Maintaining Employee Morale and Retention During M&A Transitions
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Leading by example is key to me. E.g. if you want to achieve post-merger integration, this should already be perceived from top management of both companies.
From my experiences with several PMI exercises, I find that clear and frequent communication from the senior leaders about the progress of the M&A integration process is always helpful to maintain employee morale. Townhalls and any face-to-face interactions are always better than via emails. Such interactions will allow employees the chance to have their questions answered, and are helpful to address any post-merger anxieties (e.g. redundancies) they may have. For the senior leaders, these communication sessions also are helpful for them to quash those unhelpful rumors that may have arisen from the grapevines.
While the communication processes can in some ways also help with employee retention during the M&A period, but it is also inevitable that in most M&A exercises, there will be people who will eventually have to leave or made redundant if their skills and experiences do not quite fit the new job profiles of the post merger integrated company. Therefore, it is essential for the HR M&A team to work with the senior leaders to identify the key talents that will be required in the end-state organization. Monetary related retention programs can obviously be considered as well, with conditions, as a retention hold of key talents.
Building connections and relationships early and ensuring the employees of the acquired company feel they have a place and future with the new company. Also communication and transparency is key!
Bringing an attitude of genuine interest in their work. The target people will help you learn everything about their business and as new management you’re now responsible to help them remove obstacles to accomplish their work. It can disarm the worries they have about overhauling their ways if they can sense from the beginning that you’ll be helpful to them, their workflow, and their careers.
I believe that the most important aspect is communication. It is essential to create a communication plan as soon as possible and to open more communication channels for employees. Listening and communicating in a transparent and collaborative way is key. Efforts should be made to find solutions that meet everyone’s needs and to demonstrate a genuine commitment to improvement.
I’d like to add that celebrating small wins early on can be a powerful way to boost morale during the integration phase. Acknowledging first successes, whether it’s completing a key milestone or successfully integrating a department, helps create a sense of team spirit and momentum. It’s important to focus on managing the progress curve—highlighting what’s going well—rather than fixating on the gaps or challenges. This approach can foster a positive atmosphere and demonstrate that the integration is moving forward
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