Local employment website HIRE BVI has published the findings of a recent study predicting dire economic projections for the Virgin Islands as a result of the COVID-19 pandemic, with debt collection a shared challenge for local companies and just 4% increasing salaries. Photo: VINO/File

Participation of companies in the Survey by industry. Photo: Hire BVI

In the survey entitled, ‘Human Resources Response to COVID-19 (Coronavirus)’, it sought to identify the economic impact that the pandemic has had on local companies.

The exercise was conducted on some 26 companies spanning various economic sectors within the Territory during March 31 and April 7, 2020, with just 7 questions.

“The purpose of these questions was to obtain an overall idea of the actions and responses of the human resource that companies within the British Virgin Islands are undertaking during the pandemic,” the result published results stated.

Demand Low for Goods/Services

According to the findings, some 41% of the companies have experienced a decrease in demand for products/services with 58% of the companies providing alternative work arrangement to its employees.

Another 63% of the companies offer work remotely as an alternative work arrangement while  85% of the companies use instant messaging to communicate with employees.

These findings regarding the use of instant messaging did not state which instant messenger was used; however, it echoes similar findings from BVI Red Cross where it was shown that WhatsApp was a key communication tool.

Profits low for 47%

In that same survey, a number of persons had indicated concerns about job income and Hire BVI said 47% its companies reported that profits had been affected due to the pandemic and this could affect salaries.  

The industries in the study spanned Financial Services (Banking, finance and insurance) Construction, Architecture and Engineering Advertising and Media Broadcast, Manufacturing and Wholesale Retail (Clothing, Shops etc), Transportation Services, Tourism and Hospitality, Telecommunications, Performing Arts, Hardware, Healthcare, Security and Cleaning.

“Some of these companies can attribute this decrease in demand for its products/services to the recent 24-Hour curfew that was implemented by the Government, the cessation of non-essential business operations by Government as well as the fact that some consumers have already lost their jobs or are now closely monitoring spending habits.”

Debt collection difficult  

The study also said another 30% of the companies stated that they have experienced cash flow challenges, which can be attributed to the decrease in the demand for products and services and it has also become even more challenging to collect debts.

Of all the companies, just 4% increased salaries or allowances, “this increase in compensation benefits could be a result of the increased demand for products or services, therefore compensating employees for the same,” the report stated.