How To Keep Top Talent On Board During An Acquisition

3 things to keep in mind before, during and after an acquisition

With light at the end of the pandemic tunnel, HR leaders are busy addressing an array of upcoming workplace challenges. Many are rethinking where and how work will get done and considering hybrid staffing models. They’re addressing renewed competition for top talent as employees show more willingness to change jobs as the economy recovers. At the same time, M&A activity has reached an all-time high, up 158% from this point last year.   

These trends are related to many companies. So many employees are leaving their jobs that people are calling the phenomenon “The Great Resignation,” with 4 million quitting in April 2021 alone. That’s bad news for employers who are trying to get back to normal operations in the wake of the pandemic, and if your company is going through an acquisition, the anxiety — and the stakes — are even higher.

But leaders can navigate an M&A in 2021 successfully with the right preparation, leadership approach and communication strategy. Here are three things to keep in mind before, during and after an acquisition:

One of the best ways to keep valuable talent on board is to prepare in advance by having a new company structure in place when you announce the merger. Typically, the organizations involved will still be ironing out details, but it’s critical to have a model of what the new company will look like and share that information as soon as possible.

An acquisition is an inherently uncertain situation, and that can make employees more likely to leave for what they perceive as greener pastures. In a tight labor market, there will be plenty of offers for the accomplished employees you want to keep, so make sure they know there’s a place for them within the new organization’s structure, sharing as many details as you can.

In addition to sharing the company structure, leaders should also share their vision for the new company’s direction with all employees. Keep in mind that for the most motivated and talented workers, the job isn’t just about the paycheck. They need inspiration, and they want to know they are part of an exciting new journey.  

Communicate your vision for the new company across all levels, working with managers to help them understand their role in making the acquisition a success and gathering feedback so you’ll know what questions are on your employees’ minds. Communicate early and often, and look for opportunities to provide direct answers in documents such as acquisition FAQs from HR.

Be open and honest with employees about what will happen when the acquisition is finalized. If the merged companies are in high growth mode, you’ll have a good news story to tell about more opportunities for all, and it’s important to communicate that. If departments are merging and people will be let go, it’s critical to be truthful about that too.

It can be helpful to have a visual representation of the new company’s organizational design that people can access to view the structure. It should be based on accurate data and updated as plans change so employees can make informed choices about their next career move. This is also a great way to build trust during what can be a stressful time for everyone. Post-acquisition surveys can provide insight that helps you keep your most valuable people long term.

There was a war for talent raging before the pandemic, and the competition is just as fierce now, if not more so. Today’s employees tend to be values-driven and entrepreneurial, and now, since millions of formerly full-time onsite staff got a taste of remote work, many employees also expect more autonomy. That may have implications for your organizational structure too.

Every acquisition is unique, but creating a framework to move forward by defining the new company’s structure, communicating a clear vision across the organization, and being open and honest with employees is essential in virtually all M&A situations. If you can do that, you can navigate through an acquisition, while keeping your top talent on board.