A guide to restructuring your small business

A change for the better

How to optimise your small business

You’ve been through a period of change. Maybe you’re trying to operate in a different business environment. Maybe you’ve seen a significant drop off in revenue or identified a new market you want to expand into. Whatever the reason, you know you need to restructure the people in your business. But do you know sure where to start?  Follow these steps to get your restructure started.

1.    Start with the business case.  

Write down the problem you are trying to solve. Think about the possible solutions.  You’ll need to include before and after cost and revenue numbers to ensure your restructure delivers the results you are looking to achieve.

2.    Run it by someone you trust (confidentially).

It’s easy when you are solely focused on your business to decide on a course of action and miss other (or better) opportunities to achieve the same goal. We often look at business cases of clients from an HR perspective and spot something they haven’t thought of.  

3.    Identify the implications for the people who work in you business.  

Are some roles no longer needed (redundant)? Do you need to move physical location? Thinking about changing working hours? Need brand new skills or need to up-skill? Perhaps some training is required.  Write a list of anything that you think needs to be considered (each could have a cost implication – positive or negative).

4.    Check terms and conditions of employment.  

Do your contracts allow you to make certain changes?  How much notice do you need to give employees of any changes?  You need to know this before you start these processes. Check the legalities before you make any changes.

5.    Take HR advice.  

Of course, we would recommend this…! To start discussing your changes with staff without thinking through any HR processes you need to legally follow, could open you up to risk that could be easily avoided.  A quick call to understand the risks and processes could save you a lot of money in the long run.

6.    Involve your teams (at the right time).  

All HR process related to restructuring involve communication, and often consultation, with staff.  These are the people who know the operations of your business best. So, even if it wasn’t required at the outset, asking for their input and getting them engaged in the process is always recommended. 

7.    Confirm changes in writing.  

It is really important that any changes you make are confirmed in writing. Keep good records as you may be required to show you had the employee’s agreement to the changes.

If you are a small business about to kick off a restructure and would like some HR input into how to manage the process (and mitigate any legal risk), take a look at our Restructures, Redundancy and Change Management support packages

Keep HR human