A merger between two companies with different corporate cultures can cause unrest and uncertainty among employees. A lack of motivation reduces productivity, so companies should work hard to motivate their employees during and after a merger. Strong leadership and clear, goal-oriented strategies can effectively be used to maintain employee morale and productivity.
Mergers can be accompanied by layoffs. Employees should be informed of layoffs immediately. Employees leaving the company should be treated with respect and given generous severance packages when possible. Surviving employees should be assured of their value to the company. Managers should work with surviving employees to set up clear development plans within the context of the company's mission statement after the merger.
The cultures of two merging companies need to be integrated after the merger for the company to function as one entity. Provide employees with clear communication about the company's mission moving forward. Create a communication plan for providing employees with status updates about changes that will be occurring within the organization. Let employees know how any changes will affect them personally. Work with them to jointly identify their new roles within the organization.
Cross-cultural clashes and continual uncertainty can give rise to tension and conflict within the organization. Companies should focus on addressing tension-ridden situations immediately. Set up communication workshops where any grievances can be aired. Assign an unbiased observer to be a moderator in the workshop. Make sure all grievances are resolved during the session.
Provide employees with incentives to innovate and increase productivity within the new organization. These incentives can include bonuses, leadership roles and access to training sessions. Allow employees to take initiative within their new roles. Set up brainstorming sessions where employees provide suggestions and recommendations based on their experiences. Make sure valid recommendations are moved into an implementation pipeline.