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    How to Navigate Culture Change During Mergers and Acquisitions
    News of one company buying another one makes for splashy headlines, broadcasting rising stock prices and the overall cost of the deal. Just look at the headlines Disney garnered for its recent $52 billion bid to acquire most of 21st Century Fox, as well as all of Sky News. However, what really count [...]


    How to Navigate Culture Change During Mergers and Acquisitions


    News of one company buying another one makes for splashy headlines, broadcasting rising stock prices and the overall cost of the deal. Just look at the headlines Disney garnered for its recent $52 billion bid to acquire most of 21st Century Fox, as well as all of Sky News. However, what really counts after the dust settles is how you help your employees adjust to the cultural shift. Author and management consultant Mark E. Mendenhall writes that “cultural and psychological sides of M&A are often overshadowed by the financial side,” and SHRM notes “studies consistently show that most mergers and acquisitions fail, mainly because of people and culture issues.” As an HR professional, your participation is crucial during each step of the transition, but the most significant contribution you can make is probably in the area of employee engagement. During this high-stakes period, you have the chance to prove your value to the company if you keep the following factors in mind:
    Expect Employees to Feel Stressed
    Before you can help employees adjust to upcoming changes, you have to be aware of what they are feeling. From the moment the merger is first announced, your entire workforce is likely to be distracted by uncertainty. It’s disturbing to imagine one’s livelihood simply disappearing, especially for those workers who are older or who doubt their ability to land an equivalent job. Employees may even wonder if financial pressures or job-hunting may force them to move out of their home. Relationships inside and outside the workplace may suffer, and engagement in job tasks often plummets.
    Even though mergers aren’t exactly a cakewalk for your HR department, you must find time to alleviate your workforce’s stress and provide each person with the support and empathy they need to stay engaged. Glassdooradvises, “Even if an employee is losing their job, studies have shown that the worker will be more productive and more valuable in his final days if he or she is notified well in advance and provided with adequate support and guidance.”

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