Management Buyouts: Is HR the Key to Happier Employees?

Management Buyouts: Is HR the Key to Happier Employees?

Management Buyouts can be a troubling time for your employees. So how do some companies emerge from the process with a happier and more enthused workforce?

With fears over layoffs and restructuring, Management Buyouts (MBO’s) can be traumatic for employees. Many companies are fighting back against this by engaging their workers in the process, with the HR department often taking the lead.

“It’s difficult to imagine the process bringing anything but uncertainty,” says Charlotte Gallagher of P3 People Management, a leading MBO specialist. “But if you can be clear about your vision of the future and get your workers engaged in shaping that future, you could leave the MBO with a happier and more productive workforce.”

The Importance of TUPE in Management Buyouts

With all of the stress and pressure of managing a business buyout, it’s easy to overlook workplace engagement. TUPE rules must be followed but TUPE rules are designed to protect your employees not enthuse them. This is where a talented HR team, with close engagement with the new ownership of the company can really help.

“A good HR team will use the 90 day TUPE consultation period to properly engage with your employees and tell them your side of the story,” continues Charlotte. “They can replace uncertainty and fears with hope and a sense of pride in the new company. In short, if done right: you’ll get an invigorated, excited workforce who will work harder for you.”

Management teams are increasingly being encouraged to look hard at their HR during management change and buyout. With employment making up to 50% of all of the costs in running a business, you are heavily invested in your workforce, not just your products or services.


If you would like to know more about how HR can excite and engage your workforce during an MBO call P3 People Management on 0161 941 2426.

You can also read Charlotte Gallagher’s related Management Buyout post, by clicking on the link below;