The company I work for was recently acquired and merged with another organization. Mergers and acquisitions (M&As) are becoming increasingly common. In 2022 alone, there were over 1,800 M&As of enterprise software companies—up by 8% the year prior.
M&As can be stressful and uncertain, and your team will undoubtedly have questions and concerns. But thankfully, as with any challenge, this also brings about exciting new opportunities. The changes and restructuring that occur during an M&A open the door for discovering new ways to improve your processes, work more effectively, and strengthen your culture.
HR leaders play a critical role in this process. Having just been through this exact experience, I’ve learned a thing or two about navigating an M&A while also prioritizing employee experience. Here are my best tips for a smooth transition.
Prioritize Employee Well-Being
Employee well-being is always paramount, but it’s especially so during an M&A. Make it a point to prioritize the well-being of all employees, including those leaving the company or transitioning into new roles. Everyone should feel cared for, supported, and engaged throughout the M&A process. You’ll also want to ensure employees who stay have the time and resources to balance their new and changing workload with their personal well-being.
Be Ready to Move Fast
Companies need to be agile and move fast during an M&A. This can certainly be nerve-wracking, but it’s crucial to maintain forward momentum. In my case, our integration required speedy decision-making and adaptability from our team. For example, we quickly harmonized our benefits plans because it’s essential to maintain key relationships and prevent communication breakdowns in a fast-paced environment.
Recognize Your Team’s Contributions
Throughout the M&A process, it’s imperative to acknowledge your team’s hard work and make them feel appreciated. Teams are often working tirelessly during an M&A, taking on new tasks and responsibilities that can sometimes go unnoticed. Something as simple as writing a note of thanks or expressing gratitude for someone’s contributions during an all-hands meeting can significantly impact motivation and engagement.
Be Open and Transparent
Open communication is vital for putting employees’ minds at ease and promoting organizationwide trust during an M&A. Foster a culture of transparency by creating open forums in which employees can ask questions and get answers. My company did this by holding weekly “office hours” during which we set aside time to talk with employees about anything that was on their minds and provided context for the many changes taking place. Additionally, errors and oversights can happen during M&As. Own any mistakes that take place so you can build trust moving forward.
Have a Solid Integration Plan
M&As are an extraordinary undertaking, and companies need to be prepared with an integration plan. Create a clear road map for merging teams, systems, and cultures. Your plan should outline key milestones, timelines, and expectations. Be aware of potential challenges that may pop up, and have strategies ready to overcome them.
Encourage Collaboration
One of the most important tasks during an M&A is facilitating collaboration among the employees of the two companies that are merging. The goal is to create an environment where everyone feels welcomed, valued, and comfortable sharing their thoughts and ideas. To do this, establish cross-functional teams with members from both organizations to generate a shared sense of purpose. It’s also a good idea to solicit employee feedback during this process. Employees can weigh in on both the highlights and the pain points of the M&A to help you address concerns and identify areas for improvement.
Navigating people operations through an M&A is complex and not for the faint of heart. In order to succeed, you must be willing to roll up your sleeves and get scrappy while also thinking strategically. Big changes make for big challenges, but they also bring about new opportunities to build better processes and create positive change.
Instead of focusing on refining processes like you would working for a single company, you’ll have the opportunity to build them from scratch and make a big impact. Think about it: The new company has two sets of values, but you get to create a new set of combined values; it may have standard benefits, but you get to decide which benefits are best for the future; there are two compensation models, but you’re responsible for blending them to create a fantastic new model.
The opportunity lies in the experience. And speaking firsthand, it’s very fulfilling work. Throughout each stage, be sure to prioritize employee experience and well-being to make the M&A process as seamless and positive as possible for everyone involved.
Adelle L. Connors is the Chief People Officer at UserTesting.