Have you ever felt that your organization has too little employees? Or have you felt that you have too many employees? As your company grows and develops, you need to adapt. With this, you may notice that your workforce size isn’t right. This is where organizational rightsizing comes in.


What is organizational rightsizing?

In an article shared in Economics Discussion, organizational rightsizing is defined as “the process of making a company or organization a more effective size”. This means that, contrary to popular belief, it’s not just another term for downsizing.

Downsizing involves reducing the number of employees to increase profit and decrease redundancies. Rightsizing, on the other hand, implies more than this. The main purpose of rightsizing is to reorganize your company to achieve your new business objectives. Depending on your objectives, you may have to downsize or upsize your organization.


Does your organization need rightsizing?

Your business objectives have changed

Are your goals still applicable to the current market conditions? An organizational assessment can help you review your goals and if you need to revise them.

Depending on the current situation, you might need to adjust your business objectives. Which, in turn, may affect your company’s workforce and call for rightsizing.

For example, the COVID-19 pandemic drastically changed and still continuously changes the market globally. In a Washington Post article, they report that more than 100,000 businesses—in America only—have closed forever. Many businesses in the Philippines have also made painful decisions to keep operations going. Some organizations have retrenched such as aviation leaders Cebu Pacific and Philippine Airlines, and one of the country’s largest provincial bus companies, Victory Liner.


There’s a skills gap you want to address

If there’s a skills gap you want to address, you may need to rightsize. You can either upskill your workforce or hire more employees. While upskilling has its benefits, it’s not always the answer. Some positions that need certain competencies may require you to look for a new employee. For instance, when the Data Privacy Act of 2012 was passed, many organizations recruited for Data Privacy Officers.


Your current workforce size can’t effectively support your company

If in your organizational audit you notice that your current workforce is overloaded, you need to rightsize. Having more workers can help your company operate more effectively. It also prevents your employees from burnout due to overwork. Which, in the end, helps make them stay.


Your employees are your greatest assets. As your business experiences various twists and turns, your workforce should be able to support you. Having the right workforce size is an integral building block for your organization’s success. This is where organizational rightsizing can help.


People Dynamics’s affiliate, Profiles Asia Pacific, offers the ProfileXT® (PXT), a multipurpose, total-person psychometric instrument whose roots extend over the last twenty-six years. The ProfileXT® measures job-related qualities that make a person the right fit for the job that can help you retain key talents that are critical to business success and helping you keep your organization at the right size. For more information, you may email them at solutions@profilesasiapacific.com, contact them through their website, or call them through the following numbers: (+632) 8 637 8770 / 8 635 0016.