How to complying with the wage subsidy scheme and changes


Assignment task: The article talks about "Wage Subsidy Scheme" in New Zealand

Article: COVID-19: Practical information about complying with the Wage Subsidy Scheme and changes to the Essential Workers Leave Support Scheme

This scheme has been developed to help businesses and affected workers in the short-term, as they adjust to the initial impact of COVID-19. As future business leaders in government and industry, it is important to grapple with issues such as how to respond to crisis by designing policies to address the crisis at hand. An issue to explore in this article would be whether it is good government policy to provide wage subsidies to companies to keep employees (instead of laying them off). And whether it is good business management policy for a company to participate in this program. Can you analyze pros and cons of a company participating in such a scheme? It's meant to be a win-win situation. From company's perspective, they can holds on to employees. It is win for company because they don't have to rehire and retrain when crisis is over. It is quick rebound for company when crisis is over. It is also a win for employee because they are not laid off. Finally, it is win for government, because subsidy helps to lower unemployment, and therefore lower economic ramifications for economy of country. What do you think?

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