This blog post is written by Kathy Floam-Greenspan and appears on the Forbes Agency Council. You can read the full post here.
Mergers and acquisitions (M&As) can be a significant business opportunity, but they can also be corrosive to company culture, causing people to leave when expertise and stability matter most.
Before the recent pandemic and the accompanying “great resignation,” an EY report found that nearly half of a company’s key employees depart within a year of a merger or acquisition, and 75% leave within three years of a transaction. This reality is even more prevalent today as employees are increasingly willing to quit their jobs in search of better opportunities.
Since M&As can create significant organizational anxiety and swift cultural change, it’s unsurprising that turnover often accompanies the process. While employees change jobs for many reasons, company culture is often one of the most common reasons.
That’s why businesses need a “we first” mindset when combining teams post-merger and acquisition. Here are four ways leaders can begin creating that dynamic now: