Benefits of rightsizing
First, rightsizing helps you avoid the negative impact on your employer brand. As a rule, lay-offs signalize about financial issues, inner conflicts, or toxic culture. Rightsizing isn’t that damaging to a company’s image as it relies on gradual changes like shifting roles and putting recruitment on hold from time to time.
Second, this approach helps you build a team of A-players. A-players are proactive employees with business-driven mindset that willingly take new responsibilities and drive positive changes in a company. In terms of rightsizing, HR managers are focused on gathering a team of the top performers, maintaining just the right number of employees. When downsizing, businesses rarely select talents for laying off by their potential and skillset that may be relevant in the future, considering mainly performance metrics and financial aspects.
Finally, this technique leads to increased profit margins. By laying off employees that don’t contribute to business profits, can be replaced with machines or automation tools, or whose expertise becomes irrelevant to organization, you can reinvest in top players.
In a nutshell, rightsizing is aimed at bringing an organization to the right size of employees and relevant skillset. This continuous process involves different HR management techniques:
- Altering job profiles and position transfers to maintain expertise within a company and solve business goals at the same time.
- New strategic hires to bring external professionals with expertise that a company lacks.
- Lay-offs of underperforming workforce.