The Second Pandemic – Article published in Quay Magazine

It is hard to believe that 12 months ago ‘furlough’ was a funny word that most of us had never heard of. But now, in what has been the most extraordinary of years, furlough is in common parlance and likely to be with us for some time to come.

More than that, furlough has been a lifeline to many businesses – offering a solution to the problem of retaining staff while juggling difficult trading conditions and a substantial drop in income. The recent news that the furlough, or Job Retention Scheme, will be extended until the end of March 2021 has been welcomed by business leaders and will ease a little of the pressure on cash-strapped businesses.

But there is a cost to furlough beyond the financial.

While some workers may have gladly accepted the decision of their employers to furlough them initially, particularly while balancing the demands of home-schooling, the long-term implications for staff on extended furlough may be serious and wide-reaching. Work offers stability and a sense of purpose that when removed, even temporarily, can have a negative impact on a person’s mental health. Anxiety around job security and issues of value and self-worth will have risen as employees on extended furlough will question the decision-making process behind which staff were retained and which were placed on furlough. For, hopefully very few, workers who were asked by their employers to undertake inappropriate work tasks while furloughed there is the added pressure of a moral and legal question of what to do for the best. This on top of balancing the household finances with only 80% or their regular pay packets. Managing this level of uncertainty over a long period of time is unsurprisingly having significant repercussions on businesses and their teams.

The first forecast by the Centre for Mental Health, in May, indicated an additional 500,000 people would experience mental health issues over the next year in the wake of Covid-19 – this would equate to an additional 12,500 people in Devon. Subsequent assessments by the Centre for Mental Health suggests the aggregation of a number of challenging factors including unemployment, seasonal flu and a possible no-deal Brexit risks a rise in psychological distress and could see more people requiring mental health support in the coming months.

Taking the time to check in with furloughed staff and implementing practices to monitor and manage the wellbeing of all of your staff will be time well spent, and could be a wise investment in the future of your business as you build it back to full strength.

Analysis by Deloitte in January of this year revealed poor mental health costs UK employers up to £45 billion a year. That figure is pre-pandemic.

The Deloitte report highlights the impact prevention and early intervention can have on mental health in the workplace. Money spent on early interventions such as education and organisational culture change can have a greater benefit and higher return than the investment in the support required once an individual is struggling. The report reveals that for every £1 spent by employers on mental health interventions they get £5 back in reduced absence, presenteeism and staff turnover.

When thinking about the wellbeing of staff on furlough, it might be useful to think of procedures in place for people who are maternity leave or who are absent due to long-term health conditions – keep staff up-to-date with what is happening in the organisation, and check-in with them regularly – reassure them that they are a valued member of the team and you welcome their return. If someone is struggling, point them to where they can get support.