Road's end for Autopage, but what of its staff?
When listed technology company, Altron, announced on 12 May that it was in negotiations for the sale of Altech Autopage's mobile subscriber base, change management engagement plans were already underway to assist staff through the closure.
The latest SENS release in September disclosed that agreements with all three networks had been concluded and that Autopage's subscriber bases would be transferred to Cell C, MTN and Vodacom respectively, through the adjudication of the Competition Commission. The initial announcement, however, held little information about the future of the company, its assets and, most importantly, its approximately 500 staff.
Altech Autopage employees
On 12 May, Boyd Chislett, Autopage MD, gathered staff together to inform them of the potential sale. First-line management had already been briefed and counselled on the emotional aspects of staff potentially losing their jobs. "Our first priority was to ensure the well-being of our most valued asset, our employees," says Teresa Badenhorst, HR executive at Autopage. "We are faced with a very unique situation – although we were telling staff that the company was potentially closing, we had to make every effort to keep them on and keep them engaged with their work and productive, under the very difficult circumstances," she says. Staff turnover spiked immediately after the announcement, however, it did settle following the one-on-one employee engagement discussions where employees were provided with the full detail of the retention bonuses should they stay until the end.
Autopage has invested heavily in a marketing and retentions campaign to ensure that customers remain on the base to avoid erosion of shareholder value by losing customers during this process of negotiation for the company's sale.
An employee assistance programme (EAP) was implemented in 2007 to provide financial, legal, emotional and trauma support to staff and their families – accessible telephonically and through on-site counsellors and advisors. This programme was intensified when the closure was announced to assist employees on an emotional level, and utilisation peaked during this time, says Badenhorst. "We've also had recruitment assistance programmes offering workshops to help staff develop their CVs and interview skills and review and enhance their social media profiles, as well as register with job sites."
Altron has agreed to give Autopage staff preference for job opportunities arising within the companies under its umbrella. "We've met with senior management at these companies and, where possible, they will redeploy our staff into their vacancies should the employee qualify – without affecting severance packages." One of these is Bytes People Solutions, which will absorb most of the call-centre staff. Badenhorst estimates that a large percentage of Autopage's staff will be redeployed within the Altron Group as well as to external companies.
"We've also contracted the services of an independent financial advisory company to provide workshops as well as one-on-one sessions and tools on investment," says Badenhorst. "We're driving attendance to ensure that people understand tax implications, provident funds and how best to utilise their payouts, to ensure that the employees can make an informed decision when the time comes."
Retrenchments will be unavoidable should the deal be approved by the competition authorities, however, "We will support all employees to the best of our ability including assisting them with information regarding UIF compensation, and the EAP will be offered for three months post-closure, with current benefits," she says. "Some people will only feel the pain once they've left and we need to support them through that."
Autopage is also facilitating motivational sessions and has increased its recognition programmes, "We've worked hard to create and increase performance-based incentives to help maintain motivation and productivity levels as well as minimise the trauma. It's been very successful."
Autopage's strategy, says Badenhorst, was to ensure that communication to staff would be transparent and frequent. "It's been business as usual for staff and for customers, but of course it's been incredibly tough," she says.
