Merging your business with another one can have several advantages. While it is not right for every company, or at every point of any given business’s journey, sometimes it can make a lot of sense.
While it might make a lot of sense to you as a business owner, it might not make so much sense to some of your employees. As soon as they hear the word merger, they may assume their job is at risk, which it may well be. Some employees will come up and ask you about it, others will start discussing it with their colleagues, adding to the air of uncertainty. Others will contact friends, employment agencies or other companies to see what jobs are on offer.
If you don’t handle things well, you could soon find that some employees are less committed, less able to focus on doing their jobs for fear they might not have one for long.
1. Clear communication
Clear communication is the key to protecting your staff at this time. They shouldn’t find out things from the office rumour mill, but from official company channels.
2. Work out your priorities
You have two sets of staff to draw from to create your final workforce. You’ll need to spend time getting to know each other’s sets of staff to work out who to keep and who to let go. Giving early reassurance to those you definitely intend to keep reduces the chance they will leave.
3. Handle layoffs with dignity
Step away from the figures for a moment and try to put yourself in the shoes of your employees. Losing their job will be a big thing for them. They’ll have mortgages to pay, college tuition fees to cover or even just plans for a summer vacation – all based on their current incomes. For that to suddenly be taken away will hurt.
Handling layoffs well should be a priority. Part of that is ensuring you abide by employment laws and the legal contracts you have with your employees. Legal guidance can help you understand your obligations.