33 percent of acquired workers leave in the first year

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  • #90086
    davide lagrasta
    Participant

    Maybe it could be useful to put it in the right perspective: a 33% of abandonment rate could seem huge if we think at big corps but, since we are talking about startups what is the average total workforce number we are dealing with? If, for instance we are dealing with 50 people, it means that ca. 15 change their jobs and probably, in a highly dynamic labor market as the one of the startups, it is not so distance form an average rate. Moreover, I could not imagine it is due to a lack of monetary compensation since it quite evident that when you acquire a star-up you are acctually buying a bunch of “brains”. Maybe the real meaning is that culture and non-monetary benefits are, in the end, more valutable for high potential talents and it is quite impossible to handle properly for a big corporation.

    #90682
    Yvonne
    Participant

    In industries where there is a high level of competition for a particular workforce, it is especially more risky that employees would choose to leave during uncertain times. Therefore, employee retention plan should be done even during the DD phase. There is also relevant generational differences that may be at play. Workforce with older employees are more threatned by M&A but at the same time develop more loyality to the company and are less risk takers to make a change even with the uncertainty during integration. Generation Z for example, is much more comfortable taking risks and swithcing jobs more rapidly. In addition, many work remotely and unless the organization has a strong HR program to keep them engaged and build loyalty, the compamy may be more vulnerable to higher turnover.

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