The books and stationary retailer is to be rebranded TGJones under a deal that is due to be completed in June, according to The Guardian's report on Friday (28 March).
WH Smith is due to retain its brand name for its travel stores in airports, train stations and hospitals, but as part of the deal, the retailer will no longer offer online sales as WH Smith.
During what can be an uncertain time for staff working for organisations that are being acquired, HR leaders should support employees to thrive, according to Nick Petschek, managing director EMEA for organisational change management firm Kotter International.
He told HR magazine: “Merger and acquisition (M&A) deals have the potential to create a sense of uncertainty within the merging entities. Employees will inevitably have questions about how their roles and responsibilities will be affected.
Read more: Tips for a successful post-acquisition integration
“In times of uncertainty, employees will often enter ‘survive mode’ as they deal with their anxieties around the change. HR’s goal should be to enable employees to enter ‘thrive mode', in which they can do their best work and focus on the opportunities ahead of them, rather than the unknowns. HR and leadership should communicate early, often and clearly, about integration plans, offering incentives like retention bonuses or new professional development opportunities where applicable, to signal their commitment to employees.”
Steve Foulger, director of organisational change and people services firm NFP, echoed this, stating that having a people strategy is crucial when going through transformation such as an acquisition.
Speaking to HR magazine, Foulger said: “People are often the forgotten element of M&A activity, yet they can make or break a deal. For sellers, it’s crucial to understand the buyer’s plans, not only to protect the deal value but also because employees will have very real concerns: Will there be redundancies? Is there someone on the buyer's side who already does my job? Will my contract change? These are not abstract worries, they affect engagement, retention and performance.
“The earlier that HR or people specialists are brought into the transaction, the smoother the integration will be. A distracted workforce, cultural misalignment, or the loss of key talent can quickly undermine the very attributes that made the business an attractive acquisition in the first place.”
WH Smith opened in 1792 with a store in Little Grosvenor Street, London. The company opened its first travel store at Euston Station, in 1848.
The brand has more than 480 stores on high streets, shopping centres and retail parks across the UK, and employs more than 5,000 people.
Read more: How to communicate with a team in times of rapid change
Organisational consultant Claudia de Silva emphasised the importance of bringing in external HR and people support when an organisation is going through an acquisition, to support staff with any anxieties they may have.
She told HR magazine: “To support staff during a business acquisition, HR leaders and employers should look to bring in external support in the form of expert organisational consultants to assist in a smooth transition. It is always highly beneficial to introduce an independent person to help establish a space for employees to share their anxieties.
“In times of change, anxiety can be all pervasive. HR and employers themselves are likely not immune. Therefore, it is important to recognise that with such anxieties may come defensive behaviour.
“The practicalities are of course very important, alongside safeguarding the organisation’s value throughout the deal process. But the sensitive management, support and respect of employees is what will really be the key to a successful and smooth transition, and long-term success.”
Alex Denny, partner at law firm Faegre Drinker Biddle and Reath added that communication should be planned and executed appropriately during an acquisition.
Denny told HR magazine: “HR and management should also avoid the proverbial smoking gun; in other words, a damaging internal email or communication which indicates that the employer has already taken decisions that would inevitably undermine any future consultation process.
“Internal communications will generally be disclosable in any subsequent legal proceedings. It is therefore vital that they should be qualified appropriately ('proposal to...', 'subject to employee consultation...', etc). HR must have a coordinated plan in place for consistent communications across the company.”
