Corporate reshuffles failing to deliver better performance

The
change process is proving increasingly difficult for employers to manage, with
corporate reorganisations failing to deliver improved performance in 40 per
cent of cases.

New
research from the Chartered Institute of Personnel and Development (CIPD) shows
that under half of reorganisations are completed on time, while only six in 10
are completed within budget.

The
survey of more than 800 CEOs and HR managers discovered that organisations are
failing to conduct skills audits before making redundancies and allowing talent
to leave.

It
also found that parallel ‘hiring and firing’ was commonplace, with 85 per cent
of reorganisations involving job losses and two-thirds leading to the
recruitment of new staff.

Companies
are also failing to provide training for staff managing the process or those
directly affected by it, with just 27 per cent offering any coaching.

Employees
are rarely involved or given the opportunity to participate in decisions about
the reorganisation  (41 per cent) and
are even less likely to have a say in how it will be implemented (36 per cent).

By Ross Wigham

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