Integrating total rewards effectively in M&A

70% to 90% of M&A transactions fail to deliver the expected value.¹
It starts with a people-centered approach
Nearly half of deals fail to deliver on the promised value due to lack of attention to people issues.
Further, two-thirds of post-close issues that hamper value creation are people-related. Too often, the lack of a people integration strategy jeopardizes the success of a deal — and a successful strategy starts with rewards.
Figure 1. Outcomes due to failure to address workforce issues
How to get an “A” in rewards integration
To successfully integrate total rewards into your people strategy, Mercer recommends prioritizing the following three components:
- Aligning with business synergies.
- Addressing affected rewards programs.
- Accounting for dependencies.
This approach allows stakeholders to realize the maximum value of the deal by capturing the desired business synergies while ensuring that crucial talent gives the integration an “A.”
is Partner, M&A Rewards at Mercer
is Senior Principal, M&A Advisory Services at Mercer
is Principal, Rewards Consulting at Mercer
is Principal, Rewards Consulting at Mercer
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