When we have discussions with clients about adjusting their budgeted expenses to weather a challenging economic environment, the wage bill often takes center stage.

Making the decision to reduce staff is never easy, and it weighs heavily on many business owners. It's an incredibly tough call, but when survival is the goal, sometimes the most prudent action is to let staff go.

Managing your company culture after the departure of team members is crucial, especially when the departure is due to restructuring.

Redundancies create uncertainty and unsettle your remaining team. It can be normal for team morale to take a hit but it doesn’t have to be permanent. Here are our top recommendations for maintaining a healthy organisational culture through what is a sensitive transition period:

Communicate Transparently
Clearly explain the reasons behind the redundancies and the steps taken to avoid them. Communicate honestly without oversharing to build trust and prevent rumors from spreading.

Show Empathy and Address Workload Balance
Acknowledge the emotional impact on remaining staff and address concerns about their workload. Employees will naturally want to know what the redundancies mean for them and their roles. Will their positions be secure? Will they need to take on additional tasks? (In most cases, the answer is yes.)

Solicit Feedback and Act on It
Stay connected with your team by regularly asking how they’re coping with the changes. Keep communication open and act on any key outcomes from team feedback.

Lead by Example
Your team will closely observe your behavior. Demonstrate resilience and inspire confidence in the organization’s future. This doesn’t mean pretending everything is fine but does mean showing up every day, being authentic with your people, and fostering a sense of team through your actions.

Business is challenging at present but making the tough decisions sooner rather than later will help insulate the business moving forward. There is a clear process to follow when you’re considering restructuring and we’ve helped a number of businesses do just that. Don’t go it alone - talk to one of our team about your options.

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