When selling a business, one metric potential buyers should be observed is workers retention when you are actively selling your business.  If yours is less than the industry standard, it represents a jeopardy for a buyer.  What is producing it?  What will the new owner need to invest to repair the issue?  Is it possible to mend it previous to selling it?  Maintenance, after all, is not an intangible business concept however instead a strategic competitive advantage – or disadvantage, if it is too low.

For every successful business, the essential connections among the systems, methods, support, and clients are human connections. And thru the strategic and tactical operations of the business  it is human knowledge that results.  As a business owner trying to sell a business, you are wanting to demonstrably stabilize and monetize that wisdom and value.

Cautious and well thought out creation and follow through of a retention strategy can lead to the next business valuation. The analysis and case studies agree on one thing – whether you decide on to create a retention strategy or choose not to, you may still have one – your actions can communicate what it is, and the results will be visible to potential buyers.

         Key queries to assess employees retention in your organization:
            

1. Is there currently a retention issue? How do you measure up against industry standards?
2. How is retention currently tracked and analyzed? Do sure thresholds in tenure tend to correlate with loss of valued employees?
3. Is there unhealthy turnover in any explicit section of your business?
4. What is turnover in the areas of the business that make the most value or return for the business? Where do people tend to travel who leave that area – on to bigger responsibilities, or out of the corporate?
5. How does your company regulate for anticipated retirements?
6. What is the first impact of workers turnover currently – does it alter the jobs for employees who remain, cut quality and productivity, and or does the work just not get done?
7. Would your company benefit from a "Key Individual" program to identify those with experience especially important to the continuity of operations?
8. Do you have some method for capturing the information of valued staff thus it will be incorporated into the resources of the corporate e.g. information management? Document management system? Even robust Intranet?

Developing a strong retention strategy is pragmatic and truly will increase your business value.  As a business professional, ensure the utilization of your organizations’ employees retention priorities to tailor compensation, benefits, vacation and professional growth policies to reward results, performance, attitude, initiative, and to align folks-oriented programs toward the problems that most worry employees.

Whether or not the specifics are to make employees happier concerning their employers, their career growth in their jobs, or their personal growth generally, hiring and retaining happier staff means that fewer costs from turnover and bigger productivity for the organization. 

A potential buyer, unless a turnaround professional, desires to buy an enterprise that is thriving from both a profit and individuals perspective.  When selling a company, address retention problems and make yours a strength the market can reward.

I invite you to use these concepts during your journey to sell a business.

Marian Cook is a highly sought after business transition expert and speaker with over 25 years experience helping business owners design their best-life exit strategy, and improve their business performance and valuation.  She is the co-author of “Selling Your Business For More:  Maximizing Returns For You, Your Family and Your Business” (published by Macmillan).  If you are ready to sell a business and jump-start your business sale process, connect with Marian via her free tips, articles, checklists and blog at Business Transition Experts.

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