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A merger often creates duplicate positions and resources, so the first matter that the business owner should attend to after the merger is determine what will be done with extraneous resources and employees.
Relocation within the company is a popular option, as it gives employees the opportunity to remain employed with the company even after their position is eliminated. It is essential to avoid creating a negative outlooks on the company when having to let go of employees. Many businesses choose to implement a program that will help employees find a new position within the company, or provide them with resume building services that will assist them in finding a new job.
With the relocation program, ample communication between management and the staff must be afforded. Communication is the key to retaining employees after a merger. Heightened suspicions are common in a post-merger culture, so it is vital to manage these feelings appropriately.
These types of services should go into effect immediately after the merger. Employees may consider the new environment to be unstable, especially if they have not yet been promised a secured position within the company. Providing them with the aforementioned services concurrently with the announcement of the merger will help ease staff concerns and maintain positive feelings towards the business. Ensure that all employees understand the basics of the new policies before moving forward. Determine which teams will assist with these new processes and write up policies so that everyone is on the same page.
The HR teams from both companies should work together to make decisions that work best for the combined business and their employees. It is important to hash out the different benefits and work environments previously provided, and combine them in a way that employees do not feel slighted. Retaining employees can often be one of the biggest challenges of a merger, but it can also be vital to its success.
Once these new changes are implemented, it is often a good idea to bring in a specialist in culture training. The merging of two different work cultures often proves to be a complicated task, and it must be done correctly in order to retain staff. The practices of one company may differ from the other, and this conflict could not only confuse and upset employees, but customers as well. If one department has been providing customers with a free product when they complain, but it is not in the policy of the other company, then not only may hostility arise between staff, but the incongruity could discourage customers from returning. Re-establishing procedures and policies for the merged company is vital, and retraining may often be necessary.
The majority of mergers fail due to personnel issues above all else, which it why it extremely valuable to implement successful integration policies.
If you are considering a merger, then it is important to employ the help of professionals that are well-versed in post-merger integration. An M&A intermediary will not only have experience with completing the merger between the two businesses, but the knowledge of post-closing procedures. Contact George & Company to learn more today.