There are many times in the life of a business when, without the right amount of care and attention, it is easy for the eye to be taken off a ball when there are many to be juggled.
This is often the case at the time of major changes, such as a buyout. Yet, when it comes to engaging with employees, this is the very time that a good employer should be focusing very much on the staff.
Unless the acquiring company is coming in simply to asset-strip a business, a new owner is buying the people as much as it is the bricks and mortar and hardware of a company. In the majority of businesses, it is the people who drive the success that has probably been the attraction of that particular acquisition.
However, a change of ownership and possible incorporation into a larger entity is a time when there are many additional administrative and practical considerations, which need attention, such as the integration of financial systems, contracts, etc.
A change of ownership can often bring about a change of ethos, and this is something which can easily upset the workforce. For example, the acquired business may have thrived because the employees responded to a very open, values-driven environment, and a change to working practices being directed solely by financial targets could prove costly.
Yes, most people are in business to make money, and there is no reason that “profit” should be a dirty word. After all, profitable businesses employ people and create wealth, which is then spent in the community and the benefits go much wider than simply into the pockets of owners. Also, yes, targets need to be met to make a business viable. However, a shift in the balance between carrot and stick can go either way, in terms of how staff feel about where they work and how they perform.
The nurture element of the acquired regime may have led to a happy workforce, willing to go the extra mile for the company and its customers, and the retention of existing clients. It may also have led to sales of additional services or products to those customers. All of this could be a major contributing factor to the company’s success, simply because the employees are happy to work for their bosses.
A switch to a regime which drives employees solely through the enforcement of targets can see enthusiasm replaced with fear, negating all of the good employee engagement, that had driven success in the past.
Often, it can simply be the uncertainty of change, which can negatively affect the workforce. At this point, the importance of communication with the workforce cannot be understated. It can be the difference between employees buying into the changes and feeling alienated.
Good communication is one of the driving forces of good employee engagement. It is at the heart of understanding what it is that a business is trying to achieve, and of having confidence in the performance of the company, which in turn ensures the staff feel like they are an important part of what is happening.
Failure to engage correctly at such times could turn a good acquisition into a bad one, by impacting negatively upon one of the biggest assets any business has to offer.
Sue Alderson is a director of Azure Consulting, a Yorkshire-based specialist in leadership development. www.azure-consulting.co.uk. 01924 385600. www.twitter.com/azureconsult