US Recession began in February
Last Monday the National Bureau of Economic Research announced that the United States officially entered a recession in February. It comes as no surprise considering all of the challenges, we have encountered with COVID-19. The Bureau defines a recession as 2 consecutive quarters of economic decline. This doesn’t seem like a big news flash but what is on everyone mind is a return. We have no where to go but up it is just a question of how quickly and whether or not the virus will stick along for a while or rear its ugly head in the fall.
Reopening your office
If you have already returned to your office or are returning next week you might wonder what are some best practices to maintain in the office that will contribute the most to productivity. First and foremost, not everyone will have the same attitude toward the current situation. More so than ever this is where having a defined company culture becomes a great value. Be sure to make sure everyone is respectful of others; this may seem logical but it should be defined.
Companies should establish a multi-disciplinary team that is responsible for developing, implementing and monitoring a return to work plan. This team could be comprised of company leaders from key departments, such as legal, human resources, information technology, operations and health and safety, as well as representatives from employee constituent groups. Companies should also consider retaining external advisors (e.g., public health experts or professionals) to provide additional guidance when needed, especially those companies with facilities that may need reconfiguration to maintain better distancing between employees. Given the uncertainty regarding the lasting impact of COVID-19, the return to work planning team should remain assembled to monitor issues that arise upon the workforce’s return to the office.
Critically important in designing a return to work plan is developing and implementing workplace controls and strategies to minimize the exposure risks for employees returning to the workplace and mitigating potential liability risks for the employer.
Companies may wish to phase-in employee returns on a gradual basis to limit the number of employees present at a single location at any given time. Alternatively, or in addition, employers could provide staggered worktimes to achieve the same result, if that meets the employer’s business needs. A phased approach also has the added benefit of reducing the burden on the company and its cleaning crew in managing and performing routine or enhanced office cleaning and disinfection.
Below are some links to government websites with helpful information
Someone is after your 401K assets
Last week the Department of Labor opened the door to allow Private Equity investments to be included in 401K plans. While more details are not quite available the idea is to offer more diversification much like target date funds. We are not sure this is the best thing for employees and feel that Employers would need a lot of time to understand the underlying firms and deals they engage in. Stay tuned as we learn more in the future.
Source https://401kspecialistmag.com/dol-allowing-private-equity-in-401ks-draws-mixed-reaction/
U.S. Stocks Regain Strength, But Finish Week Lower
Fed Reserve Recap
On Wednesday Jerome Powell Chairman of the Federal Reserve addressed the state of the Economy
Mr Powell stated that Federal Reserve plans to keep interest rates near zero for the next few years and said they were studying how to provide more support to a U.S. economy battered by the coronavirus and related shutdowns. In new projections, all 17 officials who participate in the rate-setting meetings said they expect to hold rates close to zero next year, and 15 of them projected rates would stay there through 2022.
Source: https://blogs.wsj.com/economics/2020/06/11/newsletter-were-not-thinking-about-raising-rates/
