COVID-19 and the New Work Culture: The Financial Implication for Individuals

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Wednesday, March 25, 2020 / 12:00PM / Damilola Peter for Proshare Finance / Header Content Image: Proshare


 

Living a great work-life balance is one of the most commonly held cravings every employee seeks as they work towards making ends meet and providing for themselves the lives they dream about.

 

Indeed, some employees without hesitation would jump at the offer that provides them the opportunity to work while they stay at home, just like the opportunity COVID-19 has provided at this period. 

 

Working from home sounds great because of the several benefits that comes with it. Working from home to some means you don't have to worry about someone stepping on your shoes while you are wrapped up with the crowd on your way to your place of work. It means you t have to silently scream at everyone walking sluggishly in front of you while you are hurriedly walking to your office. Staying at home while you work is a good beginning to end your worries with annoying commuters.

 

As an avenue to reinstruct your brain to disconnect your mind from all the early morning wakeup routine and the late-night sleep as you may have sufficient time to stay away from the long-dreaded traffic jam you usually experience on your way to work or back home. 

 

The best part of the working from home system is the opportunity you get to build a more intimate relationship with your spouse, children and other family members.

 

But beyond all of the pleasures, the excitement, the comfort and the bliss, do you think working from home gives you all the benefits you would desire without getting anything in return from you?

 

Have you taken the time to sit and imagine the implications that may come with working from home, the emotional consequences, the financial implications and many other dangers that may come with it?

 

The way and model of how we operate as individuals, businesses and communities is beginning to change globally because of the emergence of the viral pandemic- Coronavirus, and as it is, preparing for the uncertainties that may arise in the next few days is the next best action to take.

 

As we all prepare to go into distancing ourselves from social gatherings while still ensuring economic activities and business operations continue, we need to figure out the best methods of meeting socioeconomic obligations within a new work paradigm.

 

It is important to know what the likely implications of social distancing will be on us in the coming months and perhaps years. 

 

What should you expect with working from home, as a low income, middle income and high-income earner?

 

 

Income Loss

One of the common consequences of working from home will be an increased loss of income in the following days. Whether you are an employer of labour or you work for someone. 

 

The unavoidable event that is bound to happen at this period is the decline in revenue and profit that would be experienced as the spread of the viral disease takes its toll on the international oil market.

 

Amid Covid-19, the country has witnessed a huge drop in the price of crude oil from $57 to $33.7 per barrel. A reduction that has reduced the country's targeted revenue from oil for the year 2020 from N2.64 trillion to a 40% reduction according to an article published by Vanguardngr on March 10, 2020.

 

With these you can expect a decrease in the circulation of fund within the country's economy thereby affecting both individual and corporate incomes.

 

In addition to this, many employees will likely lose their jobs as their services will no longer be required due to the shutting down of businesses caused by the restriction of movement and social interaction currently going on across the globe, with Nigeria not being left out.



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Increased Expenses

As trading activities are forced to stop either partially or completely in some cases. Individuals, businesses and corporate bodies are more likely to experience a spike in their expenses in the coming days.

 

More persons are expected to stay home at this period with their children and wards. Simply having your wards around, places an extra cost on you as you would be required to spend more on petty household items and child care packages. 

 

Moving away, from the cost you are likely to incur from caring for your wards, another unavoidable cost you would carry is the cost of setting up a new home office to manage your business activities until the time you can resume normal office activities

 

Running your business or working from home means you need to make provisions for a few relevant things such as;

 

  • Internet subscription and a connection device (e.g. a modem) since you will do more of online calls, video conferencing, etc.
  • A Laptop and/or Smartphone
  • Electricity and Generator/Fuel as a back up
  • Credit card for calls since you would have no access to office's intercom 
  • Food supplies and toiletries

 

Primarily these are the unavoidable expenses you will likely encounter as you plan to work from home.

 

However, below are other listed items you are likely to spend money on as you prepare to work from home over the next few days.

 

  • A suitable table and chair
  • Whiteboard
  • Pencils, pens and note pads
  • Papers
  • Fire Safe box
  • Desk organizer & pen holder
  • Socket & USB extension lead
  • Alarm to keep watch of time 

 

For some a printer, stapler & pins, perforator, scanner and archival files will be necessary to keep office documents separate from other personal documents

 

The restriction on movement and business activities would not only cause an increase in the prices of commodities for individuals but also place the entire national economy in a slowly burning meltdown.

 

As a matter of urgency, proper plans must be put in place to address the yet unknown outcomes. 

 


Proshare Nigeria Pvt. Ltd.


 

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Proshare Nigeria Pvt. Ltd.

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