More and more HR departments are turning to restructuring strategies to improve employee recruitment and management techniques.
But where do you begin?
When implementing any restructuring strategy, you need to consider the level of disturbance it will create for employees. For example, if your plan entails reframing job roles and titles, it's imperative that your HR team fills these roles quickly and proves that such a switch is beneficial. This goes a long way to ensuring your staff gets on board with these changes. There also have to be clear metrics in place to measure your restructuring success.
That’s why, in this article, we’re discussing how to leverage HR technology to perfect your HR restructuring strategy.
Let’s take a look…
Restructuring and Hiring
The crux of any successful restructuring strategy is hiring. This includes how we hire, who we hire, and how we retain these hires. In essence, restructuring aims to identify ways to cut costs without losing quality.
It can also be a means to adapt to the changing dynamics of the market. As such, HR managers need to know what job roles add the most benefit to their organization and decide on the criteria used to attract employees to maximize productivity and increase profit.
On top of that, we also have to consider how restructuring an organization will impact employee satisfaction within the new structure. Again, this is imperative for reducing employee churn.
Leveraging Technology
For many HR execs, AI technology has proven a significant step forward. According to a Gartner survey, 30% of HR execs intend to move to AI, citing more accurate decision-making as a big factor in this choice.
That said, let’s consider how AI helps HR execs achieve this:
A big driver for restructuring is the need to adapt to a fluctuating labor market. To compete effectively, businesses need to stay on top of industry hiring trends. As such, a big part of restructuring is knowing where to focus your efforts. For instance, how do you decide who your ideal candidate is? How do you know which industries are on the move, prompting the next employment drive?
To this end, technology like LabourIQ pools a range of marketing data to help you identify gaps in the labor market based on location and industry. You’re then better positioned to make smarter restructuring decisions with this info to hand.
Satisfaction
Ultimately, the success of your restructuring strategies is reflected in your employee's satisfaction. Research shows that when it comes to positively impacting employee motivation and job satisfaction, organizational structure plays a considerable role. The rationale behind this is that better-established job roles and a tight organizational structure is something employees want. In light of that, if you’re considering potential restructuring, it’s good practice to measure its impact on employees.
To that end, one such metric worth considering is employee retention rate. Often this is a massive indicator of the success of your restructuring efforts. After all, if employees want to continue working for you, they must be motivated to stay.
If you’re serious about tracking employee retention, it’s worth using software like LaborIQ. By evaluating average compensation rates across job roles and locations, LaborIQ will indicate which employees are retention risks. It also factors in things like experience, education, and company size to accurately reflect the average salary associated with each employee.
When it comes to employee retention, this is essential info to have. It stands to reason that if an employee is being underpaid for their work, they’re more likely to leave. Of course, the wage isn’t the only factor attributing to employee satisfaction. Nevertheless, it’s one of the most straightforward measures of satisfaction.
After implementing these strategies, continue monitoring employee satisfaction with regular surveys. AI can automatically analyze the results, highlight areas of success, and, more importantly, areas where your restructuring methods need improvement.
Are You Ready to Leverage Tech in Your HR Restructuring Strategies?
Let us leave you with this stat: “70% of millennials... said they would quit a job if it lacked high performing and fast technology” - and HR restructuring is no exception.
Above, we’ve covered a few of the ways HR restructuring can help you adapt to the ever-changing labor market. You can leverage data more effectively to make better restructuring decisions with the right technology.
