According to a survey conducted by recruitment agency Hudson, more than half of the Australian employers surveyed indicate an imminent restructure of their business. The Hudson Report: HR Insights revealed that 55 percent of businesses anticipated reorganising their operations this year.
Half of those respondents pointed to external economic pressures as the reason for restructure, while 42 percent said their motivation was to drive greater efficiency.
“Given salaries make up the largest portion of fixed costs for most businesses, it’s understandable that over the past year, we have seen a three-fold increase in the number of employers looking to reduce their permanent headcount,” remarked Simon Moylan, general manager for Hudson Talent Management.
However, he warned that a poorly implemented redundancy program could lead to “significant and long-lasting negative impacts on employee morale, productivity and a business’s ability to respond rapidly when the market improves”.
Sixty-eight percent of respondents cited clear communication as the most important aspect of a restructure, a point Moylan echoed and emphasised: “Open, honest and frequent communication during the restructure process is vital and it’s very encouraging that almost seven out of ten employers see this is the most important factor.”
For tips on how to execute a successful restructure, or to download the report, see www.hudson.com
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