Imagine yourself as a newly married guy or girl planning hard about making ends meet. You want to arrange for a lot many things; you need to purchase a bigger house. How do you begin? Definitely, by downsizing. This is how most organizations think. They need to plan and strategize for bigger and better things; so they rightsize.
Basically, rightsizing means getting rid of any extra resource that might be turning into liabilities because of the cost factor. When you have a Beetle and a Ferrari and you need to buy a bungalow, but the cost of car maintenance stops you from, you end up selling one of the cars.
You make space (and cash) for some new requirement. That is the idea behind rightsizing. Just to obliterate the wrong impression that the word gives, let’s use the term ‘rightsizing’ instead. Some even call it ‘fantasizing’ which is a summation of two words viz. fantastic and sizing. CareerBuilder India India lists five reasons why right-sizing is the right things for organizations to do:
1. It Makes you Fitter: Rightsizing is the way to a leaner and meaner you. Probably the biggest advantage of downsizing for your company is that it helps you shed every extra inch hanging to it for simply no reason. A leaner organization is to compete better at the market place without the fear of being beaten because of an unhealthy size. While downsizing basically is concerned with lay-offs, companies also downsize their operations sometimes to focus on core competence.
2. Increases Loyalty: There can be a lot of bitterness if rightsizing is done the wrong way. You employees will surely doubt your intent and will be upset. But if you give them the right reasons, are truthful and smart to an extent rightsizing can actually help you build loyal work-force. You don’t have to lay-off the employees if you are rightsizing. Try reducing their working hours instead. Keep them but offer them a pay for reduced hours. A number of IT companies follow this strategy nowadays.
3. Helps Your Re-evaluate: Rightsizing is at the nucleus of change. Strategies change, and so do goals. Right-sizing can help an HR company improve its service efficiency. By deploying the right number of people (no single extra source) it can ensure that the workload to workforce ratio is optimum.
4. Aids in Debt-Payoff: Why are you trying to cut on costs? One reason is to earn more profits. The second reason is that you need to pay-off the existing debts of your organization. Rightsizing is your key to paying off the accumulated debt when your profits are lowering or at time of financial crunch in the company.
5. Builds Teamwork: Post right-sizing, make sure that your retained employees, are not afraid of working with you. Most of those who are left would be under the impression that they will be made to stretch and work extra hours. Nonetheless, make them comfortable. Inculcate a team culture amongst them so that they get closer and work better. Remember how synergy can be the key to effectiveness?
Initially, any change will be met with resistance. And when it comes to rightsizing there is bound to be an uproar, a fear. You need to be truthful in your dealings with every employee who you plan to part with.