Who to Keep?
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Wondering if anyone has practical lessons about who is retained after a merger is complete and where positions need to be rationalized due to redundancy? What about in the case where both managers perform equally, what do you do then?
I don’t have a practical example but is there another role in the organization that one of the managers could be fit for base on skills or career goals? It seems like it is hard to find great talent right now so maybe there can be some sort of creative retention plan.
Where possible find work for both even if it means in another area of the organization or in a way that enhances/improves the output and productivity of their existing department.
If both people are great performers I tend to say that the person belonging to the acquirer team would keep his position. In any case, depending on their seniority, a solution for the redundant person could be an interim position which could stimulate his commitment in the company to develop new skills while helping the productivity of the company, ie anticipate the release of a product, optimize some processes etc.
In my experience, the purchaser was much larger so naturally they got to make the call and they installed someone from their side. The seller’s former CEO was made a VP, but was also let go after 1 year or so.
There won’t be any two employees are the same. Look into the fundamentals, what the organization needs, what the team is like, what workforce to be formed, etc. This should also include individual’s personality, the immediate manager’s approach, personality, etc. There are so much to consider and balancing. I would suggest to make a comparison table to map out the two managers strength, weakness, whether well fit the team, all the elements on one page. Then interview each of them to have an honest talk. Also think the long term collaborations. This is my HR experience taught me how to recruit managers. Hope this helps.
I would add that looking at past performance is one way to consider who to keep, but I would be thinking about the business strategy post merger and who would be best placed (considering career aspirations) to move the merged company forwards. Interesting post, thank you.
It depends on the business strategies and purpose of merger. While both managers perform equally in their own entities, it is important to keep the person who can best contribute to the strategy after the merger.
Figuring out who to keep after a merger can be tricky, especially when both people are strong performers. One tool I’ve come across is Organizational Network Analysis (ONA), which maps out relationships and collaboration patterns to identify key contributors. It also helps understand how employees feel about the integration, which can guide retention plans.
Beyond that, comparing skills and potential with a simple matrix can make decisions clearer. If both are valuable, maybe one could transition into a new role or interim position to avoid losing talent. Honest conversations with the people involved can also help set expectations and find the best fit.
Has anyone used ONA or something similar in their integrations? Would love to hear how it worked!
Who to keep should first of all depend on the skills, attitude and performance of the individuals, no matter whether they work for the aquirer or for the acquiree.
In my experience, I’ve seen worthy people being retained even though their role in the parent company (assuming a larger company buying a smaller one) was not available. In our industry (pharma), I see more and more people being put in positions that don’t necessarily match their CV as long as they have shown learning agility.
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