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When a company has an IPO (initial public offering), it means that the company is offering shares to the public for the first time. Companies can choose to go public for several reasons, such as they need capital, the company wants to invest in further growth. In some cases, they go public to allow owners to exit the company. While some of these might sound bad, it can actually be a very good thing for employees.

A perk for employees is that they might be given shares as compensation, or the chance to buy shares in the company.

After the IPO is in effect, the price of the share will likely rise, and the employee will have benefitted by purchasing the share at a much lower price. This rise gives employees an advantage if they choose to sell or keep their shares. If the company’s shares continue to do well in the market, then there is the possibility that the employees will be offered bonus shares at an advantage not given to the public. Tech companies are a prime example of an IPO working out extraordinarily well for employees, such as those who worked for Google and Facebook.

Employees should take advantage of shares offered, as it is a great way to make extra money, and there are virtually no downsides. These type of shares have even created millionaires.

While day to day operations will likely remain the same for general employees, those who work in finance and human resources will probably have a change in workload for a period. There will be new business complexities that will have to be implemented and honed to keep the company running smoothly. The company will also be responsible for SEC filing and complying with SOX.

There are some things that will change in the chain of command as well. A board of directors will be implemented into the company to ensure that decisions made will benefit the shareholders. This has the potential to change the leadership style and perhaps the workplace environment.

The company will also likely hire new employees to keep up with the demands that come with being a public company. So current employees can expect team growth.

In conclusion, going IPO will not change much for employees and can even be beneficial.