A hard look at the soft side

Many businesses still treat human resource management as an afterthought in decision-making.

“Dealing with money is black and white — it’s either right or it’s wrong. Dealing with people is grey,” explains Yvette Battistolo, CHRP, CCP, and Practice Leader at MNP Consulting Services.

But despite being soft, people issues can escalate into tough glitches big enough to bring down a company. That’s why it is imperative for your entrepreneur clients to consider the human aspect of any changes they make, or any major projects they undertake.

Corporate transformations are never easy. Transition projects, especially ones that include job cuts, are particularly prone to people issues. That creates problems for decision-makers, those shown the door, and those who aren’t.

“If you don’t take care of the people in an organization, whatever transition you’re attempting is at serious risk of failing. It’s the people that have to carry that change. If they aren’t prepared for it, they could easily sabotage it, despite best intentions,” says Battistolo.

Firing an employee is usually the most difficult thing a business owner has to do. Bringing in an external consultant can offer an emotional crutch to lean on. It also allows the internal human resources team to focus efforts on handling the day-to-day effects of the transition among remaining employees.

JOB CREATION IN CANADA

• +1.3% Increase in year-over-year employment in Canada, Q3 2011
• 191,849 More jobs created in Q3 2011 in Canada, compared to Q3 2010
• 47% New jobs created in Q3 2011 by large firms (500+ employees)
• 38% New jobs created in Q3 2011 by medium-sized firms (100-499 employees)
• 15% New jobs created in Q3 by small firms (1-99 employees)
• PRINCE EDWARD ISLAND; NOVA SCOTIA; NEW BRUNSWICK Provinces that experienced negative employment growth between Q3 2010 and Q3 2011
• ALBERTA Province with the highest employment growth between Q3 2010 and Q3 2011 (4.4%)

Source: Statistics Canada, Survey of Employment, Payrolls and Hours, December 2011.

There needs to be a comprehensive strategy established around how to help the company move on and repair. Battistolo and her team have helped clients strategize right down to deciding when they would have a Christmas party and what messaging would be appropriate.

“You have to recognize that the company as a whole is still smarting,” she says.

Two fundamental areas of concern when undertaking any major transition project that includes job loss are: change management and risk mitigation. A trained management consultant can assist your client with both.

Change management

The right strategies and initiatives can help an organization adapt to changes and minimize potential negative effects. Consultants could help by:

• Offering workshops to support employees who remained with the company after major job losses
• Assessing the work culture of the company
• Organizing an employee engagement study
• Re-engineering business processes and systems
• Creating new organizational structures
• Developing new job descriptions and salary structures
• Adjusting other human resource programs to reflect changes

Depending on the size and resources available, an outside consultant may also bring in additional expertise to rework an overall business strategy or offer tax advice.

Risk mitigation

An equally vital human resource concern, risk mitigation is more than simply trying to do right by employees. It’s about keeping the reputation of your business unsullied.

Your client is obligated to provide employees with a reasonable level of support through job change and transition, or risk potential legal action. The right approach ensures layoffs don’t leave a sour taste in the mouths of business partners and future employees.

Equally important are the employees still with the company. They may look at the way your client treated those who were given the boot as a reflection of how the entire team is viewed. So it may be in your client’s best interest to work with management consultants who specialize in people and operations.

Their role begins moments after an employee is terminated. They make sure the dismissed employee gets home safely. They follow up the same day, checking in to see how the former employee is doing.

Next comes career counselling. Working with former employees may include one-on-one career counselling, including resumé writing, interview skills and helping them with actual job search.

Small to mid-sized companies, even those with internal human resource departments, reap many benefits from contracting these services, especially in transition projects.

In addition to career support, another benefit of an outside consultant is the ability to provide an objective viewpoint. “External consultants don’t have a stake in the outcome, and can give un-biased advice,” Battistolo says.

In the long run, it is often more economical to hire a consultant than permanent staff to meet the needs of dealing with layoffs and restructuring. Battistolo agrees.

“Consultants come in when you need them, and then are gone — leaving you without the cost of long-term overheads.”

Trent Bester, MBA, is Partner and VP of Consulting Services at MNP.