Cultural collision or harmonious blend? Unlocking the power of employee engagement in mergers and acquisitions

Mergers and acquisitions are incredibly difficult to execute - indeed, the rate of failure is thought to be between 70% and 90%*.

Their success relies on a number of factors: the capability of your leadership team; a common understanding of direction; where and how you work; and how you continue to engage employees before, during and after the event.

But another key factor is how well organisations involve and communicate with their employees throughout the process. When the employee experience is overlooked, the rate of attrition can skyrocket. EY estimates that 47% of executives leave a newly-merged company within the first year.** When two companies come together, that change in leadership and, of course, potential culture clash can cause a large portion of your people to jump ship.

So, how do you handle the employee experience during mergers and acquisitions? What actions can you take to make sure the transition goes smoothly, help your employees to excel, and encourage collaboration among colleagues?

*Harvard Business Review (2011). "The Big Idea: The New M&A Playbook"

** EY. (2020). "How a new talent mindset can solve the post-merger integration puzzle."