Talent Management and Retention in M&A Transactions
As M&A activities have become vital strategies for both growth and competitiveness for most organizations, the ability to successfully retain critical talent has become a significant determinant of overall deal value. However, even during the best of times, companies struggle to engage and retain talent to help them succeed. An acquisition or divestiture only magnifies this challenge, increasing employees’ perceptions of risk and uncertainty.
Other issues — confusion about the new business strategy, problems with integrating the new entities, a lack of role clarity, and a failure to communicate with the workforce — can also undermine employee engagement and leave organizations vulnerable to losing key talent. When those at-risk employees are critical to integration or to the organization’s long-term success, their potential departure poses a serious threat to deal ROI — and to the very survival of the new entity.
Flight Risk in M&A and Employee Retention Strategies
By supporting retention holistically, the organization is more likely to retain critical talent without overpaying for it.
Did you know that 71% of all deals globally had a retention bonus?
"Retention programs are expanding outside the C-suite. Buyers and sellers are definitely getting more nuanced about who they offer retention to and how deeply and broadly to go into the acquired organizations."
To learn more about Mercer 2017 Research, Flight Risk in M&A The Art and Science of Retaining Talent:
Develop a successful retention strategy to enhance your M&A deal. Evaluate the overall talent strategy and focus on effective financial and nonfinancial incentives to keep the critical workforce in place.
Manage People Expenses as if They Were a Capital Investment
Watch a four-minute preview of key findings from our latest research report Flight Risk in M&A: The Art and Science of Retaining Talent and learn what high-performing companies are doing to develop comprehensive retention strategies.
Gain a Competitive Advantage with Mercer M&A Transaction Services
We help develop an effective business strategy, drive sustainable deal value in merger and acquisition deals, and achieve a transaction’s full potential while minimizing risk. Plan ahead with Mercer’s M&A data-driven research report. Order the full report.
Fill out your details below to receive the executive summary in your inbox. If you do not have your pop-up blocker enabled, you will be prompted by your browser to download the article or to view it in a new window.