A company merger is deemed successful if it has been well executed by the management and shareholders. If the legal terms and conditions have been met, and at least one of the parties has come out on top, the M&A has been efficiently handled. At least that’s the part that we get to read about.

But a key aspect of any merger and acquisition is what happens to the people at both companies. How do the employees respond to the change? Have both sets of employees been able to accept the change and work productively? Do employees from the acquired company feel engaged with the goals of their new organization? These are some of questions that need to be answered post an M&A.

And an M&A is truly successful only when the people working on both sides have been able to smoothly transition and assimilate into a new organization.

Why it is important to execute thorough employee engagement methods during and after M&A?

Employee engagement has a key role to play when it comes to creating a new, productive workforce, post a merger or acquisition. Employees are the ones who face the biggest uncertainties and challenges, and hence it’s crucial that they feel comfortable and engaged in the new organization, as fast as possible.

Aon Hewitt’s Managing Employee engagement During Times of Change Report describes the importance of understanding an employee’s mindset during major transitions.

Here are some of the common concerns they deal with:

• Being laid off
• Losing a dear colleague or a team member
• The change in the company’s culture and general ethics
• The possible loss of communication between staff and new management team
• The distrust that may be spearheaded by the uncertainty of the nature of the transition.

Such fear and uncertainty gives rise to anxiety that’s detrimental to productivity. This might also cause good employees to leave the company. All of that can be avoided if HR teams get more involved before, during, and after the transition.

How to ensure employee engagement during and after M&A?

Talent acquisition, and cultural/organizational fit are the top two significant people issues identified in the “People Risks in M&A Transactions”, a 2016 report by Mercer.

Source:  “People Risks in M&A Transactions - 2016 Mercer Report”

So how you go about tackling these challenges? Let’s take a look:

1. Ensure active communication

Communication is one of the most effective ways to keep employees involved during an M&A.

According to Mary Cianni, PHD., global leader of M&A Services at Willis Towers Watson, ‘One of the biggest mistakes companies make during M&A is to communicate that nothing is going to change’.

Employees must be kept abreast with the nature of transition that is taking place. They should know why an M&A is happening and what changes to expect. Town-halls and Q&A sessions would go a long way in establishing open lines of communication.

Even after the transition, communication about the new direction of the company, new goals and values, changes in policy etc. should be clearly communicated to employees.

2. Transparency and Participation

Companies should practice transparency in the decision-making process prior to and after the M&A. Employees should feel that they have a voice in the fate of the organization, and be allowed to participate in certain decision-making processes. Pulse-surveys and other engagement measurements can help the management realize the how the employees feel about critical issues that affect them. This can help organizations take the right measures to address concerns.

3. Engagement campaigns to bring teams together

Post an M&A, there are two distinct set of employees within an organization. Both are used to their own ways of working, and don’t really know much about each other. But they’ll soon be working closely and need to understand and bond with each other. The faster this happens, higher the chance of creating a unified, productive workforce.

What’s required is employee engagement campaigns that facilitate the two distinct teams to interact and engage with each other. Creating opportunities for them to bond would help them open up and find common ground. This would make them more comfortable with each other and lead to a smoother transition.

During an M&A, insecurity and uncertainty are at its highest. This is the time when employee engagement is at its lowest and organizations need to work harder to retain the trust they have built with their employees. Ramping up employee engagement activities is one of the best ways to address employee concerns. So it’s critical that companies have the tools at hand, like Journyz, to bridge the communication gap, and reach out to their employees in meaningful ways.

All said and done, M&As are all about the people. And employee engagement is the only way to make sure that the people are on board with the transition.