Thought Piece
How some companies restructured and took their staff with them
Restructuring often involves redundancies. One set of people lose their livelihoods and another set of people have to take them away. This needless attack on morale, reputation and human dignity often bounces back and has marked the beginning of the end for many a business.
But it is possible to create an outcome where everyone, even those made redundant come out the other side with morale and reputation intact, even enhanced.
"Another novel way to speak to employees is to speak directly to them, not just to comply with employment law but to genuinely tell them the range of options that are under consideration."
"there was enthusiasm for the place to remain open and an acceptance that budgets had to be cut and radical changes made"
For a large company with a public profile, the story could well go like this: leaks reach the media and give wider credence to the already circulating rumours that x thousand people could lose their jobs: and certain factories/sites will close: official confirmation proves the rumours to have been eerily accurate: flurry of media protest from union leaders committed to protecting jobs/services: counter media statements from management reassuring everyone that all will be well in the end.
As the media moves on to the next story, middle management is tasked with enforcing the actual redundancies. This can have a negative effect on both those who lose their livelihoods and those who have to take them away.
But it is possible to create an outcome where everyone, even those made redundant come out the other side, with morale and reputation intact, even enhanced. Any restructuring involves process planning even if you can't determine the outcome. A first principle must begin with communication — through a variety of channels, not just through the side entrance of a national newspaper. At one company we worked with, the first thing we did was install state-of-the-art Dyson airblade hand dryers in the washrooms.
This was a clear signal that this facility was not closing down but being made more efficient. Another novel way to speak to employees is to speak directly to them, not just to comply with employment law but to genuinely tell them the options that are under consideration. This can involve going through a range of scenarios and explaining what would determine which one would come to pass.
In one instance employees were told that the site would close unless substantial savings could be made. In this case, talking to the staff it became clear there was enthusiasm for the place to remain open and an acceptance that budgets had to be cut and radical changes made.
All kinds of efficiency improvements can be drawn up and executed better with inputs from those on the job and while this process is ongoing, you can go ahead with the required restructuring. We are often pleasantly surprised to find that people volunteer for redundancy. People realise the need for jobs to be restructured and some decide of their own volition that it is time to call it a day, especially when they see that their roles are likely to change. Another clear winner is to clearly lay out the process of defining new processes and targets. Again, those who feel they'd like to stay, begin to position themselves.
On a recent project, of the required redundancies, we managed a voluntary take-up of 70% in the first call. That's high.
On a recent project, of the required redundancies we managed a voluntary take-up of 70% in the first call. That's high, it was helped to a large extent by the regular staff/management meetings that we ensured took place. It was fascinating to see how the agenda —set by the staff — changed over time. At first it was all anxiety — and rightly so —about the future of the office and the employees. But that changed over time as certainty and visibility increased and the communication became much more focussed on the plans for the future and how the people and the function could provide the best value to the rest of the organisation.
many of those who do become redundant, with careful forward planning and a modicum of resources, they can be seamlessly eased into new employment.
All this work, is part of modern HR practice. Even many of those who do become redundant, with careful forward planning and a modicum of resources, they can be seamlessly eased into new employment. A company with a reputation as a good employer can attract and hold on to brighter, higher calibre talent. All of which proves, to my mind at least, that HR can be more than a load of hot air.
Julia Byers