How to share your M&A story and keep employees

Mergers and acquisitions continue to shape the government contractor marketplace, as government contractors align with federal budgets and defense spending priorities.

As opportunities in space, commercial technologies for defense, and artificial intelligence innovation heat up, M&As follow. And in this talent climate — where cyber, AI, and machine learning skills are scarce and in demand — transaction-related employee communications are more important than ever.

Here’s how to share your GovCon M&A story to retain employees.

Embrace Your Role as Storyteller

As a GovCon executive, your role as a dealmaker is obvious. Finding and vetting the right M&A target — one that has the right financials, contracts, skills, and culture — is paramount to a growth strategy. However, you have another role as Chief Storyteller, and that role is equally vital.

When you announce the transaction to your workforce, you’re telling a story. Share the “who, what, when, where, and why” of the changes. Also answer the “what does this mean for me?” question. Your story will need to be clear, memorable, and transparent—showing that you understand the impact on them.

If you don’t provide the answers, people will make up answers on their own — and you risk top talent walking out the door to your competitors.

Prepare Core Messages and Communications Early

While combining companies may seem perfectly logical to you, your internal stakeholders will be eager to understand how the acquisition fits with the company strategy and what benefits will come from the new entity. Highlight common values of the two companies and the shared vision for the future.

Make it Personal

It’s critical that senior leaders are actively involved in employee communication activities. Whenever possible, use personal communication methods to share the news with your managers and the workforce. A meeting or personal call can go a long way in maintaining trust.

Although there will be competing demands on executives’ time, as customers, partners, the media may all want to connect, the first days and weeks after an announcement is a sensitive time for your workforce. Senior executives will need to be visible and accessible to employees.

Communicate With Empathy

By the time an M&A is announced, it’s old news to executives who have spent months vetting the acquisition target and negotiating the transaction with bankers and lawyers. But even if the employees understood that the company needed to grow, the reality of an acquisition can be jarring.

Acknowledge the emotional impact of the M&A on employees. Even the best transactions will create disruption and spark uncertainty. An acquisition may be especially disappointing for employees who sought out a small, agile company where they could make a difference. Take the time to address fears and concerns with sensitivity.

Tell the Truth

Be honest about the changes employees can expect, including any potential disruptions. On Day One, you won’t have all the answers. And you’ll adapt your plans over the coming weeks as the integration unfolds.

Resist the urge to placate fears with vague statements. Let employees know that this is a dynamic business that evolves daily, so it’s impossible to predict all future changes, and that you will communicate openly and frequently regarding any future potential changes.

Adopt a Multi-Touch Comms Strategy

Employees will seek out information anywhere they can get it. You’ll want your story to be there, first, for consistency and reassurance. For the announcement, hold townhalls and live Q&A sessions, send emails, and update the intranet to reach all employees. Be sure both companies’ websites and social media platforms are up to date, as well.

Provide resources to help employees understand changes, such as FAQs addressing the most-anticipated questions, change management workshops with practical tips for embracing change, and support services such as counseling and career advice.

Keep Up an Ongoing Dialogue

The initial announcement is important. Ongoing dialogue is essential. Communicate regularly to prevent rumors and misinformation, with regular updates from the leadership team.

Create digital and physical spaces where employees can ask questions and express concerns. Respond to the feedback — even the anonymous queries and comments — to show that employees’ opinions matter.

For your key leaders and contributors, continue to check in to ensure they have a clear place in the new organization and feel valued.

Involve Employees

From the beginning, encourage employees to provide input and be part of the change. On Announcement Day, show your team how and when you will be communicating with external audiences. Provide all external-facing employees with tools to help them answer anticipated questions.

Invite key employees to be part of a cross-company working group to integrate the best of both company cultures and practices. Once involved, many employees will become your company ambassadors, guiding others through the inevitable and exciting changes ahead.

A merger or acquisition is an excellent way to grow a company and broaden or deepen the products and services you provide to federal customers.

As important as it is to engage your customers (that’s a whole separate article), an acquisition is a time to “re-recruit” your employees, to ensure they feel safe and become an integral part of a positive future together.

Joyce Bosc is president and CEO of Boscobel Marketing Communications Inc.