Business Intelligence

Retention After A Merger: Keeping Your Employees From "Jumping Ship"

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Executive Summary

Despite the fact that mergers and acquisitions look attractive in theory to management and investors, the reality of their execution is that organizations are composed of employees who generally view such organizational changes as a threat. Accordingly, many Merger and Acquisition (M&A) deals have inherent retention issues resulting from negative attitudes often felt by employees, including, but not limited to: Uncertainty about the future organizational direction; Feelings of loss of previous organizational culture; Uncertainty about personal job security; Perceptions of lack of leadership credibility; Feelings of confusion due to a lack of communication; Survivor guilt due to downsizing of other employees; Perceptions of increased job stress and workload.

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