For owners of closely held, service-based businesses contemplating the total or fractional sales of their companies, attracting and retaining key employees is critical to creating and sustaining value for the long term. A service-based business faces the unique challenge of proving its continuing viability to a potential buyer since its assets are people. A business that can keep its best employees during and following a transaction will be much more likely to keep its customers, thus retaining its value.
The competition for talent is heating up as the economy recovers from the great recession. This is especially true with professional service industries, including construction, architecture and engineering. It’s the employees’ collective expertise; skills, relationships and knowledge that help create value for your business. Your workforce is essentially your product. So how do you attract employees and keep them with your company to ensure the viability and build the value of your business? Establish a plan to actively build and demonstrate the value of your company through key employee attraction and retention strategies.