52% of Australian businesses restructuring to keep up with changing business needs, Hays reveals
One-half (52%) of employers are currently restructuring their organisation or department to keep up with changing business needs, says Hays.
Of these, the key drivers are a change in the required skill sets (48%), digital transformation (31%), a requirement for a more flexible workforce (27%), a merger or acquisition (19%) and downsizing (13%).
Yet according to the survey of over 3,000 organisations, conducted as part of the annual Hays Salary Guide, 67% are worried that skill shortages will impact their ability to effectively operate their business in either a significant (26%) or minor (41%) way.
Nick Deligiannis, managing director of Hays in Australia & New Zealand, said, “Change occurs quickly in today’s world of work, forcing many Australian businesses to restructure to remain competitive.
“Responding successfully to change in a way that improves performance takes time, planning and, in most cases, significant workforce transformation. This often has a huge impact on an organisation’s existing staff and future talent needs.”
Despite the significant resources and time that a restructure requires, a Bain & Company study of 57 reorganisations found less than one third led to improved performance. Given existing skill shortages, employers are increasingly turning to external providers to assist with workforce change during a restructure.
Deligiannis added, “With 77 per cent of employers expecting business activity to increase in the next 12 months and 47 per cent expecting to increase permanent headcount, securing top talent in a competitive market is a major focus during any restructure.”
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