Navigating HR Challenges in Corporate Carve Out Investments: an interview with HR Operator Alan Tait

Investing in a corporate carve-out can be complex and comes with its unique set of HR challenges and priorities. To ensure a smooth transition and carefully manage employee engagement during such transactions, Rcapital HR operators, such as Alan Tait FCIPD play a critical role.

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Alan Tait is a board-level HR professional with a wealth of experience spanning numerous sectors. His extensive HR expertise covers a wide spectrum of strategic areas. Alan specialises in working with private equity-owned businesses, leveraging his skills to drive transformative performance enhancements. From coaching leadership teams and overseeing large-scale change initiatives to designing and implementing employee engagement programs.

In this article, we'll delve into some key HR issues and priorities when completing a corporate carve-out investment, with insights from Alan Tait's experience.

What are the most crucial aspects of a successful carve-out from an HR perspective?

"Definitely, establishing clear lines of communication from the outset. During periods of transition such as carve outs, employees need to be engaged across all levels of the business. By understanding their questions and concerns - and working with them to find solutions, we mitigate uncertainty and boost morale. By addressing employees' worries and involving them in the process, you can create a more positive and collaborative atmosphere."

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What role does HR plan in any restructuring?

"Carve-out investments often require a swift and efficient restructuring of the business. By providing practical support and guidance, we can ensure this is done quickly and, most importantly, legally. By streamlining the organisation's structure, you can optimise operations and reduce redundancies, ultimately contributing to the business’ future success.

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Navigating TUPE transfers can be a complex and legally sensitive area during corporate carve-outs. It’s important that the business is receiving practical advice and support on TUPE transfers, both for employees coming in and those leaving the business. Ensuring a smooth transition for affected staff is essential for maintaining productivity and positive employee relations.

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What about decisions on pay?

Decisions on compensation and reward plays a pivotal role in retaining talent post-carve-out. I recommend providing benchmark information on salary and rewards to inform strategies that will help retain key personnel. Competitive compensation packages can be a strong incentive for employees to stay with the organisation, ensuring a smooth transition."

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Where else does HR add value?

"HR adds significant value to a business following a transaction from aligning the workforce to ensure the right people are in the right positions, to maintaining a motivated workforce to minimise disruption during the transition and beyond, through to ensuring employment law compliance and helping set the new culture.

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We also have to act quickly to ensure the fundamentals are dealt with to allow the business to operate. At recent acquisition, Avonside Energy , I set up a new payroll provider within three days to ensure timely payment to weekly paid employees. In situations where time is pressing, such quick action is crucial for employee retention and satisfaction."

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HR professionals like Alan Tait are vital in guiding corporate carve-out investments through their unique HR challenges. By engaging with employees, streamlining operations, addressing legal considerations, and ensuring competitive compensation, HR operators can make a significant impact on the success of these transactions.