Employees

Good News, Bad News

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Reading Between the Lines

In 2014, Tim Horton’s was acquired by 3G Capital Partners LP.  Since then, it seems that the acquisition is destined for success as the parent company (3G Capital) and its shareholders are reaping profitable rewards.   These profits did not come from an unplanned, accidental approach.  Instead, there have been and will continue to be, specific and tangible HR business strategies implemented as the company continues through the transition phase of the acquisition process.

Two intertwined arrows graphic
Source: maxuser/Shutterstock

Click Here to Read the Article 

Where do the profits come from?  The article speaks to the streamlining of services, cost efficiency and a new zero based approach to budgeting.  What does this mean?  Job loss, restructuring, outsourcing, downsizing, changes to infrastructure, and culture shift.  The acquisition and merger of Tim Horton’s into an international parent company provides us with evidence of what the theory looks like in actual practice.  Each of these elements has been part of the theoretical Strategic HR Planning discussions that have been included in course of study.

The ‘real life’ end result provides for a good news story about a successful acquisition and merger based on a profitable reward.  What is not included in the story, so far, is the reality of this profitable success and its impact on the hundreds of employees who have lost their jobs.

This too should be included in the tangible HR business strategy, as this particular story continues to unfold.

 Discussion Questions:

  1. Identify three HR business strategies that, when implemented, will result in increased efficiency for 3G Capital Partners LP.
  2. What are the back office functions that could and should be outsourced when two companies merge?
  3. What types of HR programs would help employees as they move through the transition phase of an acquisition or merger?
  4. In your opinion, is this a good news story? Why or why not?

HR Lessons Learned – Downsizing

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It seems that employer insensitivity knows no international boundaries.  In August of 2015, employees of the Australian company Hutchison Ports, received notices that they were losing their jobs first by SMS text,  followed by an e-mail confirming their job loss.  To make matters worse, the messages were sent at 11:30pm directly to affected employees.

Not surprisingly, reaction to this approach by the employer was swift and viral.

Click Here to Read the Article.

Clearly, the human element was not evident in the implementation of this downsizing plan.  No matter what difficult decisions are made by senior executives we, as HR Professionals, must ensure that these decisions include consideration for the dignity and respect of all employees.

The approach by Hutchison Ports created a huge backlash that continues to impact the organization’s international reputation and their profitability.  Rather than having to clear up the reputational mess that they find themselves in after the fact, it might have been better for Hutchison Ports to allocate a more time towards their communication strategy up front.

And, it might have been helpful to spend  a few minutes reflecting upon the humans involved before someone hit ‘send’ in the middle of the night.

Discussion Questions:

  1. What advice would you, as the HR practitioner, have given to the CEO of Hutchison Ports?
  2. What would you do if you received a notice, via text, that your employment was terminated?
  3. Identify two or three practical HR initiatives that employees should have had access to in this case.
  4. Identify three alternative approaches the employer could have used to communicate with employees about downsizing.

 

Investing in the Employment Relationship

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One of the most effective employee training programs, that HR Professionals can provide, is new employee Onboarding.

Bringing new employees into an organization represents a significant commitment.  Not just from a monetary cost perspective, but more importantly, from a long-term investment into the employment relationship.  HR recruitment and selection programs spend an immense amount of time and money ensuring that the right person is hired into our organizations.  That investment must continue to be nurtured by ensuring that the newly hired employee is integrated into the cultural fit of the organization for the long term.

Click here to read the article.

This particular program, outlined in the article above, requires a high investment of time and focused commitment within the first 90 days of employment.  Is that enough time to assess the success of employee integration?  Many provinces have employment legislation that has a similar probationary period.  It makes sense to make use of a 90 day framework in the most cost-effective way possible.

When we invest in any relationship, we want to be sure that there is an equivalent return.  The same applies for employer-employee relationships.  By checking in with our employees at the beginning of their employment journey we are checking in on our investment with the hope for a very high and long-term commitment in return.

Discussion Questions:

  1. What is the cost-benefit of having a new employee buddy program?
  2. Have you left a position or a workplace within the first year of your employment because you did not feel welcome? What influenced your decision to leave? What would have influenced you to stay?
  3. Identify three new employee engagement/training activities that an HR department can provide at little to no cost, within the first 90 days of employment.
  4. Identify cost-related losses that occur when an employee leaves an organization within the first year of employment.