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Combating Covid-19: The Transition

Take responsibility for the behavior of your organization. Develop a smooth communication. Start the conversation by recognizing the contributions and accomplishments of everyone to the company. Explain the status of the organization. Give employees an overview and/or historical outline of the corporate decision at large. Let them know that the decision is for everyone in […]

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Selling or Closing Business
Selling or Closing Business

Take responsibility for the behavior of your organization. Develop a smooth communication. Start the conversation by recognizing the contributions and accomplishments of everyone to the company. Explain the status of the organization. Give employees an overview and/or historical outline of the corporate decision at large. Let them know that the decision is for everyone in the business not just to the owner.

Set The Tone and Tell the Reason of the Corporate Plan

They will be affected by the decision, and this typically goes along with their contract. You can make negotiations in the contract to help them through. The buyer, if selling the business, may agree with you to keep the contract of the employees. It would be better to know what the buyer thinks about this and inform employees. The earlier they know about it, the better.

Give Staff a Career Choice and Let Them Commit

Layoff is usually bad news for employees. However, there are buyers who will require some employees to stay with the new owner for some time. Whether it’s for a smooth transition or continuous operation, keep those who have significant roles in the operation. Discuss with them the terms laid by the buyer. Say them: “We can hire someone to write resume for you so that you’ll have more chances to get a new job”, or “Provide you with some good recommendations for future employers”. Sit with them individually and discuss their employment contract. Give them assurance of their future in the new management

Also, let them keep the new deal between you until the official announcement.

Provide Employees Support

Give employees assurance that despite the probable layoff, you will be there for them. Possible unemployment will cause them concern. Make all possible ways to help and support your people. You may be a reference to their job applications or you may offer them with letters of recommendation.

Fulfill their termination clauses. Meet employees’ rights after termination. They need to know when their employment will officially end. Work out on their compensation and benefits. They may use any accumulated vacation and/or leaves until the termination of their contract.

Provide them with a list of businesses for them to contact. There would be a lesser chance for them to get anxiety over the transition when you equip them in finding a new job.

More so, there are some things you need to consider when breaking the news.

Factors to Contemplate When Delivering the News

Be prepared upon sharing the decision with the people in the organization.

  • The news you are about to disclose will be life-changing to your staff. Be sensitive to how they may react to it.
  • Communicate with them logically and in order. Spend time to write the talking points of your announcement. This will help ensure that everything will be discussed properly.
  • Provide them with a copy of the things you shared as the announcement may cause them temporary shock and forget some details.
  • Allow them to speak their mind on the information they just received. Let them ask questions for further understanding of the corporate situation and their employment status. Address their concerns as best as you can to prevent misunderstanding and potential complications.
  • Most importantly, be sensitive and respect their emotional responses. Go the extra mile to make time for individuals in need of expressing their emotions.

The whole process of selling or ending small business enterprise is not as easy as you may think more so its disclosure to employees. There are logical specifics you need to consider, organize, and strategize to the best that you can as their human resource head.

This is a personal decision as a corporate owner and as an HR lead. You need not complicate the issue though by keeping employees blind about it. Good luck!

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