How to Build Trust and Address Employee Concerns in a Business Sale Transition
When selling your business, you may feel a mix of seemingly conflicting emotions: exuberance and anxiety, happiness and sadness. So imagine what your employees might feel when they hear about the sale.
The fear, uncertainty, and anxiety felt by employees can disrupt your workplace or even derail you from selling your business altogether. However, you can build trust with employees and address their concerns in ways that support your workforce and contribute to a smooth transition.
Early planning with business brokers like those at Sunbelt Business Brokers is crucial. Knowledgeable professionals can guide you in leading with four key strategies to help employees through the transition.
Sunbelt Business Brokers has deep knowledge and vast experience in buying and selling small and medium businesses. Here are the steps you can plan to build trust and address employee concerns during a business sale transition.
Be Transparent From the Start
If your business is like many other small companies, several of your employees have been with you since you opened your doors. Often, they are family or are like family, and you want to treat them right and see that the business continues to run as smoothly as possible.
Still, being transparent from the start doesn’t mean you tell employees you’re selling the business at the beginning of the deal. Maintaining confidentiality is important to the sale. Instead, being transparent means openly and honestly talking to employees about the business sale as soon as possible.
The announcement should include:
- The reason for the sale
- The potential impact on their jobs
- The plans of the new owner
Open and honest communication with employees can ease anxiety and build trust.
Create Open Channels for Employee Feedback
You can expect employees to have something to say, including things you might not want to hear. However, addressing their concerns head-on can help allay fears and show them that they’re valued. By actively listening to employees, you can address their anxieties honestly and quickly.
Encourage your employees to provide feedback and create a platform where they can share their thoughts and read everything their colleagues have to say. Consider providing regular updates on the progress of the sale once it has been announced.
Involve Employees in the Transition Process
Selling your business will require a lot of work. Not only can key employees feel more involved if they provide input on changes or due diligence, but delegating work to them also adds value to your business.
A buyer will see that the business can operate without you, which is a point of value for someone who likely won’t run the business day-to-day as you did. Involving key employees in the transition allows them to feel they are part of the process instead of feeling as if something is being done to them.
Communicate Long-Term Opportunities and Support
Be empathetic and acknowledge the fear, uncertainty, and anxiety employees may feel. You can be supportive by assuring them about their jobs, emphasizing that the culture and core values of the business will remain, and offering training for new systems, procedures, and leadership.
Collaborating with human resources can establish the training programs needed and reinforce the company culture and core values. Having HR onboard also helps you build the other support programs employees need and assists the company in complying with legal requirements related to the sale.
Get Help From Sunbelt Business Brokers for Your Sale
Selling your business can be difficult for you and your employees. Including support for workers in your exit planning can build trust and address employee concerns, which in turn helps smooth out the business sale process.
At Sunbelt Business Brokers, we have the experience and knowledge to sell your business with the least disruption and risk. Get in touch with us today.