As Greek philosopher Heraclitus said, “the only constant in life is change” – a sentiment that rings true throughout the world of work.
Whether it’s as a consequence of today’s geopolitical uncertainty, or a business model being disrupted by automation, organisations are contending with lots of change all at once.
Employees generally understand that there is always an element of risk involved with traditional employment – their role or business area could be deemed surplus to requirements at some point, even if they do their best to provide ongoing value and future-proof themselves.
Which is why in the event of organisational transformation, employees expect their employer to manage the change effectively – providing the necessary support so that everyone can successfully navigate subsequent turbulence and move forward in their career.
Unfortunately, according to our latest research, many organisations aren’t getting the process right, and it’s having a negative impact on individual experience and business performance.
Organisations are mishandling their change management process
From our survey of 1000 individuals who had experienced redundancy, only 36% said they had received outplacement support from an external provider.
Without the expertise of an outplacement partner to guide them through the process, many organisations are getting it wrong from the get-go:
- 1 in 10 employees found out their role had been made redundant indirectly (not via an official announcement from their leadership team)
- 40% received the notification via email or phone call, as opposed to a face-to-face announcement
And experience tells us that when change is miscommunicated, employees struggle to understand and accept it:
- 1 in 4 employees felt the communication around the reason behind their redundancy was unclear
- 35% felt their employer’s messaging around the change was inconsistent and therefore confusing
Leaders who are responsible for handling change will inevitably have taken time to plan and understand it themselves; but when having to implement it at pace, the fundamentals of clear communication can be forgotten. And when leaders fail to ensure understanding across their organisation, the knock-on effects can leave deeper scars than they realise.
A workforce in the dark is a workforce unable to adapt
In the event of change, employees will have questions, and in most instances, turn to their line manager for the answers. But what happens when the managers themselves haven’t been properly briefed or trained?
- 1 in 4 employees we surveyed said they lacked sufficient support from their manager after they found out their role was at risk
- Half of those (49%) who didn’t have access to any outplacement support even went as far to say their manager was unsupportive
Without a clear understanding of the change and lacking the experience of an external provider to guide them through the process, line managers can find themselves ill-equipped to help those most in need.
And when employees are left without answers, feeling unsupported through a period of uncertainty, engagement and organisational output will take a hit:
- 1 in 3 employees who didn’t receive outplacement support said their productivity significantly reduced or stopped altogether after they were notified (compared to just 8% of individuals who did receive support)
Now some organisations may be willing to accept a short-term decline in anticipation of a resurgence once the change has taken place. But years of supporting organisations through transformation tells us that when change is miscommunicated and mismanaged, even those who remain with the business take time to settle and return to their previous output levels.
Uncertainty around their own futures and job security can act as major distractions, resulting in an organisational lag felt for months or even years after change has happened.
So what should businesses do to mitigate against these risks?
Managing change the right way
When brought into the process early enough, an outplacement partner can support organisations through the entire transformation journey – from consultation to announcement and implementation.
And as the data tells us, when receiving outplacement support from an external provider:
- 61% of employees felt more positively about their employer compared to just 8% of those who received no support (where 66% felt more negatively about their employer instead)
- 54% of employees would return to their employer in the future, compared to just 13% of those who received no support (where 70% said they wouldn’t return)
- 61% of employees would recommend the company they’d been made redundant from, compared to just 17% of those who received no support (where 68% said they wouldn’t recommend them)
Beyond simply being the right thing to do, providing outplacement support is proven to enhance the employee experience during transformation, while protecting employer brand and reputation. Plus, when the remaining workforce sees that their colleagues and friends have been taken care of, they’re far more likely to remain engaged and committed to the organisation moving forward.
To find out more about how we can support you and your people through change, get in touch today.