Do you know which employees will be involved as you transition your business?
Over the years, you’ve learned that your team is the most important business investment you can make. So, it shouldn’t come as a surprise that a significant amount of business value comes from the quality of the team within an organization. After all, if you don’t have a well-managed business, there’s no business to manage.
However, only 9.6 percent of respondents said they sought advice and acted to keep their key team members.
A strong business is often led by a talented group of people, and it’s likely a potential buyer will make sure the team comes with the purchase. The ExitSMART™ data highlights that Canadian business owners understand the importance of their key employees in driving operational value.
However, many are lagging in taking a proactive approach to employee retention. Without a clear plan you risk losing top talent — or worse, losing the key players that define your business and its success. Not only does this disrupt operations, it diminishes the attractiveness of your business to potential buyers.
Keeping key employees included and engaged leads to increased productivity over time, but it can also increase the value of your business. When employees feel valued and supported, they are more likely to stay with the company, ensuring operational continuity and preserving knowledge.
Retaining your key team members and leaders gives potential buyers a sense of stability and promotes confidence, enhancing the attractiveness and value of your organization.
Digging into the data
“Your team is crucial to the value of your business, but many owners still overlook formal retention plans. Without one, you risk losing top talent and reducing the appeal of your business to buyers. No one wants that. A detailed retention strategy can help you achieve operational continuity and makes your business more attractive as it moves to the next chapter.”
– Jaylene Cousins, Partner, Advisory Services
Ask yourself:
- Who on my team is crucial to the success of my business?
- What incentives and benefits can I offer to engage and retain these individuals?
- How can I involve my key players in the succession planning process to ensure they stay on board through the transition?
We suggest:
- Assess your business model and identify your key people
- Understand their language of appreciation (what incentives resonate with them)
- Develop detailed descriptions of key roles and the skills required
- Create and regularly review an employee retention plan