How Restructuring HR Can Improve Employee Experience

How Restructuring HR Can Improve Employee Experience

Author: Rosie Greaves, LaborIQ Staff Writer

May 19, 2022

We're taking a dive into HR restructuring and how you can use it to improve the employee experience and retain your employees.

HR Restructuring

Generally speaking, 'restructuring' describes the systematic ways a company could improve the efficiency of its organizational hierarchy.

For instance, a company may not need two people doing the same job or overlappping tasks. This would be considered a redundancy. In such a case, during HR restructuring, one of the positions becomes a redundant; thus, saving money for the company.

However, restructuring isn't just about layoffs and job cuts. Instead, it also concerns the company's ability to streamline its entire business structure, which could mean reducing administrative and management functions and changing employees' roles to better fit the needs and goals of the business. It also extends to hiring the optimum person for the job, creating or removing roles and formulating strategies for improving employee retention.

Nearly 70% of high-retention-risk employees think they have to leave their company to advance their careers. So, offering new career paths and adequate training is one way to help at-risk staff change their minds. What’s more, one in three professionals state that boredom is one of the main reasons for leaving a job. Here, again, reskilling and restructuring your organizational structure can do wonders for reviving and sparking engagement.

Benchmarking is a big part of formulating a successful restructuring strategy. Not only for seeing how one business compares to another but also for monitoring HR metrics that can help HR pros define job roles and organizational structure.


Analytics are crucial to benchmarking HR metrics like wage, employee growth and staff retention. However, inaccurate or incomplete benchmarking standards will paint a false picture of the success of HR efforts. Manual research is limited by human bias, manpower and costs. Even when we have the correct data, it may be difficult, if not impossible, to factor in all the relevant variables.

In light of this, the importance of AI compensation and labor market analytics software can’t be underestimated. LaborIQ can compare various metrics, including compensation demands according to job role, location and industry. This is in addition to monitoring the retention risk of your current employees. For instance, while it’s easy to justify the wages of new employees, remember, you’re less likely to retain existing employees if you’re not paying the market rate.

All this information is key to the restructuring process. Before implementing any changes, you need two things:

  1. A standard of what “success” looks like at your company
  2. Insight into what needs changing in the first place

If this seems daunting, using the right software can help you make data-driven, strategic decisions. Software that draws on a vast array of accurate market research like LaborIQ can provide insights into how to best restructure your staff to improve employee engagement and retention. It does this by identifying upward HR trends according to location and industry so that you can use this information as your “standard of success.”

One such trend, for example, is diversity. As many HR execs know, D&I (Diversity and inclusion) is crucial for many businesses. We can see this demonstrated in a manifest survey that concluded 70% of job seekers value a commitment to diversity in potential employers. Therefore, this should be a key consideration when restructuring.

Modern technology can help you attract a more diverse talent pool. The advent of work-from-home means sourcing candidates from various countries and locations is more accessible than ever before. With LaborIQ, you have the information you need to hire worldwide. The software helps you identify the right compensation according to your candidate’s experience and location.

Are You Ready to Restructure Your Organization?

HR restructuring provides organizations the opportunity to cut costs and move skilled talent into positions better suited to them, which boosts employee engagement and productivity.

The Takeaway: technology will continue to play a critical role in HR, and restructuring is no exception. The right software enables you to identify labor market trends according to location and industry. Then, with this information in- hand, you can make data-driven decisions regarding reskilling staff, restructuring your organizational hierarchy and offering the right compensation to improve employee retention and engagement.

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