Don’t lose your top talent in a merger

There has been a lot of press recently about mergers within the financial services industry. Some mergers and acquisitions are amicable, smooth and relatively painless; others are wars that can leave a path of destruction in their wake. If you’re a manager in the midst in a merger/acquisition – amicable or otherwise - you know the human toll such a process can take.

Communicate

Whether you are acquiring a company or merging two companies together, staff on both sides can feel anxiety and stress over their jobs. As a manager, the best thing you can do is to keep the lines of communication open. Anxiety and stress only increase when uncertainty abounds. The more information you convey about the process as it unfolds, the less room you leave for rumours and conjecture.

It's also important to be as open and honest as you can about the merger activities, not only for the company as a whole, but for your department specifically. Provide an ‘open door’ for staff to come to you with their questions and concerns. You may not be able to share everything with them, but if you keep the communication lines open and provide regular updates on merger activities, you will set the stage for a more successfully merged team and organisation overall.

According to the International Labour Office in their report on the employment impact of mergers and acquisitions in the banking and financial services sector, one of the main reasons mergers fail is the failure of companies to consider the human factor. If staff become disenfranchised or distracted, productivity suffers and top talent may go elsewhere.

Cultivate a new team

Another major issue you will need to deal with is the impact on the existing culture within your department. With the introduction of staff from another company, a new culture will inevitably develop. Successful mergers occur when a new culture is cultivated from two existing ones. Trying to change the culture of one group to fit into that of another is likely to create more animosity, stress or discontentment than good.

Building a new team environment will help ensure the success of your merger. In a recent article on smh.com.au, a director of consulting accountants and financial planners Snelleman Tom, Martin Kerrigan, notes that cultural fit is key to a successful merger. He goes as far as saying that if you don’t think the cultures will fit, don’t go ahead with the merger. It may look good on paper, but it’s that softer side that will make or break it.

Team building exercises, open communication and attention to staff will help ensure you retain your top talent during this stressful time.

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