Change management during mergers and acquisitions is an art and a science. Many leaders understand the technical details of a merger but lack a thoughtful, humanistic approach to the employee integration component. People are the heart of any organization, so empathy is crucial to navigating a merger while maximizing morale.

How to Avoid Culture Clash in Mergers and Acquisitions

For employees, mergers are a time of tension. There’s a lot of uncertainty about restructuring, combining teams, and other changes that may occur. Here are 7 tips for integrating employees during an acquisition that can help you quell their fears and start your new, combined company culture off on the right foot.

1. Learn the status quo. Before finalizing the merger, take the time to understand the culture of the company you’re acquiring. Get a feel for how things work, employee satisfaction, and any major pros or cons. The more research you do, the more you can anticipate potential challenges and conflicts in advance.
2. Answer the big questions early. Immediately after the merger is announced, employees will wonder if they’ll be keeping their jobs or whether their duties will change. It’s essential to answer these questions as quickly as possible because proper integration is impossible when workers feel the axe could drop at any moment.
3. Handle layoffs after an acquisition with care. Remember that employees spend 40+ hours together each week. Even those staying on after the merger may have friends who have been let go. Offer support for your outgoing employees, whether providing references, job-searching resources, or generous severance packages.
4. Remove uncertainty where you can. Integrating employees during an acquisition requires overcoming distrust and unease. Be transparent, honest, and open when communicating an acquisition to employees, and create a culture that values employee feedback. Over time, this will create a sense of security.
5. Secure key members. After the acquisition, you should work on employee retention. Keeping vital talent on board is crucial for minimizing business interruptions. Be prepared to offer competitive compensation and benefits, opportunities for continued development, and systematic recognition for hard work.
6. Make upgrades that count. Initial changes should focus on improving employee quality of life. Are there any “missing stair” issues that have been overlooked for so long that hope has been lost? Make these small, easy changes, like new equipment or improved office space, to show that you care about even minor aspects of the work experience.
7. Introduce gradual changes. Making too many significant changes all at once, even welcome, needed changes, will create a sense of instability among your employees. It’s a good idea to take it slow and ensure your workplace culture is stable before making waves.

Integrating employees during an acquisition is not a one-and-done kind of thing. Your initial plans for department structure and role responsibilities might not play out perfectly in practice, and that’s okay. It’s essential to continue monitoring the new culture and collecting employee feedback to identify new pain points and adjust as needed.

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Coach Dave