Mergers have become a way of life, especially given the way the economy has taken a hit in the last year. While business transactions such as mergers have important financial ramifications, it is important to remember that there is a human element to them as well. At the end of the day, the newly formed company will rely on its human resource to thrive. Management must then focus on employees and how to get them through the merger successfully. The following are two essential ways management could achieve that.
Communicate with the employees
Let employees know what is happening and explain the reasons and benefits for the merger. Employees are often left in the dark until the end and even then, not told why the merger was necessary. As a result, they begin to resent their jobs and the new employees they are about to begin working with.
Evaluation of all employees
The merger brings it with a whole new company with employees who will most likely be performing the same job as someone in the old company. Businesses need to evaluate employees from both companies to see who is in the best position to help the new company. This decision is a difficult one to make, and once made, should be communicated to the employees as soon as possible.
Mergers create stress not just for the business owners and managers, but also for employees. There is a lot happening, from combining information systems to merging departments. One way to ensure the process runs smoothly is by creating a plan at the beginning of the merger and following through on it. An experienced attorney can help companies work through the legalities of the transaction so they can focus on making a smooth transition.