Navigating a merger or acquisition (M&A) is a complex process that extends beyond the legal and financial aspects — it deeply affects the people within both organizations.
Disengaged employees — whether it’s new team members you acquire in the merger, or your current team adapting to changes — can lead to a drop in productivity, loss of key talent, and ultimately, a failure to achieve the merger’s objectives.
Fortunately, one Gallop study found that 42 percent of employee turnover is quite preventable if not ignored. Therefore, preserving and improving employee engagement during this critical period is not just beneficial—it’s essential.
Let’s explore more about why preserving and even increasing employee engagement is more crucial than ever during this turbulent period before we address how to maintain it.
Why Preserving Employee Engagement is So Crucial During a Business Merger
Maintaining and building employee engagement during a business merger is necessary because it helps sustain productivity and morale, reducing the risk of turnover during a time of significant change.
Employee Satisfaction
While workplace satisfaction is essential to having a positive work environment, this doesn’t guarantee high-quality work. Someone can find satisfaction at their job even if they’re not performing their best. Employees need to feel highly self-motivated to exceed the basic expectations of their roles.
Fortunately, companies can influence this motivation. Employee engagement is driven by managers who care and, in particular, demonstrate emotional intelligence.
Turnover Costs
Numerous highly-credible sources have noted that disengaged employees often result in high turnover costs for organizations — and going through a merger or acquisition only increases the risk.
The U.S. Bureau of Labor Statistics (BLS) highlights that employee engagement directly affects productivity and, subsequently, organizational performance. The Internal Revenue Service (IRS) also notes the importance of employee retention for maintaining productivity and reducing costs associated with hiring and training new employees.
How To Improve Employee Engagement (4 Big Ideas)
These four strategies are designed to help you connect with your newly expanded workforce, address their concerns, and build a unified, motivated team ready to drive the combined organization toward success:
1. Invest in employees’ continued learning and growth.
Money is not the only deciding factor for why people choose to work at one company over another. Employees are human and need opportunities to tap into deeper motivations related to meaning and fulfillment. Actively pour resources into developing your talent’s mindset and well-being.
Look at the exchange as two-sided. It's not about what you need as an organization, rather it's what your employee requires to encourage them to meet your organization’s needs in return.
2. Give leadership the ability to offer employees the skills to succeed.
No two employees react to management or feedback the same. Each employee has unique expectations of what they need from their employer and their career development plan.
Offer employees access to mentorship programs, training, and career development resources that align with their personal goals and professional aspirations. This helps them see a clear path for growth within the organization and fosters a sense of purpose beyond just their current role. Once your employees are confident they can do their job well and understand its importance, autonomy will come naturally.
3. Understand your employees' needs and motivations and lean into those.
It’s essential to acknowledge that every aspect of an individual influences their work performance. In addition to conducting behavioral assessments to tap into individuals’ drivers and hard wiring, it's crucial to consider your employees' personal goals and aspirations.
Take into account their life experiences and backgrounds, and adapt your approach to their style of learning and mentoring to increase employee productivity.
4. Ensure employees understand their job's importance.
An employee’s engagement is closely linked to their comprehension of their job. To cultivate intrinsic motivation and drive them to excel in their role, employees need to understand why their job matters to the organization and the company’s customers.
Just as individuals invest extensive time and effort into causes they care about personally, they will be more motivated when they see the significance of their role. Reflect on why you have dedicated time to volunteer or support a cause and use those insights to communicate the value of the position to your employee in a similar way.
The Next Step: Ensuring Employee Development
We understand that M&A activity can often mean drastic shifts in culture, policies, and day-to-day work environments, as the acquired company integrates with the larger brand.
But improving poor employment engagement is just one topic of employee development in our full webinar, Succession Planning: Understanding & Developing the Next Generation.
Watch the full recording to learn more about:
- Developing autonomy, mastery, and purpose in new hires
- How to develop Gen Z workers to reach their fullest potential
- And more
For assistance with talent acquisition and development, explore our Talent Advisory Services. We also offer many services to support you throughout your M&A. Simply reach out, today.