As we close in on the final quarter of 2023, we begin to reflect on the emerging trends so far this year. As businesses begin to find their footing again amongst recovery from the “Great Resignation,” increased interest rates and cost of living, and low employee engagement, we are seeing a reduction in competitive recruitment and a higher volume of inquiries such as performance management, accommodations, investigations, or terminations. All of which accurately sum up what HR professionals are now calling “business rightsizing”.
What is Rightsizing and when should I consider it?
Rightsizing is a long-term strategy used to gain maximum business efficiency. In so doing, business objectives are fulfilled, and profitability is maintained; or in some cases, increased. Rightsizing is a proactive process, versus a singular response to organizational hardship. The process of rightsizing does not necessarily mean a reduction in the total number of employees. Most simply put, rightsizing your human resources means having the right people, with the right skills, in the right roles.
If your business has new or emerging objectives, you are noticing redundancies in tasks performed (or not performed), or want to drive profitability, you may want to consider rightsizing your business.
Who should I consider when rightsizing my business?
Everyone! Rightsizing is a wholistic process, striking optimal balance amongst every role and every department. Contrary to assumption, rightsizing your business does not mean laying off managers or having employees perform the work of multiple roles.
The rightsizing process will identify who is critical to your organization’s success. You will also need to consider the level of engagement amongst employees to aid in change management. It is important to ensure your top talent has the training, resources and support required to continue contributing to your organization’s objectives.
Why should I consider Rightsizing?
The benefits of rightsizing your business may include:
- Increased profitability
- Increased efficiency
- Increased retention
- Increased employee engagement
- Positive work culture
- Competitive advantage
If I want to rightsize my business, where do I start?
Prior to the endeavor of rightsizing, it is important to analyze the financial health of your business as well as the activities your current employees perform. At this pre-emptive stage you may want to compare your current financial statements with those of previous years or consider how your business performs in comparison to market competitors. To analyze activity, you will need to garner a better understanding of the time it takes employees to complete assigned tasks and compare this to job descriptions. The identification of gaps and/or redundancies will determine the need for rightsizing.
Who can help?
Still considering if rightsizing is right for your business? Contact the experts at RLB People today at [email protected] or visit their website at people.rlb.ca.
