Five Ways to Get Key Employees to Ride Out Big Changes

Business transitions can be difficult on workers, but company owners can take steps to incentivize key employees to stick around during times of change.

Employees stand in a circle and stack their hands in the middle to boost morale.
(Image credit: Getty Images)

When business owners begin planning for their eventual departure, they may overlook an important aspect — how key employees contribute to the overall health of their company.

As part of a company’s human capital, key staff members serve an important role in contributing to the success of a business. Their worth to business owners cannot be overstated.

There are several detrimental aspects to losing a key employee:

  • Loss of expertise that can be difficult to replace. Key employees often have specialized skills and knowledge that are essential to the company's operations. Over the years, staff have developed a deep understanding of the company's products, services and processes.
  • Instability and disruption of the company's operations. Key employees often have long tenures with the company and a deep commitment to its success. They are familiar with the corporate culture, missions and values and can help ensure continuity during times of change.
  • Loss of leadership and mentorship. Key employees are often in leadership positions and have a significant impact on the company's values, culture and direction. They can serve as mentors to other employees and help develop the next generation of leaders.
  • Loss of customer relationships. Key employees often have close relationships with the company's customers and clients. They understand their needs and preferences and can provide valuable insights into how the company can better serve them.

Business transitions such as mergers, acquisitions or restructuring can create uncertainty and anxiety among key employees. Unless there are incentives to stay with the business, these employees may seek more money or recognition elsewhere, taking their talents with them.

To incentivize your key employees to stay on with the business and remain committed during the transition to new owners, here are five options business owners should consider:

Kris Maksimovich, AIF®, CRPC®, CPFA®, CRC®
President and Founder, Global Wealth Advisors

Kris Maksimovich, AIF®, CRPC®, CRC®, is president of Global Wealth Advisors in Lewisville, Texas. Since it was formed in 2008, GWA continues to expand with offices around the country. Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Financial planning services offered through Global Wealth Advisors are separate and unrelated to Commonwealth.