In 2008, the Philippines was hit by the triple Fs – food, fuel and financial crises. Now, the big C – climate change – came and brought Ondoy, et al. In light of these disasters, what will you do as CEO or an HR manager of an economic meltdown rising from disasters? If you are a government employment planner, what adjustments will you initiate in the MTPDP 2004-2010?
Any business can experience serious incidents that can prevent it from continuing normal business operations. This can range from national economic crises (such as the triple Fs), flooding (as demonstrated by typhoons Ondoy and Pepeng), or even other disasters such as serious accidents or information security incidents.
The CEO has a responsibility to recover from such incidents in the minimum amount of time possible; and the best thing that can be done is to ensure business continuity so that business owners, its employees and clients can continue to depend on the economic benefits of its successful operation. This entails keeping the workforce motivated and productive so that there are minimal interruptions to the business's ability to provide its products and/or services, minimal financial loss and quick resumption of critical operations.
Every business needs to carefully prepare business continuity and disaster recovery plans. Detailed plans must be created, outlining the actions that particular members of an organization will take to help recover/restore its critical operations that may have been interrupted during or after a disaster. All employees should have appropriate knowledge and training on the specifics of such plans.
In his book Operational Risk Management (2008), Mark D. Abkowitz enumerated risk factors common in man-made accidents, terrorist attacks and natural disasters, such as design and construction flaws, deferred maintenance, economic pressures, schedule constraints, etc. Included in his list are the following risk factors that a CEO and HR manager must take into account to prepare the workforce for future disasters:
- Inadequate training that result in individuals making mistakes that either initiates an accident or allows a crisis situation to intensify
- Not following procedures for how employees should perform a task or function, resulting in procedural errors that create hazardous situations
- Lack of planning and preparedness in terms of gathering knowledge, assessing the likelihood and consequence of various disaster scenarios, evaluating alternative risk reduction strategies, and conducting exercises and drills to determine the effectiveness of ongoing efforts and maintain a state of readiness
CEOs and HR managers should also work together to enable employees to weather the tragedy by following some of the recommendations by Susan M. Heathfield in her article “When Tragedy Strikes: Eleven Tips for Your Workplace Response.”
- Make sure people are safe, especially if the incident happened in the workplace.
- Assess the personal involvement of employees, and offer assistance if possible. If a tragedy impacts employees personally or directly, offer release time, support, paid time off work or other forms of compensation.
- Give employees access to critical information through radio, TV or internet. Information helps people process the events. Allow them to gather with coworkers while watching breaking news.
- Give people something to do to help. Filipinos have proven to be especially generous and caring in times of disasters and organizations can facilitate activities that will enable employees to help solve the problem or to ease the situation.
Indeed, organizations must take planning and preparedness seriously. Such preparation is of course not exclusive to businesses trying to minimize economic loss. Both the public and private sector must consider risks and come up with prudent decisions regarding where and how to invest available resources to reduce those risks of greatest concern.
In the employment sector in particular, adjustments can be made so that the long-term plans allow for protection against increasing risks. One such adjustment could include an enhanced policy and/or implementation of workers’ compensation insurance especially in times of disasters.
The billions of damage left by typhoons Ondoy and Pepeng was a wake-up call for people to appreciate the value of insurance. Many Filipinos consider insurance as an expense rather than an investment, and leave themselves vulnerable and unsecured in times of uncertainties.
Not only should government ensure a strong and effective insurance industry, but also ensure the provision of workers’ insurance especially in times of calamities. When several workers are injured due to such incidents, this will not only provide employees with compensation for on-the-job injuries but will also protect businesses from claims and lawsuits. The government should likewise ensure that specific sectors are suitably provided with such insurance such as those from the micro and small business and the informal sector.
Another adjustment to the MTPDP could be found in creation of more efficient and intelligent urban areas. Overcrowding, lack of infrastructure and inefficient use of resources have contributed to the devastation that resulted in the recent heavy flooding. Building more efficient and intelligent cities could mitigate similar future damages.
The IT industry will become a prominent figure in such an endeavor, equipping business and commercial centers with computing knowledge to manage transportation, water and power infrastructure. Technology will be employed to create sustainable and scalable infrastructure.
In the past, jobs have been generated in building industrial infrastructure such as buildings, roads and telephone lines. The same principle can work in developing urban infrastructure wirelessly connected to the internet.
Related to this, labor policies can be developed to promote telecommuting in the Philippines. Telecommuting or telework is a work arrangement in which employees enjoy flexibility in terms of workplace location and hours of work. The daily commute to a distinct place of work is substituted by telecommunication links. Such a strategy can be efficient and useful for organizations as it allows workers to communicate over a large distance, saving significant amounts of travel time and cost. It also allows for employee flexibility as well as reduces traffic congestion and air pollution.
Finally, it is recommend that the government actively pursue efforts to promote green jobs, following the lead of the International Labour Organization (ILO). Premised on the inconvenient truth of climate change, the ILO believes that economic development by doing business as usual is not sustainable. Green jobs in low carbon economies will enhance not only adaptation measures against climate change but also result in mitigation, or the direct reduction of carbon emissions. It has the potential to contribute to sustainable economic growth and help lift people out poverty. The ILO therefore promotes the potential for green jobs and a positive labor market transition in the face of climate change, and encourages energy and industrialization policies, government investments and public-private partnerships to maximize its potential and benefits.
References:
Operational Risk Management: A Case Study Approach to Effective Planning and Response
By Mark D. Abkowitz (2008)
When Tragedy Strikes: Eleven Tips for Your Workplace Response
By Susan M. Heathfield, About.com Guide
Ondoy's great flood highlights importance of insurance
By Junep Ocampo, The Philippine Star, November 02, 2009
Guide to Workers' Compensation Insurance
By Susan Ward, About.com Guide
‘Ondoy’ proves that cities need to be more efficient, intelligent
By Melvin G. Calimag, Manila Bulletin, October 15, 2009
Green jobs: Facing up to "an inconvenient truth"
ILO Article issued in 2007
