How has COVID-19 impacted your digital transformation timeline?
New research from Barclays Corporate Banking* has revealed 15% of UK companies have created roles specifically to cater to an increase in digital sales and boost online capacity, believing the pandemic has accelerated a ‘technological revolution’ in retail.
| Old rule (2021 Independent Contractor Rule) | New Rule (Effective March 11, 2024) | |
|---|---|---|
| Basis of classification | Relied on a simpler, more straightforward approach that may not fully capture the complexity of modern work relationships. | Restores a multifactor "economic reality" test that considers a wider range of factors to determine employment status. |
| Legal consistency | Criticised for deviating from established legal precedent and potentially leading to more misclassifications. | Aims to align closely with longstanding legal precedent, offering more clarity and consistency in classification decisions. |
| Impact on workers | Concerns were raised that it might make it easier to classify workers as independent contractors, potentially denying them employment benefits. | Seeks to reduce the risk of misclassification, ensuring workers who should be classified as employees receive the benefits and protections that they're entitled to receive. |
| Guidance for employers | Provide a simpler framework for employers to classify workers, which could lead to broader interpretations and confusion. | Offers detailed guidance through the economic reality test, aiming to provide a clearer path for proper classification and reduce misclassifications. |
96% of UK enterprise decision makers believe the pandemic sped up their company’s digital transformation
The research found a substantial number of businesses have invested even further in technology under lockdown with a third (33%) of retailers upgrading their websites, with 32% starting to accept new payment methods and one in four (26%) embracing data analytics for the first time.
Twilio, through their Digital Engagement report*, found COVID-19 accelerated companies’ digital communications strategy by a global average of 6 years, with 5.3 years for the UK average. 96% of UK enterprise decision makers believe the pandemic sped up their company’s digital transformation, and of these 66% said it did so ‘a great deal’.
This plays true to what we have heard when speaking to clients. With social media and e-commerce being two key factors for companies in 2020.
With research from Klarna and Retail Economics* finding 71% of British consumers are reluctant to shop in store in the lead up to Christmas and 56% stating they expect to do more online shopping this year than then have in previous years .
______
Sources:
* Barclays Corporate. Banking: https://home.barclays/news/press-releases/2020/09/online-shopping-growth-sees-surge-in-e-commerce-roles/
* Twilio, Digital Engagement Report: https://www.twilio.com/covid-19-digital-engagement-report
* Klarna and Retail Economics: https://www.theindustry.fashion/three-quarters-of-brits-to-avoid-shopping-in-store-this-christmas/
______
