Mergers entail talent loss, often by design. Layoffs are common due to role redundancy, an unfortunate but necessary consequence of creating a new entity out of multiple companies. Letting go of some employees ensures that the new organization operates without a bloated payroll budget and can achieve its financial goals more quickly.
However, downsizing centers on the position, not on employee performance. While eliminating surplus roles is critical during the transition, it shouldn’t compel desirable staff members to leave. The combined workforce may shrink more sharply than expected due to talent flight.
The marketing department is particularly vulnerable to talent leaks, as sales professionals’ compensation packages differ from those of typical full-time employees. Here are practical tips to retain your closers during a merger.
Understand Cultural Differences and Similarities
Mergers are unions of coequal organizations. The new entity requires a blended culture to avoid alienating anyone. Instituting a set of values heavily reflective of just one group may come across as one-sided assimilation. Creating an impression that leadership is putting one camp on a pedestal can lower employee morale and subject only some sales representatives to a more challenging adjustment process.
Analyze the cultures that have governed the behaviors and attitudes of different sales professional teams. Recognize each one’s merits and figure out how to adopt their strengths while mitigating their weaknesses. Introducing a blended culture can inspire higher engagement in the new organization, which leads to greater productivity and better sales figures.
Gallup found that engagement affects 11 performance outcomes, based on its meta-analyses of 736 studies across 347 companies in 53 industries. The correlation was consistent across organizations, indicating that engagement is the recipe for success, regardless of what your team sells.
Identify the Keepers Among Top Talent
Many marketing leaders use KPIs to distinguish top performers from others. Quota attainment, conversion rates, average deal size and total revenue generated are some of the most reliable metrics for judging the value of sales talent.
However, context is just as important as performance statistics. Some data can be misleading, as specific incentives can influence the KPIs sales professionals focus on to meet short-term priorities rather than nurturing high-value, long-term clients.
Be mindful of lagging and leading indicators to notice intangible qualities and target performers with strong soft skills for retention. Gather feedback from peers, supervisors and clients to gain more insight into a representative’s conscientiousness, professionalism, leadership, resilience, adaptability and accountability.
Esteemed industrial and organizational psychologist Michael Campion, Ph.D., considers agreeableness also to be highly predictive of job performance, and so is extraversion. However, this doesn’t mean that reserved employees are less competent. Learn more about the talent base more deeply to avoid erroneously writing off introverted assets as unfit.
Communicate the New Company’s Vision
Considerable thought goes into business consolidation. The problem is that the rank and file aren’t in boardrooms when executives make decisions that impact people’s careers. Rumors create uncertainty among ordinary employees when they travel faster than official announcements. Leadership should act swiftly to control the narrative. Otherwise, critical talent would feel insecure about their jobs and contemplate switching companies to find stability.
David Olsson, a faculty member at the Institute for Mergers, Acquisitions & Alliances, advises that communicating the strategic purpose of the deal early and addressing concerns immediately can reduce anxiety and maintain morale. Nobody expects the top brass to have answers for everything all at once, but structured internal communication is key to clarifying what comes next.
Articulate Career Value Propositions Early
Top talent knows what they bring to the table. However, whether the new management sees their value is a different story. The higher-ups should reassure the sales professionals that they plan to keep them sooner rather than later. The longer valued employees go without hearing from leaders, the less optimistic they become about their future.
Reach out to your chosen closers. Talk about the career possibilities in store for them post-merger. Discuss any changes to their roles and new responsibilities. Use the situation as an opportunity for leadership development.
Promote some to supervisory positions, or launch a mentorship program to enable senior sales team members to share institutional knowledge with subordinates. Let top talent take the lead in cultivating a new culture to foster a sense of ownership.
Ensure the new sales compensation plans are fair and competitive. In a 2024 survey, the Alexander Group found that 54% of companies struggle to align sales compensation practices after mergers and acquisitions. This task is rarely straightforward. Go beyond retention bonuses, as their appeal wears off fast. Conduct a benchmarking analysis to determine which pay levels and plan designs are appropriate.
Consider Different Integration Strategies
The nature of every merger is unique, so no single integration method is right for every organization. Creating a unified sales force makes sense to achieve maximum efficiency and train everyone on new offerings. Only a limited level of restructuring may be necessary when independent teams collaborate only occasionally.
Disruption mitigation should be a top priority when finalizing the marketing department’s postmerger structure. McKinsey notes that such shifts can be unnerving for customers accustomed to the old ways when they suddenly have to deal with new representatives. The level of integration also impacts cultural preservation and adoption. Minimal restructuring allows talent to observe roughly the same norms while learning to adhere to the new company-wide etiquette.
Plug Talent Leaks During a Merger Before They Occur
Losing the sales professionals critical to the new organization’s future adds further complications to the inherent challenges of a merger. Dramatic corporate changes can put even high-performing employees on edge. Apply these strategies to encourage your prized closers to stay on board and retain them over the long haul.
