One of the greatest challenges organizations face in a deal situation is the retention of key people for the long term or the short term. Mercer is often asked about best (or even common) practices but reliable data has been scarce - until now. Microsoft and Mercer teamed to develop and conduct a survey of retention practices and we are pleased to announce the release of the results in a new survey: Benchmarking retention programs during M&A transactions.     

In any form of ownership change – including mergers, acquisitions, joint ventures, divestitures and leveraged buyouts – retaining the right people for the right period of time is a critical success factor for delivering value. 

What is included in the report?

This groundbreaking report provides insight into market-based retention practices which can be used as benchmarks when determining how best to design and structure a retention program to meet an organization's business objectives.

Key findings include:
 

• Program implementation - How do companies evaluate whether to implement a retention program?
  
  
• Retention program design features:
  
  
  • Cost - How much do retention programs cost?
    
    
  • Eligibility - Which employees are eligible for retention program awards?
    
    
  • Retention period - What period of time do retention programs cover?
    
    
  • Payment timing - How are retention award payments structured?
    
    
  • Form of payment - Do employees receive their retention awards in cash or stock?
    
    
  • Performance - Do retention programs typically have performance features?
    
    
  • Award level - How large are retention program award levels?
    
    
  • Measuring success - How do companies ultimately measure retention program success?

Who participated in the survey?

Microsoft and Mercer conducted this custom survey among a high-profile group of 22 multinational companies that are routinely involved in major business transactions. The participant list includes AstraZeneca Pharmaceuticals LP; Autodesk, Inc.; Duke Energy; Earthlink; Flextronics; Hewlett-Packard; Johnson & Johnson; McAfee; Micron Technology, Inc.; Microsoft; Motorola; Nokia; Nortel; Northrop Grumman; Pfizer Inc; Principal Financial Group; Rockwell Automation; Royal Dutch Shell plc; Sealed Air Corp.; Sun Microsystems, Inc.; Symantec Corporation; and Unilever.

How much does the survey report cost?

The survey report cost is US$1,250 (inaugural survey discount). Future surveys on this topic will be US$2,500.

How can I purchase the survey?

You can purchase the survey report online with a credit card or by invoice. After the purchase is complete, you can download a PDF of the report.