Business change can take one of many forms, but all will have an impact on key stakeholders. Whether your business is being sold via a pre-pack administration, going through the process of inspiring recovery by arranging a Company Voluntary Arrangement (CVA) or undergoing the process of organisational restructuring, these alterations disrupt the norm. Out of all affected, it’s arguably employees who take the brunt of the most significant changes.
When business change is underway, job roles can be amended, redundancies made, and long-standing practices could be replaced with more efficient methods. While these actions aim to ensure the long-term viability of the business, they can also cause uncertainty regarding job security, morale, and productivity. However, employees can also be your greatest asset in driving recovery and ensuring a successful transition. That’s why it’s crucial to manage change effectively and provide the necessary support to navigate this challenging period. Here’s how to support your employees through business change successfully.
Communicate Early
When it comes to supporting employees through organisational change, transparent, clear and early communication is absolutely paramount. Your employees should never feel blindsided by any changes, particularly if they may involve changes to their job roles and responsibilities. Instead, they should be informed that business change may be taking place as early as is suitable; if possible, when the business starts to experience ongoing financial struggles as opposed to when a process of organisational change is getting underway.
Once employees are aware of what is going on, remember that their worries about the impact of organisational change will not go away. Provide them with consistent updates when you can and encourage an open dialogue where they can voice their concerns and rebuild their trust.
Protect Your Best Talent
During periods of transition, retaining and protecting your key employees can be key. News of change may spook even your best talent but it is these individuals that hold the critical knowledge and skills required to make the business recovery process successful. Where possible, work to reassure these people and acknowledge their contribution to the business change so far. With this said, do be cautious about the promises you make about the future. While incentives can go a long way towards keeping top talent in the business when others may be leaving, do not promise job security if this is not something you can guarantee as this may only create further disruption later on.
Lead By Example
It’s natural that your employees will look towards you for guidance during a period of business change. Change brings uncertainty and often just some simple reassurance can go a long way towards improving the mood across the business. However, it’s not just reassurance that employees need to feel supported through the change. Leading by example and demonstrating resilience, adaptability and confidence can set the tone for the rest of the workforce and show that it’s not a process of you against them but rather a team effort towards recovery. By showing that employees are valid in being concerned but led strongly, you can help to navigate the transition together.
Set Realistic Expectations
Business change can often be a long process and there will certainly be no instant recovery overnight. This means that setting achievable goals and timelines – and communicating these clearly – is essential when it comes to how to support your employees through business change. Clearly define what employees can expect, including any potential challenges and the steps being taken to mitigate them. For example, if the business change is being instigated by a pre-pack sale, clearly outline what this means for employee salaries and contracts and when they can expect any new ownership to come into place.
This being said, do take care to avoid overwhelming employees with excessive information or changes all at once. A desperate need for recovery may result in sudden change but, where possible, implement adjustments strategically over time. Working towards a clear business recovery plan will help to reduce anxiety and uncertainty and also increase the likelihood of the business change being successful.
Ultimately business change is never easy, but how you manage it can make all the difference in employee morale, retention, and overall success. By prioritising open communication and showing understanding towards employees’ concerns, you can ensure your workforce feels supported even at the most difficult times.
At Ballard Business Recovery, we have a huge range of experience guiding struggling businesses through an effective period of change. Whether you need to explore your options and put together a plan for the future, or better understand how actions you are taking may affect your employees, we can help. Speak to one of our business rescue experts today and help your business work towards recovery in the most effective way possible.
