How Transparent Communication Retains Employees

Robin Benoit

April 15, 2024

It starts as a quiet whisper in the breakroom. Hushed tones are relaying that the company is supposedly about to go through a major change. The uncertainty is palpable, as employees gather in small groups or discreetly ping each other for information, speculating about their future. Rumors are swirling, anxiety is growing, and productivity is dropping. As days go by without any official communication from leadership, the situation escalates. Panic sets in, and by the end of the month employees have begun submitting their resignations at an alarming pace.  

What just happened? In the absence of clear, transparent communication, fear and uncertainty took root, leading to a cascade of resignations and a decline in morale and productivity for those left behind. 

According to a 2022 study by Deloitte, the number one reason employees leave following the announcement of a merger and acquisition (M&A) transaction is due to uncertainty related to their future role in the new organization. And while the above scenario could apply to any organizational transformation – leadership changes, layoffs, etc. – effective communication plays a crucial role in ensuring a smooth transition during M&A. Let’s explore why clear communication is crucial during the deal process and share some strategies for doing so: 

Letting employees create their own narratives about an organizational change can have disastrous results. Image via Adobe Stock/New Africa.

Early & Transparent Communication 

The moment the decision to merge or acquire is made public, start communicating with your employees. Use town halls, emails, and one-on-one meetings to share information. Transparency builds trust and reduces uncertainty. When employees know what’s happening and why, they are less likely to feel anxious and more likely to support the process. 

Consistent Updates 

Keeping employees informed throughout the M&A process is vital. This can sometimes be an extended period. Don’t assume that because you communicated something earlier, that’s enough. Provide regular updates via newsletters, intranet posts, and periodic meetings. Consistent communication maintains trust and engagement, making employees feel included and valued. This ongoing dialogue helps to address concerns before they escalate and keeps everyone aligned with the company's goals. If you don’t manage the communication, people will create their own narrative. 

Two-Way Communication 

Communication should be a two-way street. Establish feedback channels such as surveys, suggestion boxes, and open forums to encourage employees to share their concerns and ask questions. Address these queries honestly and promptly to show that their input is valued. This approach not only fosters a sense of inclusion but also helps management understand and address employee concerns more effectively. Even if you don’t have all the answers, that’s ok. Being clear with your team that you may not be able to answer their questions, but are still open to hearing them, can make a world of difference. 

Personalized Communication 

Tailored communication can be much more impactful. Hold one-on-one meetings, send targeted emails, and organize team meetings with tailored messages to different employee groups and individuals. This method allows you to address specific concerns and explain how the M&A will impact their roles and career paths. Personal touches can help employees feel more secure and valued. 

Leadership Visibility 

Visible leadership is crucial during an M&A. Leaders should be present through town halls, Q&A sessions, and informal interactions, demonstrating their commitment to the merger’s success and showing support for employees during the transition. Delegating visibility solely to front-line managers, with no visible ownership from senior leaders, can create increased uncertainty. Clear and consistent answers from leadership build confidence, so it is also helpful for leaders to work with communications experts and strategic HR partners to ensure effective communication. 

Clear Messaging About Job Security 

Job security is a primary concern for employees during an M&A. This applies to having a job itself, as well as if there will be potential changes in how people are compensated or benefits they may receive. Share the criteria and timelines for any potential job, compensation, or benefits changes as early as possible. Use formal announcements, direct communication from managers, and updates from HR or senior leaders to provide as much certainty as possible. Clear messaging about job security reduces anxiety and helps employees plan their future, whether within the organization or not. 

Cultural Integration Plans 

Remember, there are often two (or more!) distinct cultures in-place that will need to be successfully integrated for the good of the business and its employees. Begin cultural assessments early and continue post-merger through workshops, joint team-building activities, and regular updates. Communicate the integration plan, including preserving valued traditions and practices from both organizations. A well-thought-out cultural integration plan helps create a unified and cohesive workforce, which is essential for the long-term success of the merger. 

Conclusion 

Most importantly, how you communicate during this critical period will shape the future of your new, combined organization. Effective communication during a merger or acquisition can make all the difference. By being transparent, consistent, and inclusive in your communications, you can help ease the transition for your employees, maintain morale, and set the stage for business success.  

Robin Benoit is the Co-Founder and CEO of Benoit Global, a human resource consulting firm specializing in mergers & acquisitions.