Why is Employee Engagement Important in Post Acquisition Integration?
Engaged employees are critical to a company's success under any circumstances, and that is especially true during a merger when employee dedication can quickly make or break the success of the integration. We've been a part of 16 mergers and acquisitions, valued at over 6 billion dollars, so we've seen time and time again where employees feel uncertain, they have anxiety, it's just an us versus them mentality. They simply don't know what's going on and there's no transparency.
Let's take Eddie, the one I mentioned earlier. What happens if he actually leaves the company? This time he was making around 60k, and to replace Eddie it costs $44,000 in recruiting and in training costs for a mid-sized company. What if one-hundred Eddies leave? That would cost your company four million plus to replace and that's why employee engagement is important because it affects your bottom line.
Written by Miracle Semien | COO, Veaux Professional Services, LLC
More Q&As from our experts
- What Are The First Steps to Take to Buy Out a Partner?
- How can a technology platform help with HR acquisition integration?
- How Do I Connect with Employees During and Post-Merger Acquisitions?
Re-Trade and Best Practices to Avoid Them
Flirting with a Single Buyer for Your Business
5 Core Tenets of Exit Planning
Subscribe To the Divestopedia Newsletter!
Stay on top of new content from Divestopedia.com. Join one of our email newsletters and get the latest insights about selling your business in your inbox every week.
- Divestopedia’s M&A Fee Guide 2022 - 2023
- Purchase and Sale Agreement Considerations for Acquirers - Handouts
- Seyfarth Shaw LLP - Survey of Key M&A Middle Market Deal Terms
- Firmex’s M&A Fee Guide 2021 - 2022
- Your Guide to VC Funding
- Financial Services M&A: Consolidation & Innovation January 2021
- SS&C Intralinks® 2021 Corporate Restructuring Report