Company Reorganization, Part One: Keep Your Employees Involved

Generation Yers have grown up with parents, teachers, school guidance counselors, etc, asking them what they want and how they feel about everything from school transitions to what’s for dinner. So when it comes to the workplace, they want just as much consideration. They don’t like to be left in the dark, especially when a decision directly affects them and their job.

As companies grow, reorganization is inevitable, but how you deal with it says a lot about you and your company.

One of the biggest mistakes employers make during reorganizations is not taking into account their employees’ reactions. According to the article, Make the Best of Company Reorganization, by Mercer Human Resource Consulting, there are three main reactions employees will have during times of reorganization:

• Uncertainty about what to do next
• Anxiety about the future
• A feeling of no control

All of which, Mercer says, can lower morale and affect productivity. It can also cause employees to be resentful and sometimes even start looking for a new job.

Don’t let this happen at your company. Show your employees how much they mean to you by keeping them involved at every level.

Reorganizations can be dealt with a lot better, and will get you a whole different reaction. Here are the three most important things to keep in mind:

1. COMMUNICATE—during a period of reorganization, clear, frequent communication is the utmost important thing. Immediately after announcing a reorganization, employees may start freaking out a little and worrying about how it’s going to affect them, which is why employers should make a point to involve employees as soon as a decision is made, and not a minute later.
   
   Involving employees from the get-go will allow them to be part of the reorganization process, and keep any anxieties or feelings of no control at bay.
   
   It’s also important to make sure communication is two-way, allowing employees to ask questions and get answers.
   
   
2. Have a Clear Plan—Once a reorganization is announced, there will be a lot of questions and anxieties, so to avoid getting bombarded and having no answers, create a clear plan of action. Before you implement any changes, be sure you have descriptions and duties for what each new job will entail or exactly how many people will be laid off or who each employee will be reporting to, etc.
   
   You never want to make huge changes before you have a plan.
   
   
3. Help Employees Embrace the Change—Employers are better able to help everyone get through the transition if they understand that a wide-range of employee responses is completely normal, according to Mercer. Although some employees may embrace the change on their own, for those that have a timid or negative reaction, employers should make it their business to help them also embrace it.
   
   Employees will feel a lot more comfortable with the changes if you explain to them your vision, the reasons for the changes, and anything else that will help them understand it better.
   
   “You can help them see the big picture by communicating business reasons for the change as well as the advantages to the company and to them,” Mercer says. “This can help take away the sense that the change is directed against them personally and might lead to greater acceptance on the employees' part.”
   
   Next, it’s best to give them time to adjust. Most people don’t deal well with change, especially when it’s sprung on them at the last second. To help your employees embrace the change and react less negatively, involve them as soon as a decision is made so they have some time to adjust to the changes.
   
   For example, if you call employees into your office on a Friday afternoon to let them know they’ll be part of a different department and have a new workspace on Monday morning, they’re going to react a lot differently than if you told them about the changes a few weeks in advance.
   

Although employers might not want to admit it, they usually have a pretty good idea of what direction they’re going in with a reorganization, so instead of keeping it a secret, share it with your employees. They are your business partners; they are working toward the same goals that you are, so why leave them out of the loop?

As companies grow, reorganization is inevitable, but how you deal with it says a lot about you and your company.