Motivation and retention of key people in mergers and acquisitions

Abstract

Purpose

The most critical aspect leading to success or failure of mergers and acquisitions (M&As) is people‐related. Unfortunately, how to handle aspects of “people issues” remains one of the most difficult tasks to accomplish successfully. This paper aims to deal with the question of how to keep employees motivated and to retain them in such complex times as M&A transactions.

Design/methodology/approach

There are a number of reasons why the challenge of motivation and retention of key people is so difficult to master. The paper identifies the five main challenges of motivation and retention in M&As and how to tackle them.

Findings

The key reasons why the motivation and retention of key people during M&As are so difficult to master are that often damage is done prior to the closing of the deal. It is hard to handle the speed at which M&As are concluded and so it can be difficult to quickly and efficiently identify the key people to retain. The right packages need to be designed to retain the right people and communication with employees retained, as well as those not retained, must be maintained.

Practical implications

Keeping key people motivated and committed will help to retain them even during such complex times as M&A transactions, but also beyond. It is essential to prepare, as early as possible, detailed integration plans that include the identification of key people and the design of retention programmes, with the latter assisting in meeting retention goals. Communication of these elements, and other deal‐related issues, must also be effectively maintained.

Originality/value

The paper provides guidance in motivating and retaining key staff in the event of mergers and acquisitions.

Citation

Kummer, C. (2008), "Motivation and retention of key people in mergers and acquisitions", Strategic HR Review, Vol. 7 No. 6, pp. 5-10. https://doi.org/10.1108/14754390810906373