Read an interesting article about involving employees during merger & acquisition – a report by Gallup.
One of the key issues that employees talk during merger or acquisition is “Will I be ok post the M&A?”. For those who are actively involved in the M&A process this may not be a worry, but for most of the employees it can be an issue. In India employees don’t speak up that easily, I have made it a point to be as communicative as I can.
Types of Employees
- Engaged employees work with passion and feel a profound connection to their company. They drive innovation and move the organization forward.
- Not-engaged employees are essentially “checked out”. They’re sleep walking through their workday, putting time — but not energy or passion – into their work.
- Actively disengaged employees aren’t just unhappy at work, they’re busy acting out their unhappiness. Every day, these workers undermine what their engaged coworkers accomplish.
Engaging Employees During M&A
- Business leaders who are considering a merger or acquisition would be wise to consider the employee engagement levels in their target companies.
- According to Gallup research, in 2009, 28% of American workers were engaged, 54% were not engaged, and 18% were actively disengaged.
- If the engagement levels of the employees in the target company are high, that company could bring benefits in enhanced earnings.
- Among the employees whose companies had been acquired, 27% were engaged prior to the acquisition, but 30% were engaged following it, and the percentage of workers who were actively disengaged increased from 22% to 24%.
- A similar pattern was observed in employees whose companies were on the purchasing side of the equation: 27% were engaged prior to their companies’ purchase of another organization, and 29% were engaged following it.
- Company’s with a culture of engagement and a culture of collaboration are best suited for M&A
- Endeavors are most successful when the people involved can create productive relationships.
- The most important of those relationships in an M&A is trust.
- Leaders create an environment of trust by being as transparent as possible. When leaders communicate everything they can about their competitive environment, their long-term strategies, and what employees can expect, they show they can be trusted.