What keeps me up at night: Coronavirus and the difficult road ahead

The coronavirus epidemic has struck at the heart of the global economic system. It has propelled government intervention to unprecedented levels, even surpassing the controversial bailout of the banks in 2008. In this article, I explore the long lasting effects I believe the pandemic will have on the job market and the way the world functions economically.
 
A time like no other
Times without parallel require a response without parallel. We may have seen nationalisation, bailouts and state aid in previous times, but never before have states stepped in to help pay people’s wages. Funding has undoubtedly saved countless livelihoods and reduced hardship for millions across the globe, but it is worth noting the scale of the cost to state coffers. In my home country, the UK, public debt has topped £2 trillion for the first time.
Job retention schemes
To be frank, the scale of intervention across the board is a reminder that the consequences of this pandemic will reverberate for years, if not decades to come. Lockdowns were effectively state-imposed closures of the economy, with their eye-watering impact only suppressed by job retention schemes. The fact that countries like Germany, France and the UK have had to extend support to workers well into next year speaks volumes. We are walking a tightrope in terms of balancing the health of citizens with the normalisation of economic output. With cases starting to surge as we go into winter, a recovery bringing us back to the output of January is far from certain. In the UK for example, the economy remains over 17% below pre-lockdown figures.
Will we recover?
It would be foolish to assume every person can go back to the same job, even if the health crisis was solved tomorrow. All over the world our way of life has been changed beyond recognition, and living standards have been impacted as a result. Ultimately, we won’t know the true picture until government interventions end.
Prince Albert’s government has stepped in to help businesses worst affected by the epidemic here. It was fantastic to see the Chômage Total Temporaire Renforcé (CTTR) scheme formed to help so many employers, and targeted industry support to bars, restaurants and traders is keeping most in existence at the moment.
What the government does next is of key importance to how we emerge from this crisis. It has already spent €70 million and there are calls for the provision to be extended until the end of the calendar year. It is my strong view that more government intervention needs to be nuanced and help businesses prepare for a post-COVID future.
Back home, the UK Chancellor’s announcement of a £1,000 grant for every employee a company brings back from the job retention scheme truly baffled me. The vast majority of businesses will need to bring back at least 60% of their staff to function, regardless of their costs. The real challenge lies in the remaining 40%. This is where the government in London should have focused their attention, with more than £1,000 per employee to maximise the incentive. Instead, I fear that British taxpayers money is being used inefficiently at a time where spending has gone through the roof.
This is a reality the Monegasque authorities need to avoid. I strongly support the more efficient funding put aside for investment through the Commission d’Accompagnement de la Relance Economique (CARE) to help companies with a turnover of less than €5 million balance the books.
Our individual response
We’ve responded to challenges surrounding unemployment before and I advise everyone to spend the next few months preparing for the new economic reality. Don’t wait until the inevitable happens. In the absence of immediately available jobs I predict there will be a huge surge in people looking to start their own venture, and you can become a part of this new reality.
Start thinking about the skills you have at your disposal and how you can use these to help start your own business. Sell your services in order to gain experience. Companies are going to be weary about hiring, but that doesn’t mean they won’t have projects that you can’t contribute to. Approach them with confidence and you may have something they are looking for. Turn your consultancy into something robust- something that supports your living. This, along with contracting is the way of the future for many.
The dawn of the entrepreneur
The storm we are heading into could also be the dawn of the entrepreneur. I’ve lost count of the amount of times I’ve seen people assume that businesses are always about capital. They’re not. What is crucial is your expertise.
I work alongside a young entrepreneur called Joe Binder. Joe has told me first hand that he started his business with only £1,000, but he was able to build his company through his and his team’s expertise. WOAW now provides personal branding and social media services for numerous founders and CEOs in the UK and beyond, including myself.
For the dawn to come to fruition, we need to end the negativity in the term ‘lifestyle business’, because that’s what a business is fundamentally there to do – fund your lifestyle. Not everyone is going to be the next Bill Gates, but time after time people have managed to support themselves with entrepreneurial ingenuity and creativity. Lifestyle businesses could go on to form the backbone of the global economy. They could be our ticket out of the impending crisis.
No better time than 2020
We are better equipped now than at any time in human history to respond to the challenge of creating a business. We have technology at our fingertips, and an abundance of resources to compliment our ideas. The new normal has unlocked the idea of efficient working from home, reducing our costs and increasing our flexibility. Digital platforms are going from strength to strength, illustrated vividly by the growth of social media’s monetisation. Whether you are based here in Monaco, or halfway around the world, technology opens doors to the global market.
Lockdown has accelerated various online platform’s influence on our lives. Back in the UK, the cultural influence of fitness coach Joe Wicks’ high intensity workout was profound. He reached millions from the comfort of his home and provided some needed routine for many. The closure of schools created the need for a remote tutoring service, which Facebook’s ‘marketplace’ among others has facilitated. That’s before you factor in huge players like eBay and Etsy. For years these companies have created a platform for home enterprise- generating income without the need for employment.
We are still in the midst of this process, but there is no doubt that this crisis has accelerated growth, and created opportunity. Chris Locke, CEO of Rainmaking has seen the potential. His company dedicates itself to corporate transformation and plans to help create 1 million start-up businesses. Support is there from Chris’ organisation and others. I have lost count of the amount of times I have seen someone offer to support anyone in their network who has been made redundant on LinkedIn. It is time to think about what skills you have and how you can use them to provide value to others. Crucially, do not be afraid to ask for help. If you do not ask, you will not get.
Conclusion
Employment in the traditional sense may be hard to come by for the foreseeable future, but that doesn’t mean that standing still is acceptable. Assess your skills and play to your strengths. Monetise your skillset. Take stock and look for a way that you can contribute to Monaco’s recovery. Use your time wisely in order to prepare for the challenges to come. Your skills will still be at heart of your livelihood and our collective economic recovery.
 
 
 

Coronavirus: Four hallmarks of post-pandemic work

What will the world look like when we come out of this pandemic? I have been asked this question by hundreds of people over the past few months. One thing is for certain – our working environment is set to change beyond recognition, permanently.
The norm of office working in the post-coronavirus world is unlikely, to say the least. In this article, I’m going to look at four factors that will feature highly in the years to come.
A new normal awaits
Work away from the office has gradually been edging its way into the consciousness of businesses and their employees for a number of years in Monaco and around the world. The availability of home working has increasingly cropped up as a topic of conversation. Questions surrounding its necessity were brought up in equal measure. The last four months have undoubtedly changed the context behind these doubts, not least for the thousands that commute into Monaco for work from France and beyond. There is not a one size fits all approach to the new norm, but it is clear that time away from the office has generally been a success. There will be no going back to the conventions of pre-2020. Here are four key changes that are here to stay.
Adaptable and adjustable working
It is impossible to group home-working into a singular experience. Some of us live with our families, others have a wealth of distractions – not every environment is conducive to productive work. This is why I believe a key feature of the future is flexibility. In years to come, companies cannot assume that a one size fits all approach will work for them and their employees.
Environments aren’t the only factor that differs, so does experience. Although one-third of Monaco is made up of millionaires, every one of us is on a different journey. A fair chunk of Monegasque employees will still need and benefit from a significant period of their working week spent in the office. This will still be an unrivalled home for training and development for those with less experience. Those that are mature in their roles may benefit from more home working, and I expect companies to account for this. Business owners will need to offer bespoke approaches to their employees in the future – this will benefit both parties in the new normal.
Space efficiency in the principality
Real estate spend has always been under the spotlight here in Monaco, and coronavirus adds a health aspect to this reality on top of the financial considerations. The acceleration of technology has continued to combat the prohibitive cost of physical desk space. Expect this to be questioned long into the future, especially with the density of our population to account for.
Shared systems such as clouds mean that employees have access to everything they need to carry out their job regardless of the location they’re in. Some simple maths shows the scale of the potential savings. It is clear that a business that employed 90 people needed 90 desks in the past. Suddenly, it only needs 30 desks because two-thirds of its employees will work from home at any one time in the new normal. That is a 200% increase in the utilisation of space. Co-working companies are going to see a surge in demand.
Workers won’t lose their contact time with managers and peers either. Centralised booking systems for desks could account for the times where face-to-face contact is imperative. Meeting rooms will be easier to book for gatherings, allowing for internal and external relationships to be maintained.
Less of a commute for non-residents
In the past, I have had employees that have been at least three hours into their day without having started a minute of work. The new normal eliminates this headache for employees, and undoubtedly increases productivity for the companies they work for. Cutting out the commute that many dread will have exponential win-win benefits. Uncomfortable, unpleasant and expensive for those travelling from afar, it also means businesses will have employees that are less stressed at the start of the day.
The way I have worked with my virtual PA over the past few months is a classic example of the new reality. She lives 350 miles away from me in the UK, but doesn’t need to commute to be there in person. She is able to spend more time with her children, and I am still getting the same quality of service that I did for 25 years with a PA sitting outside my office. The fact that we’re able to conduct business over the phone or through Zoom renders a PA in person unnecessary. This illustrates just how the new way of working can offer a much wider range of options for employers, employees and recruiters.
Monegasque recruitment search broader
For my industry, the post-coronavirus culture opens up a new dimension of opportunity. The new culture of flexibility insurmountably widens the catchment area for talent. Traditionally, we would place a 50 mile limit to an office as a filter in our search to fill a vacancy. The new flexible reality widens this radius significantly. Suddenly people that are 100 miles away are attracted to roles knowing that their commute is limited to a couple of journeys a week at most. We have been afforded a transformational opportunity to widen the pool of talent we source. Monaco stands in a great place to benefit from the wider geographic search.
We will also save on costs. Consider the fact that hiring someone in Antibes costs less than in Roquebrune-Cap-Martin. We have gained access to a wider talent pool, and it’s a win-win scenario. Rather than be limited to working for smaller companies, those that live far and wide suddenly have access to big corporations that base themselves in Monaco and other high-profile locations. The paradigm shift has made me more accessible to candidates and them more accessible to me.
How I’m changing
I am busy trying to create these conditions for my own business and employees. Having our own personalised desks with pictures of our families will be a thing of the past. More casual seating arrangements are to be put in their place. I am passionate about creating an environment that puts collaboration at its heart. There is absolutely no problem in three to four days a week being spent at home, with one office day dedicated to meetings and training. This day also offers the chance to maintain work bonds, culture and learning from peers.
I am so convinced of this new normal that I have invested in businesses that have adopted this model. Companies such as Regus have my financial backing because I believe they will do well out of this.
Conclusion
As a matter of fact, we are all going to see our lives in Monaco improve – this new way of working creates several win-win situations and it is for that reason that I passionately believe these four factors will be key components in the future of the workplace here and elsewhere. I am keen to hear about other ways in which you think working will change after this pandemic. Send me your suggestions, and I will do my best to respond.
 
Email James Caan via Monaco Life: editor@monacolife.net
 
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Retaining the best talent for your business

Globally, people are dealing with the shock of the coronavirus pandemic, and it is no different here in Monaco. Jobs, livelihoods and even loved ones have been lost. So much has changed in such a short space of time, and the gravity of the situation is only just emerging. For businesses, the best way to tackle this challenge is by retaining your top talent. An organisation is only as good as the people within it. In 2020, the stakes have been raised.
Having been a businessman for over 30 years, I’ve experienced a number of crises, including the 87’ crash, the early 90’s recession, 9/11 and the financial crisis of 2008, where I’ve learnt some very valuable lessons. I have seen first hand how vital having a capable team is in steering organisations through difficult moments like this. In this piece, I will share my thoughts on the retention of talent and how you can help your team navigate these challenging times.
The best are overlooked
I’ve seen so many founders and CEOs take their top talent for granted. In some ways the best performers are victims of their own consistency. Senior people’s time is often taken up by the employees that aren’t doing their job so well. Disregarding high achievers puts your business at risk, especially in the current climate. Other companies are in the same boat as you, trying to retain and attract top talent that will help keep their business afloat. This is amplified in Monaco with such a globalised, mobile workforce.
The pandemic has created a philosophical time of reflection, and it’s becoming increasingly clear that the world is experiencing a seismic shift. Professionals that haven’t been recognised will be keeping their options open. You want your brightest and best working with you to tackle the challenges created by the pandemic head on. Implement practices now to ensure this is the case.
The best way to retain talent
The financial rewards of working in Monaco are great, even during this pandemic. A tax-efficient environment is fantastic for your workforce, but job fulfilment is only truly realised through a sense of progression. Training people to acclimatise to the current environment is going to be crucial. Investing in them is investing in your company as a whole. They will see improvements in their skills and prospects, making them an even greater asset to keep hold of. Inspire your team during this challenge and they will appreciate your efforts.
As human beings, we love to be appreciated. You need to show your appreciation for hard work. A simple ‘merci’ goes a long way and costs nothing. If you reward your employees, they’ll reward you. The pandemic has propelled mental health and wellbeing even further into the spotlight. You need to make sure you have mechanisms in place to cater for this. Support your colleagues – give them the tools they need to become successful in the current landscape.
Finally, make sure you pay your workers fairly. As much as we think our employees are with us for our ethos, their paycheck is a huge motivation for their contribution. It is therefore crucial that your remuneration structure is competitively positioned in your niche market.
Keep to the same principles
Whether you’re a tiny startup or a huge multinational, the formula for retaining talent remains the same. The rigidity of roles in large companies has been paused for the time being with a freeze in recruitment and the furloughing of millions of employees. Those left to run operations are having to adapt to tasks that weren’t originally in their job description.
History has taught me that adaptability of the workforce is a key factor in steering companies through tough times. Support your employees in the diversification of their skills, and you might not need to fill the vacancy you considered a gaping hole at the start of the year. Your focus should be on nurturing those that already work for you. Specialised roles could become a past phenomenon as companies move to make themselves ‘Covid-secure’.
Manage your resources and overheads in the most efficient way possible in the current environment. My second recruitment company, Humana International, was able to retain its top talent through very difficult circumstances and fortunately came out at the other end. What we found is that when markets recover, you typically see quite a strong recovery. We were then in a position to expand when the market grew stronger. We eventually grew to 140 offices in 30 countries. This wouldn’t have been possible without the long serving members of my team.
Leaders of the future
Nurturing talent is primarily the responsibility of the employer, but with the right processes in place there are numerous ways an employee can increase their chances of progression and display leadership credentials.
Without doubt, they have to be very good at what they do. They must also demonstrate the ability to go above and beyond their current role. They may already be doing so in this time of need.
Some of the best employees often fail to communicate their ambition to the people more senior than them. Your line manager needs to know about your aspirations in order to give you the opportunity to display your potential. If you are open about your personal goals you are more likely to be set up for success. Create a context that allows you to go beyond the boundaries of your current position. Beyond the darkness, this crisis offers an opportunity to shine.
In conclusion
Despite the obvious benefits Monaco possesses, employers based here should not be complacent during this crisis. Top talent is more mobile than ever and base their decisions on an ever-increasing multitude of factors. It would be a mistake to overlook any outlined in this article. Remember, the cost of a high turnover of the best employees exceeds the cost of investing in them.
Employees: be open with your managers. You’ll be surprised about how much they can help you grow.

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Starting a business during the Covid-19 crisis

Acclaimed entrepreneur James Caan CBE reveals the three questions you should ask yourself before you part with your cash to start a business in the current climate.
The coronavirus pandemic has been incredibly traumatic. People have lost their jobs, their livelihoods and some have even lost loved ones. Yet through difficulty comes strength, and I believe we will emerge from the darkness stronger as a society.
I’ve been inundated with questions about starting a business during the crisis, none more so than from colleagues in Monaco. The question on everyone’s mind at the moment is just how far reaching the consequences of the coronavirus will be for the business community and the wider economy. Should you start a business during this extraordinary time? I can’t directly answer this, but what I can do is give you the ingredients to find the answer you need. Here are three questions you should ask yourself before you part with your cash to start a business in the current climate.
Business idea or hobby?
I’ve constantly had to ask myself this throughout my 30+ years in business. Here in Monaco, we’re surrounded by those with a high level of disposable income, but that often means money is ploughed into a venture that is more like a pastime than a return on an investment. As a wealthy entrepreneur, you cannot have tunnel vision when solving problems.
Monaco is not representative of society as a whole. Not everyone has the tools to shield themselves economically from the pandemic. You may think your idea is revolutionary, but the general public have other priorities during this crisis. Ask yourself if you’re catering to a lockdown hobby or creating a scalable business. In my experience, every new situation creates new opportunities, but it is crucial that your idea caters to clients financially and ethically, not just now but for the post-coronavirus world as well.
Is it viable in the current climate?
Viability carries a completely different meaning now to just a few months ago. More than ever, you need to ensure that the numbers add up. Even if you’re fortunate enough to have the capital to fund your venture, it’s essential to assess how robust your investment is at present.
I tend to look at the following factors: the cost of goods, the cost of time, the cost of opportunity, the cost of acquiring customers, and potential profit. Externally, the current global challenge has raised the stakes of the equation. Internally, the costs have always been high in Monaco, which continues to rank as one of the world’s most expensive places to live.
Hard work is commendable, but if you can’t account for every factor I’ve outlined, the idea is void.
Is it desirable?
If the maths add up, you need to consider the desirability of your product or service at this challenging time. Different to the first consideration, this is not about how many but how much. Be weary, all of our typical assumptions have gone out of the window – you will be required to adapt.
Gauge public opinion with market research. Be frank in your conversations and use the current obstacles as an extra level of assessment.
Next steps
I’ll leave you with my best piece of advice: demonstrate practical examples of how you can execute your plans in the current environment. If your business is robust enough to survive the biggest shock to the economic system since the Second World War, you will be in a great position as the world moves out of the crisis. Tackle the challenges we currently face head on and you can reap the rewards of the recovery.
 
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