HR must make EB work well in an M&A. OK?

Employer Branding (EB) is one of the most critical factors in M&A success. In fact it’s probably stopped quite a few deals going down the toilet. Although M&As are not the flavour of the month right now, as vultures lay wasted by the roadside licking their wounds, there is talk in dark corners of corporate hallways that bargains will be grabbed later in the year. And it may be overseas buyers doing the grabbing, taking advantage of the declining Australian dollar.

The days of the ‘she’ll be alright with the bank and shareholders’ attitude to M&A deals are long gone, the likes of which will probably never be seen ever again. Deals will be much more closely scrutinised. Protection from downside risk and market fluctuations and huge demands on financial performance will place people issues firmly on the map as a critical consideration. In fact it is becoming increasingly recognised by Boards that an organisation’s ability to integrate people and cultures in M&A scenarios is a prerequisite to success and its ability to realise maximum value from the deal. 

So what does all this mean? It means that there is much pressure on HR Directors and Managers to be ‘on the ball’ and totally ‘au fait’ with all things relating to change, branding and employer branding before, during and after the deal is done. This is a big call, requiring much knowledge and insight, which HR departments are not always resourced to handle. They must also be able to articulate the benefits of the deal to their people and pre-empt all the people-related issues that will  inevitably arise. And this must be accomplished as early as possible before simple uncertainty builds into complex issues.

HR must work closely with the deal planners and brokers to understand what the real objectives of the deal are and how it affects both sets of employees. How will the integration of two cultures be handled and how will it affect employees? What will be the main issues identified by employees that may slow down or destroy the deal – pay, roles, leadership, training, promotion?

These are key factors in an organisation’s ability to maintain engagement and productivity and retain top talent.

Not all issues will arise before or during the deal making process. Many can arise after the event and can catch out the unwary – issues such as inequities in salary levels, reluctance to relocate and rising attrition.

My advice centres around HR adopting a proactive people management approach and relying on a tried and tested employer branding process – like my own company’s EmployerbrandGuidanceSystem – to build one cohesive and believable employer brand that can move forward the merged organisation and its people.

HR must be prepared to work with the deal makers to add value by applying effective people management, integration, communication and retention strategies that provide a clear path forward geared for long term success.

Tony Heywood is a Fellow of the Design Institute of Australia, founder of Heywood Innovation in Australia, United Kingdom and India, and joint founder of BrandSynergy in Singapore.