Employee Communication

Viewing 6 posts - 1 through 6 (of 6 total)
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  • #84845
    SHurd
    Participant

    Thought on announcing the M&A deal pre or post contract closure to employees. I’ve seen it handled both ways and there are obvious pros/cons to both.

    How can we best mitigate any flight risks to employees, especially top performers? If you bring them in early they might get deal fatigue and the uncertainly leads to turn-over. Whereas, announcing once the deal is complete creates a lack of trust in management.

    #85201
    Kyle Sigmund
    Participant

    I think the best way to mitigate any flight risks to employees is to find something in the middle. Where you communicate with them earlier in the process relative to most employees, have a defined retention planned mapped out for them, but don’t get them involved in much of the actual deal unless absolutely necessary.

    #88980
    brent harvey
    Participant

    I agree with the above and would add, for the top talent look for ways to enhance their role to increase the probability of staying (this approach could also be deployed day of deal announcement as well). The risk of news on the deal leaking increases as the number of employees under the cone of silence increases.

    #90961
    Veronica R
    Participant

    Depending on the terms of the agreement, a target company may not be able to read in employees, even top performers, to the current situation. When this is the case, ensuring that the terms of the agreement include a management structure and timeline is critical. When announced, employees should know who they’ll be reporting to in the short term, what the benefits and terms are, and what they can expect to change and not change. Strong due diligence and communication during the buying process will provide more answers for employees. Quick purchases where synergies and benefits are not discussed will leave holes for rumors and speculation and ultimately cause folks to leave due to the uncertainty. When the purchase of the organization has more details around the plan for integration and management/leadership roles, the more confident the employees will be.

    #91392
    stevediaz
    Participant

    Such a critical decision! Announcing an M&A deal pre or post contract closure has its intricacies. Balancing transparency with employee concerns is key. Early disclosure risks deal fatigue, yet delaying erodes trust. Top performers’ flight risks need careful handling. Striking that delicate balance is crucial—perhaps a phased approach? Open to discussion on effective strategies to mitigate uncertainties and ensure a smooth transition. java course

    #91447

    employees should not be engaged only on the post integration and detachment projects. Rather they need to have the transparency and visibility what is ahead and in the build of the new plans

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