Retaining staff after M&A
- This topic has 20 replies, 21 voices, and was last updated 2 years, 8 months ago by
.
-
Posts
-
Ideally yes, unless there is a more suitable candidate for the particular role.
Retaining the right staff after an acquisition is important but identifying them early during the integration process is just as crucial.
I strongly believe talent review should be included in Due Diligence and every effort should be made to retain both top talent and those deemed as high potential. It will go a long way in integration and the success of the merger.
A mix of both strategies. If the old employees are open-minded and not stuck to old ways, and are able to drive key strategic changes and innovation, then it could be helpful to have at least some of them on board the new company to guide newer employees. Especially if there is advanced technical knowledge of certain products or implicit industry norms. Nonetheless, new blood could also bring new perspectives and ideas. It really depends on people dynamics too.
Based on my personal experience, mistrust of leadership, job insecurity, and disliking the new company culture that generally contribute employees to leave after mergers or acquisitions.
In my opinion, the company should retain the best/critical talents which are essential to a successful M&A, and ensure the right people are in key roles. As the adage goes, an organization is only as good as its people.
In my opinion, it depends on the criticality of the staff member(s), which is often determined by their knowledge / leverage for the capability. Elements such as earn-outs, stock options or cash bonuses (use as a last resort) should be used on a confidential basis to keep key employees.
- You must be logged in to reply to this topic.
