Facing down challenges is a fact of life for business owners – from calculating the effects of the increases in the National Living Wage and NI contributions to working out the impact of Donald Trump’s tariffs. Change may bring uncertainty, but it can also be a prompt to plan for the future, and rethink company structure.
The HR experts at CE People are currently helping a number of clients review their strategy, encouraging them to look carefully at each role within the business and assess how it contributes to the company’s performance and whether any changes are needed to get full benefit.
Economic uncertainty can prompt businesses to look purely at numbers and payroll, but that’s not necessarily the answer – ensuring each role is truly adding value to the business is considerably more important.
Through appraisals and monthly reviews, and by looking carefully at job descriptions and how roles fit into the overall organisation, a clear structure can be developed.
Claire Butcher, from CE People, said: “Company owners should be looking at what each role in their business does and how much it contributes; and also considering whether performance levels are where they should be and, if not, what can be done.
“It’s all too easy to think cutting staff numbers is the answer to cutting costs, but it’s important not to panic and make rash decisions. Sometimes, it’s simply the processes that need improving. If someone isn’t performing, and you’ve spoken to them and set expectations, and they’re not meeting them then, by all means, you need to begin the process of dealing with that.
“But you should also be looking at historic roles, do they still need to be done the way they have always been done. Could some processes be automated? Is there someone in your team who could really add more value if they were retrained or upskilled?
“What we encourage clients to do is think about what their company structure would look like if they were starting from scratch – it’s an interesting exercise that changes the way you think. We tell them to forget what they have right now and ask them to start again, what roles are important, are there any they need to add, or any they no longer need?”
Clearly defined roles, and every member of the team making a positive difference, will always add value, increasing both productivity and engagement. A member of the team not performing the way they should be, however, leads to the need for difficult conversations, and that is something that can be awkward for a business owner who has brought a team together, and built relationships with them.
Emma Thompson from CE People said: “If you are a good leader, you will have built attachments with your staff. An unbiased, neutral HR expert sees things differently and will be able to have difficult conversations on your behalf whilst also ensuring correct procedures are followed.
“But there doesn’t always have to be a negative outcome from assessing your structure. Sometimes an employee will be under- performing because their role isn’t challenging them, or they need some training, which is why business owners should go back to basics and put structure first and foremost.”
For businesses it’s about understanding the drivers, assessing the actual or potential increase in costs and thinking ahead. Adjusting mindsets from the top down will help create stability and through that, improve productivity and engagement. Having a good strategy in place allows for well-thought-out conscious decisions that are good for the company as a whole.
Claire said: “One thing we will never take lightly is the fact that our business is all about people, and how much the decisions we help clients make could affect people’s lives. We want our clients to give themselves the space and time to think about it and consider what works best for their business. It might mean difficult decisions or conversations, but it can also open up new opportunities for their workforce.”
Emma added: “Change is always difficult, and it can cause uncertainty among other employees if a role is made redundant. If they see someone exit the business, they may all start to think that the company is in trouble and that their jobs might be next. By handling the situation professionally, going through the correct procedures and explaining what is happening as much as you they can, business owners and managers can avoid people becoming worried or disenchanted. If your structure is right, your people will deliver, and the company will grow and evolve.”
Find out more about the services offered by CE People on 01604 805634, email enquiries@ce-people.co.uk or visit their website.
