Retaining valuable employees has become a titanic challenge for brands in the midst of the pandemic. Whether due to the need to cut workforce or the inability to provide guarantees, employment has been at risk and Amazon knows it.

Looking at the figures that revolve around job loss worldwide allows us to give context to this phenomenon.

Lost jobs that won’t come back

A recent report signed by Fitch Ratings indicates that as a consequence of the restrictions implemented to halt the advance of the pandemic, world economic activity will suffer a contraction of 1.9 percent this year, to which will be added the drop in GDP at a ratio 20 percent each week in nations that have been forced to quarantine.

Thus, it is estimated that « a shock of this magnitude will have a huge impact on unemployment and many economic models suggest a decline of almost 0.3 percent of jobs for every 1 percent of production that an economy loses », highlights the report.

With this in mind, the scenario paints for the world to reach maximum and historical unemployment levels, with losses that are calculated in up to 15 percent of the workforce compared to what was recorded during the fourth quarter of 2019.

In which particular case of the Mexican market, estimates provided by the National Institute of Statistics and Geography (Inegi) calculate that 12 million Mexicans would have been unemployed only last April.

From time to time, it is estimated that the Economic Participation Rate in April was 47.5 percent with respect to the population aged 15 years and over, a figure 12.3 percent lower than that reported last March, which went from 57 million of economically active people to 45 million, a difference of 12 million.

With this, the Non-Economically Active Population (PNEA) increased from 38 million to 50 million people, while underemployment rose 16.3 percent to reach 5.9 million people, compared to last May.

The effects

Although for the first and hardest impact that these numbers leave, it will be lived from the perspective of the final consumer, the truth is that for companies things will also be complex.

On the one hand, this is the first indicator of how difficult it will be to reactivate the value chain. With unemployed consumers, there would be no income to reactivate domestic consumption.

On the other hand, many of these layoffs and job losses have been forced, with which to stay afloat various companies have seen their workforce reduced both in quantity and in terms of talent, but with the need to achieve them, and in some cases, higher targets.

With this in mind, for companies, the first major concern may not be simply reopening the jobs that were lost, but rather loyalty to those that kept operating in the midst of the crisis and that will remain in this recovery stage. The reason is none other than to improve productivity levels.

More faithful, more productive

In this sense, there are many studies that talk about the benefits of converting the staff of collaborators into brand advocates, to guarantee the delivery of an ideal service and customer service that builds a brand around a certain commercial offer, with the necessary strength to grow both in scope and in relevance among stakeholders.

According to the results of a recent study carried out by The Hinge Research Institute, 79 percent of companies that bet on this practice assure that the visibility of their brands increases considerably, a situation that is repeated in 65 percent of cases when the increase in web traffic, brand recall and engagement towards it are taken into account.

These conclusions are similar to the findings of a measurement carried out by Gallup, which indicate that the generation of work commitment contributes significantly to reducing quality errors by up to 41 percent, occupational incidents by 48 percent, by 65 percent. turnover in low-turnover companies, 25 percent in those with high turnover, and it also reduces absenteeism by up to 37 percent.

Amazon’s bet

Amazon knows that in order to capitalize on the opportunities that the post-coronavirus era will bring, the work of the employees will be crucial, with which it has decided to allocate close to 500 million 691 thousand 750 dollars to recognize those collaborators who worked in the midst of the health emergency to maintain the correct operation of the company.

In a timely manner, Amazon has decided to compensate its employees with an extra payment for the effort they have given throughout the health emergency, this in addition to $ 2.25 extra per hour they charged for three months.

Amazon communicated this measure yesterday to all its employees who worked for the firm from June 1 to 30 and who were in « front line » positions.

In this way, those full-time employees who operate in Whole Foods supermarkets as well as the drivers of the different delivery service partners with whom the company works will receive an extra payment of $ 500, while for employees with time partial the figure will be cut in half.

Likewise, Amazon confirmed that frontline managers and Whole Foods will receive compensation of $ 1,000, delivery service partners will benefit from $ 3,000, while Amazon Flex drivers who have worked more than 10 hours in June they will receive 150 dollars.

This movement allows the company to go one step further in the loyalty of its employees, an issue that, as mentioned in previous lines, is essential to execute the operation with excellence, an aspect that will determine the winners of the losers in the post-coronavirus era.

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