For those companies that are facing a possible reorganization, consolidation of office locations or other restructuring activities, it is important to consider the impact those changes will have.
Reorganizations can be challenging for your human capital management (HCM) data and information systems and incredibly taxing on the people in charge of managing those key resources within the organization.
First Steps: Inventory What You Have
Over time, every organization accumulates myriad HR records for both past and current employees. Companies that are downsizing, restructuring, or relocating need to identify and review all of those records that are stored in hard-copy paper format as well as electronic documents, spreadsheets, Word documents, and home-grown databases. Your inventory should also include noting the location and accessibility of the records; old company workstations, laptops, flash drives and forgotten back-room servers need to be included to support your data audit. Don’t forget to also include documents or backups of your HR data that are stored offsite, too.
Next: Purge and Streamline
Once you’ve catalogued the documents, electronic data, and necessary hardware, you should conduct a thorough review of your data. Determine what needs to be retained and what can be destroyed, and what can be converted into a cheaper, more securely up-to-date electronic format (like scanning paper records and disposing of hard copies, or transferring data off of obsolete hardware and storage media). Make sure you remain within the parameters of legislated, compliance, and data-privacy record keeping requirements.
You should also review your HCM information storage system and the ancillary or peripheral systems that support your solution, evaluating the HR business, functional and technical requirements necessary to continue using those supporting applications after your reorganization. There may be cost-saving opportunities to renegotiate your licensing or maintenance agreements with your software provider, based on the adjusted size of your restructured organization.
Fill in the Missing Pieces
Many organizations (including yours, perhaps) have HR-related processes and procedures that are undocumented institutional knowledge. A company reorganization or restructuring is the perfect time to nail down and refine all procedural documentation pertaining to HR, benefits, payroll, and performance. This is particularly relevant for processes that are location-specific, or which are only within the undocumented knowledge of staff members who will be leaving certain offices during the restructuring of work locations.
Adjust for the New Configurations
An upcoming restructuring is also a good time to explore reconfiguration and optimization of your HCM solution. Review your user access and system administrator's privileges, automated workflow processes, job assignment structures and work location assignments, in addition to your employee benefits-related setups and insurance carrier interfaces. This is particularly important as it relates to payroll benefits, in order to avoid any gaps or interruptions of pay or benefits to both your departing and remaining employees.
If your organization has issued company property items to employees, such as laptop computers, cell phones, vehicles, credit cards, or keys to buildings, a detailed inventory review of those items needs to be done proactively. This helps ensure that all of those items are located, identified, and collected from departing or relocating employees and are updated within your HCM and any other systems used to manage these details. This review should extend to adjusting and updating the access permissions to your secured information systems, facilities, business accounts, and signing authority for your employees.
Your HCM solution is a valuable management tool to effectively support any restructuring activities that may be on your company’s horizon. Effectively using a unified, up-to-date and optimized HCM solution will help ensure that you can accurately manage and report on your human capital information, support timely decisions, and assist in simplifying any restructuring initiative. Contact StarGarden today to learn about how our integrated, adaptable HCM solutions can streamline your HR management and help your business stay organized during a reorganization.