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Employee Retention StrategiesIn a perfect world, when one business buys another, the staff of the purchased company would be able to transition into a role with the buying company. Unfortunately, this isn’t always the case. What’s more, the company being purchased may not know what is going to happen to its employees for some time. In many cases, the company being purchased will need to tell their employees about the sale before they really know what that means for their future. When this happens, how do companies get their employees to stay on board and keep them engaged during the transition?

While it may be impossible to keep everyone on board, there are a few tactics employers can use to encourage employees to see them through a transition.

While it may be impossible to keep everyone on board, there are a few tactics employers can use to encourage employees to see them through a transition.

Transparency

The worst thing that can happen for employees is to hear about the sale and their impending loss of employment through the grape vine or some unreliable channel. Being completely honest with employees as soon as possible helps to maintain trust and relationships employees already have built with their leaders. The minute employees feel as though information is being withheld or trust is broken, they are unlikely to want to stick around.

Integration

If it has been determined that employees may have the opportunity to stay, integrating them into the new company culture as quickly as possible will help them build loyalty to that new company and its leaders. If there is an interview process, helping employees prepare by sharing information or skills the new company would be looking for will help them feel supported in the transition.

Stay Bonuses

When and if it is determined that the new company may not be transitioning any of the current employees, stay or retention bonuses may be necessary to keep employees on board until the sale is final. These bonuses are paid out to employees who stay with the company until the official last day. If the period between the announcement and the last official day is long, it may be beneficial to pay out stay bonuses in increments at certain intervals or milestones throughout the sale.

Dealing with employee retention during the sale of a business can be a touchy subject, but with the proper planning and forethought, employees can help businesses transition smoothly.

 

Employee Retention Strategies During the Sale of a Business
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