Earlier this week, SeaWorld disclosed that, while their top executives have received 20% temporary pay cuts, they also received $6.8 million in stock options. This occurred while 90% of their employees are furloughed, not receiving any pay since April 1 and, for the most part, not having their health benefits paid for either. While the stock options will vest over 2 years, this news probably didn’t sit very well with those employees who are at home with no paycheck.
It’s incredibly difficult for leaders to figure out exactly how to proceed during the uncertainty of the COVID-19 pandemic. There’s no clear timeline for when businesses can reopen or what that will look like, so everyone is having to take this one step at a time. It’s okay that you don’t have all the answers – no one does. We’re all figuring this out together. As you navigate this situation, it’s very possible you might find yourself needing to initiate some pay cuts.
Treating your employees with respect is hugely important. The decisions you make today have long-term impacts, either positive or negative. This isn’t just about how to keep your business afloat (even though that’s certainly very important). What you do and how you do it sends a message to your employees about how much you value them. This is a message they’ll remember once this pandemic is a distant memory.
Remember that customers are paying attention too. Being faced with challenging circumstances has a way of revealing a lot about our character. You don’t want to have to rebuild your reputation on top of everything else. Your actions send a message to customers about who your company is and what you stand for. Make sure you’re sending the message you want them to receive.
You may find yourself in a situation of having to initiate pay cuts or furlough employees. Make sure you and your leaders demonstrate loyalty to your employees by showing you’re all in this together. Lead by example. Reduce your own pay or forgo bonuses – whatever it takes to support each other through this. Loyalty breeds loyalty. Once you’re ready to reopen, it’s much more likely your employees will choose to return to you rather than find another job elsewhere.
Photo credit: By Okea / Canva
