Vaccine Mandates Gain Momentum in US as Delta Variant Sparks Worries

Strategic Insights -

As the Delta variant sends Covid-19 cases surging in states with low vaccination rates, major companies are rethinking their approach to vaccine mandates. This shift is driven by concerns that unvaccinated employees may be fuelling the spread of the virus and threatening the US economic recovery.

Most companies had initially been hesitant to impose vaccine requirements, fearing backlash from employees who distrust vaccines or question their employers' right to do so. However, with the rapid spread of the Delta variant, many are now changing course. According to a survey by the law firm Fisher Phillips, 15% of US companies are planning or considering vaccination mandates, up from 4% in May.

This week, several high-profile companies have introduced vaccine mandates in response to the growing health crisis. Citigroup has implemented a jab requirement in several US cities, McDonald's has imposed a mandate on its office staff, and the New York Stock Exchange has said its trading floor will be off-limits to anyone without proof of vaccination. United Airlines has also made vaccines mandatory for all employees, with CEO Scott Kirby stating that he did not want to write any more condolence letters to the families of colleagues who had died of Covid.

The decision to enforce vaccination represents a significant shift for most companies, which had previously focused on offering incentives for employees to get vaccinated. Starbucks and McDonald's had offered four hours of paid time off to workers getting their shots, while Amazon offered a $80 payment. However, behavioural economists have found that such "nudges" are often less effective at changing people's behaviour when it comes to their health.

The move towards vaccine mandates has been encouraged in part by public sector employers, who have implemented similar requirements. The Biden administration has also announced that federal employees must be vaccinated or submit to regular Covid tests. California has introduced a similar requirement for teachers.

The Society for Human Resource Management (SHRM) has reported a significant increase in companies imposing vaccine mandates, despite initial hesitation. SHRM director Amber Clayton stated that "companies are facing the decision as to whether or not they're going to provide some sort of accommodation for [unvaccinated] individuals or terminate them."

The shift towards vaccine mandates has been necessitated by the growing health crisis. As the Delta variant continues to spread, companies are worried about the impact on their businesses and the well-being of their employees. According to a Morning Consult poll, 18% of employees would quit their job if their workplace imposed a vaccine or mask mandate.

Key Takeaways:

  • 15% of US companies are planning or considering vaccination mandates, up from 4% in May (Fisher Phillips survey)
  • Major companies such as Citigroup, McDonald's, and United Airlines have introduced vaccine mandates in response to the growing health crisis
  • The Biden administration has announced that federal employees must be vaccinated or submit to regular Covid tests
  • California has introduced a similar requirement for teachers
  • 18% of employees would quit their job if their workplace imposed a vaccine or mask mandate (Morning Consult poll)
  • Companies are re-evaluating their business needs and personal freedom issues, with business needs prevailing (Iwan Barankay, Wharton business school)
  • SHRM has reported a significant increase in companies imposing vaccine mandates, despite initial hesitation
  • Behavioural economists have found that incentives are less effective at changing people's behaviour when it comes to their health

Statistics:

  • 100,000: the seven-day rolling average of new Covid cases per 100,000 people in Arkansas (FT analysis of data from Johns Hopkins CSSE)
  • 80: the amount of payment offered by Amazon to employees getting vaccinated
  • 4: the number of hours of paid time off offered by Starbucks and McDonald's to workers getting vaccinated
  • 18%: the percentage of employees who would quit their job if their workplace imposed a vaccine or mask mandate (Morning Consult poll)
  • 15%: the percentage of US companies planning or considering vaccination mandates (Fisher Phillips survey)
  • 4%: the percentage of US companies planning or considering vaccination mandates in May (Fisher Phillips survey)
  • 100%: the percentage of federal employees who must be vaccinated or submit to regular Covid tests (Biden administration)
  • 18%: the percentage of employees who would quit their job if their workplace imposed a vaccine or mask mandate (Morning Consult poll)

Sources:

  • Fisher Phillips survey
  • Society for Human Resource Management (SHRM)
  • Morning Consult poll
  • NYT
  • FT
  • Johns Hopkins CSSE
  • White House press secretary Jen Psaki
  • Wharton business school