Press

How to beat the threat of swine flu

As appeared in The Sunday Times - click here to see

Small firms are scrambling to protect themselves as cases of swine flu mount. With experts predicting that up to one in eight workers could be forced to take time off in the next few months, small-business organisations warn that some companies could be forced to close if their workforce is sharply reduced at a time when they can least afford it.

Phil McCabe at the Forum of Private Business (FPB) said that it had seen a jump in the number of calls to its advice line in the past couple of weeks. “People are worried,” he said. “Many small firms are already struggling because of the recession and if swine flu decimates their workforce it will be the final nail in the coffin.”

Stephen Alambritis of the Federation of Small Businesses (FSB) warned that smaller companies will be harder hit than large ones because they have fewer resources to cover employee absences.

“The potential impact of swine flu is very worrying,” he said. “The average small firm has 10 employees, so if half of those are out of action, either through infection or because schools are closed and they have to look after children or because the transport system is not functioning efficiently, that may lead to a fall in production and demand. It will be hugely difficult for them to carry on.”

He also warned that small firms could suffer if employees abuse the newly introduced system that allows people to take two weeks’ sick leave without the need for a doctor’s certificate. To add to their worries, the FSB also warned that small businesses may find themselves facing legal action from employees if they do not take sufficient action to prevent them from contracting swine flu, for example by allowing people with swine flu to come to work.

Small-business organisations are racing to provide firms with the information they need. The British Chambers of Commerce, for example, is holding an online interactive seminar for all small firms on how to deal with swine flu. It will take place on its website on Tuesday with advice from a medical expert.

Some companies have already started to make contingency plans in the hope of mitigating the potential impact.

Mhairi McEwan is co-founder and managing director of Brand Learning, a consultancy based in southwest London that employs 100 people. The firm has issued employees with clear guidelines about what they should do in the event of contracting swine flu and has nominated a person to whom employees can talk. It has also set up an IT system to allow most employees to work from home if necessary.

“Nearly all our employees could work from home with just a skeleton staff in the office,” said McEwan. “We have also made sure all the mobile numbers of staff are loaded into our BlackBerrys so we could send an instant text to people. We have everyone’s next-of-kin details and we have all the government helplines in one place.”

Neil Stephenson, chief executive of Onyx, which provides IT systems, said he had received hundreds of calls in the past few weeks from small firms inquiring about what technology they would need for employees to work from home.

However, other small firms said that making any real contingency plans would be difficult in the current economic climate.

Chandra Sharma is the owner of the Cut Price Office Supplies in Orpington, Kent, and deputy chairman of the Orpington Business Forum, which represents 40 local businesses. He employs five people.

“If we weren’t in the middle of a recession people would be able to cope a lot better because they would be able to employ people for extra hours, but because of the downturn everyone is being very careful,” he said. “It may well be that firms will have to get employees to take extra time off later rather than pay them. The big worry is if owners of businesses contract swine flu, because they are the driving force.”

Peter Done, managing director of Peninsula, the employment law practice, said small firms needed to take action now to prepare for the effects of swine flu. “Look at the essential tasks in your business and ensure that knowledge is shared, so other employees can do key tasks if someone is off sick.” The FPB, which has posted guidelines for small firms on its website, has advised company owners to limit face-to-face contact between individuals by using technologies such as video links and teleconferencing. It has also counselled them to look at the possibility of homeworking.

However, it warns that companies must ensure that employees’ homes meet health and safety requirements – another reason for taking action now.

David Lamond, chairman of human resources management and international business at Nottingham Trent University, said service firms should make sure they have the telephone numbers of good temporary staffing agencies – and, more importantly, that they establish a good working relationship with them to ensure they get the workers they need. He said: “Hope for the best, but prepare for the worst.”