• 1/3 Expect to Extend Full Monetary Compensation During COVID-19 Outbreak
“Many view this as a good ethical gesture, and this is also about seeing the bigger picture and finding creative ways to ensure business continuity in times of crisis,” said Dennis Gannon, vice president, advisory for the Gartner Finance practice. “Not only do companies want to emerge from the crisis with an experienced and engaged workforce, but they also want to mitigate the risks of employee fraud and misconduct that rise significantly during times of uncertainty.”
CFOs reported a variety of actions they are considering to support employees:
• Expanding work from home and sick policies, and adjusting work schedules and non-illness related flexibilities (such as for childcare needs) to ensure tasks and projects get completed
• Tracking state benefits for hourly workers
• Considering offering childcare for employees who have to continue coming to work
• Offering remote working equipment such as modems and routers if needed
• Allowing employees to donate sick leave to one another
The financial impact of COVID-19 is just beginning to emerge and there are many unknowns and uncertainties. CFOs are beginning to shift their attention from crisis mode towards minimizing the downside impact. Most CFOs (51%) have not yet adjusted internal targets even though there is little chance they will be met this year.
“There’s no good way for most CFOs to reset targets with any certainty,” says Mr. Gannon. “Instead, many CFOs are assuming that targets won’t be met and are taking steps to ensure ongoing working cash flow to support operations, such as securing access to credit and planning for possible repatriation scenarios.”
In terms of managing the finance function, CFOs were broadly optimistic with 90% reporting that only a minimal amount of accounting close procedures cannot be executed off-premises. CFOs are most focused on critical third parties, and how they can work together to adapt working processes to function well during the coronavirus disruption.
For example, many CFOs have used this crisis as an opportunity to transition towards an automated clearing house (ACH) payments instead of check writing. They’ve also shifted towards video conferencing options for auditing physical inventories.
“Now is the time to deepen collaboration with vendors, auditors, or customers,” said Mr. Gannon. “Take advantage of relevant solutions that have been put off in the past.”
