Making the decision to close down your store, for whatever reason, is never easy.
Even more difficult is having to let your employees know that the store is closing.
There’s a fine line between being transparent and holding off on giving too much information, which may affect your closing.
As retail store liquidation consultants, Silverman Consulting and Retail Services can help you during this transition to manage your store closing sale and liquidate your assets.
Closing down your store needs an exit strategy.
We want to work with you to organize your closing and extract your investments so you can move on with your life.
Closing down your store is not just a big decision for you but for your employees as well.
When and how to tell them that your store is closing is a delicate matter.
Let’s take a look at some useful strategies of informing your employees of the business closing to ease the transition.
First And Foremost, Talk To Your Employees
Once you make the decision that you’ll be closing your store, you’ll have to choose the right time to inform your employees.
This is a sensitive issue that will require you to be calm, remain dignified, and act as a leader.
Keep in mind that some of your employees might still react strongly and may show anger, sadness, and fear.
It’s best to avoid sharing the news too early.
This can cause issues with employees wanting to quit early before the closing and potentially jeopardize client relations.
Ideally try to deliver the news after your closing plan is finalized.
Keeping the news to yourself until the plan is in place lets you control the information and transition from a better position.
When you’re ready, speak to your employees in person to show them respect and be truthful about your decision to close down.
It’s best to plan a meeting so you can tell everyone at once.
This helps to avoid the rumour mill and lets everybody know at the meeting that you will be following up with everyone individually, it at all possible.
Be appreciative of their contributions and give them assurance that you’ll do what you can to keep your employees happy during this time.
Answer Their Questions Open and Honestly
Being open and honest is more likely to get your staff to stick around for your store closing sale.
The employees that remain until the final closure will be more enthusiastic and productive if they believe they’re being treated fairly.
When closing down your business, the respect and perception of your employees demonstrates your reputation to the community.
Give Them A Formal Letter Of Closing
After you’ve spoken to your employees, prepare a formal letter that indicates that the business is closing.
Restate the information you’ve already provided, as well as a timeline or final planned date of the official closing.
Formal letters of closing also benefit employees by acting as proof when seeking public assistance or benefits.
Use a company letterhead when creating the letter and give it to your employees in a sealed envelope.
Offer To Provide Resources In Their Job Search
The closure can be an overwhelming experience for your employees and can leave without knowing how to take their next steps.
Help your employees by offering to provide resources that can ease their transition to securing a new job.
For example, being established in your niche, you’ve certainly made numerous professional relationships.
Contact associates to find out if they’re hiring and refer employees to those businesses.
Provide letters of recommendations.
Consider referring your employees to staffing agencies.
This can provide your employees with access to job counseling, job placement, using online job banks, and interview techniques.
If You Can, Tell Them On A Monday
Finding out that the business you work for is closing can be stressful and scary, and as an employee you’d want to start planning asap.
So as an owner, if you can, try to deliver the news and make the announcement on a Monday.
This lets your employees ask questions and get clarification without spending the weekend stressed and overthinking, which can affect their personal or family time.
If possible it also allows you to have your one on one meetings over the next few days.
Look Into Your Options For Severance Packages
You may be required to offer some of your employees a severance package.
Find out what the regulations are in your area.
Your accountant or lawyer should be able to help you with this.
The legal requirements are generally the minimum pay out so you will want to think this through before you proceed.
The amount of severance paid out can depend on the amount of time an employee has been with your business.
If applicable, also look into paying out any unused vacation or accumulated sick time.
Offering incentivizes your employees to stay on through to the official store closing can help secure your key people through the close down process and may keep them from quitting early and leaving you short staffed.
The date of your notice to your staff of the closing can be important as in some jurisdictions “Working Notice” is permissible and fulfils part of the severance and notice period.
Above All, Be Compassionate
To your employees, news that your store is closing can be life altering and can cause worry and confusion.
Cater how you talk to employees based on their unique characteristics, knowing that each may react differently.
Some may display anger, sadness, and frustration, and others will not.
In any circumstance you have to be understanding of how they feel and be empathetic and project compassion and sympathy.
Organize get togethers and team building exercises to show your respect and appreciation to your team members.
Either through a letter or direct conversation, communicate your gratitude for their contributions to your business.
While your store may be closing, it’s good to continue nurturing relationships with your employees.
You never know when your paths will cross again, and whatever you do next your reputation and public perception follows you.
Recognize That Some Will Quit Before Your Store Closes
It may be unavoidable that some of your employees will quit before your store closes, as they don’t want to be out of a job.
Monetary incentives may keep some employees working through to the closing date, but still expect some to leave early.
Employees that have been with your business for a short time are more likely to leave once the closing is announced.
Figure out which employees will remain and which you can rely on to cover other shifts and workloads up until closing.
It’s important to be prepared to work longer hours yourself and manage a variety of roles during this transition period.
Contact Silverman Consulting And Retail Services Today
Deciding to close down your store can be overwhelming for both you and your employees.
The good news is that you don’t have to go through it alone.
At Silverman Consulting and Retail Services we want to help you stay in a strong position and manage your closing.
Whether it’s helping you manage your store closing or running your liquidation sale, we are here for you.
Contact Silverman Consulting And Retail Services today.
Silverman Consulting & Retail Services229 Yonge St suite 400,
Toronto, ON M5B 1N9, Canada
1 (888) 955-1069