We approach reorganizations primarily from strategy. A business and payroll strategy that makes sense is able to prevent reorganizations. And suppose we have to reorganize, we can also help with that. Not only in the short term by guiding the reorganization, but also in the long term.
The notion of reorganization (or restructuring) covers many connotations. In a broad sense, it can refer to any reorganization of HR and payroll policies. But often a reorganization is a verbalization of the fact that a collective or multiple layoff must be implemented, or the closure of a department or company within the group.
Here, too, we can help with hukaroi.
And then you're already thinking: how does reorganization now fit within HR and pay strategy?
Well, strategy is about maximizing the likelihood that you as a company will be there not only tomorrow, but the day after tomorrow.
That a company will need to reorganize its HR and payroll policies over the years is a quasi certainty. In short, the question is not whether a company should reorganize, but when and how radically.
Companies that think strategically foresee this well in advance. They build it into their HR and payroll strategy and limit its impact.
When we are engaged in reorganizations - and indeed we are talking about layoffs and closures - we approach this from two dimensions:
Risk management encompasses two dimensions:
As a company, you must be aware that sooner or later you will have to (re)organize your HR and payroll policies. That 'risk' cannot actually be ruled out. Leaders therefore provide for this in their long-term strategy.
However, as a company, you can reduce the likelihood that you will have to make layoffs or close a division of your company by properly investing in your human capital.
Textbook examples are excessive salaries. If an employee with a gross monthly salary of 7,500 EUR would be equally motivated with a gross monthly salary of 5,500 EUR, you have made a bad investment, because the difference of 2,000 EUR gross per month does not create ROI.
That EUR 2,000 gross per month could be reinvested in HR and payroll policies where the investment does generate ROI. And if reinvestment doesn't make sense, the money saved could serve as a buffer.
A war that breaks out, rising energy and grain prices, (hyper)inflation, economic recession and environmental factors of all kinds that are out of your control can make the risk of reorganization - despite foresight - effective.
And then, of course, you want to be able to limit the financial impact of that reorganization. Obviously not because as a company you want to pay as little as possible to the people who have to be laid off, but because as a company you want to keep as many financial resources as possible within the company to safeguard your long-term existence.
And if it does come to staff reductions, you need a partner who can help you with the calculations, with the procedure, with negotiating the social plan and with effectively implementing the reorganization.
In practice, a law firm or a big four is still often used for this purpose.
What we see in practice is that lawyers and big four consultants often treat reorganizations as an isolated fact that focus on the procedure and the social plan.
With hukaroi, we do not approach reorganizations as an isolated fact. Very often a reorganization is a sub-project within a larger whole.
Because the reorganization could be used to improve social relations and social dialogue towards the future. The reorganization could be the starting point to work on the HR and wage strategy so that the company secures its survival not only in the short term (being after the reorganization itself), but also in the long term.
Just as scorching fallow farmland makes sense for future growth, reorganization can also be a positive story - which is not to say, of course, that that story is easy to deliver.
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