HR Consultancy Sees Significant Increase In Restructuring Inquiries

Leading HR Consultancy Positive People says it has been fielding a surge in enquiries from businesses across New Zealand seeking support with restructuring-related activities.

According to six-monthly data that the company collects, restructuring-related enquiries have more than doubled – up from 8% in the first half of 2023 to 19% for the same period this year.

Positive People Founder and Managing Director Alan Pettersen says the organisation, which celebrates 30 years of business this month, views the increase as a reflection of the challenging economic climate.

“Many companies have held on for as long as possible but can no longer afford to keep paying employees without sales coming in.”

He says most organisations aren’t closing down, instead they are fine-tuning their operations and cost structures through restructuring to ensure survival. Of all the sectors, construction, in particular, has seen significant downsizing and a reduction in hours employees work.

“Over half of all enquiries that we have been getting about restructures are coming from businesses in the construction sector.”

Other trends that Positive People has recorded over the past six months include a growth in employment relations issues, up from 22% to 36% of all inquiries.

“Businesses and staff are feeling stressed, which is often the cause of complaints, conflict or misconduct. Employees are far more aware of their rights than in the past, and we have seen a significant increase in representation by Employee Advocates. This creates a real need for expert advice and support on employment matters, agreements and policy development to make sure these are watertight.”

Demand for recruitment support has dropped from 10% to 2%, while inquiries for pro-active HR support jobs such as engagement surveys and leadership development has more than halved – 21% to 10%.

Alan says the outsourcing of HR is on the rise, up from 12% of inquiries to 27%, as businesses recognise that they still need on-going professional HR support to help them through this challenging period.

Reflecting on 30 years of business, Alan has observed some interesting trends over this time, particularly in the area of creating more people-centred organisational cultures.

“We’ve seen HR transitioning from an administrative function to it now being viewed as a key strategic partner in organisations.”

Other key changes Alan highlights include:

• Greater integration of HR as a strategic driver for organisational success.
• An emphasis on flexible working arrangements and an individualised employee experience.
• Leveraging technology for more efficient HR administration.
• A general growth in importance of digital and social media as primary communication channels within organisations.
• Increased focus on Diversity, Equity and Inclusion and a better understanding of the importance of employee wellbeing.

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