A Company Gets Acquired – 8 Questions Employees Will Ask
Acquisitions and mergers happen all the time – they’re a normal part of any business. While this can be highly beneficial for your business, it will be quite alarming for your employees. Not everyone is well-versed in corporate jargon, and cases can differ wildly depending on the situation.
Perhaps the most sacred duty of any businessperson is to handle their employees in the best way possible. Since your employees will have some new questions post-acquisition, we’ve listed the eight most popular ones and help you understand them.
1. Will I Remain Employed?
The first and most pressing question most employees have once their company has undergone a merger or acquisition is whether they’ll get to keep their job or not. Without a doubt, this is one of the most careful answers you’ll have to give, as that’s not always the case.
If the employee is going to keep their job, make sure to present it in a lighthearted and positive way. If not, you should ensure that you send them off in good faith.
2. Will This Affect My Paycheck in Any Way?
That’s one of the most common changes that come after an acquisition, and while some employees might get a raise, that’s not always the case. Many employees are going to be worried about their paychecks, so you have to clear up any misconceptions.
If they’re going to get a pay cut, make sure to announce it as clearly as possible. If you’re giving them a raise for their performance, you should do it on an individual level.
After mergers, many companies change their paycheck policies altogether, so getting a raise or pay-cut will involve different rules. Make sure to announce and establish them clearly.
3. Will I Have to Undergo New Training?
Particular positions require extensive training, as experience isn’t always sufficient. After companies merge or a company gets acquired, many of them will make their employees undergo training. If this is the case – you should present the new plan or regimen to your employees on a corporate scale. That will make everything as streamlined as possible, allowing for easier adaptation.
Training has been simplified with the introduction of eLearning. In these troubling Coronavirus days, eLearning might be the best and most convenient way to train your employees.
4. Are There Any New Changes to Company Policies?
People don’t like change – especially if that involves their livelihoods. If there are any company policy changes after the merger or the acquisition, you’ll have to announce them to all employees. Again, most people aren’t going to be satisfied if the changes don’t benefit them directly – so if there are any company policy changes, you’ll have to present them slowly and carefully.
If you have control over changing company policy, it’s always best to ease into it rather than going all at once. If you’re too radical with your changes, you might drive some long-term employees away from the company, which could be disastrous for the merger or acquisition.
5. Are There Any New Changes to My Position?
When companies get acquired, they leave positions alone most of the time. In some cases, positions do change, and employees will want to know about it beforehand. We’ve mentioned that people have a hard time dealing with change, and that’s especially true if they have to commit to working differently.
Alternatively, the company post-acquisition might create new teams, introduce new colleagues, and change positions as a whole by adding or subtracting duties. A good way to inform your employees is by creating a white paper or instructional manual that describes the changes to their position or team.
6. Will I Have to Relocate?
More often than not, post-acquisition is going to include relocation. This means that the employee will have to move from their office into a brand new one, and they might not be too happy with that. If you want to minimize employee loss due to relocation, make sure to provide the same conditions at their new office as they had in the old one.
7. What About My Benefits?
The benefits of employment differ wildly from company to company. After an acquisition, the benefits are very likely to change, and it’s not a stretch of the imagination that your employees will want to know about them.
Company benefits can range from added weekends off, overtime policies, benefits packages, ancillary benefits, and many more. The best way to present the new changes to your employees is in the form of a white paper.
By creating a detailed white paper, you’re almost guaranteed to disclose any possible changes to the new firm’s benefits and the subsequent integration.
8. Who Are My New Colleagues Going to Be?
After mergers and acquisitions, the overall workforce of the company is going to increase. While it’s inevitable that some people will lose their jobs, others might find themselves working with brand new people. While these are all about collaboration and synergy, people aren’t too happy with change – especially if that means they’re now competing with someone else.
To ensure that you provide a healthy, streamlined, and most importantly, productive work environment, you’ll need to introduce your new employees to each other. A good way to do this is by organizing team-building events.
There is bound to be some internal competition, power struggle, and clashing after any company merger or acquisition, and that could reflect poorly on your employee retention. If you want to make sure that everything is as smooth and streamlined as possible, be prepared to answer any questions honestly and accommodate your employees.