Mergers and acquisitions in the marketing services industry can be transformative, offering agencies a path to growth, diversification, and enhanced competitive positioning. However, they also bring about significant change, which can be a source of anxiety and resistance among employees. Ensuring employee buy-in is crucial for the success of an M&A, as the people behind the scenes are the ones driving the agency’s creativity, client relationships, and ultimately, its success. Here’s how to overcome resistance and ensure employee buy-in during M&As in the marketing services industry.
Timing is Key – It’s Worth the Wait!
Although transparency is key, we advise that you wait until the Purchase Agreement has been drafted in order to share the news with the team. Once this has been crafted, you can start communicating about the M&A process with a solidified plan, in order to avoid rumors and misinformation. The reason that we advise that you wait on telling your employees is to ensure that the sale is going to happen, to avoid panic and confusion, and to have the ability to provide a clear and concise roadmap of next steps. As a result you can provide honest information about what the merger or acquisition means for the company and its employees.
Highlight the Long-Term Benefits
Focus on the positives! Clearly articulate the benefits of the transaction, not just for the company, but for the employees as well. The benefits of the acquisition should put employees at ease, as an exciting opportunity for company-wide scaling and personal professional growth, access to new resources and technologies, and expanded creative horizons. Employees are more likely to become agreeable, and even excited about a change, if they see how it benefits them personally (and company-wide).
Involve Employees In the Integration and Strategic Processes
Make employees feel valued by involving them in the M&A process. A few methods to involve employees are to gather their feedback on integration plans, involve them in decision-making committees, or give them a forum to voice their concerns and questions. When employees feel like they have a stake in the process, and have the platform to vocalize their thoughts, they’re more likely to support the endeavor.
Address Concerns Directly
Don’t ignore the elephant in the room. Address employee concerns head-on, whether they’re about job security, changes in company culture, or the integration process. Providing clear, direct answers—even if those answers are “we don’t know yet”—is better than leaving questions unanswered, which is why waiting to tell staff members is key once the Purchase Agreement has been drafted which includes details around employment agreements
Provide Support and Resources
Change is hard. Provide employees with the support and resources they need to navigate the transition. This might include training programs to help them upskill for new roles, counseling services to manage stress, or team-building activities to foster unity within the newly merged company.
Celebrate All Wins
Highlight and celebrate early successes in the M&A process. This could be a successful campaign that leveraged the strengths of both agencies, the acquisition of a big new client, or smooth integration of back-end systems. Celebrating these quick wins can build momentum and show employees the tangible benefits of the merger.
Lead by Example
Leadership attitudes are contagious. If the leadership team shows excitement and optimism about the merger, it’s more likely that employees will too. Leaders should be visible, accessible, and engaged with employees at all levels during the M&A process.
Preserve and Blend Cultures
Marketing agencies often have strong, distinct cultures that can be a source of pride for employees. Work to preserve the best elements of each agency’s culture while finding ways to blend them into a new, unified culture. This might involve creating new traditions, shared values, or joint social activities.
Focus on the Future
Keep the focus on the future and the opportunities that the merger or acquisition brings. Encourage employees to think about how they can contribute to the new company’s success and what their role in the future might look like.
Conclusion
M&As in the marketing services industry present both challenges and opportunities. However, by approaching the topic with sensitivity, strategic planning, and overall thoroughness will promote a successful integration and in turn – a happy team! Overcoming resistance and promoting employee buy-in are both critical components for leveraging the full potential of the merger. By communicating openly, addressing concerns, and involving employees in the process, agencies can navigate the complexities of M&A, minimize disruption, and set the stage for a successful future.
