When companies go thru a merger or acquisition, there is often an exodus of their top employees. This tends to be fueled by fear and uncertainty about how things will change due to the acquisition. Employees are naturally concerned about how they will continue to do their jobs effectively while new policies and rules are being set into motion by the new owners.
In addition to their concerns, talented employees may be pursued by other companies who are always on the lookout for top talent. IT employees, in particular, are often the first to leave, as they are highly sought after in today’s market.
In the end, it falls to the executives of the company to retain their employees during the merger, while finding ways to entice the top talent from the new company to stay.
Strategies for retaining top talent in an acquisition
Here are some things that can help you retain top talent in a merger or acquisition:
- Communicate with both your old and new employees. They are bound to be concerned about the acquisition and are looking to you for reassurance and encouragement.
- Make an employee retention agreement available to those employees who you wish to keep on after the acquisition. Sweeten the offer with valuable incentives such as cash bonuses if you can.
- Create an incentive program for your old and new employees. Being physically rewarded for a job well done can do a lot for your employees’ morale.
- Make note of each employee’s strengths and weaknesses and create an environment where their strengths will shine.
Acquiring a new company can be daunting, especially when it comes to retaining the top talent. Don’t hesitate to seek assistance to help you make the merger or acquisition a smooth transition.