Companies do embark on HR restructuring due to many reasons including changes in vision and strategy, or in hopes of cutting costs by revitalizing processes, or building efficiency in the system.
Restructuring is aimed to optimise the working structure and costs and involves workplace assessment – a thorough inventory of the employees’ skills and other characteristics such as talent, turnover, education and experience. The inventory is compared against the strategies under consideration to calculate how well the company’s workforce can enact them.
Restructuring may be an unsettling process for employees. HR must make sure that the remaining employees are primed to be successful in their new situations.