Social Distancing and Employee Wellbeing
One of the most critical measures for slowing the spread of COVID-19 is social distancing, interrupting the transmission of the virus through minimizing physical contact. However, this key measure has proved to be particularly disruptive for the services sector, including retail.
Many companies have struggled to maintain service delivery in this new environment, with some going into protracted hibernation as an attempt ride out the pandemic. The consequences of this have been felt throughout the services sector, and the economic ramifications of social distancing have become part of COVID-19’s legacy.
However, while prior research has highlighted the significant economic impacts of social distancing, it has been largely silent on the wellbeing impacts that the decision to either continue service or pause and hibernate have had on employees. The decision to scale back, or shut down, is one that drastically impacts on the staff stood down. Even with the benefit of government support, the loss of employment and the impacts of isolation take their toll on mental and physical health. So too does the decision to remain open, with the increased stress of cleaning, distancing and mask wearing straining the wellbeing of the workers implementing this approach. This is not to mention the increased risk of infection associated with remaining open during a pandemic.
From a societal level, understanding the impact that social distancing is having on wellbeing is obviously critical. The stress from staying open, or the isolation of being stood down, both have significant mental health consequences. Anxiety, loneliness and depression triggered by COVID-19 have led to an increase in substance abuse and self-harm. However, organisations too should be deeply concerned about the wellbeing of their employees, with wellbeing linked closely to productivity, employee turnover and job satisfaction. This is particularly true in the service industry, such as retail, in which frontline employees are central to positive service encounters with customers.
The service ecosystem and well-being
How the decision to remain open, or to scale back and hibernate, impacts on employee wellbeing depends on a range of internal and external factors, as well as the coping mechanisms and support that the employee can use to adjust to the change. On a macro level (governments and economies), the key factors to support employee wellbeing are largely out of the control of retailers. These involve economic stimulus, particularly wage subsidies such as job keeper that support workers even if businesses temporarily close, as well as legal regulations and public health orders that impact exposure to the virus and what employees and businesses can and can’t do.
How a business reacts to these macro level factors depends on specific industry level factors:
(1) the level of demand for that industry,
(2) the level of contact intensity within the industry and
(3) the capacity of that industry to deliver services via technology.
When demand for the industry remains consistent (ie, essential industries such as health care, grocery stores and pharmacies), businesses are more likely to remain open despite social distancing, while industries that have seen drops in demand (such as hospitality, tourism, and transport) more commonly furlough staff and reduce service.
This is further influenced by the contact intensity of the industry, or how much service delivery relies on face-to-face close physical interactions. Contact-intensive industries (such as food service and personal care) face greater challenges in complying with social distancing requirements and may be forced to scale back services to compensate. This is particularly true when they are unable to use enabling technology such as non-contact dispatch or online delivery.
The resulting decision made by a business to continue service, or to hibernate, must then be reacted to by the employee. The impact this decision will have on their wellbeing is influenced by individual level factors. These are the employees’ skills (i.e. abilities and knowledge), access to support (i.e. work and social) and their own personal factors (such as personality and sociodemographic traits).
As a consequence of these macro, industry and individual level factors, an employee will then experience changes to their wellbeing in the face of the business’s reaction to social distancing measures. Physically, the decision to work remotely or furlough staff has serious ramification for overall fitness, with many individuals only exercising incidentally through their work. The increased stress from social distancing measures can also cause disruptions to physical health, particularly sleep. Stress also has serious impacts for mental wellbeing, causing anxiety and depression. Whether a business stays open or not, employees are likely to see reduced social wellbeing, with less options for socialising both inside and outside of work.
Finally, financial wellbeing has been drastically impacted by COVID-19, with reductions to income caused by reduced hours, less financial stability due to the treat of further closures and the increased cost of living caused by logistical and supply issues. Taken together, it is likely that regardless of whether a business is able to continue trading, or if they are forced into hibernation, employees will suffer diminished wellbeing unless they receive support at the micro level to help them navigate the changes demanded by COVID-19.
Recommendations
When an employee feels they are capable of mastering the challenges presented by change, their wellbeing is less negatively impacted. Workplaces can support this through proactively upskilling and training staff to preform new roles and better manage changes in service delivery modes. They may also provide support in the form of equipment to better work remotely or in a socially distant capacity. Even in cases where staff are furloughed, businesses can support their employees by connecting them to relevant part time work and maintaining social links until work can be resumed. It is critical that retailers consider employee wellbeing regardless of whether services continue through social distancing, or if the business goes into hibernation. In either scenario, employee wellbeing is likely to suffer without support and careful consideration of the capacity for the staff to react to the changing work environment. Given the long-term economic impacts that COVID-19 will have, long after the current wave runs its course, it is also vital that business looks to the future to provide more proactive support for future disruptions. Whether from additional virus variants, natural disasters such bushfires and floods, or civil and political unrest, developing comprehensive support infrastructure will make employers better able to respond to future crisis and develop more resilient employees.
Researcher
More information
The research article is also available on eprints.