Global pandemic is as much a test of leadership as it is of businesses

IN A matter of three months, Covid-19 has transformed rapidly from a local outbreak to a global pandemic. The economic slowdown that it brings is likely to be prolonged, and given the scale and severity, businesses need to adapt quickly. In the short term, organisations will need to adopt some cost containment measures, and rethink their cash flows and working capital requirements.

An important piece of the jigsaw for organisations from this perspective is remuneration. Often constituting one of the largest "controllable" costs, organisations need to undertake careful planning to retain, reward and motivate employees through this crisis.

Several companies in Singapore, and around the globe, are already implementing pay cuts, voluntary no-pay leave and reductions in bonuses and fees for senior management in response to the Covid-19 crisis. These include Marriott, Lyft, Singtel, SATS, SP Group, Singapore Airlines and Temasek Holdings, among others.