3 HVAC Employee Incentives Infographic

Offering incentives to employees is crucial for maintaining their commitment and loyalty during transitions such as ownership changes. Incentives make employees feel valued and provide protection and assurance, reducing uncertainties for everyone. The choice of incentives depends on your business, employees, and the potential buyer. A completion incentive, for instance, is designed for deal team members whose employment might be at risk. These incentives reward the satisfactory completion of key tasks or a smooth ownership transition, including compensation for extra workloads and addressing concerns about post-sale unemployment. The amount varies based on the business size and the team member’s role. Change in control arrangements, often called “golden parachutes,” offer executives protection if new ownership takes over. These contracts list pay and benefits for executives if they are forced out after the transition, typically covering one to three years post-sale. The severance amount can range from 50% to 200% of the employee’s annual compensation and may include continued benefits. Retention incentives are one-time payment bonuses to keep essential employees from leaving. These incentives are payable after the company’s transition is complete and ensure key employees stay committed throughout the sale. If termination occurs at the company’s request, the retention money becomes payable immediately, sometimes contingent on fulfilling specific duties.

source: https://businessmodificationgroup.com/how-to-retain-top-employees-while-selling-your-hvac-business/

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