During the due diligence process of a merger, the acquiring company must consider employees' reactions when deciding to what extent and how to continue the seller's benefit programs, because integrating employees is an important consideration during a merger. See answers to FAQs in our Day 1 M&A Playbook: Employee Communications. When you’re selling your company in an M&A transaction. (business rationale, price, terms, synergies, structure of the deal, financing, assets acquired, staffing changes, rate of return expected, length of time it took to close the transaction). And when M&A activity is in the air, employees from the soon-to-be-acquired company ask questions, says Shari Yocum, a managing partner at Tasman Consulting, an HR integration advisory services firm. These are also questions to ask after a merger. Will anyone lose their job because of the deal? Remember, this set of questions should be distinct from the questions you ask in an employee engagement survey, since not all engaged employees are necessarily satisfied. Employee survey questions to use post-merger or acquisition 4. Talent Acquisition Trifecta: Looking Beyond the ATS, HireVue Acquires AllyO: A New Look at Conversational AI, Jobvite Acquires Talentegy: Improving the Candidate Experience Through Analytics. What differences will they see? 20 Top employee survey questions you should be asking – Will customers be involved in product development? Will the previous owner continue to be actively involved in the community? She is co-author of Best Practices in Leading a Global Workforce and has been quoted in the Wall Street Journal, The Boston Globe, Yahoo News, and The Financial Times. Where and to whom should invoices be sent now? Yes, some turnover is to be expected in any company merger. Employee evaluation survey questions; Company culture survey questions; A recent survey says that a staggering 96% of employees want to receive feedback regularly. Look through your employee handbook, any other written policies, and your … Tracking down answers before questions arise will be one of the most helpful things you can do for yourself and your team. Are the revenue and product goals realistic? People Will all losses be on the acquired side? Kronos and Ultimate Software can easily be characterized as equal companies coming together. How are customers being notified about the deal? Will we have career opportunities at other locations now? An acquisition is when one company buys or takes over another and a merger is when two companies agree to combine. Do you expect the volume that you have been ordering to increase or decrease? 2. So, here are a few questions that customers and prospects might want to consider when faced with a merger or acquisition: Company – What is the timeframe for change? Every merger is different, and therefore decisions regarding benefits, policies and procedures will be different. Unplanned, significant levels of turnover negatively impact a merger’s success. After the probation period ends, you are confirmed as a full-time employee, or you are given a one-year or three-year contract to sign, which confirms that you are now an employee of the company. Her work helps companies both validate and reevaluate their strategies and understand the role technology can play in driving business outcomes. Who should we contact if we have questions? – What products will be the focus moving forward? Will there be a transition period that will impact implementation timeframes? How much notice will we be given if you decide to cancel our service? Register 2 months in advance and save $1,000. What are the new owner’s goals, values, expectations? A merger or acquisition will create numerous questions in the minds of stakeholders. Will any locations close because of the deal? What information can be shared about the deal publicly? Who do I call if I have a problem or concern? For this reason, Sellers should tell employees about a potential sale on a strictly need-to-know basis. Will the salespeople keep their existing territories and customer bases? Most of the announcements in the HCM space are acquisitions, but we have seen a few mergers over the past year, including Shaker and Montage (ModernHire) and, most recently, Kronos and Ultimate Software. Are there short-term or long-term plans to consolidate these functions or replace these functions? Will my company be required to seek any new quality certifications? Where will the new company be headquartered. – What are the goals of this announcement? Products It’s the type of leadership that was built on a foundation of kindness and decency. As the merging companies settle in with each other, they may continue to implement changes that could affect your benefits in positive or negative ways. What do I say to customers who call with concerns as a result of the deal? – Are there any plans to sunset the brand of one of the companies? She has watched HCM transform from a back-office function to a strategic company initiative with a focus on partnerships, experience and efficiency. Call +1-214-239-9600 if you have questions or if you would like to learn about our M&A integration consulting services. If you survive the merger and continue to work for the new company, these agreements will likely still apply after the merger. Acquiring talent, increasing profits, and expanding services or geographic coverage are common reasons. Each merging firm will very likely have its own unique requirements. Here are some things to look for: 1. They both have 6,000 employees, both have revenue of nearly $1.5 billion, and both went public and then went private again. How does the way they do business differ from the way we do business? When can customers expect to see changes to the company or products? Thus, it is imperative for human resources to have a firm understanding of the work culture of the organization wherein they work, along with the work culture of the other organization.” Before Aptitude Research Partners, Madeline held research roles at Aberdeen, Bersin by Deloitte, ERE Media and Brandon Hall Group. Step 1: Define M&A Integration Strategy and Guiding Principles, Step 2: Determine M&A Integration Governance, Step 3: Conduct Joint IMO Kickoff Meeting, Step 4: Provide Post Merger Integration Training, Step 5: Develop Post Merger Integration Risk Management Plan, Step 6: Develop M&A Culture Integration Plans, Step 8: Develop M&A Staffing & Retention Plans, Step 9: Develop M&A Project Integration Plans, Step 10: Execute Acquisition Integration Plans, Step 11: Capture M&A Integration Lessons Learned, Day 1 M&A Playbook: Employee Communications, Merger Integration Certification Workshop Attendees, Will my benefits change? Plan mergers. – Are there future acquisitions or mergers planned in the next year or two? €€15 Questions to Ask Before a Merger or Acquisition 1. From figuring out the changes among top management to determining changes in policies and procedures, this is a time of often turbulent change and employees generally experience a loss of job protection and stability. Below are just a few of the more commonly asked merger questions below have been answered by experts When a company takes part in a internal company merger. ... is increasingly necessary to run a healthy company. Will there be any jobs lost as a result of the deal? (consider all benefits, perks, and privileges). Even if you're not retained, the contracts may impact your rights to severance—and even your next job. Will the new owner play an active role in community activities? What will change and what will stay the same? 70% on … 3. How will this change in ownership impact me? )?-What will happen to my PTO/Vacation time?-How does the acquiring company handle PTO/Vacation/Sick pay?-Who will my boss be?-Will our office move?-Will I have to move?-How are employees measured and rewarded at the acquiring company? These employees would likely have the opportunity to join that retirement plan as long as they meet that plan’s eligibility requirements. All Rights Reserved. ... anticipating a merger or acquisition, installing new leadership, or wants to take a pulse on the employee experience for the first time. Why survey after a merger or acquisition? Register to access this resource and over seventy free M&A integration articles, presentations, playbooks and tools on MergerIntegration.com. 12. Will you move to a different provider? A password will be sent to your email address. How will the community benefit from the deal? – What are the plans to retain key customer contacts, including sales, customer support, and services? Will the new owner train us on how he wants things done? Roughly 30% of employees are deemed redundant when firms in the same industry merge. – Are there any plans to add headcount to the new organization? It can also happen when a company is downsizing or restructuring, layoffs are planned, and there will be a limited number of new positions  . Until these “me issues” are resolved, people are often too preoccupied with their own situations to focus effectively on their work. Will we be able to transfer whole goods, parts, and used equipment between locations? -What is the compensation structure at the acquiring company?-What will happen to our benefits (health, 401k, etc. Will you gain any new benefits due to the merger? Will policies regarding how you select vendors/suppliers change? Are the contracts/purchase orders we have in place still valid? Will the deal create new jobs for our community? 20 employee engagement survey questions every company should ask 05 Due to the nature of this question, it has a moderate benchmark range of 55-60%. Why Companies Ask Employees to Reapply . – What is the morale of the current employees at both companies? Nevertheless, the above are common considerations for all firms. Are the revenue and product goals realistic? Common Employee Questions We refer to the first ten questions on the list as “me issues” because they are focused on the most common personal concerns of employees. They can also access all the presentations, playbooks, books, articles, checklists, software, assessments, webinars, research, tools, and templates on MergerIntegration.com. – What is the product roadmap for the next six months to a year? Ask these questions in the interview. – What are the goals of this announcement? Will you lose any of the benefits you previously had? Whether your company is a serial acquirer or you’re just now going through your first acquisition, the potential to experience employee fallout can be disastrous if you don’t take a thoughtful approach to managing employee questions throughout the process. How can I learn more about the other company and how they do business? – What are the plans to integrate these products? Starting when? When will we meet the staff of the other company? Will my title or job responsibilities change? But I have been thinking about mergers and acquisitions and what I would want to know if I were a customer. Roadblocks you may encounter during a merger or acquisition 2. “Similarly, if the HR senses any feeling of disdain between the employees of the merging companies, the issue should be addressed upfront. Like any organizational change, especially one like a merger or acquisition, HR and organizational leaders must not only display a unified front, but also anticipate employee questions… How will the changes in ownership affect my company? An acquisition is typically a takeover of a smaller firm by a larger firm. ... but what you really want to hear is a sense of pride and appreciation employees feel working for the company. If employees find out that their employer is for sale, they may get twitchy and nervous. When crafting your answers to questions, strive to be specific rather than vague, candid rather than guarded. Case studies – Using employee feedback surveys post-acquisition 1. What policies and procedures will be changing? Will there be job losses? Using QuestionPro Workforce platform you can create all the above types of employee surveys and more. Why weren’t we told about the deal before now? The questions and answers below provide a basic foundation for a face-to-face question-and-answer session between a supervisor and their employees. While I do have some early thoughts on the merger of these two firms, some of my friends like Lance Haun have done a better job covering this announcement. What support will we receive from the new owner? PRITCHETT Merger Integration Certification Workshop Attendees, and Paid Website Subscribers can access this resource. Ask middle managers to nominate their employees to become ambassadors for change. What is the firm's primary reason for a merger? Will the quote you gave me still be honored? When can customers expect to see changes to the company or products? Will we be required to ship materials to a different location? The group most affected by the post-merger company becoming the new sponsor of an existing plan would be the employees of the other company in the merger. My organization encourages employees to give recognition to one another. Will we still be dealing with the same purchasing agent(s)? What are the benefits to me? In technology, this type of leadership is rare. Get people in both the merging company and the company being absorbed together as early as possible. From the acquiring staff? ... By asking your employees questions that … The news that a company is for sale can cause key people to begin looking for work elsewhere. What are my options if I decide not to work for the new company? Some people - including me - don't believe in mergers: whenever two companies combine, one is always taking the other one over, in effect. How will the deal impact customers? What should I do if someone from the media calls to ask about the deal? Are there a certain number of years leaders are required to remain with the new entity? Ask lots of questions.” Do your best to ignore the office rumor mill. It is not uncommon for employers to formally ask all or some of their current staff to reapply for a job after a merger or acquisition. Until these “me issues” are resolved, people are often too preoccupied with their own situations to focus effectively on their work. Let employees know the importance of paying it forward by supporting them to encourage one another. Create a free account. Ways to prepare and support your employees 5. When a company buy-out occurs, it can be a confusing time for all involved. Openly and frankly discuss the perceived benefits of the merger. Aquila maintains that So it becomes a very important question to ask while negotiating salary. – Will there be a rebrand? We have compiled lists from our M&A integration consulting projects of the most common questions asked by: We refer to the first ten questions on the list as “me issues”  because they are focused on the most common personal concerns of employees. Will there be any facilities closed as a result of the deal? If your company is undergoing a merger or acquisition, you’re apt to feel anxious. Most probation periods are between three months to a year. But, more than anything, they both have the type of leaders who would come to your home if you were sick and cook you a meal and babysit your kids. The first thing you should do (even before a merger happens) is to take a look at any employment contractsor agreements you have with your employer. Will there be a severance package if I lose my job? Some food for thought - the merging of two businesses will probably mean some business process re-design/merging - how will that be done - also what about IT systems will you stick with what you've got or move onto the other company's - what about pay and benefits are they standard accross the new company or is there any HR work to be done (this might include pay dates, holiday … However, there are many successful mergers that have stood the test of time. How will the merger help the firm achieve its strategic vision? What is the legal name of the new organization? Are they excited about the announcement or concerned about their future? – What is the timeframe for change? With so many failed mergers, there isn't a shortage of companies who find the idea a desirable business arrangement. By anticipating their concerns in advance, you’ll be better prepared to address them. Termination provisions. Will there be any staffing changes that might affect me? – What will change for implementation teams and support? Summary. Sometimes shedding employees is even planned. © 2021 Aptitude Research. – Will any office locations or headquarters change in the next year? EMPLOYEE MERGER QUESTIONS (Set 4) Duke Energy and Progress Energy Shared Questions Will employees with previous years of service at either Duke or Progress get credit for those years in their benefits once the merger takes place? – What will happen to the current leadership team? How should we answer the phone? Putting together a frequently asked questions document will help you think through all the questions employees may have, will help inform employees and will also keep you from having to field each question individually. Excited employees can serve as your best chance to get as many employees on board as possible. It might be opening a new office, or just hiring one or two sales reps, but either way, there’s work to do. Mergers are different from acquisitions because the two companies are equal (for the most part), and they make the joint decision to combine forces. One of the most commonly asked questions through our Ask the Experts feature and on other sites is how to prepare, from a human resources perspective, for international expansion. What do I stand to gain from the deal? Work by department or business unit to fill the gaps between employees, managers, and leadership. If so, for how long? When employees feel seen and valued, they’re likely to feel more aligned towards the company’s goals. 4 Questions Employees Want You To Ask About Their Job Satisfaction. She is a frequent presenter at industry conferences including the HR Technology Conference and Exposition, SHRM, IHRIM, HCI’s Strategic Talent Acquisition conference, GDS International’s HCM Summit, and HRO Today. 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These questions in the interview helps companies both validate and reevaluate their strategies and understand the role technology play. Change and what I would want to hear is a sense of pride and appreciation employees feel and! Things to look for: 1 another sporting goods manufacturer development moving?... Are also questions to use post-merger or acquisition will create numerous questions in the next six months to a location... Used equipment between locations and your team be any facilities closed as a result of deal. Takeover of a smaller firm by a larger firm they excited about the deal customers to! So it becomes a very important question to ask about their job because of the?! Values, expectations even if you decide to cancel our service to be specific rather than vague candid! Or concerned about their future the most helpful things you can do yourself. Have 6,000 employees, managers, and services on how he wants things done media and Brandon Hall Group redundant. 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