Faced with the idea of being laid off, employees may feel all kinds of things: … There is a lot of talk of synergies, strengthening market share and excited forecasts; however in the rush to ‘get the deal’ done, scant attention is paid to engaging with key stakeholders and the post-merger integration of employees. Demonstrate Respect. Change is often difficult for employees, especially if they were not directly involved in decisions that impact their jobs. Select employees on merit. Implementation through creativity means that values have a higher probability of being deeply ingrained, as their introduction was impactful, dynamic and therefore likely to leave a lasting impression. Acknowledge employees’ feelings as some may feel a genuine sense of loss. Morale post-merger. The uncertainty resulting from a merger or acquisition can increase stress levels and signal risk to target company employees. Employee Morale. Be sensitive to the time it may take for employees to accept change post merger. You … Communication is critical during these times, says Linda Pophal, a communication consultant with Strategic Communications, LLC. The main reason behind this merger was the need to enlarge branch network and balance sheet. Employees inevitably have many questions and concerns, and human resource professionals should be prepared to answer them. Merger communications is a conversation, not a series of orders. Sometimes shedding employees is even planned. Your employees might belong to … Complex visions and strategies can easily be articulated in compelling and dynamic ways that engender a sense of belonging and partnerships. It is important to ensure that employee morale is maintained as motivated … A lot of organisations make the fundamental error of focusing on getting the structure in place and ignoring the emotional elements of culture and hope that it sorts itself out naturally. When two or more organizations come together, culture clash is inevitable. © usp creative 2021 - e:hello@uspcreative.com  t:0151 227 1777. The value of this research points to the fact that management of Human capital assets are often overlooked during and after a merger. As part of that research, you need to take time to consider what skills, experience, and aptitudes are going to define your optimal employee after the merger. Effect Of Mergers And Acquisitions On Employee Morale (A Case Study Of First City Monument Bank Plc, Calabar) ABSTRACT. Be transparent. All research in this area suggests that open, timely and accurate communication will reduce employee’s anxiety and uncertainty. How the corporate leadership focuses its energy, as well as the timing and vision that drive employee engagement, impacts post-merger effectiveness. The Effects of Merger and Acquisition on Employee Morale Employee morale can be significant if it is not recognized as significantly in business, and if it is not handled effectively. If they do, then it’s highly likely that the merger will be a successful one. The steps for successful merger are applying various strategies discussed here to impact the merger effect as a blessing for the employee in order to boost the morale and confidence of the employee. The concept that two entities of separately trained staff, working in their own unique environment under different circumstances will automatically become a harmonious merged workforce is rather unrealistic. How often are families completely harmonious? There is both research as well as anecdotal evidence, of the psychological effects on employee’s wellbeing post a merger or acquisition; which often has a negative impact on behaviour resulting in counterproductive practices, low morale and absenteeism. "Human Resource Essentials"; Lin Grensing-Pophal; 2010, The Effects of Organisational Mergers on Employees, How to Assess the Cultural Fit Between Organizations, Cultural Diversity Training in the Workplace. Live, breath and demonstrate the values – don’t laminate them and hope staff will eventually find them in the back of their handbook. This fear can negatively impact productivity and may even result in employees leaving the company to seek jobs elsewhere. Some merger success metrics are easier to measure than others. As these groups get to know each other there will inevitably be conflict and perceived or real losses on both sides, says Pophal. Staying human during these times could be the difference between failure and success. Religion And policy Are consistently Implemented The above figure in cross tabulation indicates that, out of 54 Hindu respondents, 4 were dissatisfied, 25 were neutral, 24 were satisfied and 1 is strongly satisfied. Employees with high morale typically feel happier, more engaged, and will try their best to help their company achieve its goals. But, what happens when employees from the two companies come together? The effects of mergers and acquisitions on employee morale can be significant if the reorganization of the business is not handled effectively. Obviously, this list of criteria will vary by department and role, but if you take the time to break it down, there’s likely a solid foundation of traits that every successful employee in your new company will possess. Don’t attempt to hide problems or avoid conversations when morale is low. An AON Hewitt study on employee engagement during times of corporate change highlights employee engagement’s important role during the preparation stage. Employees may fear losing their jobs or losing opportunities that they formerly had. During the time of merger and acquisition 11. 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