How to talk to subordinates about planned divestiture

A company divestiture is always tricky, even if the decision was made to improve the company’s path and prospects. And not because of financial problems.

An essential part of this is to get the information to your subordinates in time to help them adapt to turbulent conditions. Unexpected is good when playing at eldorado casino. In the work process, predictability and transparency.

Honesty is the most important thing

It may seem to the management of a company that plans to sell certain divisions remain known to a narrow company. It is rarely the case in reality.

Subordinates notice management’s attention to the division before the information-gathering decision-making stage. Especially if the company is struggling. And the expectation of layoffs has a logical basis. 

Somebody can speak up. Hints could be better. They make people want to guess unknown information. Remember, people always tend to view the unknown in a negative light. People believe in the best when play casino eldo. Not in matters of jobs, salaries and layoffs.

Therefore, it is better not to hide anything once the company management has decided to divestiture. Thanks to clear and understandable communication, subordinates will not come up with frightening versions of the development of events.

At the same time, it is not worth spreading information about divestiture if the decision has yet to be made. The sale is being considered today, and tomorrow, it will be removed from the agenda. If subordinates receive contradictory information, the team’s efficiency will undoubtedly drop. Increase anxiety and nervousness. Some employees will begin a secret search for a new job. 

Explain the prospects and help to adapt

From the HR point of view, divestiture can happen in several ways.

• The company sells the division and employees because they are considered an important asset.
• The buyer is interested in acquiring the division’s production capacity or expertise. At the same time, it is planned to replace the team with people already working for the buyer. In such a case, it can be expected that all employees whose employment contract allows this will be laid off.
• The intentions of the potential buyer regarding the employees need to be clarified.

In any case, a change of ownership and management is complex. It is associated with changes in corporate culture, possible pay fluctuations, and company prospects.

Therefore, it is better to centralize and communicate to subordinates in advance all available information about the changes that await them. Representatives of the HR Department should explain what rights the company’s employees have in this situation. Particular thought should be given to employees who have already devoted much of their lives to the company. Loyal personnel have a high value. If their specialty allows them to change positions without pain, it is worth offering them places in departments that remain in the company.