able to do a financial reforecast, perhaps due to the fast-evolving scale and duration of the Covid – 19 pandemic alongside the extent of necessary social distancing controls put in place by governments, which have created vast uncertainties for businesses.
Sajjeed Aslam concludes: ‘Overall the data confirms Covid-19 is a
huge challenge across all sectors and sizes of business, and regions and
countries. The main issue is uncertainty, which affects the ability of
organisations to plan properly, to react and to forecast appropriately. While
talking of silver linings may be very hard at this time, we need to think about
every opportunity, and to consider every option available to keep businesses
large and small afloat.’
· ACCA is holding a webinar on the 16 April 2020 to discuss these findings, which will be published in full on the 27 April 2020: http://accamember.newsweaver.co.uk/invitation/1586s9wf53w
· The survey supporting this research closed on Thursday 26 March 2020.
· Please refer to ACCA’s Covid-19 Hub, which includes useful resources to help organisations deal with the impacts and implications, including advice for ACCA members in practice and in business, students, and a section on wellbeing.
https://www.accaglobal.com/gb/en/cam/coronavirus.html
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