The Right way of Rightsizing
Anthelio Business Technologies Pvt. Ltd Block 1, 3rd Floor DLF Cyber City, Plot No 129-132 APHB Colony, Gachibowli Hyderabad, India 500019 + 91 40-49005544 25-May-2012
Harjeet Singh Khanduja
Senior Vice President & Head – Human Resources
Pranshu Keerti Mishra
Assistant Manager – Human Resources
In today’s constantly changing world, Corporates are often forced to take tough decisions which may at times include closing down a particular business process. This poses an equally challenging situation where HR has to rightsize the organization as well as handle survivor’s syndrome and other repercussions that the exercise leads to. The purpose of this white paper is to explain how to rightsize in a positive way, handle survivor’s syndrome and convert it into an opportunity for employer branding. The paper provides an overview on how Anthelio healthcare Solutions managed the entire cycle of rightsizing and handled the after-effects of it. The paper also describes how corporates can use a similar approach and transform the threat of rightsizing into an opportunity for establishing an employer brand.
The process for a Corporation reorganizing or restructuring their business by cost-cutting, reduction of workforce or reorganizing upper level management. The goal is to mold the company properly to achieve maximum profit. In April 2012, Anthelio revamped its business focus to build specific domain expertise and help clients in meeting with the challenges in the healthcare IT industry. As a result, the management decided to restructure its business strategy and close its PFS (Patient Financial Services) business process. This meant reduction of 80 employees who were working for PFS business process. Rightsizing the organization for business realignment was a huge task to accomplish as it can lead to resentment from the affected employees; negatively affect those who are retained by the organization and effect brand image of the company as a whole.
Key Challenges in any rightsizing exercise
Possibility of High Attrition Rightsizing often leads to job insecurity among existing employees, which causes high attrition. Managing rightsizing well is all the more important as attrition in profit making areas can hit the top line directly. Possibility of Offer Drop Outs In case the news of rightsizing is communicated to media or posted on social sites, it may rise concerns among candidates who are offered to join and can result into offer drop outs. This may severely affect deliverables at the clients’ end, as we secure several projects on the grounds that we have relevant resources in the pipeline. Possibility of increase in Recruitment cycle time The Right Way of Rightsizing Page 2
Rightsizing negatively affects the brand image of an organization. As an employer, this poses a lot of challenges in recruitment and selection of new resources, as candidates resist joining an organization which goes through such exercises. Possibility of breach of Physical Security During such exercises, affected employees often show resentment by causing physical damage to the organization. Being an IT organization with costly assets, physical security poses one of the biggest risks. Possibility of breach of Data Security As an IT company, data/information is an important asset without which we cannot operate. Employee resentment often poses threat to Data Security as well. Possibility of Legal Suite If not managed well, rightsizing can pose a potential threat from legal perspective too. Possibility of impact on Existing Clients Since almost all the employees are customer facing, another challenge was to ensure that no wrong message or miscommunication goes to the existing clients, which could affect business relations with them. Possibility of impact on Re-Hiring of Resources in Future Though we have realigned our business strategy to suit IT business, we did not want to...
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