Structuring your restructuring properly

Rita Ow, HR director at Avid Technology SEA, shares essential guidelines to help employees and managers handle restructuring for the greater good of the company.Singapore - Companies restructure constantly to stay competitive in the changing business environment.

This may involve changes in the organisation's structure to better align it with the market, merging different business entities, divestment, acquisitions or outsourcing to cut costs. All these activities have an impact on employees and the organisation.

For employees

Restructuring can be an unsettling period for most employees, which in many instances may result in changes in job responsibilities, or in the worst scenario, job losses as a result of redundancies. How should employees prepare for such eventualities?

Be positive: Crisis in Mandarin is written as 危 (danger) 机 (opportunity). Whenever there is a crisis, an opportunity is presented, for example some positions may be eliminated, but new positions will also be created. For those who are keen to move to a different role within the organisation, this is a good time to explore the new opportunities presented.

Be proactive: Have an open discussion with your manager and HR on how your role will be impacted. Take a look at the new roles being created and consider if there is one you would be interested in taking on. Solicit support from your manager and arrange an interview with the hiring manager on the role you are interested in.

Be prepared: Keep your professional skills relevant by upgrading yourself when necessary. Make use of any training scheme offered by the company and remember to network and keep abreast of opportunities available in the market.

Be prudent: If you fear your role will be made redundant, try to spend within your means and ensure you have at least six months worth of salary in savings. Without a financial burden, you will be able to comfortably reconsider your career options.

For the company

Though companies restructure to conserve resources, stay competitive and cut costs, it is not likely they reap visible benefits in the short-term. This is because any kind of restructuring, even if properly executed, leaves some uncertainty impacting the morale and performance of staff. Companies should endeavour to complete the process quickly and efficiently, but how should they go about it?

Open communication: Communication is crucial in times of change. Once the company has made the announcement, the leadership team should ensure everyone understands why the business is restructuring and are on board with the changes. Staff should also be informed on how they might be affected. Leaders have to be honest about what restructuring involves, including the possibility of redundancy. Managers should be briefed to address staff concerns and to be sensitive to workflow, personal conflict and potential problems.

Finalised new structure: Once the new organisational structure is finalised, HR should post new openings on the intranet so employees can apply for roles they are keen on. Affected employees should be notified if their roles are impacted and redundancies should be communicated to the affected staff quickly, so as not to create unnecessary anxiety.

Be helpful: The manager and HR should provide assistance to affected staff, making efforts to assist them in looking for employment within and outside the organisation. Companies that go the extra mile for their employees will also reap the benefits in the long run because these employees may actually end up working for your customers, resellers or suppliers. Restructuring is a painful exercise, but if employees are prepared and the company exercises care to ensure that changes are executed properly, they will eventually see a light at the end of the tunnel.