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Study: Severance Protection Key to Retaining Talent in Divestments

Want to keep your key talent during a business split? Offer generous severance protection and clear career paths, a new study suggests.

In this image, we can see two women standing and they are smiling, in the background there is a...
In this image, we can see two women standing and they are smiling, in the background there is a shop and there is a red color EXIT sign board at the top.

Study: Severance Protection Key to Retaining Talent in Divestments

A recent study has revealed the most effective human resources strategy to retain key talent during a business divestiture. The findings suggest that offering generous severance protection, as part of a severance cast, is the most impactful approach.

The research highlights that transparent communication, combined with retention incentives and clear career development opportunities, is the best way to reduce resignations of key personnel during a business separation.

Severance protection can take various forms, including cash, benefits, and perquisites. These measures provide employees with financial security in case they lose their jobs due to the sale. By implementing these strategies, companies can minimise the loss of crucial talent and ensure a smoother transition during the divestiture process.

In summary, offering generous severance protection, as part of a severance cast, coupled with transparent communication, retention incentives, and clear career development opportunities, is the most effective HR strategy to reduce resignations of key talent during a business divestiture.

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