HR Strategic Planning: Taking Deliberate Steps to HR Success by Christina Stewart ~ Post 6

RESTRUCTURING STRATEGIES

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Integrating human resource management strategies and systems into your overarching organizational strategy will help you achieve the overall mission, strategies, and success of the firm while meeting the needs of employees and other stakeholders. Over the past few weeks we’ve been talking about HR Strategic Planning, we’ve introduced it and we’ve talked about assessing where you are now, and we’ve looked at forecasting your HR requirements. In this post number six we’ll discuss using a Restructuring Strategy.

This strategy includes:

  • Reducing staff either by termination or attrition

  • Regrouping tasks to create well designed jobs

  • Reorganizing work units to be more efficient


If your assessment indicates that there is an oversupply of skills, there are a variety of options open to assist in the adjustment. Termination of workers gives immediate results. Generally, there will be costs associated with this approach depending on your employment agreements. Notice periods are guaranteed in all provinces. Be sure to review the employment and labour standards in your province or territory to ensure that you are compliant with the legislation.

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Attrition (not replacing employees when they leave) is another way to reduce staff. The viability of this option depends on how urgently you need to reduce staff. It will mean that jobs performed in the organization will have to be reorganized so that essential work of the departing employee is covered. Careful assessment of the reorganized workloads of remaining employees should include an analysis of whether or not their new workloads will result in improved outcomes.


It is important to consider current labour market trends (e.g. the looming skills shortage as baby boomers begin to retire) because there may be longer-term consequences if you let staff go.
Sometimes existing workers may be willing to voluntarily reduce their hours, especially if the situation is temporary. Job sharing may be another option. The key to success is to ensure that employees are satisfied with the arrangement, that they confirm agreement to the new arrangement in writing, and that it meets the needs of the employer. Excellent communication is a prerequisite for success.

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Your analysis may tell you that your organization may have more resources in some areas of the organization than others. This calls for a redeployment of workers to the area of shortage. The training needs of the transferred workers needs to be taken into account.

Come back next week to check out Training & Development Strategies.