how to prepare employees for a merger

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

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