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Converting a Business with Existing Staff in Mind
June 12, 2009
By Terry Burns and Liliana Dolan
The action of converting an independent business into a more established brand or franchise extends far beyond the business owner and franchisor. Many operators fail to consider a vital asset—the existing staff—before finalizing their decisions. Is there a way for business owners to team with a recognized entity while keeping the hallmarks of the business they built—specifically the employees—in tact? The answer is yes.
The decision to convert our staffing firms—Terry's Pocono Personnel and Pocono Personnel West in East Stroudsburg and Tobyhanna, PA., respectively, and Liliana's Temporarily Yours, Inc. Staffing in Warwick, R.I.—into Express Employment Professionals offices this past year stemmed from various reasons, but we first considered the effect our actions would have on our employees. These were the people, after all, that stood by us and helped to grow our businesses from day one, and because of their hard work and loyalty, we wanted to be as upfront and honest with them about our plans as possible.
First, we called meetings with our respective staffs and explained the possible course of action from all angles and then opened up the floor for our employees to ask questions or voice concerns. We made it clear that though we were aligning with an international company and changing our name, no jobs were in jeopardy—an issue top of mind for everyone given the less-than-stable economy—and this course of action was being taken to move our operations to the next level. They were aware that while we excelled in certain areas, there were others, such as payroll and market penetration, where we weren't as strong and could leverage our involvement with a larger company to get to where we wanted and needed to be to remain competitive.
Next, we explained the other ways day-to-day operations of the business would differ. While we would still be the owners, and continue running our agencies as usual, we would all have to be retrained to adhere to Express's standards and practices. Though we were unsure how this news would be met, our respective staffs were thrilled at the opportunity to learn new skills and continue their professional development. They also were intrigued by the ongoing training seminars and workshops Express offered and the wealth of topics offered—everything from human resources and sales to software training and online learning—were subjects they used to seek external training in so having everything in-house and at their fingertips was a huge plus.
Lastly, we discussed how the conversion would affect our clients. We let all of our clients know the conversion was purely strategic and, though our clients already knew they could count on us—they wouldn't be our clients if they didn't!—having a well-known company like Express behind us increased their confidence that they would receive only the highest-quality candidates and solutions while still receiving the one-on-one attention they had grown to expect from us. In short: It only was going to help, and they were immediately on board.
For anyone out there considering converting their business from independent to franchised, here are a few tips we came up with after going through the process ourselves:
1. Weigh the options: Conversion isn't going to be for everyone so really consider if it's the right move for your business. If you're struggling to make a name for yourself, conversion is an excellent alternative because the business will gain instant name recognition without having to spend thousands of dollars on branding.
2. Do your due diligence: Partnering with a larger company can take your business to the next level, but make sure you pick the right concept. There are countless staffing firms out there, for instance, but it's up to you to find the one that matches your ideals and ultimate goals.
3. Be ready to bend: While we both agree Express has allowed us to retain our independence as business owners, aspects of our operations—from signage to training to fees—have undergone some changes. If you're not willing to compromise, conversion definitely is not right for your business.
4. Get the word out: You know your business will have the same staff and services when you convert but your clients may not. Personalize your franchisor's marketing materials to educate potential, new, and long-time clients about the change over. Explain that even though the business name has changed, your level of service will only improve.
5. Have Realistic Expectations: Your business isn't going to change the day after the conversion so make sure you and your employees have an accurate understanding of the time frame involved. It could take months—especially in this economy—but if this is kept top of mind, everyone will remain motivated instead of discouraged.
And as for keeping your valued employees happy during the transition, adhere to the old standby of honesty is always the best policy. By opening the lines of communication, and allowing every staff member to have input in the decision-making process, they will feel the conversion truly is a joint venture, and will develop even more of a vested interest in the company's future success.
Terry Burns, previously of Pocono Personnel and Pocono Personnel West, and Liliana Dolan, previously of Temporarily Yours, Inc., are now the directors of an Express Employment Professionals office.
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