Retaining Critical Talent During Mergers and Acquisitions

For organizations engaged in mergers and acquisitions, retaining critical talent is top of mind since it often directly impacts the overall success of the deal. According to Mercer's Survey of M&A Retention and Transaction Programs, when companies adopt a retention program, executives critical to long-term success are eligible for retention incentives in 70 percent of the programs, compared to employees for the short-term success of the integration who are eligible in just 53 percent of the programs. Chuck Moritt, Senior Partner in Mercer's M&A practice joins HRIQ for a discussion on this topic.

Mercer's survey examined the extent to which two main tools for retaining critical talent -- retention incentives and transaction bonuses - are used. According to the survey, retention incentives, which are designed to keep employees through or after deal closing, are widely accepted means of talent retention while transaction bonuses, which reward employees for the work undertaken during a transaction, are used less frequently. For your reference, attached is a link to Mercer's newest Infographic. Key findings of the survey include:

- retention programs focus on retaining executive and senior management critical to the integration process.
- the type of retention incentives used depends primarily on the type of deal. Organizations are more likely to provide retention incentives when involved in an acquisition than a divestiture
- transaction bonuses are typically paid to CEOs, executives and deal team members

Listen to learn more!