Talent retention during integration
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How does your team address talent retention issues—during integration? what were some of the strategies that you used to mitigate this critical risk?
The identification of the key talents to be retained should be done early in the process (during the DD process) and could be refined after the closing when a deeper assessment of the teams is being done. I would also recommend to identify the talents you want to keep in the long term and the talents that are critical for the integration (but you don’t necessarily want to keep after the integration). The retention bonus will be differ based on the type of talents identified
For me the same applies as Astrid. During the Due Diligence phase, a thorough assessment is made for bot organizations who the key employees are and what kind of retention instruments are needed. Then after signing a next assessment is made to see who are the key employees you need until/some period after Closing. A retention bonus can be given, ofcourse with several conditions such as ‘needed to stay until Closing’ or ‘payment will settle 2 years after Closing’. This all depends on for what exactly you need these key employees.
Hi,
on the cases I’ve worked it was similar to what Astrid and Sue shared. In some of the cases, the retention bonus conditions also included clauses linked to performance, specifically to secure the revenue synergies projected to be achieved with the Integration.It is important to get confidence of the employees. Different employee engagement could be conducted. A financial plan can be put in place for those who would be impacted through integration.
In my opinion retaining talent during integration requires a proactive, people-centric strategy. By providing clear communication, career growth opportunities, and strong leadership as well as addressing employee concerns early companies can retain key talent, reduce disruptions, and ensure a successful post-merger integration.
We do a review of Org Charts, JD’s, CV’s etc. as part of due diligence but the period between sign and close is when most of the work is done to identify key talent, retention periods for key personnel, and retention bonuses.
We prioritize talent retention by identifying key employees during DD and understanding their motivations. We then try and implement tailored retention strategies, such as personalized career development plans and retention bonuses tied to clear milestones. Communication is also obviously critical—we ensure that employees understand their value to the new organization and provide transparency about the integration process. Ultimately, a mix of financial incentives and genuine engagement help mitigate the risk of losing top talent
On the other hand, how would you manage redundancies? When is the right time to inform the employees on an impending merger, especially when you don’t intend to retain them?
I think that the retention of the talent is rooted in both cultural alignment and HR integration. One cannot exist without the other. That being said, a respect for the culture of the target company and thoughtful HR integration approach should preserve talent and prevent its attrition.
EdwardThere is definitely emphasis on talent retention, and it typically can start (best case scenario) at due diligence already. During the integration, there is typically some kind of calibration that allows companies to evaluate new talent.
A combination of retention bonuses for staying for a period, and finding out what the employees’ goals are and how you can create a plan to help with their development or personal security. If people feel safe and appreciated and have opportunities to develop they are more likely to stay.
involvement of several team members (leadership mostly) in the design and implementation of the m&a process
In a recent integration, we focused on clear communication and extensive onboarding sessions to ensure that questions were answered and employees were integrated.
Seraphina, I would aim to have frank conversations with the individuals identified as redundancies within one week of the determination being made. Otherwise, the long delay might start a rumor mill and exodus among other key resources in the NewCo. I would note however that the redundancy conversation would be one of last resort on my team. First, are we sure that the target resource for the position is locked in? Second, is there no other opportunity to retain, or interest in retaining, the talents and experience of the redundant individual in a new role?
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