This book guides human resource managers and professionals on how to manage organizations and its employees through bankruptcy and organizational change. While many books on bankruptcy are written from the perspective of bankruptcy attorneys and bankers, this book focuses on the employee communication and organizational aspects of bankruptcy from an HR and C-Suite perspective. It provides a deep understanding of the impact of bankruptcy on organizations and how to manage communication and employee engagement during this transition. The book also provides valuable and practical checklists and templates for employee communiqués, frequently asked questions, and preparing court-ordered information.
Author(s): Charles J. Alaimo
Series: Management for Professionals
Publisher: Springer
Year: 2022
Language: English
Pages: 110
City: Cham
Acknowledgments
Introduction
Contents
About the Author
1: Types of Corporate Bankruptcies
Four Types of Bankruptcies
Chapter 11 Reorganization
The Process
Step 1: Company Files a Petition for Relief Under Chap. 11
The 363 Sale Process and Stalking Horse Bidder
Step 2: The Bankruptcy Court Will Approve or Reject the Plan
The Uninsured Creditors’ Committee
Step 3: First Day Motions
Step 4: The Bankruptcy Court Sets the Auction and Bidding Terms
Step 5: The Bankruptcy Court Approves the Sale
Effect of Bankruptcy on Customers and Contracts
Effect of Bankruptcy on Key Vendors
Employee Claims
Effect of Bankruptcy on Foreign Subsidiaries
Chapter 7 Liquidation
2: Understanding How the Company Got Here and the Importance of Employee Engagement
Hindsight and the Signs
Employee Engagement
Engagement in Action
Measuring Employee Engagement
Engagement in the Age of COVID
3: Creating an Effective Employee Retention Plan
Step 1: Conduct a Departure Risk Heat Map
Step 2: Identify Retention Plan Participants
Step 3: Compensation and Retention
Step 4: Determining when Retention Gets Paid
Step 5: Obtain Approval
Step 6: Form of Retention Agreement
Step 7: Meet Individually with the Retention Participants
Non-Cash Retention Ideas
The Two Types of Retention Plans: Key Employee Retention and Key Employee Incentive Plans
Background
Key Employee Retention Plan
Key Employee Incentive Plan
4: A Bankruptcy’s Effect on Benefits and the Barrage of Information Requests
Statement of Financial Affairs
Wages
Staff Reductions and the Worker Adjustment and Retraining Notification (WARN) Act
The Effect of Bankruptcy on Benefits
Severance Plans
401(K) Retirement Plan
Supplemental Executive Retirement Plan (SERP)
Health Benefits
Company Stock
5: Embarking on Change
Management as an Obstacle
Kotter’s 8-Step Change Model
Step1: Create a Sense of Urgency
Step 2: Build a Guiding Coalition
Step 3: Form a Strategic Vision
Step 4: Enlist Volunteers
Step 5: Enable Action by Removing Barriers
Step 6: Generate Short-Term Wins
Step 7: Sustain Acceleration
Step 8: Institute Change
6: Bold Communication
Perils of Miscommunication
Sometimes the Truth Hurts
Speak Truth to Power
Careful Communication in Public Companies
Remember Your Customers
Develop Frequently Asked Questions
Communication in the Age of COVID
7: Bold Leadership
Have a Clear Vision
Get Rid of Toxic People
Surround yourself with People Who Will Tell You Like It Is
Trust and Empower Your People
Put People First
Be Fair and Consistent
Communicate and Educate
8: Be Mindful of You
Recharge
Be Present
Re-Energize
Reflect
Get Out of Your Comfort Zone
Reconnect
Volunteer
Display Gratitude
Be Self-Compassionate
Understand What Change Means for You
9: Lessons Learned
Understand That Everything May Become Transparent
Maintain Clear Files Describing Rationale and Supporting Documents for Retention Plans
Don’t Focus on the 1%
Communicate, Communicate, Communicate!
Be Visible and Accessible
Have a Plan B…and C
Have a Confidante, Someone You Can Trust
10: Some Final Thoughts
Appendix: Sample Retention Agreement
Retention Bonus Agreement
Glossary
References
Index
