How to Overcome Employee Engagement Challenges with A Merger and Acquisition


One reason why so many merger and acquisition deals fail is the disruption caused by employee engagement issues. In many cases, the CEOs of the new entities that come to be due to the merger or acquisition think that there is so much to do in the new company that communication and motivation issues can wait, then they are shocked to see the harm caused by the neglect. Here are some tips to overcome these challenges:

  • Promote transparency – most employees are insecure after a merger; they don’t know whether their jobs are secure, and they have lots of questions. In such a tense situation, rumors start quickly and lead to unhappy teams and key people leaving. Prevent that with transparent communication – hold meetings regularly and create an environment in which people are not afraid to ask questions;
  • Promote employee retention – most mergers lead to at least a few key people leaving the new company because of a lack of motivation and a vision of future possibilities. Talented business brokers suggest that you can prevent that from happening by clearly communicating strategies and targets;
  • Promote the harmonization of business cultures – disregarding intangible values has led to many mergers’ failure, so the new organization needs to incorporate both companies’ values harmoniously.

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