Mergers And Acquisitions Typically Disengage Employees

Wayne, PA - Research conducted by the Kenexa Research Institute (KRI), a division of Kenexa, one of the leading provider of talent acquisition and retention solutions, summarized the effects of mergers and acquisitions on employee opinions. The report is based on the analysis of data drawn from a representative sample of 10,000 U.S. workers who were surveyed through WorkTrends, KRI's annual survey of worker opinions.

The WorkTrends survey asked participants if, in the past 12 months, their company acquired another organization, had been merged with or acquired by another organization, and if their company had experienced layoffs due to a merger or acquisition.

According to the research, being merged and acquired has a pervasive, negative impact on nearly every aspect of how an employee views their organization. It undermines an employee's feeling about the company and confidence in its future, and prompts many employees to consider leaving. Yet, employees in merged or acquired organizations are less likely to voluntarily leave when their leadership is credible and demonstrates a clear and compelling vision of the future.

When the periods 1985-88 versus 2005 were contrasted, the WorkTrends data suggested that the negative impact of being merged or acquired on overall job satisfaction has lessened, while the negative impact on turnover intent has increased. In both periods, the largest impact of mergers and acquisitions was on the rating of job security.

Kenexa's research demonstrated that the impact of being merged or acquired was far more negative when layoffs occurred, creating a profound impact on an employee's sense of job security.

"Merger and acquisition activity creates vulnerability to talent loss. In order to begin the healing process and to ensure employees remain engaged, management must clearly state a tangible vision and plan of action. This should include accurate and timely information about the merger and its impact on the workforce," said Jack Wiley, executive director, Kenexa Research Institute.

SOURCE: Kenexa