The year 2020 ushered in many problems for business owners in Jacksonville, Florida. These issues continue to affect local companies, making it hard for them to remain in business. In some cases, the only solution for these problems is to file a Chapter 11 business bankruptcy.
A Chapter 11 bankruptcy comes with many benefits for businesses. It allows you to reorganize your debt, remain in control of your company and continue doing business. While this is good news for you, your employees may feel it is time to leave your company should your bankruptcy lead to permanent closure.
What can you do to retain your employees?
Having a few — or even just one key employee — exit your company during financial hardships is the last thing you need. Here are three tips you can use to retain the workers on whom you rely until your business future improves:
- Communicate: You might feel embarrassed to discuss your financial problems with your employees. However, opening a candid dialog can encourage them to remain employed in your business. In many cases, scheduling a group meeting to break the news and answer their questions is a good way to start the conversation.
- Reassure: By the time you break the news of your Chapter 11 bankruptcy to your employees, you should have a good idea of what to expect from the process. Reassure them that you plan to remain open and continue paying them and meeting their other needs throughout your bankruptcy. If you expect to lay off some of your workers, let them know about this possibility.
- Invite: After you inform your workers about your bankruptcy, some continue to have questions or concerns. Invite or encourage your staff members to come to you or an authorized party for further discussion. When you address their concerns and questions swiftly and honestly, they may feel better about staying with your business.
Finally, do not underestimate the importance of learning more about business bankruptcy laws and procedures in Florida.