Category: Ethics

Business Restructures And The Change Management Process

Let’s talk about business restructures and the changes they bring.

Change is one of those things that is inevitable in life. It’s so inevitable that it has generated many famous quotes all about how change is one of the only things we can be certain of!

Small changes happen daily for New Zealand businesses. Suppliers come and go, people move in and out of roles, and sometimes the boss might even spring for the good coffee in the break room!

But when the economy is not exactly booming, larger changes can start to loom.

Businesses are often forced to examine how they operate to understand if there is a better or more efficient way to do things. This can lead to potential business restructures.

If your business is currently in this position, you’ll want to ensure you handle the change management process correctly.

Let’s look into what that involves and how you can navigate things correctly at your workplace.

What Is Change?

Workplace change is any kind of change that might impact the roles of your team members. It doesn’t necessarily mean removing or disestablishing roles; it can also mean other forms of change. Often referred to as business restructuring, workplace change can involve modifications to an organisation’s structure, processes, technologies or workforce.

There are many ways that the need for change can come about. It can be anything from rapid growth and technological advancements to a downturn in the economy or a change in strategic focus. No matter the cause of the change, the end goal is to help a business be more efficient or to ensure operational continuity.

Whilst workplace change is an inevitable part of running a business, you can’t just make changes willy nilly! Following the correct change management process is crucial for ensuring a successful outcome for your organisation and the people within it.

Handling Change

As an employer, you are fully entitled to make changes to your business and structure it in a way that allows you to operate efficiently, serve your customers well and enact your business plan. However, you need to undertake change correctly.

If you are considering any form of change in your business, you need to make sure you have a good understanding of how it will impact your employees. You will need to be guided by their employment agreements as these ‘set out the basis for the employment relationship and the process for changing its terms’.

A business restructure must be done for genuine business reasons and in good faith. Restructuring cannot simply be an excuse to remove someone you consider to be a bad egg! According to the Employment NZ website, these are all legitimate reasons for change and what that change might entail:

  • improved technology
  • more productive business processes
  • product changes
  • loss of suppliers or markets
  • shifts in customer or market requirements
  • financial reasons.

Changes of this nature may result in a structural change such as:

  • adding new roles
  • merging two or more existing roles
  • refocusing aspects of a role
  • removing roles that are not needed
  • a combination of these things.

Following The Change Process

Now we know what genuine change looks like and how you might go about achieving it, you need to consider the specific process to make it happen. As a starting point, there is a general overview of the change process on the Employment NZ website.

However, because change can be major for your team, many businesses choose to work with a professional when undertaking a restructure. By engaging professional HR or legal expertise, you can ensure all the crucial elements are considered and you create the best chance of successful change for your organisation.

A key part of that successful change will be keeping empathy top of mind throughout. Announcing a restructure will make your team nervous, it’s just human nature. So, it’s vital to handle the situation with care and understanding to minimise the impact and to create better outcomes for everyone involved.

Navigating The Change Process

Getting through the change process successfully is all about preparation, communication and empathy. Here are some tips for how you can navigate this difficult situation with that in mind:

Communication and Tone

Communicating the proposed changes to your team is really important, and you want to use the right tone when making these communications.

Whilst it is necessary to be straightforward when providing key details, it is equally important to present this information with empathy and understanding. Remember that you are dealing with humans who have real feelings.  There may be negative consequences to the changes you are proposing. Recognise the challenges that may be ahead for these people without making excuses, being defensive, or overly sentimental.

Transparency

It’s also important to be transparent about the state of the business. Regularly keep your team informed about the company’s status. This is particularly important when things aren’t looking good or when job security might be in question, as this will be when people are the most worried. If you remain honest and transparent, the news of potential redundancies or change won’t come as a sudden shock.

Outline The Way Forward

When people know what to expect, they can personally process the change easier. So, clearly outline the way forward by positioning the proposed changes as part of a broader strategy for the company’s future. By communicating a clear vision, you can inspire confidence in your people and alleviate concerns they might have.

Allow Space For Questions

Change will always spark questions from people, so you’ll need to allow space to answer those questions. Be ready to explain the reasons behind your restructuring plans to give your employees the necessary information. As we mentioned earlier, it is helpful to have the expertise of HR and/or legal experts during this process to ensure compliance and correctness.

Be honest and helpful when answering questions. You obviously cannot give guarantees that further change or redundancies will not take place in the future as no one can predict what might happen. But you can express confidence in the new direction your business is taking and reassure your employees that there are no immediate plans for further cutbacks.

Need Some Help?

Workplace change is inevitable, but that doesn’t necessarily make it easy to handle. In fact, it can be downright stressful trying to tackle it alone!

That’s why it can be incredibly helpful to have the backing and support of a professional HR company. Intricately understanding the ins and outs of change management, the team here at Spice HR can help you navigate business restructures calmly and effectively.

Chat with us today to see how we can help you take the first steps towards positive change.

Understanding The Compliance And Ethics Involved With AI

Let’s talk AI.

One of the most impactful business innovations of the last few years, you are probably already enjoying some of its power in your workplace.

But, like Uncle Ben said to Spiderman, with great power comes great responsibility!

Yep, it is your responsibility to ensure your business is utilising AI without breaking any rules, laws or regulations.

It’s time to consider whether you are using AI ethically and in compliance with privacy legislation.

Let’s look into these key aspects to see if you are playing by the rules.

What Is Considered AI?

What exactly is considered to be AI? In the workplace, artificial intelligence (AI) is the use of computer systems or software that perform tasks that typically require human intelligence. Because they are designed to mimic human behaviour and automate processes for efficiency, they improve accuracy and overall business performance.

These are some common examples of the kind of AI found in a standard workplace:

  • Chatbots or AI-powered Assistants: The components that handle routine customer or internal queries and admin tasks.
  • Automation: Software solutions that handle mundane or repetitive tasks like data entry, calendar management, triggered communication and more.
  • Machine Learning: Software that focuses on the use and analysis of data, along with algorithms to learn in the same way a human would, to improve its accuracy over time. Examples of machine learning can be as simple as product recommendations based on previous purchases, or as complex as talent acquisition and employee retention software.
  • Data Analysis: By using certain algorithms, AI can analyse large amounts of data quickly and accurately to identify patterns and trends that can be used for business improvement.
  • Predictions: The analysis of historical data can help to form predictions or forecasts for the future, allowing for insight into staff turnover, financial performance, or inventory management.

Your Responsibilities

By utilising AI in your business, it is your responsibility to ensure it is being used both ethically and legally. That means paying attention to these areas in particular:

Privacy

New Zealand has very strong privacy laws under the Privacy Act 2020. Among other things, the Act regulates how you collect, use and handle personal information. This applies to the data belonging to every individual who interacts with your business, including employees, team members, contractors, suppliers, clients, guests and inquiries.

The Privacy Act states that you need to gain consent from the people whose data you are using and only use the data for the purpose that it was collected. You also need to protect that data. So, you need to ensure that any AI tools comply with these principles.

Be mindful that simply uploading people’s private information into an AI data system may breach privacy laws. Before doing anything, check the security and privacy parameters for each individual AI tool to confirm it complies with NZ privacy standards. You might have to gain consent to use any personal data within AI technology systems.

Intellectual Property

One of the major things individuals use AI for in the workplace is content creation. Emails, marketing posts, images – all these things can be created by AI. But is it ethical to do so?

By the nature of what AI is, it draws information from many sources on the internet to form your content. That means, it harvests thoughts and ideas, even direct quotes, from content that has already been written and published. What takes seconds to pull together with AI took the original authors hours to craft. You are benefiting from their hard work before you.

Not only is this ethically questionable, it also puts you in danger of potentially breaching copyright. While New Zealand does not yet have specific laws relating to content created by AI tools, it’s important to recognise how the content is formed. Rather than copying and pasting the content that is generated by a tool like ChatGPT, it is best to use it for idea generation or a content starting point.

Business Assets

Speaking of intellectual property, it is vital that you take steps to protect your business’ own intellectual property when using AI. As many AI software solutions are new to the market, we don’t fully understand how they process the data that is input or who can access that information in the future. That’s why you and your team should be cautious about what you load into AI programs.

It’s best to avoid inputting extremely sensitive business information. Translation: don’t put your trade secrets into AI as you don’t know where they might end up! After all, we highly doubt the Colonel is going to be loading his secret ingredient blend of 11 herbs and spices into ChatGPT! That info is just too precious to risk getting into the public space.

Using AI Responsibly

How can you ensure you are using AI responsibly in your business? These are some of the ways:

Policies

Rather than blindly using AI in your business, you need to form policies around what tools you will utilise and how they will be used. Think consciously about which ones you intend to use and how they will impact the data you have an obligation to protect. Are there any risks that need mitigating or could a non-AI tool be used instead?

Then, choose tools that do not jeopardise privacy laws and be transparent about their use by documenting everything in an AI-specific policy. Once the policies are in place, the job is not done. Technology evolution always moves at a lightning fast pace, so you need to instigate human reviews regularly to ensure your AI tools are not retaining or disclosing data incorrectly.

Team Training

Your policies are only going to be effective if your people understand them! So, you will need to arrange training for your team members to ensure they are aware of their obligations when using AI tools. They need to be able to use the tools effectively and responsibly and understand their limitations.

Training should be practical, showing your people how to physically use the tool, such as inputting data and examining the results generated, along with the AI-generated decisions. But training should also delve deeper, highlighting that AI should still respect an individual’s privacy rights, their intellectual property and that it should avoid discrimination and harm.

If they feel that AI is creating any negative impact within your business, encourage your people to speak out so that it can be remedied.

Help And Support

In the greater scheme of business, AI is a relatively new technology that we are all learning to navigate. If you have concerns about the potential impact on your business, now is the time to take action. Reach out to our team if you would like assistance in forming the policies and training program surrounding AI in your workplace.