The value contribution of human resources and communication in restructuring
In the business world, restructuring is associated with change, adaptation and also challenges. They sometimes represent profound transformations. In an era where markets are changing rapidly and innovation is the order of the day, companies need to be agile and adaptable to not only survive, but to be profitable and evolve. Restructuring is a strategic necessity in order to increase efficiency, reduce costs and focus on future growth. Careful planning and implementation are essential to ensure the long-term success of the company.
A successful restructuring process requires far more than just financial adjustments or organizational restructuring. At its core, it is about preparing the workforce for change, supporting them and ultimately convincing them that the realignment is in the best interests of everyone involved. HR and internal communication play a decisive role in this. In the following, we explain why these aspects are so important and how they can be effectively integrated into the restructuring process.
The role of HR and communication in restructuring
How can HR and communication positively shape change?
HR is the backbone of any restructuring process and communication is a key design tool. The task of both functions is to make the transition as smooth as possible without losing sight of the human factor. Some key areas to focus on are:
Importance of corporate culture and communication
How does communication support the restructuring process?
Maintaining motivation and commitment is a major challenge, especially when restructuring is associated with staff reductions. Communication plays a central role here. While in the first phase, HR management concentrates primarily on the effects and requirements of planned measures on the employee side, the task for communication is to make the business rationale understandable and adapt it to the different levels of understanding. During preparation, it takes on the role of critical scrutinizer and translator; it works out the communicable reason why and develops the storyline. Communication is often also responsible for preparing the necessary presentations and decision-making documents for top management, the economic committee and later for the works council, for example. These tasks require a good understanding of business and strategic issues as well as experience with the requirements of restructuring processes.
Legal challenges in restructuring
How do you navigate between the legal cliffs in times of restructuring?
A key aspect that underlines the complexity of restructuring for the HR department is the need to comply with the numerous framework conditions under employment law. From the initial negotiations with employee representatives through to the actual separation process, HR managers are required to navigate a broad spectrum of legal requirements. This begins with the fundamental negotiations on the restructuring plan, which often require a high degree of diplomatic skill and legal expertise at an early stage. Involving employee representatives is not only a legal necessity, but also serves to create transparency and increase acceptance of the upcoming changes. Interaction with communication is also important here. This starts at the planning stage. While HR management looks ahead and defines the timetable and steps in the core process, communication looks back from the day the project is due to go public. At this point, all communication measures must be in place - from management information to customer letters, from staff meetings to briefings for public representatives. During the negotiations with the works council, the communications department keeps an eye on the various stakeholders inside and outside the company. It knows their needs and interests and is able to conduct accompanying dialogs or intervene in conflicting processes in a targeted manner.
Operational HR tasks during restructuring
Operational excellence: How HR supports change in practice
HR specialists are then confronted with a range of operational tasks that require precise execution. These include the execution of dismissals, careful social selection, the drafting of severance agreements and, last but not least, the implementation of transfers. Each of these steps must be carefully planned and carried out in accordance with the applicable laws and collective bargaining and company regulations in order to minimize legal risks and ensure fair treatment of the employees affected. Open, transparent and regular communication during this phase helps to make the measures comprehensible, minimize uncertainties and strengthen the trust of the workforce.
Human aspect in the HR role
Emotional intelligence: the key to HR strategy during change
The challenge for HR is not only to meet these operational and legal requirements, but also not to lose sight of the human aspect. Dealing with the personal and professional impact that restructuring has on employees requires a high degree of empathy and a willingness to provide support. Especially in these times, HR experts are not only needed as process administrators, but also as advisors and supporters for the workforce in order to make the transition as smooth and positive as possible.
Staff development and operational efficiency
How can restructuring contribute to talent repositioning?
In times of restructuring, one aspect often takes a back seat: personnel development. Restructuring offers the opportunity to reposition talent, adapt training measures and design career paths in line with the company's new direction. At the same time, it is important to focus on operational efficiency and optimize processes in order to increase productivity and reduce costs.
Dignified separation process and building trust
How does a respectful farewell strengthen the corporate image?
One aspect that is often neglected in discussions about restructuring is the orderly separation process for employees affected by job cuts. It is crucial that this process is handled with dignity and respect. A fair and transparent approach not only helps the affected employees to cope better with the transition, but also strengthens the trust of the remaining workforce in the company. The aim is to offer support, be it in the form of severance packages, outplacement advice or psychological support, to enable those affected to make a positive new start. Communication accompanies this process in the company's public sphere. It ensures that employees are not left alone during this time and receive regular feedback on the status of the process. Because communication is not only about conveying content, but also about sending a message, it is not about announcing big news. Rather, it is about showing that the company is aware of the impact of the measures on employees. At the same time, however, the effectiveness of measures already taken must also be made clear. The often cited “low hanging fruits” must not only be harvested, but also communicated as confirmation of the path taken.
Preparing managers for separation interviews
Leadership skills in times of crisis: Preparation for discussions with affected employees
Another important task of HR and communications in restructuring processes is to ensure that managers are adequately prepared for conducting separation interviews. This includes not only imparting knowledge of the legal aspects and company guidelines to be observed during such discussions, but also training in communication skills and empathetic behavior. By preparing managers to conduct difficult conversations with dignity, respect and understanding, HR and communications help to make the separation process as positive as possible for everyone involved. This not only strengthens the confidence of the employees directly affected, but also that of the entire workforce by showing that the company is committed to fair and respectful treatment.
HR has a key role in restructuring
HR as architect of change
Overall, it is clear that the role of HR in restructuring is a central and complex one that goes far beyond pure personnel administration. It is a balancing act between compliance with legal requirements, the operational handling of personnel measures and the emotional support of employees. By mastering these tasks professionally, HR makes a decisive contribution to the success of the restructuring and the future viability of the company. Translated with DeepL.com (free version)
Individuality of each restructuring
Individual solutions: The gold standard in restructuring strategy
A key aspect that is often underestimated in the planning and implementation of restructuring is the uniqueness of each situation. Every restructuring presents its own challenges, opportunities and risks. A successful restructuring requires tailor-made solutions that take into account not only the specific needs of the company, but also those of its employees. HR departments must therefore be able to react dynamically to changes and develop individual solutions that both comply with the legal framework and respect the human aspect of the change processes.
Conclusion
Securing the future through strategic HR and communication work
Restructuring is a complex process that goes beyond the redesign of business processes and has a deep impact on corporate culture. It is a comprehensive process that requires strategic thinking, empathetic leadership and a strong commitment to employees. By taking these aspects into account, companies can not only overcome the challenges of restructuring, but also create a strong foundation for future success.
HR and communications are indispensable pillars of this process, helping not only to ease the transition but also to create a new foundation for future growth and success. By focusing on these areas, companies can not only overcome the immediate challenges of restructuring, but also build a resilient and adaptable workforce that is ready to seize the opportunities of the future.
About the authors
Alexander Zang is a partner at TCI and managing partner of BCC, Business Communications Consulting GmbH in Frankfurt/Main. He supports transformation processes in industrial and service companies. He specializes in change management, stakeholder and conflict management and the communication of sustainability strategies.
Petra Gerweck is a partner at TCI, senior executive people manager and lawyer with 30+ years of extensive expertise in HR management and employment law. With a focus on interim management and project management, she supports companies in successfully overcoming complex HR challenges and achieving strategic goals.
Source cover image: © Mdisk | Adobe Stock
