Irish business leaders more worried about Covid-19 fallout than their global peers

Irish business leaders more worried about the Covid-19 fallout than their global peers, according to a new PwC survey. Picture: Pexels

Over a quarter of Irish finance leaders expect revenues to drop by 25% or more as a result of the Covid-19 pandemic, and less than one in five surveyed say they are 'very confident' about finding new revenue streams.

This is according to the latest PwC CFO Pulse survey, which was conducted last week.

The survey is an ongoing poll of nearly 1,000 global financial leaders and it helps to identify the business and economic impact of Covid-19.

According to the study, Irish financial leaders are more pessimistic than their global counterparts.

Over a quarter of Irish finance leaders believe it will take more than a year for their businesses to recover from the pandemic, which was longer than any other country participating in the survey.

Irish respondents also committed to having more flexible working options for their staff, with 78% saying that greater access to remote working and more flexibility will be in their future business plans.

Safety was also a top priority, with more Irish finance leaders saying they were confident about providing a safe working environment compared to their global peers.

Companies are also accelerating their plans to return to the workplace. 88% said they planned to reconfigure work sites and 72% plan to change safety requirements.

However, financial leaders also fear a second wave of the virus. 67% of those surveyed said their top concern with respect to returning to the workplace was the possibility of a new wave of infections, far higher than the global concern which was 58%.

Irish businesses also fall behind their global peers when it comes to retaining critical skills. Only 51% said they were 'very confident' about retaining critical skills. Globally the figure was 56%.

41% of Irish businesses surveyed said they were 'very confident' about building skills for the future, and just 43% are 'very confident' when it comes to managing employee well-being.

"Companies are clearly concerned about a new wave of infection and the impact on their financial position," said David McGee, Strategy & Markets Partner at PwC Ireland.

"There is a need to remain focused on adjusting to this new normal, protecting your people and re-engaging your customers while at the same time pursuing new revenue streams through product and service innovation.

"Companies need to continue to do their scenario planning, and in particular, now in light of a no-deal Brexit on the cards."

"There is no doubt that the workplace of the future will be a very different place, but it is likely to change for the better," said Ciara Fallon, Director of People & Organisation at PwC Ireland.

"The survey confirms that some organisations will look to capture the unanticipated benefits of working through the pandemic and make positive changes to adapt their ways of working.

"One fifth of respondents reported not having enough people to do critical work, however, the crisis also highlighted some vulnerabilities in the workforce.

"The survey suggests companies really need to focus on strengthening critical skills, building new skill sets for the future and supporting employee well-being and resilience."

"With lockdown easing, Irish businesses who have got through the immediate crisis are thinking about what they need to do to survive and thrive moving forward," said Garrett Cronin, Consulting Partner at PwC Ireland.

"Businesses are focused on re-igniting their operations, bringing their people back, but to a workplace that is fundamentally changed.

"They are confident that they can keep their people and customers safe and are less concerned about productivity losses due to remote working capabilities.

"They are beginning to focus on the long term and maintaining critical investments. It will also be very important to rebuild supply chains, pricing strategies and markets in the months ahead."