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Culture and talent loss big concerns during M&A

HR executives fear losing top talent and culture clashes when dealing with large-scale mergers and acquisitions, according to Mercer’s 2013 Global M&A Ready Survey.

The survey of executives from 372 organisations suggested almost half (47%) of HR executives believe people problems in M&A are more prominent now than 12 months ago. One-quarter (25%) said that the scale of the problem hasn't changed, and 28% were not sure. 

Ninty-three percent of European executives reported at least some level of concern about losing top talent within a year of M&A activity, and 35% said they felt 'very concerned'. Additionally, 35% indicated they have no process in place to assess integration and leverage results in M&A activity. 

Mercer's UK head of M&A Adam Rosenberg told HR magazine getting HR involved as early as possible in the M&A cycle helps identifying potential people issues. 

"It's crucial to know what needs to be done straight away so you give yourself enough time to deal with it," he said. "Even if there's not that much to do on the people side, knowing that early is still valuable."

Rosenberg said that getting the right blend of leadership can make or break a merger. While often it is a case of acquiring talented leaders, on the flip-side it can mean losing those who are no longer needed. 

"Getting rid of unwanted leaders in a new partnership can be as important as retaining those you do need," he added.