- The annual Hays Salary Guide indicates that half Australia’s employers are restructuring their businesses.
- Hays says this can have a huge impact organisation’s existing staff and future talent needs.
- Other research shows less than one third of restructures lead to improved performance.
More than half (52%) of Australia’s employers are restructuring their organisation or department to keep up with changing business needs, says recruiting experts Hays.
The key drivers are a change in the required skill sets (48%), digital transformation (31%), a requirement for a more flexible work force (27%), a merger or acquisition (19%) and downsizing (13%).
A survey of more than 3,000 organisations, conducted as part of the annual Hays Salary Guide, shows 67% are worried about skill affecting their business in either a significant (26%) or minor (41%) way.
“Change occurs quickly in today’s world of work, forcing many Australian businesses to restructure to remain competitive,” says Nick Deligiannis, Managing Director of Hays in Australia and New Zealand.
“Responding successfully to change in a way that improves performance takes time, planning and, in most cases, significant workforce transformation.
“This often has a huge impact on an organisation’s existing staff and future talent needs.”
Less than one third of restructures lead to improved performance and some destroy value, according to a study by management consultancy Bain & Company of 57 organisations.
This research looks notes that new CEOs often feel compelled to make big changes in their first two years in the role.
“The best reorganizations don’t just reshuffle the boxes and lines on an org chart,” says Bain.
“Instead, they improve a company’s ability to handle its most important decisions. They enable people to make better decisions. They speed up decision-making. And they increase the yield, or proportion of decisions executed effectively.”
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