Staff engagement & retention following M&A
Merger and acquisition activity is prevalent in the business travel industry, sparking excitement for businesses but also causing uneasiness and staff turnover. It’s crucial to understand why employees leave after a merger or acquisition to prevent unnecessary turnover. Staff engagement post M&A is challenging but a priority for any successful M&A business plan.
Key challenges impacting employee retention during a merger or acquisition include cultural misalignment, job redundancy, changes in leadership, lack of communication, disruption in the status quo, and major work changes. Nearly 34% of acquired workers leave a company within a year, compared to 12% of regular hires with similar experience and skills.
To build employee trust following a merger or acquisition, a three-pronged approach is essential, focusing on clear communication, employee engagement, and support. Business leaders must step up during times of change to help employees embrace opportunity.
Clear Communication
Clear and consistent communication is key during mergers and acquisitions. Providing employees with regular updates on the process, reasons behind the M&A, upcoming activities, timelines, and expected changes helps them prepare for the transition. Encouraging open dialogue for employees to ask questions and express concerns fosters understanding and alignment with the overarching goals and vision of the merger.
Engagement
Engaged leadership plays a vital role in successful change management. Training leaders on effective change strategies and showcasing a unified commitment to the merger’s success sets the tone for a smooth transition. Cultural integration is crucial; assessing and merging the best of both company cultures while respecting differences leads to a new shared identity.
Support
Employee involvement is essential in decision-making processes that impact their roles. Involving employees and implementing their suggestions enhances autonomy and fosters engagement. Establishing cross-functional teams for integration initiatives promotes collaboration and synergy.
Incentive
Lastly, talent retention programs reinforce the value placed on employees’ commitment during transitions. Offering retention incentives like stock options, career development opportunities, and bonuses helps retain key talent, ensuring continuity and stability during periods of change.
Opportunity
Career growth and development are vital components of a successful organisation. By establishing clear pathways for employees within the merged entity, we can help them envision a future. Routine career conversations, training, mentoring, and coaching are key to adapting to role changes post-merger, fostering both individual growth and organisational succession planning.
Flexibility
During times of change like mergers, offering flexible working arrangements can ease the transition. Providing options like remote work or hybrid setups instead of relocation can help employees maintain a healthy work-life balance. Equipping teams with collaborative technology ensures seamless operations regardless of physical location.
Conflict Resolution
Conflict resolution is crucial post-merger as teams adjust to new dynamics. Proactively addressing conflicts through training and resources, and promoting transparent communication, helps navigate challenges effectively. Encouraging employees to voice their concerns fosters a culture of openness and collaboration.
Recognition
Recognising and rewarding employees is essential for motivation, especially during a merger. Integration milestone celebrations, Employee of the Month programs, spot bonuses, and personalised thank you notes are impactful ways to acknowledge contributions and retain talent. Appreciation boosts morale and strengthens engagement throughout the integration process.
Monitoring
Throughout a merger or acquisition, monitoring employee retention data is crucial. Retention analysis helps identify trends and potential red flags, guiding leaders in making data-driven decisions on effective retention strategies.
In some cases, retention agreements may be beneficial to signal to employees that their roles and benefits are secure for a defined period of time following the M&A activities.
Continuous monitoring of employee satisfaction is vital during and post-merger. Conducting surveys and town halls aids in understanding satisfaction levels, tracking trends, and evaluating the impact of changes.
Commitment
For a successful merger, commitment to ongoing improvement is essential. Adapting retention efforts based on evolving employee needs is paramount for long-term success.
The End Goal
Business travel is no different from any other industry. Creating a strong culture and supporting employees through change can enhance retention post-acquisition. By assessing employee readiness, providing adequate support, and preparing them for change, companies can navigate mergers smoothly and retain talent effectively.