CIPD research provides the answers

CIPD research provides the answers on how to maintain an engaged workforce through a merger and acquisition

The Kraft Foods hostile bid for Cadbury and the British Airways/Iberia merger, plus a whole flurry of other activity, has once again put mergers and acquisitions firmly on the business map. In the same week, at its annual conference, the Chartered Institute of Personnel and Development (CIPD) launches new research, The Impact of Mergers and Acquisitions on Employer Brands.

The research, conducted by Bernard Hodes, is based on qualitative research inside five organisations (BNY Mellon, easyJet, London & Quadrant Group, Morrisons and William Hill) and an external survey of 300 responses, and is intended to guide those managing any change programme, when the deal between the employer and the employee is threatened.

Over half of the respondents to the survey (52%) who had been through a merger and an acquisition, said that they actively thought about leaving their jobs, citing the reason as an emotional one: ìI find myself in a job I did not pick, working for an organisation I did not choose to work for.î

The importance of effective communication – regular and consistent, honest and straight talking, and the integration of employer and customer communications – was reinforced in the case studies and the survey.

Rebecca Clake, research manager, CIPD, says:

ìEffective communication can dispel some of the uncertainty and insecurity felt by individuals in mergers and acquisitions. Employers that invested in face-to-face meetings with management teams were rewarded with higher levels of engagement and clearer understanding among employees. Those that did not risked confusion around messaging and employeesí misunderstanding of what companies expected of them.î

On top of the clear communication of the employer brand, the importance of a brand with a clear employer dimension – helping to set expectations – and that of a focus on a ëcultural matchí and the engagement of talent through this process was deemed crucial to a successful merger and acquisition. Finally, the report offers useful guidance on how to plan longer-term beyond the initial operational integration.

Helen Rosethorn, CEO of Bernard Hodes adds:

ìHow change is delivered will in itself shape the desire of employees to commit to going forward. The one finding that we believe puts all the others into context is the question of choice. Mergers and acquisitions challenge the free market dynamics of the employer brand. They remove employeesí freedom to make compromises or other choices about employersí various attributes and features, and the fundamental reshaping of the employer deal should be considered by all of those managing and planning such change.î