Monday, May 5, 2008

Surviving the Restructure

Following is a response I posted to a question on LinkedIn...

The question: Restructuring: How to deal with stressful environment?

Our company recently announced a major restructuring and jobs will be cut. So, now everybody is on edge and people's true colors are coming out. The other day, I was chatting with a coworker (one level above me) and when I mentioned to her that I got a call from an outside recruiter, she said, "I strongly encourage you to find other jobs.". And continued to say that she would even give me a good recommendation.

I was taken aback by her response because it's an open field. Her job is just as vulnerable as mine. In fact, her job and department is rumored to be the most in danger. I tried to stay calm and asked her if she knows anything I don't. She said she was only saying so because we're going through a restructuring. Yes, we sure are, but I don't see her looking for other jobs, is she?

I don't know if I should panic now and start actively looking. Should I talk to my boss and ask him if my job is in jeopardy? Would he know? Who would know about whose jobs will be cut? Obviously in this environment, there's nobody trustworthy enough and it's a dog eat dog world. Any advice will help. Thanks.

My Answer:

Through such a transition, honesty is demanded of everyone. More to the point, you have a right to demand some honesty from your boss and the vertical chain of command. It is important to note that this does not translate to "certainty". Certainty is not often attainable in this situation, but open and honest conversation is.

I will answer this question from the stand-point of someone that has led the execution such transitions, and been seen as the "hatchet man". Thus, my answer may be brutal, but if you can do these things you will very significantly improve your chances of not only retaining your position, but setting yourself up for future promotion.

There are a few things you should do immediately to bolster your contributions to that open and honest conversation. Determine your value. More specifically, determine your future value to the company POST-transition, NOT the value contributed to this point. You can and must identify these things:

  1. How your performance exceeds that of co-workers.
  2. How your performance and that of your department exceeds the capabilities of outsourcing at less cost.
  3. The willingness of yourself and your department to trade a small reduction in pay (fixed costs) for performance-pay (variable cost, sometimes COGS) that ties to the desired outcomes of the restructure. (this can be complicated, but can speak very loudly).
  4. Additional responsibilities that you are capable of taking on TODAY that will:
  • Compensate for a smaller workforce.
  • Allow jobs to be cut (an o-so-sensitive proposition).
  • Boost the bottom line of the company.
  • Demonstrate point 1, 2, and 3.

Your profile indicates that you are an "HR professional". The above points apply to any job. Specific to your role, you may:

  1. Link your role to employee satisfaction post-transition.
  2. Suggest that HR immediately tackles job-retraining, outplacement of severed employees, and begins a morale program to mitigate declining production through focus groups and cross-functional teams.
  3. Start a program to work with any/all employees that want to tackle the first points 1-4 listed above. Suggest that this be tied directly with those managing the transition, hence raising your profile and value through the transition.
  4. Suggest that you take on the role of exploring outsourcing options for your own department. Yes, very controversial, but it puts you firmly in control of your future and alerts you to the risks that your department is exposed to. Those risks are significant. There are very good HR outsourcing firms out there and your department needs to know and respond to these threats. To respond, you must identify points 1-4 above. In the unfortunate event that the company decides to outsource HR, this point puts you in a great position to to be the liaison between your company and the outsource firm, employed by either party.

If you can do all these things, you will be VERY well positioned to survive this transition in a very positive manner. it will require letting go of everything you now know about your job. But it will change YOU into a "business partner" not an "HR professional". That change will lead you to a very different career that will ultimately be more rewarding, more profitable, and more impactful. Many of these points are places that HR completely drops the ball. They will set your apart from the crowd.

One last point: if you feel that some of these things may jeopardize your relationship with your co-workers, you are right, they could. But they are solid business practices that are happening everywhere as we prepare to weather the recession. Those employee best able to contribute to the "business of HR" will be the most capable of surviving. More to the point, at the risk of sounding cynical, your co-workers ARE already throwing you "under the bus". If you leave, they believe they may be more likely to keep their position.

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