Fractional HR for Restructuring

In a restructuring, the people side doesn't have time for a six-month executive search. A fractional HR leader offers immediate, high-level HR leadership to support workforce transitions, stabilize the organization, and safeguard critical talent during times of change. They are on hand from the start, working closely with your legal and finance teams to help you manage workforce planning, minimize risk and make decisions quickly and carefully.

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Fractional HR Leadership

RESTRUCTURING WITHOUT HR LEADERSHIP IS A LIABILITY

A restructuring affects all levels of your organization. Roles change, teams are reorganized, reporting lines are adjusted, and uncertainty quickly permeates. In a time of change, businesses can find themselves facing unnecessary legal liability, miscommunication, and loss of critical talent if they are not led by senior HR executives.

The difficulty lies in the timing. The leadership of experienced people is needed now, not after months of an executive search. Meanwhile, the need is temporary. After the restructuring is stabilized, a permanent executive position might not be needed.

This is where fractional HR leadership comes in.

IMMEDIATE AVAILABILITY

No long recruitment cycle. A fractional HR leader can be integrated in days and offer immediate HR advisory services and hands-on leadership during critical transitions.

SENIOR CAPABILITY

HR expertise at the executive level, not a junior consultant learning at your expense.

BUILT-IN EXIT

The engagement is to be scaled to the life of the restructuring. After the stability is restored, the fractional HR services gradually reduce and there is no long-term overhead.

CROSS-FUNCTIONAL FIT

Collaborates closely with legal, financial and insolvency professionals to facilitate effective decision making throughout the restructuring process.


RESTRUCTURING SCENARIOS WE LEAD

Each restructuring has a critical people strategy element that can make or break the success of the restructuring. These are the situations in which organizations hire fractional HR leadership to lead the way.

01

Post-Merger & Acquisition Transitions

Mergers and acquisitions are not only about businesses, but also about cultures, roles and expectations. A fractional HR leader oversees the entire process of integrating the entire workforce, looks for redundancies, and helps keep key talent on board while collaborating with deal teams and legal counsel.

  • Workforce integration planning
  • Cultural alignment and assessment.
  • The rationalization and redundancy of roles
  • Key talent retention strategy
02

CCAA & Insolvency Proceedings

When it comes to HR decisions in insolvency and creditor protection cases, the balance is between legal requirements, financial considerations, and the human impact. A fractional HR leader manages workforce planning, severance coordination and communication strategy, and works with insolvency professionals and legal counsel.

  • The right sizing and planning of the workforce.
  • Coordinating severance and accrual benefits
  • Communication with stakeholders and creditors.
  • Outplacement planning and support
03

Downsizing & Workforce Reduction

When cutting staff, it's important to do it right to prevent legal liability and long-term employee morale issues. A fractional HR leader is responsible for planning, communicating, and coordinating with employment counsel and helping the rest of the staff through the uncertainty.

  • The process of reducing and sequencing a plan.
  • Employment compliance coordination
  • Employee communication strategy
  • Workforce stabilization planning
04

Rapid Growth & Scaling

Informal systems tend to be broken by rapid scaling. Clarity of job roles diminishes, decision making becomes slower, and culture becomes inconsistent. A fractional HR leader creates structure, clarifies roles and creates scalable HR systems to support sustainable growth.

  • Organizational design for scale
  • Role clarity and accountability frameworks
  • Designing infrastructure and processes
  • In the process of expansion, the culture is preserved.
05

Strategic Pivots & Organizational Redesign

Structure must follow strategy. From new markets to new operating models, a fractional HR leader is responsible for the people side of change, ensuring teams, roles and capabilities are aligned with the new direction.

  • Structure-to-strategy alignment
  • Capability gap analysis
  • Redesign and restructuring of teams
  • Make adjustments to communication and transition support.

WHAT YOUR FRACTIONAL HR LEADER OWNS

A fractional HR leader in a restructuring is not an outside consultant operating on the fringes. They are part of your leadership team, attend executive meetings, make HR decisions in real time, and own the people strategy you need to successfully execute the transition.

WORKFORCE STRATEGY & PLANNING

Identifying roles that stay, roles that change, and roles that go away in the workforce restructuring process. A fractional HR leader designs the future-state organization and develops a transition plan that is sequenced and aligned with restructuring objectives and business priorities while maintaining operational continuity.

TALENT RETENTION & FLIGHT RISK

Recognizing key staff members who cannot be replaced during a crisis. This encompasses high performers, key knowledge holders and culturally important team members. A fractional HR leader creates proactive talent retention strategies to minimize the risk of attrition before uncertainty or competitors affect the workforce.

EMPLOYEE COMMUNICATION

Having the entire communication plan for the organization, from the messaging schedule to leadership updates, manager talking points, and employee communication. Communication is key to HR restructuring to avoid misinformation, uncertainty and avoid unnecessary turnover.

CROSS-FUNCTIONAL COORDINATION

Collaborating directly with employment lawyers, financial advisors and insolvency professionals to ensure all HR restructuring decisions are consistent with legal, financial and operational needs. This involves planning for severance, assessing employment risk, and ensuring appropriate documentation during the transition.

ORGANIZATIONAL REDESIGN

Restructuring the company's structure for its new reality. A fractional HR leader restructures reporting relationships, defines roles and re-architects the team to meet future business requirements, not those of the past that no longer fit.

TRANSITION SUPPORT & KNOWLEDGE TRANSFER

Handling outplacement for departing staff, calming down the morale of the remaining staff, and preparing internal leaders for the new structure. One of the most important aspects of fractional HR leadership is the transfer of knowledge to ensure that the organization can continue on without the fractional HR leader.



RESTRUCTURING EXPERIENCE ACROSS INDUSTRIES

Sarah Seale Inc has guided organizations through the people aspects of their organizational restructuring in a variety of industries and transition types such as CCAA proceedings, post-merger and acquisition integrations, downsizing projects, and growth-stage organizational redesigns. Our strong background in HR leadership and deep expertise in the highly regulated, fast-moving environment empowers us to effectively navigate complex workforce transitions with our judgment, structure and people strategy execution.

47+ Cannabis Companies CCAA Restructuring Expertise 20+ Years HR Leadership Award-Winning Consultant

"Best Small Specialist HR & Recruitment Consultancy in Canada"
- Corporate Vision Awards

Recognized specifically for innovative restructuring and emerging market strategy - in environments where the pace of change and regulatory complexity make traditional HR approaches ineffective.


HOW THE ENGAGEMENT WORKS

ASSESS

We get to know the context of the restructuring, the immediate people risks and who else is at the table, whether the regulator, finance, board, or insolvency counsel.

EMBED

We work with your leadership team and start to translate the workforce strategy - usually within days of the initial meeting.

EXECUTE

We handle the human side of the transition - staff communication, retention, organizational change design and external advisors.

HAND OFF

We move on to transfer people management capability to internal leaders, document the new organizational model and close the engagement in a tidy manner.


FREQUENTLY ASKED QUESTIONS

WHAT DOES A FRACTIONAL HR LEADER DO DURING ORGANIZATIONAL RESTRUCTURING?

In the event of restructuring, a fractional HR leader joins your organization as a top-level people strategist. They handle the organization's workforce planning, retention, communication with employees, and redesign, amongst others, and are coordinating with your legal team, finance team, and other advisors. They work as an integral part of your leadership team, attend meetings, make people decisions and spearhead the human aspect of the transition on a flexible, fractional basis.

WHY HIRE A FRACTIONAL HR LEADER INSTEAD OF A FULL-TIME CHRO FOR RESTRUCTURING?

Restructuring is urgent and short-term. Recruiting and onboarding a full-time CHRO is a lengthy process that takes months - often too long for the timeframe of restructuring. A fractional HR leader can start within days, can start on day one at the senior level and can grow in involvement as the transition progresses through each phase. Once the restructuring settles into a new phase, the engagement terminates without any severance pay or empty executive position.

WHAT TYPES OF RESTRUCTURING CAN A FRACTIONAL HR LEADER SUPPORT?

Our services are available across various restructuring scenarios such as: post-merger and post-acquisition integration, CCAA and insolvency proceedings, company downsizing and workforce reduction, rapid growth scaling, strategic pivots and organizational redesign, and leadership transitions where the outgoing HR executive has left.

HOW DOES A FRACTIONAL HR LEADER WORK ALONGSIDE LEGAL AND FINANCE TEAMS?

The fractional HR leader is responsible for the people strategy and workforce management portion, and works closely with employment attorneys, financial advisors and insolvency professionals. They collaborate on employment risk review, severance obligation validation and documentation norms - and ensure workforce decisions are consistent with legal requirements and financial realities while not duplicating or going beyond the work of these specialists.

HOW QUICKLY CAN A FRACTIONAL HR LEADER START DURING A RESTRUCTURING?

The engagements usually start shortly after the initial conversation about discovery. Restructuring doesn't always wait for the ideal time to start, and fractional HR leadership is designed to be deployed quickly. Depending on your level of urgency and how far you need to get your systems and processes integrated, you can hire someone to work full-time for 90 days, or a few days a week for the duration of weeks or months.

WHAT HAPPENS AFTER THE RESTRUCTURING IS COMPLETE?

We bring leadership coaching, organization documentation, and people management systems into your inner team to keep the new structure alive. Some clients move to a less intensive advisory engagement, and some clients end the advisory engagement altogether once the organization has reached maturity. Exits are always made in an orderly fashion, not suddenly.

DO YOU HAVE EXPERIENCE IN REGULATED OR COMPLEX INDUSTRIES?

Yes. There are significant restructuring nuances in highly regulated industries such as cannabis, including licensing requirements, security clearance continuity and regulatory compliance considerations, in addition to the typical restructuring challenges with employee changes. This work was specifically recognized through our Corporate Vision Award.


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