Attention to staff in a merger

Experts claim that output in a company that is acquired may fall by between a quarter and a third immediately after acquisition.

Fear of losing jobs, prospects, or that any changes will be unpleasant can lead to a loss of motivation, rumour spreading, and bitterness, which may be passed on, consciously or unconsciously, to customers and suppliers.

Stress during a merger often increases at all levels, especially among those directly effected.

Resentment reduces motivation and may cause employees to engage in actively hostile actions, including sabotage. Their actions, however, more often than not frustrate or delay the post-merger action plan.

Cultural differences between the two organisations may contribute to misunderstandings, friction, and be a cause of frustration to both sides.

Unplanned resignations frequently occur as a result of acquisitions and mergers. Not all the key people whom the buying organisation intended to retain, remain with the organisation for as long as was hoped.

 

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