EDITOR’S COMMENT This week’s leader is dedicated to the very many people whose jobs have been impacted by the coronavirus pandemic. A shout out to those who have been left feeling a little lost as their lives get turned upside down by this virus. A virtual hug for those wondering what this is going to mean for them going forward, about how they are going to support their families.
It is a pledge, if you like, that we will do our best here at EG to make sure we keep you informed, encouraged and perhaps even entertained during this period of uncertainty, making sure you are ready to come back, fighting fit and primed for action, once some semblance of business as usual returns. In fact, Damian Wild and I have this week published an open letter outlining exactly how EG Group is dedicated to helping this sector during the pandemic. Click here to read it.
There is no denying the huge impact that coronavirus is having on workforces. According to the International Labour Organisation, some 81% of the 3.3bn people in work around the world have had their workplace fully or partially closed. The virus could see, says the ILO, some 195m full-time jobs lost. It is the most severe employment crisis since the Second World War.
See also: EG’s latest coronavirus news, analysis and advice
We are seeing the impact starkly in real estate. Almost all of the major agencies have now furloughed staff, with those in advisory positions hardest hit. Many businesses are topping up the 80% of wages that the Job Retention Scheme covers, with an encouraging number of senior leaders in the sector also taking pay cuts to help shore up their businesses and, I hope, to show some care and understanding towards their staff.
It will be interesting to see what happens to the often controversial pay packets of senior business leaders once the crisis passes. Will there be a realisation that the top pay is so distant from the bottom pay, but that it is those who are often on the smallest salaries – just think of all our key workers – that do the vital work that keeps businesses, the economy and society functioning?
That’s not taking anything away from the role that senior leaders have and the work that they do, of course. They are vital too, but if we learn anything from this crisis, I certainly hope that it will be about the value of people, the need for balance, respect and fairness.
Which brings me to my typical high-horse moment – you love these, right?
The support that government, businesses and individuals are offering up must be used appropriately, responsibly and respectfully. Support is for people and businesses that really need support. That are on the brink of failure. It is not there to keep anyone or any business in a comfortable position. This isn’t a comfortable time. It’s going to hurt and if you can manage the pain, please manage it so that those who really can’t can get the medicines, the bandages that they need to survive.
If too many businesses stop paying their bills just because they can get away with it without being evicted, other businesses will fail. If too many businesses furlough staff just because the government support is there – government expected 10% of UK firms to take up the scheme, not the 50% that have – will the support continue and will it get out to the people that need it quick enough?
This is not the time to prosper. This is not the time to be a vulture, to seize the opportunity to have more while others have less and less. Some investment firms will prey; now would be the time to make clear that they are not welcome in this sector.
This is the time to balance. This is the time to pay bills, wages and rent if you have the means. This is the time to be flexible and understanding if you have the means. This is the time to allow those that need the support to have it.
This is the time to mend a broken system, not play it.
To send feedback, e-mail samantha.mcclary@egi.co.uk or tweet @samanthamcclary or @estatesgazette
