If your company is going through a merger, it is a time of massive change. When looking at the big picture, you certainly believe that your company and the other company will both be better off after the merger. Together, the businesses will be able to reach new heights and accomplish goals that neither one could have accomplished independently.
But that perspective mostly focuses on the future for you as the business owner and for the company as an entity itself. Is this change also going to have an impact on your workforce? Do you need to consider that and plan for it?
Layoffs are common
What often happens after a merger is that the company goes through a period of layoffs. Employees who may have been with either company before the merger could end up losing their jobs.
The biggest reason for this, in many cases, is redundancy. When there are overlapping roles at both companies, it may not be necessary to keep people in both of those positions.
For instance, both companies likely have their own payroll department or their own HR department before the merger. But after the merger, it is only necessary for the company to continue forward with one HR or payroll department. Unless it is necessary for the size of that department to double, this means there is going to be redundancy. After the merger, the company does not need to have two HR managers, for example, so one of them is laid off and the other is retained.
It can be helpful to plan for this and to consider the impact on the company when looking into a merger or an acquisition. Be sure that you know about all the legal steps you should take during this planning process and how to work towards a positive future for your growing business.