Dixson, a personal branding consultant, recommends sending regular progress reports to your supervisor. 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. 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. M&A transactions can be time consuming and stressful for a company and its management team. Be honest with your employees that status quo will not remain, things are going to change. During a merger, you may expect employees to be distracted. Bahn has three words for you: do your homework. He further adds that companies prefer people that are resilient. Roadblocks you may encounter during a merger or acquisition 2. You can also use this time to discuss the criteria you will be using to make important personnel decisions during the merger or acquisition. The challenge of training multiple audiences simultaneously would likely benefit most from a blended learning solution. These changes go far beyond a new name and senior leadership; they challenge the core of an … Don't let your team fill the void, let them know everything that you can. ", How will employees' jobs change? I've lived through a few myself. Key Elements of Company Merger Success . Rick Myers advises just how to curb that negative behavior at its core. Make them strategic partners." That’s right: be an entrepreneur. This involves working on the corporate culture of both, understanding the staffing issues that may come up, and many other things. As a result, HR should be prepared to evaluate corporate practices and compare them with the company to be acquired or merged. Dr. Bayer recommends not only staying positive but showing positive behaviors, too. The long term success of the merged company depends on the communication strategy to communicate with employees. Document your work and compile a weekly status report that outlines your key performance indicators and the projects you have worked on. Forming a strong leadership team with members from both sides of the merger or acquisition will help smooth out the kinks of the transition. Calm the waters by being proactive, and by engaging your employees each step of the way. 2. Go here to read the full article The key for HR when it comes to mergers and acquisitions is due diligence. 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. Remind them why they are important, and how their role is critical to the company and its purpose. By Opting-in you will get nTask paid plans at an incredible 10% off for an entire year. M&A may be a company decision, but you can keep yourself informed in order to plan your future. laws for successful mergers: 1. If this is the case, try to prepare for your new job. They also might not know if they will be performing the same job once the merger is complete. When the time came for the companies to merge, there was confusion, misalignment, and miscommunication. You need to draw in and maintain your customers, too, so plan accordingly. Here are 4 Ways to Prepare Your Employees for a Merger or Acquisition: 1. Make it a Townhall style meeting, one where everyone can ask questions comfortably. Create and share a timeline that includes each major milestone of the M&A process. Any attempt at obfuscating the truth will be filled with rumors. ... employee benefits and labor matters, immigration, and international transactions. The new transition might bring in new culture, people and mindsets working under different leadership, along with the fear of unforeseen work culture issues. We use cookies to ensure that we give you the best experience on our website. If they don’t want it to work or don’t care, the odds change dramatically. An acquaintance of mine has recently undergone a merger at her corporation. Why survey after a merger or acquisition? 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. 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. Above all, you need to be positive about the changes taking place and believe in the direction the organization is taking. Ready to speak with a mid-market expert? Need a new plan for 2020 or preparing for 2021? During a merger, often preparing employees is an afterthought, but it should be the first. Make use of numerous online resources and research your business financing. 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. Let's explore some tips for preparing your employees for a merger. 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. Changes are bound to happen in a merger; you can't avoid it. The key when pulsing during a merger or acquisition is to make employee voices a critical part of the change. Communicating merger to employees open and honestly is the most important thing that you can do. How to Prepare to Train Your Employees During a Merger or Acquisition (cont.) Continuing to keep staff informed of evolving changes During mergers and acquisitions, turmoil is the norm. 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. 1. 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. ALSO READ: 10 facts about CX that will blow your mind. You can do this by taking part in information sessions if any are offered, that may be facilitated by leaders of both organizations. People care about where they work. According to Longanacre, professionals that just sit at their desk and complete their hours may be at risk. Harness a Proven Methodology to Keep Employees Engaged. Make use of numerous online resources and research your business financing. 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. Manage your team, tasks, projects and more on a single platform. 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. Valuing the Target and Setting the Price. Without further ado, proactively start looking for another job. The following four tips should help your organization navigate through the transition of a merger or acquisition with less difficulty: 1. Your human resources team plays a key role in preparing for and getting you and your employees through a merger or acquisition. Your employees might belong … This is because it may give the impression that the employee is not interested in the organization. How will your training be delivered? The acquisition will fail if employees from the purchased company feel that the buyer is dishonest and untrustworthy. nTask is here. This is why it’s important to become more self-aware and be sure you practice habits that are of value to the company. 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. You may not be able to share everything, but the information … It is essential that the concepts of valuations (shareholder value analysis) be linked into a due diligence process. Treat your employees how you'd like to be treated. However, there are ways you can ease up the transition process for yourself. 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. This is more than a financial transaction and merging balance sheets, it is merging two living, breathing organizations and their culture. Make Leadership Present. Employees would rather feel like they have too much information than not enough information. If the people who still have jobs want the merger to work, there’s a good chance it will. Employees will learn from you and will exhibit negativity if you do. They might not know if their job is safe. 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. Employees would rather feel like they have too much information than not enough information. ... How To Prepare Your Employees For A Merger. 3. Instead of a severance package, you might actually be on the list of those who get to stay within the newly merged organization. After all, it takes ages to adapt to a company’s culture and environment. Downsizing can be a difficult process for everyone. Just being good at what you do is not enough. Business leaders need to stay focused on integrating the new company and keeping employee engagement high during the merger integration. Nov 25, 2019 - Mergers can be a chaotic time for any company, making it important for leaders to take charge and manage the change. If you think you are communicating too much, you most likely are not. Take it from Ed Longanacre, senior vice president of IT at Amerisafe. 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. Show the people how to make it work . This does not need to be something at a big scale. Communicate, Communicate, Communicate. Preparing for a merger is never easy, particularly for your employees. Robert Bahn is a lead business consultant with the Arkansas Small Business and Technology Development Center. At times, employees may focus too much on negative news during such uncertain times. Even if there is the chance of a lay-off, it will probably come with a severance package. 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. Layoffs, new bosses, office moves and policy changes are some of the top fears employees have during a merger or acquisition. However, you need to keep them focused on your company's core purpose. Preparing for a Merger. This process will give you insight into different elements of severance packages such as career counseling and health insurance. An open line of communication is quite possibly the most important step you can take when preparing for a business merger. 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. Yet it has to happen when a merger seems imminent. The issue here is motivation. Fill in your information and click Sign Up. "There are probably more differences between the two cultures than you might expect," says Aaron Hillegass, chief learning officer at … This is where your communication plan and leadership team alignment will pay off.". Merger and Acquisition (M&As) can be a difficult experience for an employee. 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. 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. Otherwise, you may be perceived as someone who is not a team player. Choose something you are skilled at and/or that you are passionate about. If the target company employees currently receive higher compensation than your employees, for instance, a significant cut in pay or benefits … Being able to cover rent and opening costs is not enough. There are things that you can do to help prevent your company from becoming an M&A statistic. Kirsten Dixson, co-author of Career Distinction: Stand Out by Building Your Brand, believes that going unnoticed may lead to your elimination. Give the people good reasons for wanting it to work . 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