This is a problem.
Time after time, in the midst of a change in company ownership there is no effective communication strategy in place to properly transition employees. This causes, among other things:
· Liability issues
· Employee termination
· Decrease in morale
· Injury to workplace culture
Remember, it is the humans in the organization who drive the value through task completion, process productivity, and client retention. If the new owner has to hire from scratch, replacing experienced employees, having lost the tenured, seasoned personnel, they run the risk of eroding the very business they have invested, which in turn is a loss of return on that investment.
Confidentiality is essential
No one is denying that discretion is vital to any purchase transaction; however, there is a way to mitigate the damages caused to employees during this transition.
Too many times, employers are mystified that the employees are angry, feel let down, and become frustrated when they find out the business has been sold, but it is important to remember:
· No one asked for employee input
· They don’t have any choice in the matter
· This kind of change disrupts the very fabric of the employee’s safety net, causing fear and anxiety of whether they will continue to be employed or will they be displaced or even replaced as a result of this change.
Yes, companies need to be flexible in today’s competitive global economy, but organizational change like takeovers, mergers, and acquisitions are major stressors for employees. Thoughtful, strategic planning with an effective communication approach relating what can be revealed within reason, over a period of time, will engage employees in the process and many times in fact make them eager to work for the new owner.
This revised approach promotes:
· Culture retention
· Innovation
· Excitement to new beginnings
· An opportunity to grow with the organization to new heights
Psychological safety
To lessen the impact of change on employees, consider:
· Setting expectations, relating that because of the competitive environment, the business is working toward improvement with the new ownership, which may also involve new technology, equipment, and processes. That they are likely to have the opportunity to upgrade and extend their skills and abilities to meet the changes is often exciting for long-term staff. Make these conversations positive, promoting how this will work in their favour as well as the business.
· Recognize the employee’s value to the organization, not only as it applies to their past tenor, but how their experience will be valued going forward. This is about building on previous successes for new opportunities for success under the new ownership. Rather than feel demoralized when they realize that the ground is shifting under their feet and they had no warning, instead, they will understand how impactful their foundation work is, and they will be more likely to be open to engaging in change and championing it to others.
· Relate the vision going forward. Communicate honestly, in the most positive light the intended vision for the future and expected results of the change. Employees need to see the benefits and the end goals in order to engage in the process. Tell them the story of “why” the change is happening. Allow them to be as excited as the outgoing owner for the new opportunities on the horizon.
· Most importantly, employers need to be open and honest about what is about to happen to lessen the negative impact of change on employee mental health.
Keep it real. Keep it positive.
Consider if there is an opportunity for employees to be involved in developing strategies that can be used to meet the goals of the new organizational structure and their job requirements? Giving employees a sense of control and input helps them to feel that they can manage the changes, and champion it to others on the team, for their future at work.
Employee Assistance Program
Never forget the value of the employee assistance program during these complex times to offer and provide support not only to the employee, but to their families as well.
Considering these steps will help manage the natural fear of change—the unknown—and make it not only known, but known with a plan of action that they can participate in.
This is where we drive innovation. Let’s have a conversation. Give us a call.
Note: this was written without the aid of Artificial Intelligence (AI)
Disclaimer: Please note that the information provided, while authoritative, is not guaranteed for accuracy and legality. The site is read by a world-wide audience and employment, taxation, legal vary accordingly. Please seek legal, accounting and human resources counsel from qualified professionals to make certain your legal/accounting/compliance interpretation and decisions are correct for your location. This information is for guidance, ideas, and assistance.
