NEW YORK–Spread financial empathy instead of coronavirus.
That’s the advice of Shahar Ziv, a personal finance coach, who works with students and graduates on improving their personal finances, and who is making clear many of the Americans who are going to be hit the hardest can least afford it.
As the coronavirus and its effects spread, Ziv shared on Inc.com writing on Inc.com advice and thoughts for minimizing the financial fallout for consumers from the perspective of business owners and individuals.
Zim quoted Jennifer Tescher, CEO of the Financial Health Network, who observed, “The virus will bankrupt more people than it kills. “Missing even one paycheck can have a domino effect for families, leaving a trail of missed mortgage or rent payments, utility shut-offs, unpaid bills.”
Noting the job cutbacks and layoffs already occurring in many industries, such as the hard-hit travel and hospitality industries, Ziv said the damage will be deeper than many are envisioning. For instance, the Brookings Institution stated in its analysis, “Some of the largest occupations employing these [low-wage] workers are also the most susceptible to the economic slowdown accompanying the virus’ spread: five million food service workers, 4.5 million retail clerks, and 2.5 million custodians and housekeepers. When college campuses empty out, when stadiums don’t host games, or when conferences are cancelled, it means that food servers, cooks, clerks, and housekeepers are out of work.”
“Each of us has a role to play not only in limiting the spread of the virus, but also in practicing empathy for those who may be hardest hit financially,” wrote Ziv.
Ziv offered this advice:
If You’re A Public Company Or Large Business Owner:
- Please do everything you can to pay your workers, even if you have to reduce operations. “Many retail companies, including Nike, Urban Outfitters, Apple, and Patagonia, have announced store closures coupled with policies that ensure hourly employees continue to receive their regular pay. And if you are a well-compensated CEO, consider bearing some of financial hit yourself. Delta’s CEO, Ed Bastian, is forgoing his entire salary for six months to avoid layoffs.”
- Don’t forget about hourly and temporary works as well as any subcontractors. “From security staff to janitors, the myriad of temporary workers who keep offices running smoothly are often forgotten, wrote Ziv. “Please include them in your contingency plans. Google serves as one example, setting up a fund that enables temporary staff and vendors to continue getting paid even if they cannot come into work because of a quarantine.”
- Institute, expand, and highlight paid sick leave. “With health experts rightly encouraging those who are sick to self-isolate, it is imperative that we create the right support systems, both short- and long-term, for workers to stay home,” said Ziv. “However, more than forty percent of U.S. workers in service jobs do not have access to paid sick leave.”
- Don’t forget about downstream implications of your decisions. “Coronavirus has highlighted the digital divide, with an estimated 21 million Americans lacking access to high-speed internet, according to the Federal Communications Commission,” said Ziv. “Sending your employees to work from home is prudent, but remember that not everyone may be equipped to work from home if they do not have access to company-funded computers or internet access. It behooves companies to think inclusively when implementing work from home policies.”
If You’re An Individual:
Ziv urged Americans to “please realize that you interact with many people who may be struggling financially and could use your help and kindness, especially during this volatile time.”
To show some empathy and understanding, Ziv recommended”
- Tip even better. “A large number of us may rely on gig-economy workers for car rides, food delivery, and other services. Many of these individuals are working during the pandemic, making it easier for the rest of us to comply with restrictions and social distancing. If you are utilizing these services, please don’t forget to tip and, if you can afford to, tip more generously than usual,” he wrote.
- Shop local and at small businesses. “The large chains of the world will survive, but many small- and medium-sized businesses have less working capital and operate on thinner margins, making them much more susceptible to the economic shocks due to COVID-19,” Ziv wrote. “If you are shopping, deploy your financial capital to help them. If you need to shop in person, consider a locally owned store. Or, if you are stuck inside, consider buying a digital gift card to your favorite small business to help them through the next few months. Mark Cuban set an excellent example, announcing on Twitter, that he would reimburse his employees who “buy [lunch or coffee[ from small local, independent” stores.”
- Help those who work for you. “If you are privileged to have help at home, whether it is a babysitter, dog walker, housekeeper, etc., consider how you can assist them during the next few weeks and months,” said Ziv. “Perhaps you can give them the option to take a week or two off with full pay or offer to help them avoid public transportation to decrease exposure to COVID-19 for them (and you!).”
- Be generous and kind: Empathy doesn’t have to be financial, according to Ziv. “Saying ‘thank you’ to the many workers on the front line - doctors, healthcare workers, police officers - doesn’t cost anything; neither does acknowledging grocery store workers and public transport operators who are staying on the job to help with essential services for the rest of us,” Ziv said. “But there are also opportunities to practice financial empathy. Many folks are also experiencing disruptions to life events (for example, birthday celebrations, weddings, and graduations). While this is undoubtedly disappointing, some parents are using this as an opportunity to teach their children and others important lessons about financial empathy.”
- Perform random acts of kindness: “Others are simply practicing random acts of kindness, like Shea Serrano, who offered to help unknown Twitter users pay their bills during the pandemic. People were inspired by Serrano’s kindness and began offering to help strangers with their bills as well. Now that’s the type of contagion we can all get behind.”