We often speak to clients who feel awful and stress about the process. It is not just the Director but it affects his/her livelihood, family and friends alike.
Everyone wants to talk about the successful company, but no one wants to talk about the struggling ones. And there is little information out there about how to handle these situations. This article will help in some way to those who are in a similar situation working for a struggling or faltering company.
Lesson 1: Be Human
Working through insolvency, looking for a potential buyer, and a possible liquidation is emotional for everyone. Let yourself be human. You need to be strong, but it is ok to show emotion and concern. You are allowed to be sad and stressed!
Lesson 2: Communication
Uncertainty is worse than bad news. If people do not know what is going on, they will think the worst. Tell them what you can, when you can and as often as you can.
Lesson 3: Words are Powerful
Whatever you communicate, whether verbal or written, choose your words carefully. Employees are relying on that information. Have your Professional Advisor review it before you send it out. If possible, talk to a friendly party and ask them to review it too as they will add a human touch to it.
Lesson 4: Things Will Change
Your timeline will very likely change multiple times! One day you have a buyer, the next you don’t. But, when you’re sure of the outcome, communicate as quickly as you can and don’t
make things look better than they are. Say it as it is!
Lesson 5: Calm
Do not overreact. It’s difficult to not feel pressure and stress knowing what could happen. But keep your anxiousness in check and take time to think things through. You should be gathering as a group to make decisions and review concerns regularly. Two, three, four, five heads are always better than one!
Lesson 6: Don’t Stop
During periods of anxiety it’s important to keep things moving forward. Don’t just stop projects because you’re uncertain of the future. Afterall, if you emerge a stronger company you don’t want to have lost ground.
Lesson 7: Investigate
If you have retirement plans and healthcare plans, start talking to your consultants about these plans early on asking what would happen if the company does not emerge. It is going to take some time to get all the answers.” When there is uncertainty about the company’s long-term future, concerns regarding benefit and retirement plans will be one of the top priorities for everyone! Providing them answers as quickly as you can, will help them move forward with their own personal decisions.
Lesson 8: Support
Lastly, think about what you need to do to support employees’ transition should your company not emerge. Prepare Questions & Answers about how the process will work and what will happen with benefits, organizing career fairs, preparing resume writing and interview skill classes. Do not wait until the last minute, as there will be little time to react.
Your state unemployment/workforce development offices provide a wealth of support, but do not just rely on them, there is a lot you can do to supplement that work.
How you react in times of crisis will make all the difference in how your employees feel about their transition. When you liquidate a company there is normally nothing positive that comes from it. Giving employees the tools to find their next opportunity will hopefully provide them peace of mind and assist them for future success.
Next steps If you want to find out anything further about this topic then please feel free to call me on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email me vee@navigatebr.com.
This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.
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