The Other Side of the Split: Supporting Employees… | Gagen MacDonald

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The Other Side of the Split: Supporting Employees Who Stay

Aug 07, 2025
Divestiture Follow Up Julie Craft header

Previously, we looked at the human side of divestitures from the perspective of employees and leaders embarking on the journey of a newly independent company. But divestitures are two-sided stories. While attention often centers on those moving forward in a new organization, it’s just as important to consider the experience of those who remain with the parent company. Their path is quieter but no less complex or consequential. This piece explores how leaders at the parent company can support and reenergize their teams, ensuring they don't just move on but move forward with renewed purpose. 


For leaders and communicators, divestitures are never just about portfolios or balance sheets—they are deeply human events that ripple through every layer of the parent company. While headlines often focus on the business unit being spun off, the employees who remain face a quieter, more complex journey. They need steady leadership, honest communication and a renewed sense of purpose. 

Respecting TSAs and Navigating Two Worlds 

Often the backbone of a successful divestiture, Transition Service Agreements (TSAs) manage risk and continuity by enabling the parent company to temporarily deliver services, such as IT or HR, to the sold business during its transition. Honoring these agreements—both in spirit and in practice—shows integrity. When leaders recognize the hard work of teams supporting both sides of the transition, it builds trust and reminds everyone that professionalism and collaboration still matter as things change. 

Different Journeys, Different Concerns 

It’s essential to recognize that employees who stay with the parent company have very different experiences than those leaving. Departing colleagues are focused on their next chapter, but those remaining often grapple with ambiguity, loss of identity and, depending on the situation, survivor’s guilt. This is especially true if the divested unit was a flagship brand or cultural cornerstone. According to recent research by TalentLMS and WorkTango, 30% of employees report that their engagement declines during organizational transitions—especially when their emotional journey is not acknowledged or supported. 

Departing colleagues are focused on their next chapter, but those remaining often grapple with ambiguity, loss of identity and, depending on the situation, survivor’s guilt.

— Julie Lyons, Director

When Friends Leave: The Emotional Undercurrent 

Sometimes it’s not just about the org chart—it’s personal. The people who stay are often close friends or longtime collaborators of those leaving. This can stir up feelings of grief, divided loyalty and even disconnect. People may feel torn between supporting their friends’ new journeys and mourning the loss of daily connection. If leaders don’t acknowledge these emotions, engagement and trust can quietly slip away. 

Leaders can help by: 

  • Naming the emotional reality. Acknowledge that many are saying goodbye to close colleagues. 

  • Creating space for connection. Encourage informal ways to stay in touch where appropriate. 

  • Rebuilding community. Invest in new rituals and shared goals that help re-knit the social fabric. 

Addressing Identity and Rebuilding Culture 

When a major business unit leaves, it can feel like a piece of the company’s soul has gone with it. Long-standing rituals, internal narratives and even external perceptions may shift overnight. Employees may quietly wonder: who are we now? What do we stand for? These are not just sentimental questions—they are fundamental to engagement, performance and convincing people to stay. According to Gallup, organizations that actively reenergize culture after major changes see up to 20% higher retention rates. 

This is where leadership needs to show up—not with spin but with clarity and empathy. Reenergizing those who stay is what matters most. That means: 

  • Naming the moment. Acknowledge what’s ending and what’s changing. 

  • Reclaiming identity. Invite employees to help define what the company stands for now. 

  • Creating momentum. Celebrate early wins, spotlight internal talent and invest in visible culture-building efforts. 

In Closing 

Divestitures don’t just reshape companies—they reshape cultures, relationships and identities. Whether you’re leading a newly independent organization or guiding the parent company forward, your role is to help people make sense of what’s ending, what’s staying and what’s possible. These moments are challenging, but they’re also powerful opportunities to reconnect with purpose, reengage your teams and build something better—together. 

If your organization is preparing for a divestiture or working through its aftermath, you don’t have to go it alone. Our team has deep experience guiding both parent companies and new entities through every stage of the journey. Reach out to learn how we can support you in making your next chapter a successful one. 

/ Jul 28, 2025

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