It’s time to win their trust, tell them that the merger won’t affect their job and also they will keep on getting other benefits. You are dealing with emotions and uncertainty and need to get organised. An effective, proactive communication plan is therefore critical to ensure that employees understand the process and the timeline until the company can reveal the decisions it has made. It’s helpful to build a central location to announce merger news, receive questions and post answers to the most common questions. The merger will provide the path to improved compensation and benefits for employees. If management can figure out how to harness the emotional commitment of employees during the transition, they can gain valuable support for the initiative that can have a ripple effect throughout the organization. This is because the two companies are guaranteed … Because this is a really big deal and Cisco is a public company, I unfortunately wasn’t able to talk about it with all of you before the … Outside of profit and market share, one desired outcome of a merger is to build a unified culture. In an annual survey of 10,000 U.S. workers, the Kenexa Research Institute found that workers lose … Who … If stories don’t match among firm leaders or employees sense that you are stumbling through it, the outcome won’t be good. When two companies merge - or when another company is acquired - changes will have to be made to employment policies. The news of your sold business may hit the streets and you want them to hear the news from you, not on the internet. For instance, if the business is closing or being moved, then you may need to tell employees on the tasks they will be expected to do in the weeks or months ahead. You will receive the most up-to-date stories, as has been the hallmark of The Daily Stratford, with the creative approach to news and events, the claim-to-fame of Stratford Press. As frequently mentioned by researchers and practitioners, many mergers and acquisitions (M&A) fail to achieve their expected results. Clarity about the motives and intentions and timing of release of information during a merger, requires strategic information management. Take Care of Employees. While retaining employees after acquiring a company, it is important that you make your selection based on ‘merit’ and not on the ranks. Make a plan. Both companies need to think about messages that address and allay those fears. Also plan on telling them in the beginning of the week – learning that your boss is … Come prepared with answers but don't be afraid to say you don't have … Dear Fellow Employees: We are in the process of making a number of changes in our worldwide manufacturing operations that will require us to establish an after-tax profit reserve of about … The mere mention of the term “mergers and acquisitions” (M & A) can receive messages from misinformation or half-truths. Employees need clarity on facts and figures, to have opportunities to hear information first-hand and be able to ask questions and to … M&A transactions can involve very complex business negotiations. This requires careful planning and preparation of those selected to speak to the employees … The moment employees learn about a merger, fear, uncertainty, and doubt usually take hold. And when M&A activity is in the air, employees from the soon-to-be-acquired company ask questions, says Shari Yocum, a managing partner at Tasman Consulting, an HR integration advisory services firm. Addressee Address City, State Zip. A common pitfall is for the acquirer to communicate to employees early in the deal that they intend a “merger of equals” so as not to upset employees in the acquired organization. One of the main reasons companies flounder in the weeks and months following a merger or acquisition is because employees become less productive when faced with stress, doubt, fear, and other … Remember that employees are a major part of your company, therefore they must know more than the ordinary details of acquisition or merger. A leader at one of the organizations was exceptionally good at communicating how individual employees would benefit from the merger. The initial announcement will be responsible for letting your investors and employees know that you are currently working on closing, or have closed, a merger … Perhaps you will need them to erase hard drives on computers or pack items around the office. To successfully navigate a sale of your company, it is helpful to understand the dynamics and issues that frequently arise. It also provides resources for additional information about the merger. Allaying M&As Fears Among All Employees. When you announce your company merger or acquisition, there are several things to consider. Acknowledge pride. To: All Employees From: Senior VP . Set up a "town hall" meeting where people can ask questions – preferably in person – about what's happening. Merger communications is a conversation, not a series of orders. This is a serious case of change comms. A Company Merger and/or Acquisition Announcement Template: What should you include? As an HR professional, should your company go through a merger, you’ll likely be one of the key people responsible for juggling the many different duties that come with managing layoffs and downsizing—from following legal guidelines to providing a smooth offboarding experience for exiting employees. Communication during mergers and acquisitions is critical. The best time to tell your employees that you have sold and will be moving on is the next business day after closing. Mergers tend to have a negative impact on how employees view their employers. As a result, many employees flee in search of greener pastures. Address how the merger will affect employees directly. But when is the right time to tell employees about a pending merger? Among the factors that impact M&A performance is the quality of the communication with employees. Although used together, mergers and acquisitions are different. For instance, if duties, methods and responsibilities will be changing, admit that employees will be asked to do things differently. Employees need to be informed about what changes will take place. 3. Before long, however, as systems and processes are overhauled, those employees realize they have been fed a “party line.” The rumors of a merger have been circulating for months. A merger, and any corporate action for that matter, can be a very unsettling period for employees in a company. Abstract. Merger announcement letters are addressed to your existing customers to encourage continued repeat business, introduce the new brand, emphasize customer benefits, state the company mission and explain any potential changes. Share past memories and allow employees to take part to say goodbye before moving on. Here are 8 ways you can retain your top employees after a merger or acquisition: 1. Treat your employees how you'd like to be treated. Date. This letter will be sent out to all employees at the new organization to let them know how this merger or acquisition will impact their specific employment. The merger is effective immediately. 2. Clarity about motives and intent, as well as timing the release of information during a merger, requires strategic information management. With this business merger, we will also join efforts to bring you the positive aspects of both newspapers. Company Name or Letterhead Address City, State Zip. Mergers and acquisitions (M&A) represent a make-or-break time for employee engagement. Employee Confidence. Some employers purposely tell employees that the business is merging (as opposed to being acquired) so employees don’t get nervous about their jobs. During the initial merger announcements, management can employ one-way communication such as print memorandums, e-mail messages, and company-wide voice-mail announcements. Agreeing to merge with or acquire another organization may benefit your company financially, but it could hurt other areas of your business, specifically your talent. Send out status updates at each stage of the merger or acquisition. News of a merger or acquisition can leave even your star performers feeling nervous about their fate and the new set of employees … Team – You’re going to read in the news this morning (or afternoon for the London team) that we’ve entered into an agreement to be acquired by Cisco. The mere mention of the term "merger and acquisition" (M&A) can send messages of misinformation or half-truths. Celebrate your accomplishments and history. Select employees on merit. “There will always be rumors and gossip. Define a new direction. Reuters revealed on Thursday that Grab told employees in an internal note that the firm is well placed to make acquisitions. Your first communications priority is to answer the “me” questions. But when is the right time to tell the staff about an upcoming merger? A merger is when two companies join forces to create a new management structure and a joint organization. Following the initial announcement, management should meet with employees. It's now been three months since we completed the merger to form (company name). Once the merger or acquisition goes through, you’ll need to do the same with the employees of the other company. The objectives of this email are to update you on how the integration of the two businesses is progressing, to explain what integration challenges lie ahead, and to highlight how you can continue to help the … Employees are not children and know when they are being aggressively soothed. Employees’ most immediate concerns will usually focus on pay, benefits, schedules and location of their work and should be addressed as quickly and fully as possible. 4. You may not hear the news you want to hear until things are pretty final, your boss may not be able to tell you what is going on and may not even be in the loop. Expansive claims about how essentially nothing bad will happen, sound worse than a more realistic approach. The basic problem is that companies often can’t announce these changes early in the merger-planning effort. During the course of a merger, and before signing the deal, develop a clear plan for handling your people and aligning benefits. Employees' job security grows if a merger creates a more competitive business that's financially stable. To minimize disappointment and reduce anxiety, keep your staff informed. Don’t let those distract us,” CEO Anthony Tan is quoted. Initially, it’s important to keep in mind that simply the prospect of a merger or acquisition automatically stirs fears among employees on both sides of the consolidation. But failing … Example 3: Company merger letter. 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