Efficiency Gains Can Lead To Business Downsizing

Published by Kathryn Anda, PEPworldwide on 1 December, 2014

A natural result of improving efficiency and productivity within any organisation is the possibility of business downsizing. Where once there was a need for a large team of staff to complete a task, you may now only require a few.

Apply this across an organisation and it could lead to a necessary restructure. You may require staff to move to other areas of the business or outside of the organisation as a whole. Knowing how to support those impacted is essential.

Efficiency gains bring change

The most exciting part about adopting new business processes as a result of efficiency gains is that everyone has the ability to work under new conditions that allow them to perform more productively and with less stress. The downside, however, is that leaders need to give extra support to those directly impacted, particularly in the case of redundancies or role changes. The key is to work alongside a team of experts in business downsizing. They know exactly how to deal with these situations and how to mange any necessary outplacement.

Provide training to everyone

All staff impacted will require training. Those on the job will need to have the updated skills to perform as per the changes implemented, and those needing to move on must be supported to ensure they have the right tools and confidence to allow them to take a positive step in the direction they seek. Management must help to seek opportunities for new jobs, ensure staff undertake goal planning and most importantly ensure they have self-awareness so that they can follow a career path most suited to them.

Redeployment and outplacement

Depending on the new structure a business adopts there may be a need to redeploy staff internally or support them moving outside of the organisation. Management must be aware of the impacts this can have on individuals and most importantly acknowledge that everyone accepts change differently. Some may find the move hard to face; these people will require closer attention and extra guidance. Every business seeks to improve and apply more efficient practices. Change is a natural part of growth and essential to continued success. Unfortunately it can result in downsizing, but with the right tools and support networks in place, those directly impacted can be helped to move into roles that suit their skills.

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Business downsizing


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