by Flex HR

How HR Can Manage Employee Expectations When a Merger or Acquisition is Announced

Mergers & Acquisitions (M&A) happen on occasion and the transition period is crucial. HR subject matter experts in M&As are brought in to carefully facilitate the integration and transaction process.


Employee angst as to the future of their role, or lack thereof, with their current employer becomes top of mind for staff.

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Talent retention is one of the first concerns raised by HR leaders when a merger or acquisition is announced. Human Resources needs to be the source of navigation through company and culture conglomeration by communicating upcoming expectations as much as possible.


HR Brew asked Jim Cichanski, Founder & CHRO of Flex HR, who advised “anticipating what questions employees will ask and supply managers with the answers, adding those questions will likely focus on benefits, job security, and compensation.


“All of those things that come across to employees that they worry about, and they go home at night and talk to their spouse about whether they should stay and stick it out or leave and fund another company to work for that they’ll know what they’re getting into,” Cichanski said.


He recommended executive leadership be honest, transparent, and expedient when communicating. This, he said can help alleviate fear and disengagement among employees.


As for retaining top employees, HR has a critical decision to be made as far as identifying key workers that will continue to work hard and be valuable to the changes that are being made to an organization. HR should be honest with these employees telling them how important their role and responsibilities are moving forward in the future of the company. This helps to settle any nerves workers may have.


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Due Diligence Process

A Human Resources due diligence review is necessary when undergoing a Merger & Acquisition. Our forward-thinking, systematic approach at Flex HR identifies risks that could compromise your company’s human capital value. To enhance value and reduce risk, a synchronized HR plan is created. As with any business asset, people must be managed to support your strategic goals and give you the best return possible. Human capital accounts for up to 70% of the company’s total value, which significantly impacts the purchase price.

If you are selling a business – you want to keep the human capital risk to the lowest point possible. If you are acquiring, you want to assess the risks and unfold potential costs that can be extremely pricey to fix.

Contact Flex HR today to be your HR support at