When It Comes to M&A Plans, Retaining Talent Is an Investment in Growth

Editor’s note: This piece is part of our Columnist Network series, which explores the tactical thoughts and actions from Adweek’s community of high-level experts. Today, Kubient CEO Paul Roberts addresses the pitfalls of staffing changes common to mergers and acquisitions. Below, in his own words, he says talent is often the true gain of these deals. The challenge Among my inner circle of contemporaries, I’m increasingly hearing about difficulties in retention and hiring in today’s job market. Oftentimes, it’s not a talent or skills issue; it’s a company issue. This has been a huge year for mergers and acquisitions, blowing past the trillion-dollar mark. Despite the obvious business enhancement, at the heart of every M&A are the people who fear for their job security and the changing nature of their workplace—regardless of retention or layoffs, M&As mean change. Combining talent and departments during a merger can provide a solution to the current recruiting issue the workforce is facing and help guide the conversation from firing to hiring. When we think about tech M&As, we often think of billion-dollar companies—Google, Facebook, Twitter. Though these companies are asserting their market dominance through a series of M&As, they significantly cut or consolidate the workers who come with the acquisition, making poor use of one of the most vital parts of the transaction: the talent. M&As are a way to enhance business offerings by tapping into a preexisting talent pool. Through this, we are able to make additions to the business without having to start a plan from scratch or building out an entire department. The process Executives and HR teams from both companies are responsible for creating a welcoming environment for the employees of acquired companies. Often, the first thing employees worry about is their job security as well as any changes in their primary responsibilities. The best way to approach this is to create a high level of transparency on consolidations or layoffs following the M&A early on. Beyond the monetary gain, it’s the gain of talent and partnerships that is extremely useful in strengthening the company. Expand core teams to incorporate both parties—I can assure you that each entity has unique talents that have led to success in ways the other company may not have encountered. This reduces initial requirements for job hiring if expanding further and leverages skill sets rather than placing an emphasis on experience or education. Plan on tough conversations. Unfortunately, there are decisions to be made regardless of retaining or letting staff go. Understand that there will be emotion and tension present in the weeks leading up to and following the announcement. Treat interactions with a grain of salt, and know that oftentimes this increased emotionality can show itself in decreased performance and stress for employees on both sides. The takeaway Leveraging an M&A to expand and strengthen the business is a given, but utilizing and retaining talent, instead of laying off and starting from scratch, should be a tactic that executives consider first and foremost. It’s in the company’s best interest to retain consistent, quality employees and find their fit based on strengths and talents. In today’s job market, requirements are falling less on education level and more on skill sets. It may seem tempting to start from scratch for a fresher approach; however, employee loyalty will go a longer way than trying to fill entirely new seats. Talent doesn’t have to be pigeonholed into one position or department—the combination of work streams can seem daunting but can lead to increased efficiency as teams lean on and learn from each other.