Acquiring employees

WOCO Frank

We're facing an upcoming (4-5 months away) acquisition that could include around 100 employees at 8 locations. In the past, we've been burned badly by "acquired" employees, and I don't want to go through it again.

From those of you who have dealt with this, what are the pros and cons of various ways of handling it: from having all employees terminated the day before we take over, to bringing all the employees on board and evaluating them as we go, and all points in between? (For purposes of discussion... We would have no problems finding qualified applicants to fill any of these positions.)

TIA

Mike Maslanka

i have strong feelings on this...if you are buying a company from the person who founded it,DO NOT let him or her stay as an employee in any way shape or form...they will still think they own the business and so will the employees...if it's a ceo or top managers,especially if they have been there a while,give them a nice severance package...here's what i tell clients who have kept these employees and then gotten burned later---you did not pay all the purchase price on closing day...regards from texas,mike maslanka

Margaret Morford

I've seen it work both ways. The aquired executives work out well as long as they transition to the new culture. I think that firing and rehiring leaves a really bad taste in everyone's mouth. I like to evaluate as I go. However, you may want to fire and rehire everyone to cut off your liability for past EEOC claims, workers comp, etc., assuming the aquisition documents are clear that those liabilities stay with the selling company.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]

WOCO Frank

The executive employees will stay with the "old" company, for the most part, as that company will continue to function. We will take on the individual store managers, but typically we don't have much problem with them. It's the hourly cashiers that tend to be a drain.