What is HR's primary strategic responsibility during a divestiture?

• A. Identifying which employees transfer to the buyer and ensuring the legal/smooth transition of those transferred employees.
• B. Negotiating price with the buyer.
• C. Rebranding the company in the new market.
• D. Altering the product portfolio.

Answer: (A)

During a divestiture, the core focus for HR is how the workforce moves with the deal. The best choice centers on identifying which employees will transfer to the buyer and ensuring the legal and smooth transition of those transferred employees. This involves mapping roles and assets of the unit being divested, determining who will be offered employment under the buyer’s terms and timing, and handling the administrative details that make the handover compliant and seamless. It also means preserving continuity for key talent, coordinating benefits, compensation, and any required notices, and managing regulatory and legal considerations around employee transfers. Clear communication to affected staff helps maintain morale and minimize turnover, while planning for non-transferred employees—whether through severance, redeployment, or outplacement—keeps the overall transition orderly. The other options fall outside this primary HR remit in a divestiture: price discussions are a finance/transaction concern, branding is a marketing issue, and altering the product portfolio is a product strategy matter.