HR leadership | How to deal with a business acquisition

Turbulent times within a business can be a real test as to how employers handle difficult situations and whether or not employees will remain loyal to the organisation.

This is particularly true when a business goes through a merger or new acquisition, as it can leave staff members feeling vulnerable and unsure about their future roles. In fact, according to a report by EY, 47% of key employees leave a company within a year of a transaction and 75% say their goodbyes within the first three years.

However, it’s not all bad news; a Willis Towers 2017 Global M&A Retention Study discovered that 79% of acquirers had been successful in retaining at least 80% of their employees after they signed retention agreements. This compared favourably to the firm’s last survey into retention in 2014, which discovered that just 68% of companies met this figure.

Going through a business merger is never easy and is not a decision that’s made lightly by employers as there are many issues to consider. For example, new roles that may be required or removed to inputting new processes, these changes can be incredibly unnerving for all parties involved. However, to make any new acquisition or merger a success, there are some simple tips that employers and their HR teams can follow.