Companies need to make the right decisions – not rash ones
As the country heads back to work in what can only be describes as uncertain times, an employment law and HR expert is urging companies not to make rash decisions when faced with the intense pressure of restructuring and redundancies.
MyHR CEO Jason Ennor says it is a critical time and the decisions businesses make now could be the difference between success or failure.
“It is key to make careful and considered choices that allow businesses to recover quickly, rebuild and set it up for future growth.”
Jason says some common mistakes businesses make include letting top performing staff go, without considering how they could be retained.
“I’ve seen too many businesses shed good staff and years of valuable experience because they just look at the salaries and cut based on how much people are paid.”
He says losing top employees results in a loss of intellectual property and industry knowledge, as well as key staff who could play an instrumental role in the new direction and future success of the company.
“It is essential to retain your good people who know the business inside out and can workwith you to identify opportunities and act on them quickly.
“It’s these employees who will help guide the business through a restructure and steer it in the right direction with fresh ideas, new ways of thinking and optimism.”
He says a restructure will be essential for many businesses due to the impact of COVID-19 and the goal is to reset so in one or two years companies are back and better than ever.
“It’s all about thinking positively, cleverly, and putting in place new ways of thinking and strategies based on what it could be like, and what will enhance your business to make it successful.”
Some tips when resetting and restructuring include:
- Improving efficiencies and cost effectiveness by outsourcing non-core services such as IT and HR to provide flexibility during times of downturn as well as times of growth.
- Remember employment law hasn’t changed. There may be newfound shortcuts for employers who need to make changes, however, all the normal rules of good faith, fair and reasonable process, and consultation still apply
- Make short term tweaks or set up interim structures such as reduced hours or temporary pay cuts, which many companies have already done. The key is to set a timeline, be committed, and if everybody is invested in finding good outcomes there is a much better chance at success.
“During a time of uncertainty, which many companies are facing over the next few months and into next year, it is key to look after the wellbeing and motivation of employees.
“It’s all about being transparent and keeping staff connected and engaged with the new direction and focus the company has.”