A survey of 3,400 organisations in Australia has revealed that 54% of Australian employers are restructuring their department or organisation to keep up with changing business needs, up from 52% last year.
According to the 2019/20 Hays Salary Guide, 49% of employers cited a change in the required skill sets as the key driver of organisational restructures – well ahead of digital transformation (24%), the requirement for a more flexible workforce (also 24%), a merger or acquisition (18%), downsizing (13%), outsourcing (8%), offshoring (5%), or inshoring (2%).
“Restructures driven by a change in the required skill set are often the result of today’s growing trend of adopting cross-functional operating models,” said Nick Deligiannis, managing director of Hays in Australia and New Zealand.
“Traditionally, an organisation consisted of functional departments, but given today’s pace of change, there’s a need to move toward matrix, cross-functional, or hybrid structures to better enable collaboration and a customer-focused approach. Customer-centricity is a key focus and area of differentiation for most businesses, particularly in terms of how an organisation is most effectively and efficiently structured to deliver value to a customer. There’s a real focus on securing candidates who understand the customer journey and with competencies in agile methodology and business projects and change.”
Other factors driving restructures include rapid technological developments, such as AI and automation, which create a need for new capabilities, the requirement for additional expertise in response to outside factors, such as cybersecurity or risk and compliance, and the introduction of new and non-traditional executive roles.
“These restructures are a clear indication that the supply of professionals with the skills that employers need is tightening,” Deligiannis said. “With candidate shortages remaining problematic for organisations, hiring in for specific skills – both technical and soft – will therefore be a priority for change, growth, and competitive advantage.”
Hays said these changes make employers increasingly turn to external providers to assist with workforce change and secure top talent during a restructure.