What are my options if I decide not to work for the new company? During the due diligence process of a merger, the acquiring company must consider employees' reactions when deciding to what extent and how to continue the seller's benefit programs, because integrating employees is an important consideration during a merger. Look through your employee handbook, any other written policies, and your … Are the revenue and product goals realistic? Here are some things to look for: 1. While I do have some early thoughts on the merger of these two firms, some of my friends like Lance Haun have done a better job covering this announcement. Will there be job losses? – What will happen to the current leadership team? Are there a certain number of years leaders are required to remain with the new entity? Will we be required to ship materials to a different location? What should I do if someone from the media calls to ask about the deal? How will the deal impact customers? And when M&A activity is in the air, employees from the soon-to-be-acquired company ask questions, says Shari Yocum, a managing partner at Tasman Consulting, an HR integration advisory services firm. A password will be sent to your email address. It is not uncommon for employers to formally ask all or some of their current staff to reapply for a job after a merger or acquisition. What will change and what will stay the same? Summary. Will the new owner play an active role in community activities? ... anticipating a merger or acquisition, installing new leadership, or wants to take a pulse on the employee experience for the first time. Ask middle managers to nominate their employees to become ambassadors for change. Some food for thought - the merging of two businesses will probably mean some business process re-design/merging - how will that be done - also what about IT systems will you stick with what you've got or move onto the other company's - what about pay and benefits are they standard accross the new company or is there any HR work to be done (this might include pay dates, holiday … ... By asking your employees questions that … Remember, this set of questions should be distinct from the questions you ask in an employee engagement survey, since not all engaged employees are necessarily satisfied. In technology, this type of leadership is rare. 20 employee engagement survey questions every company should ask 05 Due to the nature of this question, it has a moderate benchmark range of 55-60%. It can also happen when a company is downsizing or restructuring, layoffs are planned, and there will be a limited number of new positions  . An acquisition is typically a takeover of a smaller firm by a larger firm. It might be opening a new office, or just hiring one or two sales reps, but either way, there’s work to do. Starting when? ... but what you really want to hear is a sense of pride and appreciation employees feel working for the company. Nevertheless, the above are common considerations for all firms. With so many failed mergers, there isn't a shortage of companies who find the idea a desirable business arrangement. Some people - including me - don't believe in mergers: whenever two companies combine, one is always taking the other one over, in effect. How will the community benefit from the deal? Do you expect the volume that you have been ordering to increase or decrease? Why weren’t we told about the deal before now? Let employees know the importance of paying it forward by supporting them to encourage one another. Excited employees can serve as your best chance to get as many employees on board as possible. – What will change for implementation teams and support? However, there are many successful mergers that have stood the test of time. Like any organizational change, especially one like a merger or acquisition, HR and organizational leaders must not only display a unified front, but also anticipate employee questions… Each merging firm will very likely have its own unique requirements. Will the previous owner continue to be actively involved in the community? After the probation period ends, you are confirmed as a full-time employee, or you are given a one-year or three-year contract to sign, which confirms that you are now an employee of the company. All Rights Reserved. Are the contracts/purchase orders we have in place still valid? People Will we be able to transfer whole goods, parts, and used equipment between locations? 2. When will we meet the staff of the other company? A merger or acquisition will create numerous questions in the minds of stakeholders. Her work helps companies both validate and reevaluate their strategies and understand the role technology can play in driving business outcomes. If your company is undergoing a merger or acquisition, you’re apt to feel anxious. Common Employee Questions We refer to the first ten questions on the list as “me issues” because they are focused on the most common personal concerns of employees. “Similarly, if the HR senses any feeling of disdain between the employees of the merging companies, the issue should be addressed upfront. Are the revenue and product goals realistic? Will the new owner train us on how he wants things done? Most of the announcements in the HCM space are acquisitions, but we have seen a few mergers over the past year, including Shaker and Montage (ModernHire) and, most recently, Kronos and Ultimate Software. – Are there future acquisitions or mergers planned in the next year or two? We have compiled lists from our M&A integration consulting projects of the most common questions asked by: We refer to the first ten questions on the list as “me issues”  because they are focused on the most common personal concerns of employees. Suppose one sporting goods manufacturer merges with another sporting goods manufacturer. Even if you're not retained, the contracts may impact your rights to severance—and even your next job. Employee evaluation survey questions; Company culture survey questions; A recent survey says that a staggering 96% of employees want to receive feedback regularly. Using QuestionPro Workforce platform you can create all the above types of employee surveys and more. What do I stand to gain from the deal? Will all losses be on the acquired side? How will this change in ownership impact me? Until these “me issues” are resolved, people are often too preoccupied with their own situations to focus effectively on their work. Mergers are different from acquisitions because the two companies are equal (for the most part), and they make the joint decision to combine forces. From the acquiring staff? Will the salespeople keep their existing territories and customer bases? When employees feel seen and valued, they’re likely to feel more aligned towards the company’s goals. Will there be a severance package if I lose my job? )?-What will happen to my PTO/Vacation time?-How does the acquiring company handle PTO/Vacation/Sick pay?-Who will my boss be?-Will our office move?-Will I have to move?-How are employees measured and rewarded at the acquiring company? Where will the new company be headquartered. When you’re selling your company in an M&A transaction. Will the quote you gave me still be honored? 3. By anticipating their concerns in advance, you’ll be better prepared to address them. 70% on … Who should we contact if we have questions? If so, for how long? What information can be shared about the deal publicly? €€15 Questions to Ask Before a Merger or Acquisition 1. The group most affected by the post-merger company becoming the new sponsor of an existing plan would be the employees of the other company in the merger. ... is increasingly necessary to run a healthy company. Will anyone lose their job because of the deal? – What are the goals of this announcement? Ask lots of questions.” Do your best to ignore the office rumor mill. Talent Acquisition Trifecta: Looking Beyond the ATS, HireVue Acquires AllyO: A New Look at Conversational AI, Jobvite Acquires Talentegy: Improving the Candidate Experience Through Analytics. Case studies – Using employee feedback surveys post-acquisition © 2021 Aptitude Research. When can customers expect to see changes to the company or products? She has watched HCM transform from a back-office function to a strategic company initiative with a focus on partnerships, experience and efficiency. – Are there any plans to sunset the brand of one of the companies? Ways to prepare and support your employees 5. Will we still be dealing with the same purchasing agent(s)? PRITCHETT Merger Integration Certification Workshop Attendees, and Paid Website Subscribers can access this resource. They both have 6,000 employees, both have revenue of nearly $1.5 billion, and both went public and then went private again. When a company buy-out occurs, it can be a confusing time for all involved. Will any locations close because of the deal? 4 Questions Employees Want You To Ask About Their Job Satisfaction. Below are just a few of the more commonly asked merger questions below have been answered by experts When a company takes part in a internal company merger. Aquila maintains that Will my title or job responsibilities change? Register 2 months in advance and save $1,000. How does the way they do business differ from the way we do business? Openly and frankly discuss the perceived benefits of the merger. Are there short-term or long-term plans to consolidate these functions or replace these functions? But, more than anything, they both have the type of leaders who would come to your home if you were sick and cook you a meal and babysit your kids. It’s the type of leadership that was built on a foundation of kindness and decency. 12. What is the legal name of the new organization? Before Aptitude Research Partners, Madeline held research roles at Aberdeen, Bersin by Deloitte, ERE Media and Brandon Hall Group. What policies and procedures will be changing? An acquisition is when one company buys or takes over another and a merger is when two companies agree to combine. Will you lose any of the benefits you previously had? Products Will you move to a different provider? When crafting your answers to questions, strive to be specific rather than vague, candid rather than guarded. Thus, it is imperative for human resources to have a firm understanding of the work culture of the organization wherein they work, along with the work culture of the other organization.” – Will any office locations or headquarters change in the next year? What are the benefits to me? Roughly 30% of employees are deemed redundant when firms in the same industry merge. Why Companies Ask Employees to Reapply . Call +1-214-239-9600 if you have questions or if you would like to learn about our M&A integration consulting services. Until these “me issues” are resolved, people are often too preoccupied with their own situations to focus effectively on their work. If employees find out that their employer is for sale, they may get twitchy and nervous. Putting together a frequently asked questions document will help you think through all the questions employees may have, will help inform employees and will also keep you from having to field each question individually. What are the new owner’s goals, values, expectations? See answers to FAQs in our Day 1 M&A Playbook: Employee Communications. She is co-author of Best Practices in Leading a Global Workforce and has been quoted in the Wall Street Journal, The Boston Globe, Yahoo News, and The Financial Times. Are they excited about the announcement or concerned about their future? For this reason, Sellers should tell employees about a potential sale on a strictly need-to-know basis. So, here are a few questions that customers and prospects might want to consider when faced with a merger or acquisition: Company (consider all benefits, perks, and privileges). Create a free account. – What is the investment in research and development moving forward? Step 1: Define M&A Integration Strategy and Guiding Principles, Step 2: Determine M&A Integration Governance, Step 3: Conduct Joint IMO Kickoff Meeting, Step 4: Provide Post Merger Integration Training, Step 5: Develop Post Merger Integration Risk Management Plan, Step 6: Develop M&A Culture Integration Plans, Step 8: Develop M&A Staffing & Retention Plans, Step 9: Develop M&A Project Integration Plans, Step 10: Execute Acquisition Integration Plans, Step 11: Capture M&A Integration Lessons Learned, Day 1 M&A Playbook: Employee Communications, Merger Integration Certification Workshop Attendees, Will my benefits change? Where and to whom should invoices be sent now? These employees would likely have the opportunity to join that retirement plan as long as they meet that plan’s eligibility requirements. Look for: 1 deemed redundant when firms in the next six months to a year, including,. Probation periods are between three months to a year Certification Workshop Attendees, and went! 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