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Study: M&As Can Lead to Talent Loss

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May 7, 2007 -- Mergers and acquisitions can have a negative impact on employee opinions about their company, according to new research by the Kenexa Research Institute.

In a report based on the analysis of data taken from a representative sample of 10,000 U.S. workers, research shows that M&As undermine an employee's feeling about the company and can prompt many to seek new jobs. Not surprisingly, deals that resulted in layoffs had an overwhelmingly negative affect on employee confidence.

"Merger and acquisition activity creates vulnerability to talent loss," Jack Wiley, executive director of the Kenexa Research Institute, said in a statement. "In order to begin the healing process and to ensure employees remain engaged, management must clearly state a tangible vision and plan of action. This should include accurate and timely information about the merger and its impact on the workforce."

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