The first option is the redevelopment of staff capabilities, primarily through reassignment of duties or on-the-job training (OJT). Typically in this situation, employees acquire the new skills they need for their new role. Recognizing the importance of job security for their workforce, we spend time repurposing the capabilities of the staff.
Second option requires staff layoffs, letting go of employees that do not have the required skills and capabilities, and bringing in new personnel. We avoided replacing staff through restructuring, the combination of restructuring and recruitment of new personnel, along with layoffs, which is a classic HR strategy.
Third option is effectively a modification of the second option: “Acqui-hire.” Effectively, this is M&A (mergers and acquisitions) with the primary aim of securing the talent of the acquisition target. We are too small to do this, but we have identified acquisition targets.
Fourth option is a “spin off” such as converting back-office divisions into a shared services company or transferring sales and service units to an external company. A spin-off company can establish its own personnel system and remuneration levels separate from the parent. In this scenario, recruitment policy is concentrated solely on hiring talent suited for specific roles. Another advantage is that the parent company then consolidates its business with the appropriate number of employees required for the new strategy.