Since October 2024, there are many businesses cutting their costs with the recent tax increases for employer NI, and business rates as well as the changes to the Employment rights bill and rising borrowing costs. Businesses are feeling it.
In these situations, it’s tempting to look at people budgets and see them as a cost centre - which of course they are - but there are some serious commercial and cultural risks in purely approaching it from this perspective.
When you’ve just made redundancies or restructured in a business, there is a feeling of unease and unrest even within those who stay (not to mention those who have left before it all started because they saw the writing on the wall).
The loss of talent and knowledge is very real at a time when stability is crucial - as well as the inevitable recruitment costs which are a minimum of £25k in the UK for an average role and can be up to £100k for senior roles - to address the churn in the positions you do still need!).
Supporting those who have been affected by redundancies is often called ‘outplacement support’ and according to a survey by the Chartered Institute of Personnel and Development (CIPD) in 2024, 60% of businesses have this in place, which is great to help individuals manage the change and their next steps. However, investing in those who remain employed is just as important, and a key indicator of your culture that you care and value them. It signals that this is the start of a more efficient, future ready organisation. Coaching is often cited as the most favoured intervention by employees potentially due to its roots in being future focused and supporting personal growth.
Restructures will naturally provide new opportunities and pathways which didn’t exist before. Coaching provides a safe space for people to confidentially work through their concerns and issues, find a way forward and take action. When there is no coaching available, an inordinate amount of time is often taken up with peers and managers thrashing out scenarios, going round in circles, procrastinating and overthinking which impacts work productivity negatively.
The burden on managers supporting staff through a redundancy process (whilst sometimes being affected themselves) shouldn’t be overlooked. The right coaching service for managers can relieve this pressure and enable your leaders to lead with more clarity, confidence and conviction.
Watch out for diversity balance being affected at this time as the organisation shifts – there may well be certain groups that need additional support so your organisation remains diverse in its thinking. Diversity means this leaner organisation will be able to make better decisions, solve problems faster, innovate more effectively, and drive your organisation to deliver larger market share. Essentially, with a diverse senior team, you’ll have a more commercial, well balanced and insightful team who are effectively able to drive the future of the business forward.
Coaching is a strategic tool you have in your toolkit if gender balance has been affected - and diversity is at risk - to empower, inspire and retain your female talent to ensure equity and the best talent being optimised and attracted.
If your business has been through a redundancy process, restructure or merger check that your female talent is in the best place possible to drive your organisation to success.
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