Need to know:
- Before, during and after a merger and acquisition, transparent and frequent communication from senior leadership is essential to quell potential gossip and rumours that could negatively impact motivation.
- Staff forums that contribute to the re-design of an organisation’s values and vision after a merger and acquisition can boost employee motivation because staff feel part of the change process, rather than bystanders.
- Non-financial rewards, such as spa breaks, can help employers motivate staff undertaking a higher volume of work because of the merger and acquisition process.
Mergers and acquisitions (M&As) are par for the course in business. Although they help organisations grow, M&As can be a sensitive time as employers seek to maintain employee motivation levels during this time of change.
Adi Reed, head of the engagement team at engagement and reward provider Avinity, says: “A merger or acquisition probably has the biggest impact on employee disengagement, because it’s the most amount of change that a business can undergo.”
So how can employers ensure staff remain engaged and motivated throughout an M&A?
Clear communications
The uncertainty surrounding employees’ short and long-term career plans when a M&A is announced needs to be addressed by employers using transparent communications in order to boost motivation, says Avinity’s Reed. Face-to-face meetings are the most effective channel because they allow for question-and-answer sessions and interaction from staff, she adds.
A regularly updated online question-and-answer document can also prove useful in keeping employees engaged with the change process, says Mike Reid, director of employee benefits sales at Mattioli Woods. “[It’s] a very useful place to point employees if they’ve got any questions,” he says.
This communication is vital in order to quell rumours because incorrect hearsay can destroy employee motivation, says Jerry Edmondson, strategic communications and engagement proposition leader at Aon Employee Benefits. An effective way to tackle this is to involve senior leadership. “If [employers] engage people who have an influence over employees, they have a greater chance of developing and delivering the impact [they] want through communication,” says Edmondson.
Recognising the impact of change
The additional project work and potential team restructures that can take place during a M&A process can lead to heavier workloads for employees. It is important that employers recognise the damage this could cause to staff motivation and wellbeing, and implement initiatives to counteract it, says Nick Court, director at Cloud9 People. This could include retention and performance bonuses, which can be monetary or non-financial, for example spa breaks or office massages. “It’s about recognising that this is a big piece of work and that people are going to be busy. […] If [the employer has] a finance team that’s going to be working 12 hours a day for the next 15 days because they’ve got to get all the accounts in place, then [employers] need to recognise that wellbeing and burnout risk,” adds Court.
Benefits as a motivation tool
Employers should consider harmonising their reward package to level benefits across the entirety of the new workforce, says Reid. “If [employers] go through a period where different parts of the group [are] on different employee benefits, the message can get muddied,” he adds. ” The sooner [employers] can move on to one benefits package for everybody, the better,” he adds.
Total reward statements can also work to bolster employee motivation after a period of change because they showcase the overall value of an employee’s benefits package and what they could gain by remaining with the new business.
Creating a community
Employee champions and staff forums can help to motivate employees and provide staff with an element of control. For example, an employee community could help to create new organisational values or a new vision, which can help staff appreciate the role they play in the new business. This also emphasises that the change is happening in conjunction with employees, and simply not to employees, says Avinity’s Reed.
Having employees lead this process can increase buy in, adds Aon’s Edmondson. “If […] people don’t believe in the vision, then [the employer] is increasing the chance that people are going to do just enough to pick up their pay until they get an offer from [an organisation] they do believe in,” he says.
Employers can, therefore, continue to motivate and engage employees during a period of change, and alleviate any concerns using transparent and honest communication, as well as displaying sensitivity to the potential emotional and social impacts a merger or acquisition can have.