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How to Retain Your Top Talent During Your M&A
Raise your hand if you want a frigid work environment! Nobody? Well…
It’s no secret that downsizing or merging a business means facing inevitable challenges such as combining two different work cultures. The process is often expensive and draining, but there are steps that can support a smooth transition for both employers and employees.
Who’s a good fit?
There are significant costs associated with onboarding a new employee. There are countless hours and resources devoted to training someone, but if they don’t end up being an ideal culture fit for the workplace — the retention rate will decrease. You want to avoid a low retention rate from the get-go.
A more extensive interviewing process is recommended for avoiding ‘serial job jumpers.’ Ask questions that give candidates space to show their genuine work ethic and life goals as a whole. Avoid the general “what are your strengths and weaknesses?” that we all cringe at.
Build trust from the start
Work culture varies. Employees that thrive in a relaxed work environment may likely struggle to mix in with an organized and strict level.
It’s impossible to predict how both cultures will blend together. But, if there’s a basic level of open communication from the start, then it will be easier to talk about the hard conversations that come up.
Like if they want to keep working for you. Or visa versa.
This may look like asking what their goals and intentions are for the future. There’s a chance an employee may not see a long-term future with the company, especially after an M&A.
Constant Check-ins
Checking in with your employees on a weekly basis can promote honest conversations that translate when merging companies.
If a manager expects open dialogue about the M&A from employees but has failed to instill this goal from the beginning, odds are that employees won’t be 100% open and honest.
Weekly check in’s (or more often depending on the size of the company) have shown a direct psychological impact to employee retention.
Here are some questions to keep in mind when talking to employees:
- How has your work ethic changed since your initial employment?
- Discuss weekly goals and challenges
- Do you feel valued?
- Do you have any ideas for personal or company growth?
- How can we adjust to promote a healthy environment?
Make the Tough Calls
Throughout the process of an M&A, it becomes clear through interviews and present work which employees have the potential to thrive in the combined work environment and which personalities and work ethic will not be sustainable.
Letting people go is difficult, time-consuming, and can be expensive, but it is a necessary part of an M&A. After considering what a true culture fit is, there are ways to prepare employees for a future post-termination.
Celebrate small wins
An M&A is not an easy feat. Acknowledging the tiny wins is a necessary mood boost for employees (and you). Retaining your top talent during any big change doesn’t happen overnight. Culture Works teaches businesses how to value employees through every stage.
