HR plays a crucial role in managing the highs and lows of organisational restructuring, providing support for employees impacted by company changes and ensuring processes remain steady.
By Simon Kent
Restructuring a business can be liberating and unleash new potential, but it can also be difficult for those involved. The reason behind the changes in the way business is done—or even in what business is done—can be difficult for the workforce to understand, may result in them being engaged in new activities and roles, and can even lead to redundancy. It’s an emotionally fraught time that is practically challenging, and HR is often in the middle, tasked with ensuring transitions run smoothly. But often, HR teams are not included in the discussion or strategy around why changes are being made.
“When an organisation undergoes restructuring, HR plays a pivotal role in ensuring the process is well-managed, fair, and as smooth as possible for everyone involved,” asserts Amanda Arrowsmith, people and transformation director at the CIPD. “People professionals provide essential support for employees impacted by change, whether that’s helping individuals transition into new roles, equipping managers to lead through change, or providing guidance and career support for those facing redundancy.”
Arrowsmith also notes that HR has a role in ensuring the process is legally compliant, ethically sound, and aligned with the organisation’s long-term goals. “Getting restructuring right is about more than just the process,” she says. “It’s about people, and HR is at the heart of making that happen.”
“People professionals provide essential support for employees impacted by change, whether that’s helping individuals transition into new roles, equipping managers to lead through change, or providing guidance and career support for those facing redundancy.”
Unfortunately, HR is not always given the central role that should come with their responsibility. Change can come from a different area of the business with HR simply there to help make it happen. While noting this should not be the case, Lindsay Gallard, CPO, Six Degrees also highlights the skill level required to provide the right kind of support. “HR professionals shouldn’t just implement restructures, they should be among the first to identify the need for them,” he says. “This requires skills beyond classic HR functions, such as understanding the overall business plan, the specific numbers influencing restructures, and the business processes and key performance indicators.”
Gallard goes on to say HR should be able to identify potential efficiencies in roles and responsibilities; be financially literate enough to model costs and risks; and be able to effectively communicate and influence stakeholders based on the financial, practical, and human factors. HR’s role therefore goes beyond advising on “redundancy packages and taking notes in meetings” to being involved in defining a new operating model and reasons behind it, setting out and communicating the business case for the changes and driving the plan to conclusion for the company.
“HR’s attention to detail is vital at each stage of the restructuring process,” adds Gallard. “Initially, it’s about the operating model and communication plan, but as action begins, it’s about rallying the troops. Managing stakeholders involves ensuring all managers impacted by change understand the business case and communication plan. Leaders need to lead through these processes.”
Sarah Hernon, principal consultant at Right Management, describes HR as “the glue that holds everything together” and as such, communications will always take a front and centre place when restructuring occurs. “HR’s role is to check on how and when everything is being communicated, and to ensure the communication is effective and won’t be misconstrued by its audience,” she says. “HR is the subject matter expert that ensures the right communication and consultation is deployed at the right time.”