If your job description involves any aspect of people management, you are keenly aware of the costs associated with losing valuable members of your team or organization. One of the most vulnerable phases for losing key talent is before, during, and after a merger or acquisition. It is almost a norm that some roles will be negatively impacted during M&A actions and once news of an impending merger or acquisition surfaces by fact or rumor, you can bet that many of your peers and subordinates will be updating their resumes. Retaining your best talent during a merger or acquisition is crucial for ensuring a smooth transition and the long-term success of the newly combined organization. Here are 15 strategies you should consider that will allow you to manage or control talent retention in your organization during a merger or acquisition.
1. Communication and Transparency:
• When and if possible, share the vision, goals, and benefits of the merger or acquisition with your management team and keep them informed about the process. Transparency and the ability to address their concerns openly and honestly will be critical to building and maintaining trust.
2. Career Path Planning:
• When you have the clarity to do so, show them how they fit into the new organization’s structure and discuss potential career paths and growth opportunities.
3. Recognition and Rewards:
• An M&A has its own challenges but it doesn’t mean you should suspend recognition programs. Whenever possible, continue to recognize and reward their contributions to the company.
• Consider retention bonuses or other financial incentives to keep them motivated.
4. Cultural Integration:
• If you see gaps in the old and new organizational cultures, take measures to foster a culture of collaboration and inclusivity. Ensure that both the acquiring and acquired companies’ cultures are respected and merged harmoniously.
5. Employee Engagement:
• Where possible, encourage your managers to engage with their teams and build strong relationships. If the opportunity exists for you to do so, create opportunities for your managers to provide input and influence decision-making during the M&A phase.
6. Flexible Work Arrangements:
• If you can do so, offer as much flexibility in work arrangements as is possible and feasible. Numerous surveys continue to show that organizations that work to accommodate their employees’ personal needs and work-life balance enjoy the benefits of greater retention. We will explore ideas and strategies for flexible work arrangements in a separate blog post.
7. Performance Management:
• If your performance measurement and management processes need improvement, then this may be the time to implement a fair and consistent performance evaluation system. If your process is robust, you’ll want to ensure that your managers are appropriately rewarded for achieving set targets and KPIs as well as the success of the merger or acquisition.
8. Mentorship and Coaching:
• Having a solid mentorship and coaching program to support navigating the complexities of the merger can contribute to a sense of stability during a time of increased ambiguity. Ensure your managers have access to senior leaders who can provide guidance and counsel.
9. Empowerment and Decision-Making:
• If you’ve created a collaborative culture you should be able to trust your managers with decision-making authority within their areas of responsibility. Empower them to make decisions that impact their teams and contribute to the success of the merger or acquisition.
10. Retention Agreements
• Once you have clarity on manning requirements, consider implementing retention agreements or contracts with incentives to secure your manager’s commitment for a specific period post-merger.
11. Work-Life Balance:
• Promote a healthy work-life balance to prevent burnout, including encouraging the use of vacation days and time off.
12. Feedback Mechanisms:
• Open and transparent communication can have its challenges and a merger or acquisition process can make that even more challenging. Where possible, create channels for soliciting ongoing feedback and continuous improvement. Address concerns and act on their feedback to show that their opinions matter.
13. Competitive Compensation and Benefits:
• Ensure that your employees’ compensation and benefits remain competitive in the industry. This is no time to put key talent at risk to keep payroll costs at a minimum.
14. Monitoring and Support:
• Regularly check in with your managers to see how they are adapting to the changes. One-on-one interactions can foster greater connections and relationships. Ensure they are aware of the support and resources that are available if needed.
15. Exit Strategies:
• Most every merger and acquisition will have talent impacted by a required reduction in force. You will want to develop contingency plans for key talent in the event that they decide to leave despite your best efforts to retain them. There is no time like a merger or acquisition to have a strong succession planning or recruitment strategy in place.
Every organization and merger is unique, so tailor these strategies to fit your specific circumstances and the needs and preferences of your managers. Open communication and flexibility are key to retaining top talent during a merger or acquisition. Should you need support in replacing key talent, then reach out to me via the contact information below.
– Carlos Acosta
Carlos Acosta is the Practice Leader and a Senior Managing Partner of The QualiFind Group. The QualiFind Group is a Forbes-ranked professional recruitment firm specializing in talent acquisition for exceptional specialist to managerial-level talent. With a global network of recruiters, The QualiFind Group serves client organizations in more than 45 countries around the world.
Carlos can be reached at 619-240-2638 or cacosta@qualifindgroup.com