Organisational change and restructuring are inevitable in today’s dynamic business environment. Whether driven by shifts in market conditions, technological advancements, or strategic realignments, such changes can lead to significant disruptions within an organisation. However, these periods of upheaval also present an opportunity for leaders to reinforce their commitment to sustainable wellbeing and performance. By focusing on the wellbeing of their employees during times of change, leaders can mitigate the negative impacts of uncertainty, maintain productivity, and foster a resilient organisational culture.
The Impact of Organisational Restructures on Wellbeing and Performance
Organisational restructures are often accompanied by heightened anxiety and uncertainty among employees. Concerns about job security, changes in roles and responsibilities, and potential impacts on career trajectories can create a pervasive sense of unease. This anxiety can lead to decreased morale, increased absenteeism, and difficulty concentrating on work tasks, further compounding the stress experienced during the transition period. For leaders, the challenge lies in maintaining productivity and engagement amidst this uncertainty. As employees process the impending changes, they may struggle with distractions and reduced motivation. The disruption of established workflows and team dynamics can lead to inefficiencies and confusion, impacting overall performance. Additionally, the emotional toll of uncertainty can manifest in lower energy levels and reduced focus, making it difficult for employees to remain committed to their work. Clear communication is also crucial during a restructure, yet it is often one of the most challenging aspects to manage. Miscommunication or a lack of transparency can lead to rumours, misinformation, and a general sense of distrust among employees. Without adequate communication, confusion and frustration can spread, exacerbating the stress and uncertainty already present during such transitions.
Applying the Job Demands-Resources (JD-R) Model During Organisational Change
The Job Demands-Resources (JD-R) model offers a valuable framework for supporting employees through the increased demands associated with organisational restructures. This model focuses on balancing the demands placed on employees with the resources available to meet those demands. During periods of change, leaders must be particularly attentive to the following aspects of the JD-R model.
Managing Demands
- Hindrance Demands: These are aspects of the job that create unnecessary stress and hinder performance, such as role ambiguity, excessive workloads, and unclear expectations. During a restructure, it’s crucial to minimise these hindrance demands by providing clear, consistent communication about changes in roles and responsibilities.
- Challenge Demands: These demands, when managed well, can be motivating and enhance employee engagement. For example, new responsibilities or opportunities for growth that arise from the restructure can be framed as positive challenges that help employees develop new skills.
Providing Resources
- Social Support: Leaders should foster a supportive environment where employees feel comfortable sharing their concerns and seeking help. This can be achieved through regular check-ins, team meetings, and access to counselling or employee assistance programmes.
- Autonomy and Control: Providing employees with some degree of control over their work, such as allowing them to have input in the restructuring process or offering flexible work arrangements, can help mitigate feelings of uncertainty and loss of control.
- Communication: Transparent and frequent communication is a critical resource during a restructure. Leaders must ensure that employees are kept informed about the changes, the reasons behind them, and how they will be supported throughout the transition.
Personal Resources
During organisational change, leaders, especially middle managers, face significant increases in demands. Not only are they responsible for implementing changes, but they also bear the weight of supporting their teams through uncertainty. It is critical that leaders double down on their investment in personal wellbeing, even if they feel they don’t have the time. Ignoring their own wellbeing can lead to burnout, reduced effectiveness, and an inability to support their teams fully.
Leaders must recognise that by taking care of their own mental, physical, and emotional health, they are better equipped to manage the pressures of change and guide their teams through challenging periods. This might involve scheduling regular breaks, seeking peer support, or engaging in mindfulness practices to maintain balance and resilience amidst the demands of restructuring.
Strategies for Maintaining Psychological Safety
Psychological safety—the belief that one will not be punished or humiliated for speaking up with ideas, questions, concerns, or mistakes—is especially important during times of organisational change. Maintaining psychological safety during a restructure involves several key strategies:
- Open Dialogue: Encourage open communication by inviting employees to share their concerns and questions about the restructuring process. This helps to dispel rumours and reduces the anxiety associated with the unknown.
- Inclusive Decision-Making: Where possible, involve employees in decision-making processes related to the restructure. This inclusion can help them feel valued and reduce the fear of arbitrary changes.
- Consistent Messaging: Ensure that all leaders and managers are delivering consistent messages about the restructure. Inconsistent communication can undermine trust and increase uncertainty.
- Recognition and Support: Acknowledge the stress and effort that employees are experiencing during the change and provide appropriate support, such as mental health resources or temporary workload adjustments.
Communication Strategy: Keeping Employees Informed and Involved
A well-thought-out communication strategy is essential to managing the uncertainty and anxiety that accompany organisational restructures. Effective communication during such times should be:
- Frequent and Transparent: Regular updates on the progress of the restructure help to build trust and keep employees informed. Transparency about the reasons for the change, the expected outcomes, and the potential impact on employees is crucial.
- Two-Way: Encourage feedback and questions from employees. This not only helps to address their concerns but also allows leaders to gauge the mood within the organisation and adjust their approach as needed.
- Personalised: Where possible, tailor communication to address the specific concerns of different groups within the organisation. For example, frontline employees may need different information than middle managers or senior leaders.
““The single biggest problem in communication is the illusion that it has taken place.”
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Leading Through Change with Sustainable Wellbeing and Performance in Mind
Organisational restructures are challenging, but they also present a critical opportunity for leaders to demonstrate their commitment to sustainable wellbeing and performance. By applying frameworks like the JD-R model, maintaining psychological safety, and ensuring clear and consistent communication, leaders can navigate their organisations through change while minimising the negative impacts on employees.
It is crucial for leaders themselves to prioritise their own wellbeing during these times. By investing in their personal resources, leaders will be better equipped to manage the increased demands of restructuring, remain effective in their roles, and provide the support their teams need.
The way leaders manage change today will shape the resilience, engagement, and performance of their teams in the future. Prioritising sustainable wellbeing and performance during organisational restructures lays the groundwork for a more agile, resilient, and successful organisation.
Benny Button provides digital tools, learning & development, and strategic guidance to organisations across various industries.
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