How to hold on to key employees

During a company merger, the devil is in the
details. Identifying key employees and
employment issues early on can facilitate a
smooth deal. And a communication plan can help
prevent, for example, top-producing salespeople
from defecting to competitors, decimating the
company’s customer base, and affecting its value.
It’s important to offer employees incentives to
stay, but you also need to anticipate potential legal
issues. Plan now to put in place protections to
prevent employees from disrupting your deal, both
before and after it closes.
Research to retain
As soon as you begin entertaining the idea of a
merger or acquisition, assess your current workforce.
Enlisting the help of your human resources
staff, interview managers and ask them to break
down employee responsibilities and identify the
top performers in each department. If units are to
remain productive after the company changes
hands, you must know which employees are
responsible for the most — or most important —
customer or client relationships. If your company’s
value relies heavily on research and development or
intellectual property, be sure you know who the key
brains are behind your brain trust. Without those
individuals, your business may have much less future
earnings potential and be a lot less attractive to a buyer.
And though the topic is broad and beyond this article’s scope, begin
reviewing patents and other intellectual property
to ensure you, not your employees, own them. The carrot and the stick
Once you or the buyer determines which
employees are essential, provide them with
incentives to stay put. Depending on the nature of
the business, the employee and the terms of the
deal, this could be anything from stock options in
the newly merged company to a guaranteed
executive position to extra vacation time.

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