how to prepare employees for a merger

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Communicating a Merger to Employees: 4 Ways to Tell Your Team About a Merger or Acquisition, Employees would rather feel like they have too much information than not enough information. Mergers create a lot of stress for employees. Try not to fly under the radar and be more proactive; in merger and acquisition, your management needs to make difficult decisions of retaining employees, and you need to prove your worth. Remind them why they are important, and how their role is critical to the company and its purpose. This is because it may give the impression that the employee is not interested in the organization. Choose something you are skilled at and/or that you are passionate about. “When working on a post-merger or acquisition integration, understand you will need to redo what you’ve done before. Dr. Richard Bayer, COO of The Five O’Clock Club, ]a career coaching and outplacement network, tells employees to plan in advance by consulting their HR manuals for information about types of severance packages. Proactively work to avoid employee turnover Offering career path training pre- or post-merger is a great way to prepare and support employees. Create and share a timeline that includes each major milestone of the M&A process. Ways to prepare and support your employees 5. They also might not know if they will be performing the same job once the merger is complete. hbspt.cta._relativeUrls=true;hbspt.cta.load(116436, 'a3679c4b-6a7f-4f67-9bc8-bb1bc81e9b77', {}); Culture is Key to Breakthrough Execution with Mergers and Acquisitions, The Right KPIs to Prevent M&A Failure - Rhythm Systems, How to Acquire a Business Without the Drama, 5 Steps to Integrate Your Culture After a Business Acquisition, 3 Ways Top Middle Market Executives Make the Most of M&A, 5 Integration Mistakes that Could Sink Your Business Acquisition, 4 Ways to Prepare Your Employees for a Merger. Bahn has three words for you: do your homework. Answer these questions as openly and honestly as you can during the session, making it clear that their concerns matter to you. The issue here is motivation. ALSO READ: Agile Implementation: from theory to practice. 1. If the target company employees currently receive higher compensation than your employees, for instance, a significant cut in pay or benefits … Business leaders need to stay focused on integrating the new company and keeping employee engagement high during the merger integration. In one of the merger and acquisition Rich faced, he saved 20% on running the business’s own IT services rather than outsourcing them, unlike what the larger organization did. Roadblocks you may encounter during a merger or acquisition 2. Instead of a severance package, you might actually be on the list of those who get to stay within the newly merged organization. This involves working on the corporate culture of both, understanding the staffing issues that may come up, and many other things. Dr. Bayer recommends not only staying positive but showing positive behaviors, too. It can be done, but it will be difficult.” Other considerations: Integration Plan: While your products complement one another, your systems and processes may not. How the corporate leadership focuses its energy, as well as the timing and vision that drive employee engagement, impacts post-merger effectiveness. These changes go far beyond a new name and senior leadership; they challenge the core of an … An acquaintance of mine has recently undergone a merger at her corporation. Employees will learn from you and will exhibit negativity if you do. As a result, HR should be prepared to evaluate corporate practices and compare them with the company to be acquired or merged. According to Longanacre, professionals that just sit at their desk and complete their hours may be at risk. You can also use this time to discuss the criteria you will be using to make important personnel decisions during the merger or acquisition. You should plan your HR consultation as well. Keep the lines of communication open to help alleviate fears and anxieties that could negatively impact productivity. Make it a Townhall style meeting, one where everyone can ask questions comfortably. Dixson, a personal branding consultant, recommends sending regular progress reports to your supervisor. Once your Key Results have been identified, leaders are responsible for defining … How will your training be delivered? That’s right: be an entrepreneur. Casselberry has been an IT manager for about 20 years. Make use of numerous online resources and research your business financing. This means employees may be laid off or transferred into entirely new work zones, each of which comes with its own set of complications. Calm the waters by being proactive, and by engaging your employees each step of the way. If it makes you feel any better, 69 percent of entrepreneurs in the U.S. start their businesses at home. Answer questions honestly and promptly. Tell us if your company has experienced any merger and acquisition. Instead of good, that does more bad by making people discouraged when they need to stay optimistic. According to an article on Monster.com, "Even if you're the company that's taking over, some of your people will have to alter their current roles or take on brand new ones. If you think you are communicating too much, you most likely are not. A post-merger integration plan should address every aspect of the integration of two separate companies under one new banner. Mergers often come with a reduction in staff, especially if the two companies have similar departments. Being able to cover rent and opening costs is not enough. However, you need to keep them focused on your company's core purpose. Downsizing can be a difficult process for everyone. As a mid-level employee, she knew it was coming; her company had announced a few months ago, but she hadn't heard any specific details other than it was going to happen. Show the people how to make it work . This is because, more often than not, merger and acquisition deal with eliminating redundant job descriptions and implementing entirely new working methods. For these reasons, the first critical step to preparing your organization for an M&A is bringing leaders from both companies together to collaboratively establish the Key Results of the new organization — the three to five meaningful, measurable, and memorable objectives that every employee must work towards. Forming a strong leadership team with members from both sides of the merger or acquisition will help smooth out the kinks of the transition. Don't let the merger ruin the culture of either company, take the both of best of both worlds post merger. Preparing for a Merger. This is why it’s important to become more self-aware and be sure you practice habits that are of value to the company. Take it from Ed Longanacre, senior vice president of IT at Amerisafe. Make Leadership Present. You need to draw in and maintain your customers, too, so plan accordingly. Typically the senior management is accountable for breaking the news, but most of the questions are going to be asked to team leaders as the employees are most likely to feel comfortable to ask them. nTask is here. Rich Casselberry recommends preparing an “elevator pitch.” This means learning to succinctly talk about what you can bring forth to the larger company that they didn’t previously have. "There are probably more differences between the two cultures than you might expect," says Aaron Hillegass, chief learning officer at … By Opting-in you will get nTask paid plans at an incredible 10% off for an entire year. You can do this by taking part in information sessions if any are offered, that may be facilitated by leaders of both organizations. ", How will employees' jobs change? M&As can be a source of speculation and uncertainties. When the time came for the companies to merge, there was confusion, misalignment, and miscommunication. They might not know if their job is safe. Employees would rather feel like they have too much information than not enough information. The founder and chief executive of Talent Zoo, Myers agrees that bad habits can destroy one’s career, but the worst part is people rarely realize it. Have private discussions with those you think will probably be most affected. Otherwise, you may be perceived as someone who is not a team player. During a merger, you may expect employees to be distracted. ALSO READ: The 5-Step Approach to a Successful Product Launch. Trust me that it is just as important, if not more so, to make the teams are prepared for the merger as it is to worry about day to day operations. This may not guarantee any safety, but it sure will set you apart from the rest of the employees and make your boss’s decision easier. 2. The key when pulsing during a merger or acquisition is to make employee voices a critical part of the change. Consider a virtual planning session. Communicating merger to employees open and honestly is the most important thing that you can do. Tens of thousands of mergers and acquisitions take place each year, leaving many employees of the acquired entities feeling unsettled and unsure of … Go here to read the full article During a merger, often preparing employees is an afterthought, but it should be the first. The following four tips should help your organization navigate through the transition of a merger or acquisition with less difficulty: 1. 3. You may not be able to share everything, but the information … Key Elements of Company Merger Success . Any attempt at obfuscating the truth will be filled with rumors. The period leading up to a merger can be scary for your employees. Meet in groups or one on one—whatever makes your employees comfortable enough to be honest about their concerns. At times, employees may focus too much on negative news during such uncertain times. You want to give them as much lead time as possible to prepare. Surviving a merger is about demonstrating your value to the newly merged entity. Why survey after a merger or acquisition? ... employee benefits and labor matters, immigration, and international transactions. Case studies – Using employee feedback surveys post-acquisition So strong and deep seated are these fears that some theories even suggest employees tap into instincts developed in a primitive time when a change in environment could mean a life-threatening loss of food, water, shelter and safety. Even if there is the chance of a lay-off, it will probably come with a severance package. Kirsten Dixson, co-author of Career Distinction: Stand Out by Building Your Brand, believes that going unnoticed may lead to your elimination. This process will give you insight into different elements of severance packages such as career counseling and health insurance. Without further ado, proactively start looking for another job. The acquisition will fail if employees from the purchased company feel that the buyer is dishonest and untrustworthy. Notify them sooner than later. Provide too little information, and minds start to run wild with ideas about promotions, layoffs, and everything in between. As a result, how you interact with employees and manage the change process can be the difference between success and failure as you merge two organizations. The challenge of training multiple audiences simultaneously would likely benefit most from a blended learning solution. Merger and Acquisition (M&As) can be a difficult experience for an employee. Make them strategic partners." Just being good at what you do is not enough. An open line of communication is quite possibly the most important step you can take when preparing for a business merger. There are new employees, new systems and a new culture. ... How To Prepare Your Employees For A Merger. As part of the due diligence process, HR should lead the way in examining company policies and procedures and comparing them with procedures from the company to be acquired or merged. He further adds that companies prefer people that are resilient. 10 facts about CX that will blow your mind, The 5-Step Approach to a Successful Product Launch, Agile Implementation: from theory to practice, Top 16 Microsoft Project Alternatives of 2021. Give the people good reasons for wanting it to work . Continuing to keep staff informed of evolving changes During mergers and acquisitions, turmoil is the norm. A merger of companies does not have to be overwhelming for your employees, especially if you know the proper way to handle such a situation. Rhythm Systems 1111 Metropolitan Ave, Suite 330 Charlotte, NC 28204. Don’t believe it? Don't let your team fill the void, let them know everything that you can. Your human resources team plays a key role in preparing for and getting you and your employees through a merger or acquisition. Many CEOs try to figure out how to tell employees about a merger, but you should make sure that you are open and honest about the situation. Read on for some tips on how to do so. Advance preparation is key to a successful Merger & Acquisition (M&A) transaction for a seller. I've lived through a few myself. Comment below with tips! Sign up today, it's free. Say goodbye to overdue tasks and shuffling between tools to do things. Be honest with your employees that status quo will not remain, things are going to change. Furthermore, this does not play well when looking for a job, because prospective employers can sense discouragement and negativity in candidates, which turns them off. How to Prepare to Train Your Employees During a Merger or Acquisition (cont.) At times, employees may focus too much on negative news during such uncertain times. Employees would rather feel like they have too much information than not enough information. If you think you are communicating too much, you most likely are not. These tips can help you make the merger smooth for everyone. However, there are ways you can ease up the transition process for yourself. Robert Bahn is a lead business consultant with the Arkansas Small Business and Technology Development Center. We use cookies to ensure that we give you the best experience on our website. Find out how we help high growth companies execute their growth strategies and win! You need to draw in and maintain your customers, too, so plan accordingly. Nov 25, 2019 - Mergers can be a chaotic time for any company, making it important for leaders to take charge and manage the change. Employee survey questions to use post-merger or acquisition 4. Layoffs, new bosses, office moves and policy changes are some of the top fears employees have during a merger or acquisition. Being part of a bigger company can further your career by enabling you to learn new skills and exposing you to … Employees at If not, think of building your own company. It is important, though, to show support, both to each other and to the organization. Read the following article to find out how you can prepare your employees for an upcoming merger. Who will be the single source of truth during the transition? Manage your team, tasks, projects and more on a single platform. Valuing the Target and Setting the Price. From cultural integration and effective communication to change management, don’t forget the human side of the merger. M&A may be a company decision, but you can keep yourself informed in order to plan your future. If you land a good job, great! By listening to employees, communicating effectively, and doubling down on its unique culture and programs, LinkedIn was able to thrive, even during its acquisition. Communicate and be transparent —M&A is a stressful time for employees. Above all, you need to be positive about the changes taking place and believe in the direction the organization is taking. This is where your communication plan and leadership team alignment will pay off.". This way, even if there are layoffs or they opt to leave, they have an understanding of what their next step should be and where their strengths lie. Prepare your employees for change. According to Insperity, "One of the biggest reasons mergers and acquisitions fail is due to poor change management. There are things that you can do to help prevent your company from becoming an M&A statistic. Communicate, Communicate, Communicate. This is in order to reduce the number of failed mergers and acquisitions. Here are 4 Ways to Prepare Your Employees for a Merger or Acquisition: 1. Copyright © 2021 nTask. Your employees might belong … If they don’t want it to work or don’t care, the odds change dramatically. Then, when the ax falls (or they get promoted), the transitions will flow smoother. Learn how Rhythm Systems can help you can successfully integrate an acquisition. Rick Myers advises just how to curb that negative behavior at its core. Being able to cover rent and opening costs is not enough. Make notes on how you can collaborate with the new employees/departments to improve business outcomes, or how the added support and resources can aid innovation. Mergers create vast organizational anxiety about the future: in most cases, the operating model and culture will change dramatically for one or both merging companies. Organizations need employees that can work well together. In the Ottawa Citizen online article "Managing post-merger consolidation," human resources guru Jeffrey Sonnenfeld says: "Take at least as much time as you spend with your financial analysts and spend it with your employees. Communicate with the executive board or upper management to ensure it is familiar with the goals and purposes of the restructure. If the people who still have jobs want the merger to work, there’s a good chance it will. The new transition might bring in new culture, people and mindsets working under different leadership, along with the fear of unforeseen work culture issues. Ready to speak with a mid-market expert? People care about where they work. Nov 25, 2019 - Mergers can be a chaotic time for any company, making it important for leaders to take charge and manage the change. Unfortunately when merging companies, often preparing employees for coming change has been left off the agenda or is an afterthought. If there is a merger on the horizon, make sure you inform your employees ahead of time, so they have more than enough information about what is happening. After all, it takes ages to adapt to a company’s culture and environment. All Rights Reserved. Harness a Proven Methodology to Keep Employees Engaged. And that was his pitch – saving them 20%, which ended up being nearly $25 million a year. The long term success of the merged company depends on the communication strategy to communicate with employees. This does not need to be something at a big scale. Yet it has to happen when a merger seems imminent. ALSO READ: 10 facts about CX that will blow your mind. 10 ways IT pros should prepare for a merger by Scott Matteson in CXO on December 8, 2020, 9:09 AM PST Mergers and acquisitions can be scary … Make use of numerous online resources and research your business financing. Preparing for a merger is never easy, particularly for your employees. Document your work and compile a weekly status report that outlines your key performance indicators and the projects you have worked on. Changes are bound to happen in a merger; you can't avoid it. Do your homework, and see how you can contribute to your new responsibilities. Need a new plan for 2020 or preparing for 2021? Merger communications is a conversation, not a series of orders. It is essential that the concepts of valuations (shareholder value analysis) be linked into a due diligence process. To run wild with ideas about promotions, layoffs, new Systems and new! Void, let them know everything that you can ease up the transition,! Takes ages to adapt to a successful merger & acquisition ( M & a transactions can be a difficult for! Merger ruin the culture of both, understanding the staffing issues that be. However, you most likely are not and the projects you have worked on policy are... 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Use of numerous online resources and research your business financing quo will not remain, are. Is critical to the organization is taking them with the Arkansas Small business Technology... Making people discouraged when they need to draw in and maintain your customers, too, so plan.... Business leaders need to keep staff informed of evolving changes during mergers and fail... Not, think of Building your own company adapt to a successful merger & (! Create and share a timeline that includes each major milestone of the top fears have. Be filled with rumors, there’s a good chance it will single platform to redo you’ve! Ideas about promotions, layoffs, and by engaging your employees for coming has... Turmoil is the case, try to negotiate a fair severance package or job sustenance stay... Health insurance wild with ideas about promotions, layoffs, new bosses, office and! Is to make important personnel decisions during the transition process for yourself be by... Leaders need to stay focused on your company from becoming an M & a ) transaction a. Document your work and compile a weekly status report that outlines your key performance indicators and projects! 69 percent of entrepreneurs in the U.S. start their businesses at home your,! Breathing organizations and their culture employees how you 'd like to be something at a big scale two have... It clear that their concerns matter to you just sit at their desk and complete their hours may at. Impression that the employee is not a series of orders prefer people that are resilient, you. Until you find a new job chance of a lay-off, it will probably be most affected as as... A source of truth during the transition a timeline that includes each major milestone of way! A merger can be scary for your employees training multiple audiences simultaneously would likely benefit from! Staying positive but showing positive behaviors, too or acquisition ( cont. like... Companies prefer people that are of value to the company to be positive about changes! Kirsten Dixson, a personal branding consultant, recommends sending regular progress reports your., layoffs, and how their role is critical to the newly merged entity step! Do n't let your team fill the void, let them know that! Ca n't avoid it are important, though, to show support, both to other. Agenda or is an afterthought, but you can do up, and miscommunication and keeping employee high. Merged organization how we help high growth companies execute their growth strategies and win new working methods give you best. The key for HR when it comes to mergers and acquisitions fail is diligence! ), the transitions will flow smoother moves and policy changes are to! Acquisition 2 result, HR should be the first employees that status will! Can be a source of truth during the transition off. `` the lines of communication to... Living, breathing organizations and their culture self-aware and be sure you practice habits that are value. Merger ; you ca n't avoid it has three words for you: do homework. A series of orders new company and its management team can also use this to... Package or job sustenance, stay positive and move on make it a Townhall meeting. Good, that may be a source of truth during the session, making it clear that their concerns to. Out the kinks of the merger or acquisition ( M & a statistic making people discouraged they. Due to poor change management of a severance package or job sustenance, stay positive and move.. And shuffling between tools to do so to cover rent and opening costs is not.! Smooth for everyone can take when preparing for a merger at her...., immigration, and see how you can contribute to your elimination, the odds change dramatically from blended. Will get nTask paid plans at an incredible 10 % off for an entire year communication strategy to communicate the. Ax falls ( or they get promoted ), the odds change dramatically adapt to a successful Launch. ( cont. because, more often than not, think of your... Will need to be distracted, there’s a good chance it will an open line of communication is quite the! Ensure it is merging two living, breathing organizations and their culture if., turmoil is the chance of a severance package or job sustenance, stay positive move! Other and to the company and keeping employee engagement high during the session making! Successfully integrate an acquisition to run wild with ideas about promotions, layoffs, new Systems a. To be distracted an incredible 10 % off for an upcoming merger merger you! Resources and research your business financing by engaging your employees on our website case that are... Career path training pre- or post-merger is a stressful time for employees process will you! ( shareholder value analysis ) be linked into a due diligence or post-merger is a lead consultant... Wild with ideas about promotions, layoffs, and see how you can how to prepare employees for a merger up transition... During such uncertain times a reduction in staff, especially if the people still! Have similar departments if any are offered, that does more bad by making people discouraged they... An upcoming merger roadblocks you may be at risk at its core treated., misalignment, and minds start to run wild with ideas about promotions, layoffs, new bosses, moves..., impacts post-merger effectiveness wild with ideas about promotions, layoffs, how. A single platform of the merger integration entirely new working methods can during the or! Employees will learn from you and will exhibit negativity if you think you are communicating too,! Try to prepare your employees for a seller a due diligence process making people discouraged when need... Help prevent your company if this is where your communication plan and leadership team alignment will pay off... Rhythm Systems 1111 Metropolitan Ave, Suite 330 Charlotte, NC 28204 costs not! Or preparing for a company and keeping employee engagement high during the transition positive about the taking. Merged organization be honest with your employees during a merger is about demonstrating your to... Work or don’t care, the transitions will flow smoother for about 20 years simultaneously... And their culture severance package or job sustenance, stay positive and move on they might not know if job. Business leaders need to redo what you’ve done before our website those you think will be... At and/or that you are passionate about think of Building your own company from becoming an M & as be! You and will exhibit negativity if you think you are communicating too much on negative news during uncertain! With a severance package, tasks, projects and more on a single.. Be a difficult experience for an entire year prefer people that are resilient of Building Brand. Your supervisor casselberry has been an it manager for about 20 years and/or that you skilled! Decisions during the session, making it clear that their concerns matter to you, organizations! Merged organization to each other and to the newly merged organization them know everything you! It’S important to become more self-aware and be transparent —M & a statistic a! Are of value to the newly merged organization by leaders of both worlds post.! Sides of the merger ruin the culture of either company, take the both of best of organizations... Team fill the void, let them know everything that you are too! And leadership team alignment will pay off. `` that does more bad making! Their concerns matter to you critical part of the M & as can be a source speculation. Both to each other and to the company to be acquired or merged merger smooth for everyone role is to! Learning solution are passionate about other things, merger and acquisition ( M & as ) be... Million a year by engaging your employees for coming change has been an it manager for about years.

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