Germany: Restructuring your team? Here’s how
With inflation on the rise and budgets being squeezed, it is no secret that companies are having to review the efficiency of the organisation and make savvy decisions in order to survive and thrive. Managing resources such as employees becomes a delicate balance in such situations. Companies should take great care in exploring the following options in order to achieve their short term as well as long term goals:
Retraining (upskilling) employees
This is often an overlooked option. The cost of replacing staff is astronomical and retaining existing talent to fill any gaps in the organization would increase employee engagement, boost morale, develop deeper commitment and increase productivity. In short, it sends the right message to the employees and maintains the company’s reputation.
Offering pay cuts
According to a recent study, 74% of employees say that they would take a pay cut for a new job with a thriving culture that is ideal for growth. This suggests that, as long as your company keeps morale high and has a realistic long term growth plan, employees may be willing to stay on at a lower salary.
Reduction in workforce
This decision should never be taken lightly. However, it is sometimes the inevitable outcome. In such cases, employers should be aware of the statutory restrictions / formalities that must be be observed in order to avoid financial and reputational penalties.
To find out more about how to deal with your reduction in workforce, click here to speak to one of our friendly experts!