Preservation of human capital is an essential ingredient
Staff Reporter
Auckland, May 19, 2020
As the country emerges from isolation and heads back to work, an Employment Law and HR Expert is urging companies not to make rash decisions when faced with the intense pressure of restructuring and redundancies.
MyHR Chief Executive Jason Ennor said that moving into Level 2 is a critical time and the decisions businesses make now could be the difference between success or failure.
“It is key to make careful and considered choices that allow businesses to recover quickly, rebuild and set it up for future growth,” he said.
Mr Ennor said that among the common mistakes made by businesses are letting top performing staff go, without considering how they could be retained.
“I have seen too many businesses shed good staff and years of valuable experience because they just look at the salaries and cut based on how much people are paid,” he said.
Loss of knowledge
Mr Ennor said that losing top employees results in a loss of intellectual property and industry knowledge, as well as key staff who could play an instrumental role in the new direction and future success of the company.
“It is essential to retain your good people who know the business inside out and can work with you to identify opportunities and act on them quickly. It is these employees who will help guide the business through a restructure and steer it in the right direction with fresh ideas, new ways of thinking and optimism,” he said.
Hybrid model
MyHR, which services 800 companies and 16,000 employees with a hybrid model of easy-to-use software with HR experts, has seen an 800% increase in staff restructures due to Covid-19, compared to the normal monthly average.
Mr Ennor said that restructure will be essential for many businesses due to the impact of Covid-19 to reset so that these companies are back and better than ever after one or two years.
“It is all about thinking positively, cleverly, and putting in place new ways of thinking and strategies based on what it could be like, and what will enhance your business to make it successful.”
Useful tips
Mr Ennor has provided some tips for companies considering restructure: (a) Improving efficiencies and cost effectiveness by outsourcing non-core services such as IT and HR to provide flexibility during times of downturn as well as times of growth (b) Remember that employment law has not changed. There may be newfound shortcuts for employers who need to make changes, however, all the normal rules of good faith, fair and reasonable process, and consultation still apply (c) Make short term tweaks or set up interim structures such as reduced hours or temporary pay cuts, which many companies have already done.
Mr Ennor said that key to success are a good timeline, commitment and investing in finding good outcomes. The core belief of MyHR, and the reason for its growth as the industry leader since its inception in 2013, is that companies can create a stronger business through better people and nurturing the right people.
“During a time of uncertainty, which many companies are facing over the next few months and into next year, it is key to look after the wellbeing and motivation of employees. It is all about being transparent and keeping staff connected and engaged with the new direction and focus the focus of the company,” Mr Ennor said.
