As the global economy fights its way out of the current recession, many companies are surviving via consolidation–streamlining business units, offices, teams, even merging with other companies. This is the type of activity that makes employees feel most insecure, and insecure employees are generally unhappy and less productive. Perhaps this decrease in employee productivity is one of the reasons that mergers have a low success rate–research shows that approximately 75 percent of mergers fail.
It’s often said that employees are a company’s greatest asset, and yet they are among the last considerations when companies institute change.
Whether a company is consolidating its own business units or merging entirely with another firm, it represents a shift in culture for employees: processes change, routines become unsettled, and positions are often eliminated. In these situations, executive leadership must make employees a priority, keeping them informed of the changes that will affect them. Changes should be made with an eye toward creating a functional, productive workforce.
Read on to find out tips for companies that are merging or streamlining operations