Motivating with incentives 

Mergers are on the minds of many after news that Fentiman’s Drinks has been bought by Irn Bru owners AG Barr. A merger can cause great worry for employees, but this can be managed with tailored benefits and incentives to keep morale high. 

 

Even when no redundancies are in the pipeline a merger can bring with it ambiguity and stress. New leadership, changes to company culture, and shifting priorities can damage morale and productivity as employees often focus on what is going to be lost rather than what will be gained.

 

Disengagement remains a major issue at organisations undergoing a merger, as staff back away from the company as they feel uninformed of the changes. This feeling of being undervalued, or even invisible, can be counteracted by using tailored benefits and incentives to emotionally anchor employees in the company as things change. However, it is important to make sure that any schemes meet their real needs and are not overly simplistic blanket solutions.

 

 

Maintaining stability

During the merger, the best way to reassure employees is to maintain consistency. Core benefits like healthcare, wellbeing support, and existing flexible working arrangements should remain unchanged to send a clear message that the team is still valued, and that supporting them at work is still a top priority.

 

Grand, one-off rewards are likely inappropriate as they can feel disconnected from the at times stressful reality of a merger. It is more effective to reinforce everyday protections around financial wellbeing, mental health, and work life balance to build trust during a time when many employees will be worried about what the future holds.

 

Keeping this consistency also helps to avoid the perception that there are ‘winners and losers’ between the two merging companies. This sentiment can damage morale and have serious effects on productivity and retention if it is allowed to take hold.

 

 

Keep recognition on the front burner

Large organisational changes often bring with them increased workloads and emotional strain as employees learn new processes and embed themselves within the changed team. This extra workload often remains unseen, and unrewarded, as it is simply seen as a part of the job.

 

Counteracting this with incentives gives employees the confidence that their efforts are being recognised, even when the workflows are new and unfamiliar. Most importantly, however, these incentives should focus more on effort than outcomes during this period – it is hard to quantify the specific goals and targets of merger-based work, so employees should be recognised for their contributions no matter what.

 

A merger is not the time to put recognition on the back burner, which can be tempting given the vast number of other tasks to be dealt with. Doing so will, however, push employees away and sour company life.

 

 

Keeping rewards personal

Companies could risk their mergers failing if employees end up feeling stuck between two companies, never quite feeling like they belong at the new one, and harking back to their time spent at their old job. Instating a benefits scheme which allows choice and personalisation helps maintain teams’ sense of personal agency and freedom at a time when many decisions about their employment feel imposed from higher up.

 

Personalisation also takes into account that not everyone’s experience of the merger is exactly the same. A parent navigating childcare arrangements is going to have different needs, worries, and concerns than a graduate hire establishing themselves in the world of work – and so offering them exactly the same package will likely fall flat. Flexibility and choice allows employees to feel truly supported and to choose the rewards which best meet their unique needs.

 

 

Strong communication

Even the most well thought out benefits strategy is destined to fail if its recipients don’t understand what’s on offer. During a merger, it is vital to keep the channels of communication open to reassure employees and answer any concerns they may have. Internal messaging needs to be clear and honest regarding what is going to be staying the same, and what will inevitably change. Clarity helps to reduce unhelpful speculation and fear.

 

Strong communication will also aid with a sense of stability and stop employees feeling like their old ways of working are simply disappearing. Presenting them with the information in a clear, honest, and unfiltered manner as and when it becomes available leaves no room for unproductive fear to fester amongst teams.

 

 

Looking beyond the merger

The ultimate goal of any merger is to move through the period smoothly and to begin working as a new company unit with as little disruption as possible. This can only be done when there is a recognition that it’s the people and their efforts who make companies tick. Recognising employees with tailored benefits and rewards during the period is crucial to keeping them engaged, motivated and reassured. It is also essential to communicate clearly, honestly, and frequently with employees to foster a sense of stability. Companies who do these things are the most likely to come through the merger period with happy, intact, and cohesive teams.

 

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Jo Kansagra is Head of People at Virgin incentives

 

Main image courtesy of iStockPhoto.com and fizkes