What happens when a company restructures its workforce?
Regardless of the reason for restructuring, it’s imperative that your company consider your workforce and the potential impact on your employment brand during the restructuring process. Restructuring usually comes with a displacement of employees through layoffs and early retirements.
When do you need to do an operational restructuring?
Once the management team has defined its lifecycle stage and the desired future state, all operational restructuring plans need to reflect the strategic needs of the business and be implemented to address the core strategic issues that the restructuring is expected to address.
What are the different types of business restructuring?
There are two basic types of restructuring: financial and operational. Financial restructurings are often a result of poor operational performance and the reality that the management team has not responded quickly enough to changing business dynamics. In this case, a wall to wall cost takeout is called for.
How to thoughtfully communicate a company restructure?
How to Thoughtfully Communicate a Company Restructure Restructuring is a strategy through which business leaders change the direction of their organization in order to remain competitive. Many cases of restructuring involve downsizing. The company may dismiss employees, eliminate departments, or close some of its retail locations.
What happens to the jobs during a restructuring?
Because positions may overlap, jobs may be eliminated and employees laid off. Restructuring can be a tumultuous, painful process as the internal and external structure of a company is adjusted and jobs are cut. But once it is completed, restructuring should result in smoother, more economically sound business operations.
How to Thoughtfully Communicate a Company Restructure Restructuring is a strategy through which business leaders change the direction of their organization in order to remain competitive. Many cases of restructuring involve downsizing. The company may dismiss employees, eliminate departments, or close some of its retail locations.
When does a company restructure its financial structure?
Key Takeaways. Restructuring is a corporate action undertaken by a company to significantly change its financial or operational structure, typically when it is under financial duress. Companies may also restructure when preparing for a sale, buyout, merger, change in overall goals, or transfer of ownership.
When do you need to do a vertical restructuring?
Vertical restructuring is the term used when your position takes on responsibilities and tasks previously performed at higher levels. A job restructuring may be part of a broader company reorganization.
What to say to employees about company restructuring?
If an employee asks “are we restructuring or going to lay off staff?” (and you know that you might have to in the future), be honest. Gentle, but honest. You’d be surprised how many staff members appreciate honesty and how quickly it can starve the rumors.
How to write a layoff letter due to restructuring?
While writing such a letter, mention the date of effectiveness of the layoff, contextualize the issue leading to layoff and mention your service of outplacement optimistically. Re. Permanent Layoff due to Restructuring
What to do when there’s a company restructuring?
The news just landed in your inbox. Or maybe even in your ear, whispered through the gossip chain from one colleague to another—the company is restructuring. The first question you probably have is: “What does this mean for me?”
What should you include in a layoff letter due to restructuring?
After that you will have to notify people that they will either begin working on a new project, or that they will be let go because of the lack of headcount available after the restructuring. What should you include in a layoff letter due to restructuring?
What are the advantages of restructuring an employment contract?
One advantage of attempting to renegotiate employment contracts during a period of economic decline is that both the employer and the employee are motivated by the knowledge that an unsuc- cessful restructuring may hasten the employee’s eventual termination or, at worst, result in the bank- ruptcy of the employer’s business.
Can a restructuring be considered a constructive dismissal?
Restructuring Changes That May be Considered Constructive Dismissal Only changes to the essential terms of the employment contract will allow the employee to reject the change and conclude that he or she has been dismissed. For example, a minor change to the way an employee’s vacation pay is calculated will likely not be considered fundamental.