We focus on general business management ideas and experiences that may change or improve your business strategy and its implementation.
BULLETIN #1
September/ October 2020
Many companies are beginning to move their economic and human resources, now that COVID-19 measures have been modified. In general, sales is the area that receives the most attention. However, is it advisable to simply make sure that all salespeople have their sales plan and ask them to "work their magic" in videoconferences? Is it right to just do "more of the same"?
Maybe it would be better to schedule some time and do a process review in the sales area. Over time, it may be that your area has grown and acquired habits and practices that detract it from its best potential.
There is the case of a company that sells lubricants and its complements to different commercial segments within our country, which opted to contract an evaluation of the processes in its sales area some months before the pandemic. Here are some of the findings, comments and recommendations:
Sales people have problems using their smart devices during the day. Comment: Salespeople have internet signal issues and a slow sales software. Recommendation: Hire better internet plans and review the software contract for possible new developments.
Salespeople must make deposits daily. Comment: Salespeople spend hours searching for banks and waiting in rows to meet this requirement. Recommendation: Use a courier to collect and make deposits, to clear sales personnel to search for more sales. Offer different prices to those who use the internet to place and pay for orders.
The production area puts together the sales budget for the year. Comment: Production levels are determined by a single area. Recommendation: The sales manager should participate in the annual budget planning and give his opinion on what customers are buying, etc. Also, a periodic review of volume figures, amounts, quality, etc., should be made.
The company receptionist receives the trip log sheets from all salespeople, which are used to monitor their visits. Comment: This information reaches an area that does not participate in the sales process. Recommendation: This information should be handled by someone within the sales area.
As you can see, a review of processes brought to light situations that diminish or hold back better performance on the part of a key business area. Whether it is because the information is received by someone outside the sales area, time is wasted with slow connections when taking orders, or salespeople are required to perform tasks that another area could perform, there is room for rethinking and redirecting processes in the sales area.
The need to go out and sell is real, even urgent, for businesses today. Still, the time management takes to evaluate their existing processes and asks why do we do them? How do we improve them? Among other questions, will be well spent.
Ecuador signed an agreement in mid-2016 to expand the air routes with Canada. Our country continues to receive annually a record number of Canadian citizens who visit the country for tourism and as a retirement destination. Already in 2015, trade between Canada and Ecuador exceeded 500 million US dollars, representing a commercial movement of 672,000 metric tons of cargo (www.canada.embajada.gob.ec). There are 14,000 Ecuadorians living in Canada and 2,000 Canadians living in Ecuador.
The World Factbook / CIA reports that in 2017 Canada reached a GDP of 1.7 trillion USD (Note: the currency of Canada is the Canadian dollar). Its GDP per capita surpasses USD48 thousand. The main sectors of its GDP are services and industry, with 71% and 28%, respectively.
On the other hand, the Central Bank of Ecuador (ECB) reports that last year, our main exports to Canada were fresh roses, cocoa beans, shrimp and canned palm hearts, among others. From Canada to Ecuador, the main imported good is wheat, about USD200 million for the same period.
By Jenny Guerrero, Industrial Psychologist
Before addressing the Law of Humanitarian Support (The law), we should point out how important it is for companies to plan how to respond to the needs of their staff during the challenge that is unfolding due to COVID-19; therefore, it is important to think about this in three dimensions, all deeply connected to your company:
Work: The company's plans to face this pandemic must guarantee work and include it as a primary aspect. Thus, plans have to be updated and appropriate for their purpose; determine the significant activation and deactivation triggers of the organization; review the continuity procedures to better understand critical personnel; confirm functions and operational centers, critical roles and contingency plans; prepare short and long-term plans to operate the company, both for decision-making responsibilities and for urgent decision approval escalation lines; create temporary succession plans for key executive positions and critical roles in your business; develop policies, safeguards and training that allow for a broad implementation of telework. For face-to-face work, assess what safeguards can be put in place, such as revised cleaning protocols or personal protective equipment, assess your company's present work, and how it might be changed. Today, many companies are switching from face-to-face meetings to teleconferences to reduce the risk of virus transmission.
The workplace: Businesses must ensure the safety of work environments by thoroughly cleaning and disinfecting their workplaces. Clear guidelines should be provided regarding how employees can talk about their company and the impacts of COVID-19.
The Workforce: The workforce is not limited to employees. Suppliers and all the critical contributors to your business are involved here, so you must ensure that they are included in your plans to maintain your entire workforce safe. Employers' behavior during critical moments leaves an enduring mark on corporate culture, proactivity and, consistency in messages, and management behavior as the situation evolves is paramount. Staff are constantly seeking direction and trust, so it is necessary to review occupational health and safety at work. Your company should strengthen safety education, establish self-protection guidelines, and increase awareness of preventing contagion risks in the workplace. Your current workforce may be temporarily disrupted so, as employers, you will have to decide how to handle this by activating the provisions outlined in the law. Plans for workplace disruption and reactivation should be prepared.
As we anticipated, the three points highlighted above are based on the new labor law, that is, the Organic Law of Humanitarian Support to Combat the Sanitary Crisis Derived from COVID 19. (The law also covers non-labor issues).
Approved mid-June 2020, the new law allows for agreements to preserve jobs, a special employment contract, unemployment insurance, reduction of working hours, telework, an interpretative provision regarding the application of art. 169 number 6 of the labor code, termination of contracts due to acts of God or “force majeure”, among other provisions.
The new law allows employers to change certain conditions of the workday to their existing workforce, due to “force majeure” or a fortuitous event. Employers and workers may modify the economic conditions of the employment relationship. The working day may be reduced to 50% of the hours and up to 45% of the remuneration, before the crisis.
As it is a locally established practice, contribution to the Ecuadorian Social Security Institute (IESS, its initials in Spanish) is maintained, but it must be based on the new agreed condition. Another practice that is maintained is to notify the Labor Ministry about the new contract (online). How long can this new contract have? One year, renewable for a similar period only once. What compensation applies for dismissal under this new contract? The basis for compensation will be calculated with the remuneration in force before the new contract agreed.
Regarding teleworking, the new law recognizes that to “work”, the worker does not need to be physically at a workplace. This definition breaks with concepts that previously had to be met for the work activity to be remunerated and subject to contributions to the IESS. Words like "occasional", "partial", "mobile" and "self-employed" have been incorporated with the new law to somehow explain the nature of this "new type" of work.
The new law also adds a "new" type of contract, the emerging special contract. This legal document is allowed to help the processes of production and generation of income, extensions or extensions of the business, modification of the line of business, increase in the offer of goods and services, by individuals or companies, whether new or existing. It allows partial or full days, with breaks allowed during the week, that is, not on Saturdays and Sundays, which was traditionally stipulated. The weekly rest will be at least 24 consecutive hours. The workday may last between 20 to 40 hours per week, spread over up to 6 days, never exceeding 8 hours a day. The remuneration and benefits of the social security law will be proportional to the agreed working day. This type of contract will last for 1 year, renewable another similar period, after which the employment relationship becomes permanent.
COVID-19 can fundamentally challenge corporate strategies and work forms; on the other hand, the new law draws up new opportunities and challenges for companies to recruit, coordinate and manage their human resources, under the new economic reality of the country. These opportunities and challenges will greatly change the documentation, regulations and manuals existing in companies, among other aspects. We can help develop contingency plans, process manuals, functions, internal work regulations, occupational safety and health, from scratch or bring our experience and viewpoint to comment and update those already in force.
Mrs. Jenny Guerrero is part of the Alfa Strategy Partners team. Jenny has worked helping companies define job positions and area processes, among others. She has ample experience in putting together manuals and labor related documentation to meet local government bodies requirements. Jenny has worked in the private sector for medium and small companies in the human resources, administrative, collections and accounting areas.