As insurance carriers continue to work their way through the long “first wave” of the COVID-19 pandemic, there remains a heightened level of interest in getting to whatever comes next. The planning and drive which landed most in a good, functional, work-from-home model led to a sense that the current state is transitory.
Angst from leaders, employees, and customers all contribute to the desire to move forward. Uncertainty about basic social support structures, including schools and day care, contribute to a sense of walking on thin ice when it comes to planning. The reality that a second wave will eventually come also informs the planning framework. Flexibility may be paramount given the uncertainty of the future.
Recently, Novarica had the opportunity to host a virtual coffee meeting with CIOs from across the country, one of the happy-accident consequences of the pandemic, and the issues being addressed are both thought-provoking and compelling.
Return-to-Office Considerations
Many companies would like to see some sort of return to office (RTO) commence soon, but the reality is that there is no singular, one-size-fits-all solution that can apply even within a single company. Local circumstances, legitimate fears for health and safety by employees, uncertainty about schools and day care facilities, and the uncomfortable logistics of being together (e.g., rules around mask usage) all contribute to the concerns. Companies that have begun early return plans have grappled with all of these issues and learned that simply being back in a building doesn’t return organizations to a pre-pandemic happy place.
While maintaining culture is cited by some as an urgent driver, others have found that dual hits on both morale and productivity create new and unexpected downdrafts. One of the other phenomena that insurers are dealing with is that their initial RTO plans assumed a fairly linear progression toward things reopening, which seemed a plausible scenario back in June. With sudden surges in previously low-impact areas (e.g., the Sunbelt) and a re-emergence of cases in places where things seemed controlled a few weeks ago (e.g., California), the efficacy of these plans is now called into doubt.
As a result, plans are likely to require far greater dynamism in order to account for the possibility that shelter-in-place orders will be toggled far more frequently than previously understood. This creates a variety of new challenges which need to be addressed in domain spaces such as communication, human resources policies, and, of course, technology and security.
The Risks of RTO
While some companies have noted increased early retirement activity from Baby Boomers who miss the social aspects of work, forced RTO could actually accelerate the trend, in part because of the increased health risks faced by this cohort. While the pandemic may be merely accelerating a long-term trend, knowledge management and training issues are also arriving ahead of schedule.
For some, this may mean fundamentally different models for recruiting, which could include both a broader geographic reach (with permanent WFH status), moves to attract younger talent, or both. It is interesting to note that both of these trends are already being pursued by big tech companies and Silicon Valley innovators. Insurers would be well advised to remember that they are part of a broader labor market rather than market makers themselves.
To accommodate RTO models, companies are investing in a variety of physical plant changes. Touchless bathroom upgrades, improvements to HVAC systems to better clean the air, and hand scanners to securely maneuver around buildings with some form of contact tracing are all part of the emerging storyline. Mandatory masks unless in a personal office or cube space are a routine requirement; companies are grappling with how to handle those treating masks as optional items.
One insurer that is pretty far along with returning to the office has noted that people seem to forget the social distancing and mask regimens as it gets later in the day. This creates potential management and liability issues that may not have been well understood until attempts to implement policies in production.
Finally, Novarica increasingly hears Research Council members worrying about what it will mean to try to reintegrate into traditional organization models and social environments. Many employees appear to be very comfortable with WFH, and some have started to voice concerns that returning to high occupancy areas will prove disruptive and stressful.
CIOs and other IT leaders have many concurrent challenges to address. One bit of clarity is that RTO won’t be easy, and it won’t be a binary event. As 2020 begins to fade into the back half of the year, planning for 2021 and beyond is becoming increasingly urgent.
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