Menu
HARIK THOMPSON CPAs
  • Home
    • About Harik Thompson
    • Team
      • Patricia Bell Harik
      • Kevin Thompson
      • Shylesh Viswanathan
    • Affiliation
  • Services & Industries
    • Accounting Services
    • Business Consulting
    • Entertainment Industry
    • Estates and Trusts
    • Financial Planning
    • International Taxation
    • Tax Strategies
  • Insights & News
    • Santa Monica Office Announcement
    • Principal Announcement
  • Client Resources
    • Client Portal
    • Tax Forms & Resources
  • Payments
  • Contact
  • Home
    • About Harik Thompson
    • Team
      • Patricia Bell Harik
      • Kevin Thompson
      • Shylesh Viswanathan
    • Affiliation
  • Services & Industries
    • Accounting Services
    • Business Consulting
    • Entertainment Industry
    • Estates and Trusts
    • Financial Planning
    • International Taxation
    • Tax Strategies
  • Insights & News
    • Santa Monica Office Announcement
    • Principal Announcement
  • Client Resources
    • Client Portal
    • Tax Forms & Resources
  • Payments
  • Contact

How to Rightsize Your Company

10/12/2022

 
Are you rethinking your workforce strategy? The pandemic drastically changed markets. Many businesses closed in 2020, others retrenched and still others boomed. As you address your company's needs, are you wondering if you have enough workers to operate effectively?
Rightsizing is the process of making a company a more functional size. It's often treated as a euphemism for downsizing, and it can feel that way from the receiving end, but it's not the same thing. It can include hiring as well as layoffs. But you shouldn't be squeamish about laying off employees if that's what conditions on the ground require.

Changing marketing conditions, fluctuating customer trends and pivoting internal goals cause businesses to rethink human resources. Rightsizing is about getting your organization to the right size for its strategic objectives. You may decide on one of several goals for your rightsizing initiative:
  • Hire new staff to fill in holes if you think certain kinds of expertise are missing.
  • Shift and retrain current workers to fit new roles to better use their in-house and functional knowledge.
  • Add more management to increase guidance if needed under the new organization.
  • Reduce vertical layers to improve communication flow.
  • Expand departments to increase output.

Of course, the first step in any initiative is constructing a plan. In this case, your planning process will focus on identifying the company's HR needs and determining whether they are being met. To properly rightsize your company to become more efficient and profitable, follow these steps:
  • Conduct structural diagnostics: Analyze your departments and functions to understand what each role is designed to do and how it contributes to your company goals. Find where redundancies are, see which experience gaps need to be filled and come to a better understanding of how each department and employee helps your firm.
  • Identify essential roles and personnel: Which roles are essential to your firm's success? You'll gain greater insight into which specific employees you need to keep based on experience level and unique expertise.
  • Determine operational requirements: Understand the total cost of your workforce, the full report of labor and overhead costs.
 
Consider the process
Rightsizing sometimes requires hard eliminations of duplicate work so you can run more efficiently and without redundancies. Sometimes it requires paring down a workforce and restructuring certain systems. It's critical that you communicate openly and honestly with employees to ease tension and build trust with your teams.

This work isn't a one-time event, but a continuous activity to help your firm more effectively perform to reach its goals. However, a careful look at how your objectives have changed in the aftermath of the pandemic is advisable now in particular. Deciding whether your company is equipped with the skills to succeed can help you determine if rightsizing will help your organization. You may be doing less business than you were in February of 2020, or your employees may be on the verge of quitting due to overwork.
​
Rightsizing engages teams with the structure and resources to maximize their potential, enabling your firm to plan more effectively for the future. You want to properly equip your company to meet its future goals. Rightsizing may be your path leading to the greatest benefits overall, but it doesn't come without risks, so take a holistic view when looking for redundancies to make sure you're as effective as you hope to be. Be prepared to manage a shift in direction and consider working with consultants who can help you with your specific rightsizing needs.

Comments are closed.

    Newsletter articles are posted every 2 weeks. ​

    If you would like to have our e-newsletter delivered directly to your inbox, please sign up. Your information is confidential; you can unsubscribe at any time. Subscribe.

    Categories

    All
    1040-X
    1099 Form
    2024 Numbers
    401Ks And IRAs
    Alternative Minimum Tax
    Annuities
    Appeals
    Apprenticeships
    ASC 606
    Audits
    Automation
    Backup Withholding
    Blockchain
    Bonuses
    Business Accounting
    Business Closure
    Business Deductions
    Business Structure
    Business Taxes
    Business Tips
    Capital Gains
    Cash And Accrual
    Charitable Gifts
    Clean Vehicle Tax Credit
    Commercial Real Estate Vacancies
    Compensation
    Consulting
    Coronavirus Relief Package
    Credit Score
    Crowdfunding
    Debt To Income Ratio
    Deductions
    Depreciation
    Digital Assets
    Dividends
    Dollar Cost Averaging
    Earned Income Tax Credit
    Economic Injury Disaster Loan
    EIN Employee ID Numbers
    EITC
    Employee Classification
    Employee Leave
    Employee Overpayment
    Employee Pay
    Employee Retention Credit
    Employee Taxes
    Employment Taxes
    Estate Planning
    Estates And Trusts
    Estate Taxes
    Executor
    Family Businesses
    Family Leave
    FATCA
    Federal Excise Tax
    Filial Responsibility
    Financial Planning
    Flood Insurance
    Foreign Earned Income
    Fraud
    Fringe Benefits
    Gift Taxes
    Health Care
    Health Savings Account
    HIPAA
    Hiring Compliance
    Hiring Help
    Hiring Tax Credits
    Hobby Vs. Business
    Home Energy Tax Credit
    Home Office
    Homeowners' Deductions
    Income Tax
    Independent Contractors
    Inflation
    Innocent Spouse Rule
    Insurance
    Intangible Assets
    Intestate
    Inventory Management
    Investing
    IRAs
    IRS Disagreements
    IRS Representation
    Isabilities-act
    Key Performance Indicators
    Layoffs
    Lease Accounting
    Leave
    Legacy
    Life Insurance
    Loans
    Managing Employees
    Market Capitulation
    Medicaid Trust
    Medical And Dental Deductions
    Medicare
    Mortgages
    Net Pay
    News
    Nonprofit Entities
    On-Call Pay
    Overtime Exemption
    Pandemic Planning
    Paycheck Protection Program
    Payroll
    Payroll Goals
    Payroll Taxes
    Pensions
    Personal Accounting
    PPP Loan
    Prenup
    Profit Sharing
    Property Taxes
    Quarterly Tax Returns
    Real Estate Taxes
    Record Keeping
    Recovery Rebate Credit
    Referral Program
    Refinance
    Rehiring Staff
    Remote Employees
    Reputation
    Retirement
    Reverse Mortgage
    SBA Loans
    Scams
    Schedule K-2 And K-3
    S Corporations
    Sick Leave Rules
    Social Security
    State And Local Taxes
    Student Loans
    Succession Plan
    Supplemental Wages
    Supply Chain Risks
    Taxable And Nontaxable Income
    Tax Changes
    Tax Debt
    Tax Deductions
    Taxes
    Tax Implications
    Tax Planning
    Tax Tips
    Unemployment Tax
    Unmarried Partners
    W 2 Form
    Wages And Overtime
    Wildfire Solution
    Wills And Trusts
    Withholding
    Work Opportunity Tax Credit
    Year End Tax Considerations

    RSS Feed

Proudly powered by Weebly