Editor's Note: Take a look at our featured best practice, Smart Organizational Design (27-slide PowerPoint presentation). Business environment has transformed drastically and has become immensely challenging due to competition, disruptive technologies, laws, and globalization. These challenges warrant better performance to address customer needs and to survive--and outpace--intense competition. Consequently, [read more]
Essence of Restructuring: Re-Engagement
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Restructuring is a turbulent process that shakes the foundations of the organization. The goal of Operational Excellence cannot be realized merely by the surgical removal of human resource during Redeployment after Restructuring.
Keeping focus on moving the organization forward with vitality means boosting the sagging morale of the employees who survive this storm. It is the attention to the surviving employees that is going to kick-start the Revitalization process and usher in a new Organizational Culture.
Employee Engagement is an absolutely vital aspect of the revitalized organization. Re-engagement of the remaining employees after Redeployment is important because:
- It is a given that engagement levels will be abysmally low.
- Motivation to work is not the top priority for most after Restructuring chaos.
- Insecurity is high and employees may be thinking about leaving the organizations on the first opportunity they get.
- The Revitalization of the organization depends on how the survivors are handled.
To handle such state of affairs, management must do the following:
- Develop a concrete plan for Re-engagement during the Organizational Design.
- Allocate appropriate time, effort, and budget for boosting motivation levels.
- Implement Re-engagement plans that address the diverse Motivational Drivers.
- Communicate consistently on an organizational level as well as individual level to reassure employees regarding their future.
- Train line managers on how to handle surviving team members.
- Push line managers to spend time with individual employees to learn:
- How team members have handled the Redeployment process.
- How employees sense the challenges moving forward.
- What primarily motivates them as individuals.
- Use motivational assessment methods and integrate the survivors into existing development discussions to align them with organizational processes.
Poor management of the Employee Re-engagement process is bound to have repercussions, such as:
- Low productivity levels.
- Substandard customer service quality levels resulting in tarnished image of the organization.
- Dwindling employees’ commitment to the organizations.
- Increased risk of switch overs.
Active Employee Re-engagement ensures that the employees are:
- Clear on the next steps.
- Clear about their new roles.
- Can effectively deliver against the new roles.
- Keen to work in the evolving scenario.
Redeployment in the Restructuring process affects all employees regardless of whether they stay or leave.
Employees typically showcase 4 types of reactions during this transition:
- Departure Grief
- Survivor Relief
- Survivor Irritation
- Departure Happiness
Typically, the organizational focus is more on the employees who are leaving, assuming that those who get to stay are happy employees. This may not be the case. Care must be taken to address the motivational drivers of all employees in this transitory process.
Let us examine the Employee State, their Motivational Drivers, and appropriate Actions to take during Restructuring, a little more deeply.
The motivational drivers that induce the state of “departure grief” in employees include:
- Loss of earnings and benefits such as pension plan and health insurance can be stressful.
- Loss of daily routine can be upsetting and takes some time to cope with.
- Forced shift in lifestyle upsets not only the person but the family too which may take a psychological toll.
- Feeling of rejection crops up as a result of being let go, lowering self-esteem.
- Loss of financial empowerment puts the person, especially the head of the household, in a vulnerable position.
To help employees cope with Departure Grief, the organizational leadership should take some key actions, such as:
- Help the ex-employees through counselling sessions.
- Guide the employees in preparing job applications and CVs.
- Assist the ex-employees get placed in alternative jobs.
- Guide the ex-employees in putting the compensated amount to good use.
Interested in learning more about Re-engagement after Restructuring? You can download an editable PowerPoint on Re-engagement after Restructuring here on the Flevy documents marketplace.
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About Mark BridgesMark Bridges is a Senior Director of Strategy at Flevy. Flevy is your go-to resource for best practices in business management, covering management topics from Strategic Planning to Operational Excellence to Digital Transformation (view full list here). Learn how the Fortune 100 and global consulting firms do it. Improve the growth and efficiency of your organization by leveraging Flevy's library of best practice methodologies and templates. Prior to Flevy, Mark worked as an Associate at McKinsey & Co. and holds an MBA from the Booth School of Business at the University of Chicago. You can connect with Mark on LinkedIn here.
Departure Grief, Departure Happiness, employee engagement, Employee Reaction, motivation, Motivational Drivers, operational excellence, organizational culture, organizational design, Re-engagement, redeployment, Redeployment process, Restructuring, Revitalization, Survivor Irritation, Survivor Relief
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