Several ideas pop into the minds of employees when they learn that their company is planning a merger or acquisition with another organization. Staff members worry about being laid off, not getting salary increases and competing with unknown talent. Their anxiety for the workplace transition reveals itself in their assignments and interactions with their coworkers. Managers often have several battles to deal with as they try to control emotional employees and dispel nonsensical rumors.
Mishandling this sensitive process can affect your business negatively. Absenteeism, loss of key employees, low morale and low productivity are some of the damaging consequences for not addressing a merger or acquisition appropriately.
Preparation is imperative for keeping your organization composed. The following four tips should help your organization navigate through the transition of a merger or acquisition with less difficulty:
1. Make Leadership Present
Forming a strong leadership team with members from both sides of the merger or acquisition will help smooth out the kinks of the transition. When both sides align to share the same vision, mission and strategy, employees have a solid support team to turn to. Before the transition is announced, make sure you indentify the key leadership players and begin to strategize steps to handle the change gracefully.
2. Communicate Often and Through Several Channels
To combat rumors and twisted facts, create a solid communications plan for your employees, leadership and other key stakeholders, such as customers and board members. Remember that your employees will want to know more than the details of the merger. They’ll want to know how their job will be affected, what their benefits will look like and who will manage them. Cascade messages through a variety of channels to ensure your stakeholders receive them. Additionally, practice two-way communication and readily take questions and suggestions from your team members.
3. Align Culture and Business Processes
A merger or acquisition requires the blending of two companies with distinct cultures and ways of completing work. Similar to your communications plan, knowing how you want to cultivate your organization’s environment early on will help you get your workforce on board. Carefully plan your new business processes before the transition takes effect. Educate your staff on the new changes and how they might affect their workflows. Communication is again important when telling employees that aspects of their job could be significantly altered. Always keep them in the loop.
4. Take Care of Employees
Agreeing to merge with or acquire another organization may benefit your company financially, but it could hurt other areas of your business, specifically your talent. News of a merger or acquisition can leave even your star performers feeling nervous about their fate and the new set of employees they’ll have to work with. The period before the official transition is a great time for competitors to pluck your top talent. Prevent this from happening by involving your staff through the transition process and getting them to understand how their role will fit into the changing organization. Develop a retention strategy, such as stay-bonuses or packages, to make sure your stellar staffers don’t become enticed by competition. For employees you won’t be able to retain, let them leave the organization with dignity. Provide them with services to help them stay on their feet, such as resume reviewing. Additionally, show them that you appreciated their service by offering them a generous severance package.
For additional strategies to assist your workforce through a merger or acquisition, please contact a member of CAI’s Advice and Counsel Team at 919-878-9222 or 336-668-7746.
Photo Souce: Victor1558