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How can we retain key staff during a merger?

The question of retention of key personnel during any significant organizational transition is a critical one. During a merger, when so much uncertainty abounds, it becomes even more important to identify and retain key individuals who will assist in the negotiation and integration processes, bring confidence and competence to the tasks at hand, and help build the new organization into its envisioned capacity.

There are three elements to retaining key talent. Those are: identify, communicate and motivate.

First, identify the talent you want to retain — those staff members who you believe bring the skills, attitude, credibility, integrity, and capacity to the challenges at hand. This has to be done with great intention. You should know not only whom you want to retain, but also why the organization needs them, and how they will be integral in moving forward in the merger process.

Second, communicate to these staff members that they are critical and that you desire to retain them during and after the transition. Often, the message that you see them as valuable and want them to stay can be a significant step in the process of retention. Find out about their concerns and what they hope to experience and gain personally through the transition.

Third, find out what motivates them, which may include:

• Security – assurance that they will have a job now and into the foreseeable future.
• Status – a new title or inclusion in the Senior Management Team of the merged organization.
• Money – “stay pay,” a performance bonus, or a raise.
• Growth opportunities – potential for the retained employee to have opportunities for promotion to higher positions, career development, and/or training in new skills.

Finally, come to an agreement with mutually defined expectations for the periods before, during, and after merger implementation.

There is no blanket approach to talent retention during transition. However, a good rule of thumb is that you create an environment and a relationship that makes the best want to stay. Don’t promise what you can’t deliver, keep your word, and be clear and direct to all employees.