While economists are still forecasting that Australia will avoid a recession this year, we have definitely started to see redundancies extending beyond tech companies into wider industries. This is predominantly due to organisations reviewing their service delivery models, efficiencies, productivity levels, skills sets aligned to  future requirements and  flexibility to be agile enough to flex up and down as required.

Restructuring can be a complex process for any organization, and it’s essential for employers to consider various factors to ensure a smooth and successful transition. In Australia, employers should pay attention to the following key aspects when planning a restructure:

Legal compliance: Ensure that the restructure complies with all relevant laws and regulations, such as the Fair Work Act 2009, the National Employment Standards (NES), and any applicable Modern Awards or Enterprise Agreements.

Clear objectives: Define clear goals for the restructure, such as increasing efficiency, reducing costs, or adapting to new market conditions. Ensure that these objectives align with the organization’s overall strategy.

Employee consultation: Engage in meaningful consultation with employees and, where applicable, their representatives, such as unions, regarding the proposed changes. This may help identify potential issues or opportunities, and can also foster goodwill and trust.

Redundancy considerations: If redundancies are part of the restructure, ensure that employees receive their entitlements, including redundancy pay, notice periods, and access to support services. Follow a fair and transparent selection process for determining which employees will be made redundant.

Retaining key talent: Identify key employees that are critical to the organisation’s ongoing success and take steps to retain them. This may involve offering incentives, new roles, or professional development opportunities.

Change management: Develop a comprehensive change management plan to guide the organization through the transition, including clear communication, training, and support for employees.

Financial analysis: Conduct a thorough financial analysis to determine the costs and benefits of the proposed restructure, including both short-term and long-term impacts on the organization’s financial health.

Security and off boarding: Consider the security and off boarding protocols.

Organizational culture: Consider the impact of the restructure on the organization’s culture, and take steps to preserve or enhance positive aspects while addressing any negative effects.

Performance measurement: Establish key performance indicators (KPIs) to measure the success of the restructure and to ensure that the intended objectives are being achieved.

Ongoing review and adjustment: Regularly review the progress of the restructure and make any necessary adjustments to address emerging issues or capitalize on new opportunities.

By taking these factors into account, employers in Australia can better navigate the complexities of organisational restructuring and increase the likelihood of a successful outcome.

Restructures and change can always be challenging times however the less of a potential surprise that redundancies are, generally the less risk there is to the organisation.

We understand the impact that these changes can have on businesses and team members, and we are here to support you in any way we can. Please don’t hesitate to reach out to us if you have any questions or concerns.