Turning Around a Struggling Company—Through the HR Lens

I’ve led more than a half-dozen plant turnarounds in my career. Each one had its own unique challenges—high turnover, toxic leadership, disengaged employees, or operational breakdowns. But despite the differences, the formula for success was always the same. And the main ingredient? Trust.

When a company or plant is struggling, the instinct is often to overhaul policies, restructure departments, or impose tighter controls on expenses. None of these issues will fix broken cultures—leadership does. And leadership begins with trust.

Stephen M.R. Covey, in The Speed of Trust, explains that trust comes from two key elements:

· Character – Being honest, keeping promises, and aligning words with actions.

· Competence – Delivering results, solving problems, and adapting to change.

A struggling company doesn’t just need new strategies, it needs leaders who inspire trust at every level of the organization. When employees trust their supervisors, supervisors trust management, and executives trust their teams, real change happens.

Turning a plant or company around isn’t about quick fixes, it’s about building a culture where trust fuels engagement, accountability, and performance.

Here’s how to establish trust at three critical levels: plant employees, supervisors & managers, and executives.

1. Building Trust at the Plant Level

Front line employees don’t trust titles, buzzwords, or flashy initiatives—they trust actions.

They’ve seen it all before: leadership makes bold promises, rolls out the latest “culture change” program, or introduces a new incentive plan—only for it to fizzle out months later. To them, these things are just noise.

In a struggling plant, trust isn’t given—it’s earned, day by day, through consistency, transparency, and genuine leadership.

Employees trust leaders who show up, who listen, and who prove through actions—not words—that they care.

How HR Can Build Trust on the Floor:

· Be Visible. Get out of the office, walk the floor daily, introduce yourself, and ask employees how things are going. A five-minute chat can uncover problems you won’t hear about any other way.

· Be Present. If your plant runs extra shifts, show up. Even if it’s just for a little while, being there sends a message: “I see you, I care, and we’re all in this together.” No double standards. The same rule applies to every other functions, not just HR.

· Fix Quick Wins Fast. If employees mention a broken water fountain or outdated PPE, fix it immediately. Small improvements show you’re serious about making things better.

· Protect Good Bosses from Toxic Employees. Employees know who the troublemakers are. Don’t let them bring down good leaders. If someone is divisive, they need to become happy alumni.

· Protect Good Workers from Bad Bosses. If employees feel like HR ignores toxic supervisors, they won’t trust you. Stand up for employees who are being mistreated. No leader has the right to infringe on employee rights—don’t let it happen.

· Be Honest. If you say, “I’ll look into it,” follow through. If a big change is coming, be upfront about it—good or bad. People respect honesty, even when it’s hard to hear.

2. Building Trust with Supervisors & Managers

One of my bosses (enterprise level) once asked how I measured my effectiveness. My answer was twofold:

1. If my plant or division was winning, so was I. If they weren’t, neither were I.

2. How often did supervisors and managers ask for my thoughts and opinions. If they were asking questions, they valued the answers. This is progress.

By being available, it provided real insights into what training was needed. At times, it was demanding but it was worth it.

Supervisors are caught in the middle—pressured by employees and upper management. Many have never been trained to lead, yet they’re expected to enforce policies, drive results and do the other 50 things daily leadership demanded of them.

Managers, meanwhile, focus on production, quality, efficiency and unfortunately, see HR as an obstacle rather than a partner. This needs to change.

How HR Can Support Supervisors & Managers:

· Train Them. Supervisors are the backbone of any organization, yet many are promoted due to technical skills with little to no leadership training. Help them develop fundamental leadership, communication, conflict resolution, and management skills.

· Listen to Their Struggles. Listen to supervisors and managers just like you listen to employees. Identify their pain points, understand their struggles, and work to solve their challenges.

· Support Them Publicly, Correct Them Privately. When supervisors make mistakes, don’t call them out in front of employees. Coach them privately and let them correct their errors to maintain credibility. This is especially important with employee complaints. HR can never circumvent the supervisor. I used to say, if you feed a stray cat, what do you get? Don’t condition people to get results by complaining to HR.

· Empower Them to Make Decisions. Micromanaging kills motivation. Give supervisors authority to make decisions, except when it comes to firing an employee—that requires discussion and scrutiny.

· Be Their Partner, Not Just a Policy Enforcer. Every interaction is a chance to teach. If HR is seen only as the “rule enforcer,” supervisors won’t trust you. Engage in frequent conversations to help them navigate challenges.

· Hire the Right People. The right hire makes all the difference. This is where Predictive Index (PI) helps. Hiring employees who don’t fit the job creates friction for supervisors and co-workers. Examples:

o Hiring a highly dominant candidate for an assembly line position creates a high-maintenance employee.

o Hiring someone who craves variety for a repetitive job sets them up for failure.

o Hiring employees who resist structured processes, safety rules, and quality protocols will not end well.

· Solve Problems, Don’t Just Enforce Rules. If HR always says “no,” managers will shut you out. Instead, ask, “How can we make this work?”

Key Takeaway: Supervisors and managers need HR’s support, training, and trust. If they see HR as an ally, they’ll help drive positive changes instead of resisting them.

How HR Can Gain Executive Trust

1. Tie HR Initiatives to the Bottom Line

Executives don’t just want to hear about employee engagement; they want to see how it affects financial performance. HR must connect talent strategies to profit and efficiency:

· Retention matters: Gallup estimates that the cost of replacing an employee can range from 50% to 200% of their annual salary. If turnover is high, it's a financial drain.

· Engaged employees drive results: Companies with highly engaged employees are 23% more profitable, according to Gallup.

· Poor hires are expensive: The U.S. Department of Labor estimates that a bad hire can cost 30% of the employee’s annual salary—or more if they impact team morale and productivity.

2. Present Solutions, Not Just Problems

Nothing frustrates executives more than hearing problems without solutions. Data-backed recommendations build credibility. Instead of simply reporting turnover, absenteeism, or engagement issues, HR should:

· Quantify the problem (e.g., “Turnover is costing us $1.2M annually.”)

· Show the business impact (e.g., “It’s increasing overtime costs and slowing production by 15%.”)

· Propose a solution (e.g., “If we invest in supervisor training, we can cut turnover by 25%, reducing costs by $300K.”)

HR must be proactive, not reactive. The best way to earn executive trust is by bringing data-driven solutions before leadership asks for them.

3. Think Like a Business Leader

Executives respect HR leaders who understand the business, not just HR policies. To gain credibility:

· Know the company’s financials. Read quarterly reports, understand profit margins, and track key performance indicators (KPIs).

· Speak their language. Instead of focusing solely on employee satisfaction, tie it to business outcomes: “Improving engagement by 10% can increase productivity by 5%, translating to $2M in additional revenue.”

· Align HR goals with business strategy. If the company is focused on market expansion, HR should develop a recruitment strategy to support growth.

4. Train, Train, Train to build a Leadership Pipeline

One of the biggest concerns for executives is succession planning—who will lead next? It’s a critical issue, yet most companies struggle to address it effectively. A Deloitte study found that 86% of business leaders see leadership succession as urgent, but only 14% believe they do it well.

The problem? Leadership development is often the first thing cut when business slows down and the last priority when things are booming. In downturns, it’s seen as an unnecessary expense. In good times, it’s dismissed with, “We don’t have time.” But without a strong leadership pipeline, companies risk instability, stalled growth, and losing their top talent.

HR plays a vital role in identifying, developing, and preparing future leaders, but leadership development can’t be an afterthought. It has to be intentional, data-driven, and directly tied to business needs.

How to Build a Strong Leadership Pipeline

· Make leadership development a priority, not an afterthought. Implement structured training and development programs for employees who want to grow. Talent doesn’t develop by chance—future leaders must be identified early and nurtured consistently.

· Invest in internal promotions—but do it wisely. Promoting from within shouldn’t be a knee-jerk reaction; it should be a strategic move based on leadership potential. Companies that develop and promote their own talent retain employees 41% longer, according to LinkedIn. When employees see clear career paths, they’re more engaged and less likely to leave.

· Train managers to lead. Poor leadership is a top driver of turnover—employees don’t leave jobs; they leave bad bosses. Gallup research shows that 70% of the variance in team engagement is tied to the manager. If you want a high-performing team, you need high-performing leaders.

· Leverage data-driven leadership development tools. One of the most effective ways to build a leadership pipeline is by using behavioral analytics and talent optimization tools like Predictive Index Inspire. These tools help companies:

· Identify high-potential leaders based on behavior, not technical skills.

· Develop individual self-awareness with personalized coaching and development tailored to individual strengths.

· Reduce leadership turnover by ensuring the right people are in the right roles.

· Strengthen team dynamics by helping managers communicate and lead more effectively.

The Bottom Line:

If leadership development isn’t a priority today, it will be a crisis tomorrow.

Investing in training, mentorship, and leadership development now ensures stability, drives engagement, and fuels long-term success.