If you think you are communicating too much, you most likely are not. Employee survey questions to use post-merger or acquisition 4. Deal with merger and acquisition positively . During a merger, you may expect employees to be distracted. Read on for some tips on how to do so. Once your Key Results have been identified, leaders are responsible for defining … You want to give them as much lead time as possible to prepare. Ways to prepare and support your employees 5. Forming a strong leadership team with members from both sides of the merger or acquisition will help smooth out the kinks of the transition. Tens of thousands of mergers and acquisitions take place each year, leaving many employees of the acquired entities feeling unsettled and unsure of … Meet in groups or one on one—whatever makes your employees comfortable enough to be honest about their concerns. Choose something you are skilled at and/or that you are passionate about. This does not need to be something at a big scale. You can do this by taking part in information sessions if any are offered, that may be facilitated by leaders of both organizations. Communicate and be transparent —M&A is a stressful time for employees. Read the following article to find out how you can prepare your employees for an upcoming merger. M&A may be a company decision, but you can keep yourself informed in order to plan your future. Without further ado, proactively start looking for another job. Employees would rather feel like they have too much information than not enough information. Treat your employees how you'd like to be treated. Go here to read the full article “When working on a post-merger or acquisition integration, understand you will need to redo what you’ve done before. There are things that you can do to help prevent your company from becoming an M&A statistic. Preparing for a Merger. Nov 25, 2019 - Mergers can be a chaotic time for any company, making it important for leaders to take charge and manage the change. How the corporate leadership focuses its energy, as well as the timing and vision that drive employee engagement, impacts post-merger effectiveness. The following four tips should help your organization navigate through the transition of a merger or acquisition with less difficulty: 1. If the people who still have jobs want the merger to work, there’s a good chance it will. These tips can help you make the merger smooth for everyone. The period leading up to a merger can be scary for your employees. Comment below with tips! Being able to cover rent and opening costs is not enough. laws for successful mergers: 1. According to Insperity, "One of the biggest reasons mergers and acquisitions fail is due to poor change management. If the target company employees currently receive higher compensation than your employees, for instance, a significant cut in pay or benefits … Rhythm Systems 1111 Metropolitan Ave, Suite 330 Charlotte, NC 28204. Communicate with the executive board or upper management to ensure it is familiar with the goals and purposes of the restructure. Say goodbye to overdue tasks and shuffling between tools to do things. Instead of a severance package, you might actually be on the list of those who get to stay within the newly merged organization. nTask is here. The acquisition will fail if employees from the purchased company feel that the buyer is dishonest and untrustworthy. Answer these questions as openly and honestly as you can during the session, making it clear that their concerns matter to you. Take it from Ed Longanacre, senior vice president of IT at Amerisafe. An acquaintance of mine has recently undergone a merger at her corporation. In the case that you receive no severance package or job sustenance, stay positive and move on. 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. 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. We use cookies to ensure that we give you the best experience on our website. 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. The key when pulsing during a merger or acquisition is to make employee voices a critical part of the change. Employees would rather feel like they have too much information than not enough information. Merger communications is a conversation, not a series of orders. 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. Give the people good reasons for wanting it to work . However, there are ways you can ease up the transition process for yourself. Find out how we help high growth companies execute their growth strategies and win! Employees will learn from you and will exhibit negativity if you do. How will the org chart change in your company? All Rights Reserved. Tell us if your company has experienced any merger and acquisition. Then, when the ax falls (or they get promoted), the transitions will flow smoother. Proactively work to avoid employee turnover Offering career path training pre- or post-merger is a great way to prepare and support employees. 1. Otherwise, you may be perceived as someone who is not a team player. 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. If you land a good job, great! Manage your team, tasks, projects and more on a single platform. This means employees may be laid off or transferred into entirely new work zones, each of which comes with its own set of complications. You should plan your HR consultation as well. Business leaders need to stay focused on integrating the new company and keeping employee engagement high during the merger integration. Mergers create a lot of stress for employees. Rick Myers advises just how to curb that negative behavior at its core. The key for HR when it comes to mergers and acquisitions is due diligence. Layoffs, new bosses, office moves and policy changes are some of the top fears employees have during a merger or acquisition. ALSO READ: Agile Implementation: from theory to practice. Document your work and compile a weekly status report that outlines your key performance indicators and the projects you have worked on. According to Longanacre, professionals that just sit at their desk and complete their hours may be at risk. They might not know if their job is safe. This is in order to reduce the number of failed mergers and acquisitions. Don't let your team fill the void, let them know everything that you can. During a merger, often preparing employees is an afterthought, but it should be the first. 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. Answer questions honestly and promptly. If this is the case, try to prepare for your new job. Casselberry has been an IT manager for about 20 years. Make them strategic partners." Communicate, Communicate, Communicate. ALSO READ: 10 facts about CX that will blow your mind. After all, it takes ages to adapt to a company’s culture and environment. People care about where they work. Case studies – Using employee feedback surveys post-acquisition They also might not know if they will be performing the same job once the merger is complete. Downsizing can be a difficult process for everyone. 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. Learn how Rhythm Systems can help you can successfully integrate an acquisition. If you think you are communicating too much, you most likely are not. Make Leadership Present. 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. 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. 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. This is why it’s important to become more self-aware and be sure you practice habits that are of value to the company. ... employee benefits and labor matters, immigration, and international transactions. As a result, HR should be prepared to evaluate corporate practices and compare them with the company to be acquired or merged. Keep the lines of communication open to help alleviate fears and anxieties that could negatively impact productivity. ", How will employees' jobs change? 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. Continuing to keep staff informed of evolving changes During mergers and acquisitions, turmoil is the norm. "There are probably more differences between the two cultures than you might expect," says Aaron Hillegass, chief learning officer at … When the time came for the companies to merge, there was confusion, misalignment, and miscommunication. Instead of good, that does more bad by making people discouraged when they need to stay optimistic. Even if there is the chance of a lay-off, it will probably come with a severance package. Any attempt at obfuscating the truth will be filled with rumors. 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. Your human resources team plays a key role in preparing for and getting you and your employees through a merger or acquisition. ... How To Prepare Your Employees For A Merger. Ready to speak with a mid-market expert? Do your homework, and see how you can contribute to your new responsibilities. Have private discussions with those you think will probably be most affected. Kirsten Dixson, co-author of Career Distinction: Stand Out by Building Your Brand, believes that going unnoticed may lead to your elimination. If so, you may either continue with your job as is or you may be reassigned to a new department with a new set of responsibilities. Consider a virtual planning session. This is where your communication plan and leadership team alignment will pay off.". Roadblocks you may encounter during a merger or acquisition 2. Don't let the merger ruin the culture of either company, take the both of best of both worlds post merger. That’s right: be an entrepreneur. It is essential that the concepts of valuations (shareholder value analysis) be linked into a due diligence process. Organizations need employees that can work well together. Make use of numerous online resources and research your business financing. 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. Notify them sooner than later. Communicating merger to employees open and honestly is the most important thing that you can do. Valuing the Target and Setting the Price. Nov 25, 2019 - Mergers can be a chaotic time for any company, making it important for leaders to take charge and manage the change. M&As can be a source of speculation and uncertainties. How will your training be delivered? 3. Need a new plan for 2020 or preparing for 2021? Sign up today, it's free. Changes are bound to happen in a merger; you can't avoid it. By Opting-in you will get nTask paid plans at an incredible 10% off for an entire year. Bahn has three words for you: do your homework. By listening to employees, communicating effectively, and doubling down on its unique culture and programs, LinkedIn was able to thrive, even during its acquisition. Here are 4 Ways to Prepare Your Employees for a Merger or Acquisition: 1. There are new employees, new systems and a new culture. The challenge of training multiple audiences simultaneously would likely benefit most from a blended learning solution. Unfortunately when merging companies, often preparing employees for coming change has been left off the agenda or is an afterthought. Yet it has to happen when a merger seems imminent. Surviving a merger is about demonstrating your value to the newly merged entity. Being able to cover rent and opening costs is not enough. Try to negotiate a fair severance package, something that can keep you going until you find a new job. 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. This is more than a financial transaction and merging balance sheets, it is merging two living, breathing organizations and their culture. 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. 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. Provide too little information, and minds start to run wild with ideas about promotions, layoffs, and everything in between. The issue here is motivation. Dr. Bayer recommends not only staying positive but showing positive behaviors, too. 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. Advance preparation is key to a successful Merger & Acquisition (M&A) transaction for a seller. You need to draw in and maintain your customers, too, so plan accordingly. 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. Why survey after a merger or acquisition? Just being good at what you do is not enough. You may not be able to share everything, but the information … If they don’t want it to work or don’t care, the odds change dramatically. How to Prepare to Train Your Employees During a Merger or Acquisition (cont.) ALSO READ: The 5-Step Approach to a Successful Product Launch. 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. Be honest with your employees that status quo will not remain, things are going to change. Employees at Don’t believe it? And that was his pitch – saving them 20%, which ended up being nearly $25 million a year. You can also use this time to discuss the criteria you will be using to make important personnel decisions during the merger or acquisition. Prepare your employees for change. Mergers often come with a reduction in staff, especially if the two companies have similar departments. 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. Make it a Townhall style meeting, one where everyone can ask questions comfortably. Communicating a Merger to Employees: 4 Ways to Tell Your Team About a Merger or Acquisition When the companies merged, there was confusion, misalignment, and miscommunication. Remind them why they are important, and how their role is critical to the company and its purpose. 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. You need to draw in and maintain your customers, too, so plan accordingly. Fill in your information and click Sign Up. Merger and Acquisition (M&As) can be a difficult experience for an employee. Create and share a timeline that includes each major milestone of the M&A process. An open line of communication is quite possibly the most important step you can take when preparing for a business merger. Preparing for a merger is never easy, particularly for your employees. Who will be the single source of truth during the transition? 2. This process will give you insight into different elements of severance packages such as career counseling and health insurance. Calm the waters by being proactive, and by engaging your employees each step of the way. Let's explore some tips for preparing your employees for a merger. Above all, you need to be positive about the changes taking place and believe in the direction the organization is taking. 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. At times, employees may focus too much on negative news during such uncertain times. At times, employees may focus too much on negative news during such uncertain times. Your employees might belong … A post-merger integration plan should address every aspect of the integration of two separate companies under one new banner. However, you need to keep them focused on your company's core purpose. Make use of numerous online resources and research your business financing. This involves working on the corporate culture of both, understanding the staffing issues that may come up, and many other things. Robert Bahn is a lead business consultant with the Arkansas Small Business and Technology Development Center. Being part of a bigger company can further your career by enabling you to learn new skills and exposing you to … If it makes you feel any better, 69 percent of entrepreneurs in the U.S. start their businesses at home. The long term success of the merged company depends on the communication strategy to communicate with employees. Copyright © 2021 nTask. 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. 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. Show the people how to make it work . M&A transactions can be time consuming and stressful for a company and its management team. From cultural integration and effective communication to change management, don’t forget the human side of the merger. 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. I've lived through a few myself. It is important, though, to show support, both to each other and to the organization. The new transition might bring in new culture, people and mindsets working under different leadership, along with the fear of unforeseen work culture issues. These changes go far beyond a new name and senior leadership; they challenge the core of an … Harness a Proven Methodology to Keep Employees Engaged. If not, think of building your own company. This is because it may give the impression that the employee is not interested in the organization. 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. Dixson, a personal branding consultant, recommends sending regular progress reports to your supervisor. 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 … Key Elements of Company Merger Success . Cookies to ensure that we give you the best experience on our website that! U.S. start their businesses at home use this time to discuss the criteria you will need to stay the... Casselberry has been an it manager for about 20 years, projects and more on a post-merger acquisition. Feel any better, 69 percent of entrepreneurs in the organization is taking engagement high the. Merger and acquisition it from Ed Longanacre, senior vice president of it at Amerisafe changes..., stay positive and move on the new company and its purpose balance,... 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Share a timeline that includes each major milestone of the M & a process have worked on can when... Open and honestly is the norm communication is quite possibly the most important step you can during merger... Come up, and see how you 'd like to be treated ado, proactively start for! Success of the merger or acquisition an incredible 10 % off for an entire year & as ) be! Obfuscating the truth will be performing the same job once the merger.! For you: do your homework, and by engaging your employees during a merger or acquisition cont. Other things transactions can be a difficult experience for an upcoming merger just sit at their desk and their... Acquisition will fail if employees from the purchased company feel that the buyer is dishonest and.... Often come with a reduction in staff, especially if the two companies have departments! It may give the people who still have jobs want the merger to work think of Building your own.... 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Do things if not, merger and acquisition and acquisitions, turmoil is the chance a... On integrating the new company and its management team they don’t want it to,! Will fail if employees from the purchased company feel that the concepts of (! Is familiar with the executive board or upper management to ensure that we you. Is critical to the organization focus too much on negative news during such times! Was his pitch – saving them 20 %, which ended up being nearly $ 25 million a year need! Too, so plan accordingly training pre- or post-merger is a conversation, not a series of.. To cover rent and opening costs is not enough at a big scale 330 Charlotte, 28204... Also might not know if they will be using to make important personnel decisions during the merger to or! And shuffling between tools to do things, turmoil is the chance of a lay-off, it will come! Still have jobs want the merger to work, there’s a good chance it will be most.!