Want to buy a company, what about employees..

I recently highlighted the tussle between Kenon Kobil and its employee's relating to the acquisition of majority stake by Puma Energy.

Well this is the point. It is important to ensure a balance between the Kenol Kobil's rights and the right of the employees to fair labour practises.

So what should other companies learn from this. First, i support investments since they are a necessary part of our livelihoods. However i also believe that investments must be people-focused. As such a company cannot be stopped from entering into strategic partnerships, mergers and acquisitions and other forms of take overs. This is an important right for every corporation, since it ensures profitable growth by establishing new business lines or growing existing ones. If the deal has the necessary legal approval, the directors shake hand and move on.

Secondly, as executives shake hands and toast to a deal, they must be reminded that their decisions will directly affect employees. In this regard, the Talent Acquisition/Human Resource department should bring its employees to understand the deal. They should ensure that employees are well protected and make them know this. If employees will be retrenched, give them good send off packages, recommend them to prospective employers, help them develop business plans (to start their own small and medium ventures) and ensure that they leave peacefully.

Lastly, updating employees on the progress made in the deal on matters affecting them will also help avoid conflict (real or imagined). I have laernt that in life, people relax when given the right information and panic when kept in the dark.

I strongly believe that resulting to courts to resolve anticipated disputes is not good for the corporation or employees. The matter will most likely delay in court and both parties bear the costs. In addittion in a global business world, the reputation of the company may be dented if such a process is handled carelessly.

All in all a focussed balance of rights, entitlements and interests will go along way to ensure investors reap from their investments.