Companies are reacting to the impact. Businesses are reacting to the economic impact of COVID-19 in various ways:

Looking for other ways to cut budget – small businesses, 32%; large businesses, 25%
Stopped hiring - small, 31%; large, 36%
Using government assistance or lending program – small, 30%; large, 22%
Did nothing - small, 20%; large, 4%
Laid off staff – small, 19%; large, 16%
Temporarily closed the business – small, 18%; large, 12%
Stopped or slowed down investing in the business – small, 17%, large, 19%
Used personal finances to support the business – small, 16%; large, 18%
Reduced bonuses offered – small, 16%; large, 29%
Reduced training offered – small, 12%; large, 22%
Reduced perks offered – small, 11%; large, 22%
Reduced employee salaries – small, 10%; large, 19%
Offered voluntary benefits – small, 8%; large, 28%
Reduced benefits offered – small, 7%; large, 18%
Reduced employer-paid part of benefits offered – small, 6%; large, 19%

Most respondents are optimistic about the economic outlook for the next 12 months, with overall optimism up by 11 percent since June. Forty-four percent of small businesses and 61 percent of large companies said they are optimistic. Businesses are forecasting that it will take between six months and a year to fully recover from the economic impact of COVID-19. Improving revenue is the top business objective for the next 12 months, followed by growing the client base and improving customer satisfaction

Instant Insights /

Businesses reporting improved financials: Principal Financial Well-Being Index

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