MONEY&YOU: Look on the bright side of a job loss

People surfing the web in a Dar es Salaam internet café. PHOTO | FILE 

 

By Joshua Masinde,The Citizen

In Summary

• Arguably, one of the most common reasons why companies restructure is to downsize their staff due to job redundancies that may be resulting from change in technology, a tough operating environment due to stiff competition or when the economy is hit hard by recession.

 

Nothing probably sparks fear among many employees as much as the news of an impending restructuring.

Arguably, one of the most common reasons why companies restructure is to downsize their staff due to job redundancies that may be resulting from change in technology, a tough operating environment due to stiff competition or when the economy is hit hard by recession.

As fate would have it, in the mix of restructuring are the employees, who often keep their fingers crossed, hoping that their jobs will not be on the line as the company moves to redefine its strategy in the increasingly competitive market.

Many firms usually try to package the process in a less dreadful manner simply saying the company is restructuring in line with changing trends in the business environment. But, many employees have always construed this to mean job losses as the firm moves to trim costs.

Are employees prepared?

Restructuring in a company is usually a costly affair, but how are the affected employees prepared for such?

In the banking and other industries that continuously rely on technology for service delivery, the relevance of some employees keeps declining as investments in technology take centre stage. The lender’s digital banking outlet now offers services through intelligent ATMs as well as via online and mobile banking platforms, enabling customers to transact on their own.

According to audit firm, Pricewatercoopers (PwC), organisations need to ask themselves a number of questions in the face of an impending restructuring. Some of these include: Is your restructuring adding value to your company?

What are the business drivers behind your restructuring requirements? What should your redesigned organisation look like? Are you obtaining function efficiency and true value for money for your spend?

In their shoes

Do you know the answers to the ‘me’ questions that employees will be asking? Have you got effective communications plans in place?

Are you engaging with employee representatives in an appropriate manner in each of your markets? How do you manage your employment brand in such challenging times?