47% of employees leave within a year of merger, 75% within three years. Highly talented, disengaged employees quit first, affecting merger success.
Failure to consider change impact leads to significant employee loss. Example: Twitter lost up to 50%, value declined due to not including workforce plans in acquisition.
Recognize workforce fear of change. Anticipate change, involve employees, and address fear head-on to instill confidence and mitigate uncertainty in mergers or acquisitions.
Musk's failure to address workforce fears, demanding loyalty and reading employee messages, escalated stress. Leaders should prioritize understanding employee reactions to avoid significant losses post-merger.
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