Your best people won't wait...

Your best people aren't waiting around for your merger to shake out.

Here's the number that should keep every leader up at night: employees at acquired companies leave at nearly triple the normal rate, and EY's research puts it even higher, with 47% of key employees gone within a year, and up to 75% by year three (sources: PMI Stack, MnA Community). These losses have real dollars behind them. KPMG looked at tech acquisitions specifically and found attrition roughly doubles in the two years after a deal closes - AND it's the most capable people leaving first, because they're the ones with options (source: KPMG).

These stats have almost nothing to do with the terms of the deal. It's about what happens when employees learn about the deal! It’s the result of what DOESN’T happen. It’s the “We’re so excited to share…” in their inbox. It’s the all-hands meeting that says nothing about the plan for THEM. It’s the one-on-one with a manager who doesn't know what to say.

I've spent 25 years helping leaders talk to the people doing the work, especially when the ground is shifting under them. Mergers are the hardest version of that. So, this week, I’m going to break down what actually keeps your best people from quietly updating their LinkedIn profiles, on both sides of the deal. Subscribe so you don't miss out!

What both companies need to get right, together

Check the temperature before you say a word. A quick check on both teams before any announcement goes out will help you identify your biggest risks and challenges. By knowing what your people are thinking, you’ll get to see who can lead through the change, who will need some handholding, which superstars already know something is coming (and are weighing their options), and who has one foot out the door. These groups require different messaging – and they all deserve access to the plan moving forward.

Say what's changing and what isn't. Say it out loud. Say it early. Silence never stops the message – it scares imaginations into the worst case. When you stay quiet - because you don’t think the message is ready – everyone assumes it’s bad. It’s pretty easy (and honest) to share the basics of what’s changing, what’s staying the same, and what the next few months look like. Include things like PTO policies, benefits, leadership, goals, expectations, and where to go with questions. This is basic decency.

Address WIIFM (what’s in it for me) and what does this mean for me - first. Not in paragraph six. First. Every memo, FAQ, and all-hands should open with roles, pay, and reporting-line impact before you utter a single word about synergies. Also, don’t talk about synergies please.

Make it a conversation, not a broadcast. Hold live Q&As – with leaders who can answer honestly. Provide anonymous ways to ask question – then answer them regularly and publicly. Allow time for open office hours with leaders and change agents – encourage people to ask questions. One-way announcements might be efficient, but these scripted messages talk at people, not to them. Your people don’t trust superficial excitement.

Move fast on your key people. McKinsey's research is blunt about this: top performers are most likely to bolt right after the announcement. Figure out who you need to keep – and find a way to keep them. Your top people are likely already aware of what was coming – they are, after all – paying attention. They are also the ones your competitors want the most.

Arm your managers, don't just cc them. Equip your leaders with sneak peeks and give them enough information to address the questions they will inevitably be asked. Employees trust the person they see every day more than any company-wide email. Give leaders real talking points and the authority to answer team-specific questions on the spot.

The bottom line is deals don't fail on paper. They fail in the rooms where nobody said anything that felt true or useful when change is swirling all around.

If you're starting a merger and wondering how to say the hard stuff without losing the people who make your business run, that's the exact gap I help close. Change is disruptive enough without your team finding out what's happening from a rumor instead of you.

Let's talk about what your people actually need to hear, and when.