In the first eight months of 2021, an estimated more than 85,000 businesses declared bankruptcy or ceased operations or dissolved. The pandemic caused many negative effects, many businesses chose to restructure their organizations to cope with the epidemic and maintain operations. In most cases, the people affected by organizational restructuring are still people, which can lead to an increase or decrease and change in personnel requirements. Human resource restructuring plays an important role in the organizational restructuring process.

What is Human Resource Restructuring?

Human resource restructuring is the arrangement, adjustment, maintenance and development of qualified staff and managers, in order to help enterprises operate effectively, improve competitiveness and develop sustainably. steady. Human resource restructuring consists of two main parts: personnel restructuring and labor restructuring. 

However, the restructuring of the human resource system is not merely a process of reducing and transferring personnel, but also a process of changing the internal structure of the enterprise to be effective in terms of efficiency and cost. The value of the business will also change.

8 components of the human resource system that enterprises can consider to restructure such as: organizational structure; KPI system; competency framework; salary structure; training activities; legacy development activities; recruitment activities; corporate culture…

The pandemic and the 4.0 technology revolution promote human resource restructuring

The challenge of human resources is considered by managers as one of the most difficult and difficult to control. HR trends have changed a lot due to the impact of the 4.0 technology revolution and the Covid-19 pandemic.

Specific motivations to promote enterprises to restructure their human resource systems include: cost reduction; increasing productivity; finalizing job description design; increase the right person, right job; integrating the human resource system with the 4.0 technology trend.

In the current era of strong technological revolution, the slower the application of technology in the restructuring of the human resource system, the higher the cost and the lower the efficiency.

From the epidemic, businesses themselves must see the weaknesses to restructure and increase their ability to withstand external shocks. Due to many negative effects, the human resource system of enterprises has changed a lot with a large fluctuation rate because most of them have to cut personnel, reduce working hours, reduce costs, etc. Enterprises need to re-evaluate. management strategies to find the right direction for the challenging business situation and to optimize human resources.

Signs that businesses need to restructure human resources

When the organization - the enterprise is facing many problems in the personnel structure, making the operation inefficient or even stagnant, facing the risk of disintegration or bankruptcy. Restructuring the human resource system starts from identifying the current state of the business with data and numbers. Specific data can be mentioned such as: software costs and restructuring; payback period and profitability; The number of employees decreased…

On a small scale like a departmental division, signs of a need for restructuring can be identified by the head of the department or the human resources manager from HR-related factors, often the HR manager. will be the first to recognize those signs. From the performance of the department, the small department can be generalized and applied to the whole organization, taking the best place to learn, arrange, change and perfect the system.

The problems may come from poor coordination between departments, personnel positions, poor performance of work activities, officers and employees working without clear goals; the management level is caught up in solving the case, oddities; passive senior management, constantly changing or “stable” personnel in the style of only old people; poor decentralization mechanism...

What should enterprises pay attention to when restructuring human resources?

First, enterprises must clearly define what is the goal of restructuring in each stage? Next, businesses need to stick to the data system and personnel reports. Is the business goal simply to overcome the crisis or take advantage of the crisis, or is it sustainable development in the future, or just "getting through the day"? At the same time, enterprises conduct a serious assessment to see if existing employees have achieved some basic criteria for development in difficult circumstances?

Restructuring inevitably reduces personnel, therefore, enterprises need to identify the positions of personnel that need to be kept and cannot be kept after restructuring, and need a plan and backup source before implementing the restructuring. to avoid a crisis of human resources.

Enterprises need to build a unified database, integrating technology platforms instead of just using traditional data tools, so that managers when needed can easily access goals, process data and quick decision making.

Internal communication is also an important thing that leaders must consider in restructuring. One of the key factors for a successful restructuring is leadership commitment. 

If business leaders do not have the determination to change and do not act in time, the restructuring takes a long time and encounters obstacles, the enterprise will sink deeper into the crisis and be left behind. But it is also necessary to seriously evaluate whether the business has enough time and finance to conduct it? If not answered correctly, enough of the above questions will lead to the so-called restructuring, but in fact it is just an unnecessary human resource disturbance.

The most important human resource restructuring is in the content: How to train existing human resources to work more professionally and effectively. The difficulty is not accepting new values, but giving up old ones. Enterprises must "dare to give up", vigorously erase the existence in their own apparatus.

Applying digital platforms to restructure the human resource system

If the enterprise does not have the appropriate restructuring process and orientation, "benefit and disadvantage", sometimes it will make the business worse and lose many other opportunities. Applying technology to data management to restructure the human resource system will replace the traditional management method, helping leaders access information quickly and instantly update operational-related factors. .

With a large workload and many employees, it is difficult for managers to run businesses smoothly without supporting tools and software. The current reality in many businesses is that the data is not uniform, synthesized from many different sources and tools such as papers, excel, email, free chat software... Leaders need to understand the current situation. the state of the database at your business to choose the important step and the right technology in restructuring the human resource system, decide whether to use SAAS service software or buy a one-time license or build it yourself. digital data center.

However, no matter what technology or system an enterprise uses to restructure, it still needs to focus on classifying and rearranging the input data.

Managers also need to consider the end-user experience and critical role. If you don't make them find the tool friendly, useful, and don't make them love it, it's very difficult to get into the actual process and bring about real results.

The Covid-19 epidemic is also an opportunity for business leaders to have time to review and rearrange the human resource system and carry out digital transformation. Human resource restructuring has become an inevitable strategy to resolve instability in the current organization and strengthen human resources. Restructuring is like building a house, it needs a balance of time, money and other resources. Especially the suitability of the house in that street. Doing that, restructuring human resources to achieve efficiency and sustainability.