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Key Concerns of HR Managers in an Organizational Re-structure

4 key HR concerns in an organization re-structure

Organizational restructuring is critical for any business. There can be multiple reasons- budgetary issues, changing market outlook, or streamlining business operations. Whatever the reason, it is necessary to ensure it goes off smoothly. While every department has a role to play, the part of the HR department is quite significant. Hence, the HR Manager is a crucial figure and must make tough business-critical decisions.

Faced with the challenges, there are some key concerns that an HR Manager faces during organizational restructuring. Here’s taking a look at them. Read on to learn about the most common ones.

To maintain employee productivity

Employee morale is usually low at the time of an organizational restructuring. It can be due to fear of losing their jobs, wage cuts, reallocation, or becoming redundant. This directly affects productivity and, ultimately, business performance. 

HR Managers need to implement measures to counter this- some tried and tested motivators include rewards, celebrations, and other incentives in cash or kind. It ups their morale and increases employee engagement.

To communicate with the stakeholders

Organizational restructuring can make all your stakeholders- internal and external anxious. While we discussed employee worries, the investors and top management may be concerned about profitability and business stability. In addition, customers and clients may need clarification about whether it would affect the quality of the product or other deliverables.

During this time, the HR Manager can build a robust strategy to keep all stakeholders updated about the restructure’s purpose, progress, and outcome. They must also ensure that they are transparent about the job implications, the short-term and long-term effects, and the programs and policies being rolled out by the HR department to alleviate their concerns.

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To retain critical employees

It is possible for employees, especially seniors, to quit the organization at the time of organizational restructuring due to the uncertainty of their future. This can also create discontent among the juniors and investors.

The HR Manager must conduct market research and identify critical talent. Accordingly, they may implement strategies including but not limited to granting raises, bonuses, and other benefits to these employees to motivate them to stay back. At times, improving workplace policies and procedures can also help. The key is to let them know that the company values them.

To manage payroll and records

Payroll generally falls in the ambit of the finance team. However, one must not overlook the HR department’s role in managing the payroll and related employee records.

The HR department is responsible for upholding and, if required revising the salary structure, taking into account the promotions, appraisal, and bonuses, if any. The company’s credibility relies on them being managed appropriately. It can also help instill confidence in employees and assist in retention. 

Organizational restructuring can be a difficult time for everyone in the company. However, the HR Manager can ease things for everyone by taking the lead and communicating critical business decisions well in advance, taking measures to minimize the impact of restructuring, and implementing measures and policies targeted towards everyone associated with the organization, among others. During this time, the HR Manager must keep calm and maintain relationships with the higher-ups and the employees- regardless of whether they are being retained or let go. This can help the business deal with the transition better and come out of it stronger.

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Written by

Shortlyst Team

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