These days, the sure sign that your business is successful is that another company wants to acquire what you have or merge with yours. It’s a common occurrence in many different industries — particularly those associated with technology.
Equally common, however, is the problem that many companies and business owners face as soon as a merger or acquisition is announced: The talent that made your company so successful flies the coop.
Why do they leave? Some don’t want to adapt to the changes coming and decide to strike out on their own. Others feel like their security is gone when their company is acquired or merges with another, so they look around for somewhere else to go. This happens so often that it’s estimated that 47% of a company’s key employees will leave within the first year after a merger or acquisition.
Want to stop it from happening? Consider these tips:
- Identify your star employees (and the other company’s stars). Knowing who to focus on can help you address their concerns. Don’t be afraid to approach them directly and make it clear how much they are valued.
- Offer retention bonuses. Money talks, and a retention bonus is a perfectly reasonable expense if you want your best people to stay.
- Follow up after the transition begins. Getting input from these valuable employees can help your company thrive after the merger or acquisition. Consider having sit-downs with key players one month into the switch, then again at the two-month mark and three-month mark.
- Focus on trust, engagement and clarity. It’s estimated that it takes a pay bump of 20% or more to get an employee who feels comfortable with a company’s leadership and engaged in their role to switch jobs. It doesn’t take hardly anything to make an employee who is disillusioned to switch.
You can get through a merger or acquisition with minimal disruptions to your operations and growth. Just make sure that you have the appropriate legal guidance from beginning to end.