Mergers can be an extremely profitable business move, but in order to make the most out of your decision to merge, you must take some important steps, mostly in the area of human resources. Studies show that nearly half of senior employees leave a company within the first year following the merger, and this loss of senior employees means a loss of knowledge, experience, and ultimately productivity for the merged companies. Prevent this from happening by being honest with your employees.
Following a merger, the “rumor mill” is running at full capacity, and employees are usually stressed about the possibility of layoffs, major goal shifts, or downsizing. By addressing these concerns head on, you eliminate the rumors and also show your employees that you are treating them with respect and sincerity. This is important because it makes them feel as if they are still an important part of your company despite the merger.