Top Talent Turnover During M&A
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Research shows that there is an increase in turnover following a M&A and that this carries on for much longer than expected.
The exodus peaks about two years after the acquisition and research amongst 450 firms shows that executives depart at twice the normal rate for a minimum of nine years after the acquisition.
The reasons given by departing executives show that about a third depart due to reduced job status or alienation.
If you have left a firm as a result of a M&A we would be interested to know:
- How soon after the merger did you leave?
- What were your reasons for leaving?
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Hi Stephen
This info may be a bit dated, but my father left his employer in the mid-90’s BEFORE the merger had even completed. He wanted to get his early retirement agreed by the outgoing FD, before the FD was paid off – which happened 4o minutes later.
My father’s reason for wanting out was he didn’t think he’d fit with the new owners culture and values.
About a year
Disgust with the values of the new management – bullying – mindless corporate behaviour – usual rubbish
Alan
Dr Alan Rae – Founder – Howtodobusiness.com
Why not join the Ecademy How to Do Business Club – just click the logo
About seven years ago my fellow employees and I went to work and found out our bad dreams had become a reality. We were now employees of a company that had one of the worst reputations in the industry. But, the analsyts loved the “earnings”.
The new management came in, to show us all how to run the place. I was on the fast track pre-merger and now seen as someone that needed to be taught a lesson in humility. Needless to say, when the competitor called and asked if I was interested in having a conversation. I packed my desk up before I even had a deal with the competition.
Is the company I left still in business? No, it is not and the executives are now in jail probably showing a few prisoners how to run the place!
Mary,
This is a common situation with M&As, even where the new management promise that there will be no substantial changes. Yet the temptation to impose a new structure, culture and personnel on the organisation is too compelling.
It’s interesting that a competitor contacted you to see if you wanted to move. Our research indicates that headhunters will phone key staff within five days of an M&A being announced and then follow that up with a further call some five months later.
I left a firm within a few months of the M&A. The culture was about to change and I didn’t think that it would suit me.