COVID 19: Hidden impacts on human resource departments

Abstract

In 2020, the United States and countries around the globe faced an unprecedented threat to everyday business, the "Covid 19" pandemic. The Covid 19 pandemic led many businesses to restructure their business models while also working within the Center for Disease Control (CDC) guidelines in order to keep employees safe while on the job. This, in turn, made businesses relook at the way their human resource department was structured, and, if necessary, hire in-house counsel to help address possible legal issues arising from the pandemic. These additional measures help companies navigate hiring and firing processes should an issue arise. Additionally, human resource departments and in-house counsel also help companies navigate which employees are eligible for benefits stemming from the CARES Act. The CARES act created a gap between employees who used its benefits for sick-leave or to take care of loved ones, and those who were fired from their positions. Those who had jobs, but had to stay home because of the virus, had an incentive to go back to work - while those who were fired had no incentive due to other increased benefits accompanying the CARES Act.

As shown through data, most small-to-medium sized companies did not have to lay off large numbers of employees, instead they increased the number of new hires significantly. One business increased the size its company by 109.52% (shown below). Although new hires increased substantially, companies still battle do bring "new-hires" in against the incentives to stay-home provided by the CARES Act. While Covid-19 brought new challenges to businesses and forced many to close their storefronts, the real challenge to businesses is updating their employment policies to reflect those of the federal government's regulations.