Restructuring can be necessary for employers looking to adapt to market demands, streamline operations, or align the organisation’s strategic goals. However, it can be a complex and sensitive process, particularly for small to medium-sized employers who may have limited or no in-house HR knowledge and resource.
Assessing the Need for Restructuring
Restructuring begins by analysing if the current organisational structure enables you to meet your strategic objectives. You do this by determining what you want to achieve, then deciding what capability and resource you need to allow you to do this. Then you create your new structure on this basis. You then look at the capability and resource you have, and the gap between what you have, and what you need, will signpost where your restructuring need. Whether it’s introducing new roles, merging departments, or reducing overall headcount, every step requires careful planning and execution. Clearly understanding the driving factors will help you define the goals and scope of the restructuring.
Our blog will explore a restructuring plan, what it should include and implementing a restructure and what happens if you need to make redundancies. Finally, we explore ways of moving forward after the change.
Further information on change management can be found in the CIPD fact sheet.
Engaging Stakeholders
Communication is key when it comes to restructuring. Engage with your stakeholders, including employees, early in the process. Transparent communication helps build trust and ensures everyone is on the same page. It’s essential to explain the reasons behind the restructuring and how it will benefit the organisation in the long run.
Developing a Restructuring Plan
Once you’ve identified the need and engaged your stakeholders, it’s time to develop a detailed restructuring plan. This plan should outline the steps you will take, the resources required, and the timeline for implementation.
Determine the new organisational structure that will best support your business goals. This might involve creating new roles, merging departments, or exploring whether positions are still required. Restructuring can have significant financial implications. Develop a budget that accounts for potential costs such as consultations, hiring expenses, and training.
Implementing the Restructuring
With a plan in place, the next step is implementation. This stage requires careful coordination and management to minimise disruptions. Key actions include:
- Communicating Changes: Clearly communicate the proposed changes to all employees. Provide them with information and offer support to help them transition. Forbes has an article on tips when communicating restructure plans.
- Consultation: entering meaningful consultation with affected employees.
- Training and Development: Restructuring may require employees to take on new roles or responsibilities. Invest in training and development programs to equip them with the necessary skills.
- Stay compliant by understanding your legal obligations to avoid costly mistakes.
- Monitoring Progress: Regularly review the progress of the restructuring process. Make adjustments as needed to ensure that the restructuring achieves its intended goals.
Restructuring doesn’t have to be daunting. With the right tools, a clear strategy, and ongoing support, you can manage change effectively, ensuring a positive outcome for both the business and your employees.
When Redundancy May Be an Option
In some cases, redundancy may be unavoidable. This should always be a last resort after full consultation with affected employees and exploring other options such as redeployment or retraining. See our previous blog on Redundancy for further information.
If redundancies are necessary, handle them with sensitivity and fairness. Provide employees with adequate notice, support, and assistance in finding new employment opportunities.
You can read our case study on how we supported a client with redundancy.
Supporting Your Team
Restructuring can be a stressful and uncertain time for employees. It’s crucial to provide support and reassurance throughout the process. Consider offering counselling services, career coaching, and regular check-ins to address any concerns or questions.
Moving Forward
Once the restructuring is complete, focus on rebuilding and moving forward. Celebrate the milestones achieved and recognise the efforts of your team. Continue to communicate openly and transparently to maintain trust and morale within the organisation.
Assess the success of the restructure through surveys and feedback sessions to assess morale and productivity. Albany HR can provide ongoing support to help employers evaluate the success of a restructure and whether additional adjustments are needed.
Conclusion
While restructuring can be challenging, it also presents an opportunity for growth and improvement. By approaching the process strategically and with empathy, small businesses can manage restructuring successfully and emerge stronger and more resilient.
If your business is growing or changing at a structural level, you need to handle that process properly and get it right the first time for your people. Restructures can be challenging, so engaging an HR consultant to help find a clear way forward for everybody involved is an investment in your company’s future.
Partner with Albany HR to deliver your restructuring journey with confidence. Contact us to discuss how our support can help you.
