RESEARCH TRIANGLE PARK – While unemployment across North Carolina and the US has soared and the economy has plunged into recession during the COVID-19 pandemic, most businesses have kept their workforces intact and also maintained compensation levels, a new survey finds.
Sixty-one percent of execs have held the line on pay and work even though nine in 10 say their firms have been affected by the health crisis and ensuing “stay at home” orders across the US, says the American Institute for CPAs.
Helping meet payroll while business has fallen off are federal disaster benefits such as Payroll Protection Loans, AICPA notes.
But the other 29 percent of companies have resorted to layoffs, furloughs and pay cuts in order to keep their doors open.
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“The overwhelming majority – 92 percent – of executives in our survey said their companies had been impacted negatively by the pandemic,” said Ash Noah, a managing director for the Association of International Certified Professional Accountants. “The survey results give a snapshot of how they’ve coped so far, with many relying on a mix of relief programs, cost containment and business continuity strategies.”
CPAs backed PPP loans and other efforts and the group says the cash is paying off. But what happens when the benefits and loans run out? A human resource exec in the Triangle tells WRAL TechWire that more cost cutting could come.
More layoffs, buyouts could be coming as pandemic benefits dry up, warns HR exec
“Our stance from the beginning was that it was vital to get money into the hands of small businesses quickly to ensure that their lights stayed on and their employees were protected,” said Erik Asgeirsson, president of CPA.com, which is part of the AICPA. “The Economic Outlook Survey data suggests that approach has been largely effective.”
More than 50 percent of executives in the survey say they applied for PPP loans. Another 8 percent sought emergency loans from the Small Business Administration. But 35 percent of execs said they did not seek help.
A breakdown of the survey follows:
AICPA graphic
The AICPA survey was conducted May 5-27.
