Dealing with Employees When Restructuring

An Illinois-based private investor, Paul Liska has been leading companies in numerous C-suite positions for more than 40 years. The former senior accountant for Price Waterhouse in Chicago, Paul Liska has served as the CEO and CFO of several entities. Often, he handled tasks outside the scope of these two positions, such as overseeing restructuring processes.

Corporate restructures, or reorgs, are great for changing the direction of a company or increasing competitiveness within a market. However, the process can create uncertainty and fear among employees, thus reducing productivity and increasing turnover. Here are several strategies that help retain talent during the process:

Be as open as possible.
One of the biggest parts of undergoing a successful restructuring is communication. This involves telling employees about the restructure, along with detailing the process’ benefits and reasons. Doing so helps retain employee trust.

Show employee investment.
When employees see that a company is investing in them, they feel less nervous about their positions at the business. As a result, they feel happier and more engaged, leading to a boost in productivity and greater company loyalty.

Communicate proactively.
Before things happen during the restructuring process, company leaders must share that information with employees. Sharing news of upcoming changes or recent decisions stops gossip from spreading and reassures employees about their situation.

Support outplacement.
A natural part of the restructuring process involves letting some people go. However, companies should not treat these people poorly. Rather, offering proactive career counseling and other services maintains the positive relationship between the company and the former employee.