Farmer's Weekly (South Africa)
Labour Matters
A business is usually restructured to make it more profitable. Whether the restructuring of the business is successful will depend on how committed employees are to the process.
Businesses often operate in an extremely challenging environment. Sometimes, external forces can leave management with little choice but to realign, restructure or reorganise the operation to become more competitive, or simply to maintain the company’s existing position on the market.
The process can be daunting, but operational changes can create opportunities for employees’ professional growth, leading to more efficient use of human resources, and ultimately improving the company’s efficiency and profitability.
Restructuring commonly takes place in cases of operational change. Examples of this are changes in technology, structure (ownership, management or departments), goals and vision, and financial position (caused by the economy, amended legislation, a competitive threat, minimum wage, drought or other factors).
KEEP IT LEGAL
It is imperative that your employees are treated in the correct manner during the restructuring process. Take care to follow the relevant legal procedures to maintain stability, and avoid making any unilateral changes to the employment contract. Include the following steps: • Review all employees’ employment contracts and job descriptions to confirm their duties, responsibilities and goals. Confirm the available resources, as well as how these are used to complete duties and achieve goals. • Establish current structures and operational procedures. It is best to draft an organogram that schematically represents the business’s personnel structure to display reporting lines and different levels of seniority. • Develop a proposed structure incorporating proposed changes.
The organogram should form part of this structure.
• Notify employees of an intended consultation. This must be by means of a written memorandum that gives them at least 48 hours’ notice, enabling them to prepare for the consultation, such as coming up with other workable solutions or suggestions.
If any employee is a member of a trade union, the union should be notified. The proposed structure must also be distributed to employees. • Conduct the consultation so that management and employees can consider other alternatives, minimise changes, establish time frames, and reduce any negative effects of restructuring.
Negotiate in good faith and keep an open mind throughout the process, seriously considering proposals put forward by employees. Hold meetings with all affected employees as well as the trade union, where applicable.
OPERATIONAL CHANGES CAN CREATE USEFUL OPPORTUNITIES FOR EMPLOYEES’ PROFESSIONAL GROWTH
• Consider feedback, including voluntary retrenchments, should an employee be unable to fit in with the proposed changes. • Follow the correct procedure should any retrenchments become necessary. • Confirm new appointments and/or redeployment in writing.
• If any job changes significantly, renegotiate the employee’s duties and ensure that an agreement is signed by both parties.
• Identify any training needs that may be required as a result of a change of duties. Draft a plan of how and when training will take place.
COMMUNICATION IS KEY
Change is difficult and can leave employees anxious, so be open and clear about why changes are needed. Explain the needs and goals of the business, and make regular announcements to all employees about progress made. Restructuring is more likely to be successful when everyone understands and appreciates the strategic problem or opportunity that the business faces.