Mergers & acquisitions (M&A) can generate incredible opportunities and are an essential part of the growth strategies for many organizations. They can also be high-pressure, high-stress transactions with a wide variety of hidden risks and obstacles. The closing of an M&A transaction may feel like “the end,” but once the funding has changed hands, the detailed process of ensuring post-closing success begins.
The harsh reality of employee engagement during a transaction and the subsequent integration is that nearly one-third of acquired workers will leave in the first year after acquisition at a rate three times higher than traditional new hires. We know why they typically leave – a perception that compensation is unfair, lack of alignment with the new organization’s culture, or are uncertain about their job status.
And when they leave, that’s like losing investment twice – especially if part of your deal rationale was the value of the acquired organization’s skilled labor and technical expertise. With low retention, you’ll need to expend resources to hire new personnel and will likely suffer productivity challenges in the meantime. Strategically engaging employees can not only retain more staff but also activate them as advocates with customers, regulators, and communities.