Enabling a considered organisational change process requires empathy
Many businesses are facing difficult decisions in the face of economic uncertainty.
That's why we created the HR Runway outlining the steps an organisation can go through to weather any downturn or change that requires a quick pivot. It is a people-first pragmatic analogy considering all available options before layoffs.
But, sometimes, an organisation may find themselves at the end of that runway, and restructuring is the only option. We’ve all been there!
If that is the case, invest the time in your organisational design first (here's why). And, most importantly, cultivate an empathetic mindset from the get go.
Restructures are challenging and should never be taken lightly. But the process can be made a little smoother for all involved when some empathy and compassion is applied.
The first step
In making the change, employers must act in accordance with the principle of good faith under the Employment Relations Act 2000 throughout the restructuring process. This means that employers must be communicative, act fairly, and be active and constructive in maintaining a productive employment relationship. They must also act in line with their employment agreements and workplace policies to build trust and confidence in the process. In essence, leaders need to take note of the legalities and not cut corners to ensure they implement change in a way that minimises the risk of breaching their good faith obligations, that could potentially give rise to personal grievances.
Establishing the ‘why’
Employers are entitled to make changes to their business, but there should be a genuine reason behind it (i.e. you can’t ‘restructure’ to deal with a performance issue). Getting clear on the rationale for change is important as it supports transparency in the process, and although people may not agree with the change, clearly communicating the ‘why’ builds trust and understanding.
Genuine consultation
Once an employer is clear on the ‘why’ and their proposed solution, they must undertake a fair and reasonable consultation process. This includes giving affected employees information about the proposed change, outlining what the proposal would mean for them and their role, giving reasonable time for people to respond, comment and suggest other options, and then take the time to genuinely consider this feedback. We have seen many examples of times where employees have come up with solutions that employers hadn’t thought of which can change some of the proposed outcomes of the restructure (be careful, because if the change is significant you might have to re-consult!). Through clear communication and remaining open-minded, you can build goodwill with your people, despite the change.
All while balancing the legalities with humanness
Leaders who are too formal and rigid in the way they manage the process can come across as uncaring. These feelings of 'coldness' can linger within an organisation long past a restructuring.
So how does an organisation avoid this? Enter compassionate leadership. This is the leader who puts themselves in other people's shoes. Empathy and compassion allow a leader to follow due process, but do so with a strong sense of care.
Empathy is the make-or-break factor that impacts how people react to the change, and it affects the morale of those remaining in the workforce.
Here's what empathy and compassion in a restructure situation can look like:
Communicating empathetically
Empathy is simply treating people as people. It is connecting through shared feelings and emotions, allowing people to feel heard (and disputes are far less likely to be raised if an employee believes the process to be compassionate).
Communicating empathetically means you:
Tell people in a caring way what's going on and why things are changing;
Use clear, simple language and talk slowly, making it easier for people to hear and process what's happening;
Explain what other options have been considered or the actions the organisation has taken to avoid the restructure;
Encourage employees to provide feedback on the restructuring process. Use their input to make necessary adjustments and improvements on how the process is carried out. This shows that you value their opinions and are committed to learning from the experience;
Remain open-minded throughout the consultation period and genuinely consider (and respond to) the feedback received;
Recognise the contributions that have been made to the organisation by those affected;
Reinforce that it is the job, and not the person, when there are structure impacts;
Acknowledge actual feelings of sadness, frustration, and anxiety. In any change situation, it is normal for people to respond with resistance and anxiety before moving to acceptance and understanding;
Listen without getting defensive; and
Avoid the use of rigid scripts. While it may be useful to have some notes to ensure you cover off important points (we generally encourage this), conversations should be authentic, and leaders will need to respond differently depending on the reactions in the room. Sometimes reading a script can make an already complicated conversation feel staged.
Acting empathetically
Communicating and listening with care needs to be followed by empathetic action. This is the part where you help people with whatever they need to move on or adjust.
Empathetic action conveys that leaders and the organisation genuinely want to help.
Examples of empathetic action include:
Be available and accessible during the process.
Provide opportunities for employees to express their thoughts, concerns, and questions. Give your full attention and show that you genuinely care about their feelings and perspectives.
Provide a range of coping resources.
Offer counselling services, such as your Employee Assistance Programme (EAP).
Offer practical help such as CV writing and interviewing skills to help with employability and partner with a good provider for outplacement support. We partner with Kin!
Offer career guidance.
Offer financial confidence workshops or partner with a provider who can provide financial advice.
Think about the wider team
When companies start laying people off, morale plummets and there is a tremendous impact on productivity. HBR reported, 'After a layoff, survivors experienced a 20% decline in job performance' . In addition, layoffs and hiring freezes almost always result in overworking the remaining employees and pushing a sentiment of ‘survivors guilt’.
So, don't rush the process. Apply the principles of empathetic communication and action throughout the whole business.
Here’s some lasting tips:
Make sure your leadership team is across the change, supports the change and will demonstrate actual “leadership” throughout the process.
Have a clear comms plan to avoid rumours circulating and provide regular updates through a variety of channels - e.g. intranet, Town Halls, tea rooms. Communicate, Communicate, Communicate!
Be transparent about the entire process. Share the timeline, steps, and criteria that will be used in the restructuring. When employees understand the process, it can reduce anxiety and uncertainty.
Acknowledge the disruption and how the team is feeling.
Remind people what your organisation stands for, tying the restructuring to the organisation's purpose and values.
Remind people of their value and contribution to the business - you need them!
Have a plan for rebuilding morale and culture.
Develop a transition plan to support the change into new ways of operating.
Get some professional HR help to manage the process - PeopleEX can advise, guide, develop and run the process in partnership with you.
PeopleEX has experience supporting organisations through restructures using empathy as the foundation for change. If you need support, please get in touch.
