Why Retention During Mergers and Acquisitions Is Becoming More Challenging


According to many prestigious studies and companies’ day-to-day experiences after mergers and acquisitions, employee retention is increasingly tricky once the two companies join forces. Successfully navigating the transition is key to the newly established company’s success.

One of the most important aspects of employee retention is to understand the phenomenon itself. Below are some of the factors that account for difficulties in employee retention:

Forgotten personnel: Mergers and acquisitions are more motivated by prospective financial gain. They often fail to consider the people involved. Working for a company that merges or is acquired by another one might come with lots of frustration for individual employees from either company. What people need are perspective and security. Retention is much more successful in companies that address employee concerns and security.

Culture clashes: No two cultures are ever fully compatible, and very severe clashes usually create environments that people prefer to leave. The process of merging the two companies and their cultures takes effort and strategy. At the end of the day, in demand business brokers will tell you that investment in merging cultures is key to developing a solid new culture acknowledged by everyone involved.

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