How to retain key talents in mergers and acquisiti

2022-08-12
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How to retain key talents in mergers and acquisitions of financial enterprises

with the arrival of the global financial storm, there are more and more mergers and acquisitions in the financial and insurance industry around the world, such as the acquisition of China Guangfa bank by Citibank of the United States, and the recent mergers and acquisitions include the acquisition of Fortis Group by Ping An of China and the acquisition of Wing Lung Bank by China Merchants Bank. Mergers and acquisitions are an important way for financial enterprises to expand rapidly at a low cost. After the merger and acquisition, on the one hand, it brings rapid asset growth to the merged financial enterprises; On the other hand, it also brings great freedom to the work and life of the personnel of both sides of the merger and acquisition from the procedure of measuring the opening displacement at the root of the crack Influence, especially the securities analysts, risk control, capital operation and other core personnel of the merged enterprise. Mergers and acquisitions bring greater uncertainty to their future, and even bear a heavy psychological burden, increasing the probability of their flow. Therefore, how to stabilize and retain the key talents of the merged enterprises and eliminate their psychological pressure has become the primary problem of the merger and acquisition enterprise integration, and even determines the success or failure of the merger and acquisition results

first, the misunderstanding of identifying and retaining key talents in enterprise mergers and acquisitions

in recent years, there have been more and more mergers and acquisitions of Chinese financial enterprises. The geographical scope of mergers and acquisitions is no longer limited to domestic, and the number of mergers and acquisitions worldwide will also grow rapidly. However, the research shows that there are not many successful cases of mergers and acquisitions of financial enterprises, and even many enterprises' return on investment is far lower than the level before the merger and acquisition, so they have to declare the failure of mergers and acquisitions. For example, Ping An of China had to announce the termination of its investment in 50% equity of Fortis Group's asset management company after its acquisition of Fortis Group with a floating loss of 15.7 billion yuan. There are many reasons for the failure of mergers and acquisitions, among which the inability to retain key talents is one of the important reasons. The main reasons why key talents cannot be retained are that the retention strategy is not clear, the retention plan is not thorough, and the retention method is single, so that key talents cannot be retained after mergers and acquisitions, which ultimately leads to the failure of enterprise mergers and acquisitions

1. The retention strategy of key talents in M & A is not clear

in the M & A of financial enterprises, many enterprises will assign financial, legal, securities analysis and asset integration teams to the merged enterprises at the first time, with the main purpose of integrating the assets, finance, risk management, market, etc. of the merged enterprises; Few enterprises will consider the integration of human resources in enterprise mergers and acquisitions, especially the absence of a clear decision on the retention of key talents in the merged enterprises, which leads to the unclear retention strategy of key talents, and the executives will decide their retention according to their subjective evaluation of the merged personnel. In fact, whether the M & A of financial enterprises can be truly successful depends to a large extent on whether the key talents of the merged enterprises, such as business analysis, capital operation, risk control, securities analysts, can be effectively retained

according to the investigation of a foreign-funded consulting organization, in the past cases of mergers and acquisitions of financial enterprises, more than 80% of the personnel will choose to leave after the merger and acquisition, and the employees who stay in the merged enterprise to continue to work will also be deeply affected. There is a feeling that they are in Cao Yingxin and Han, and they will no longer be loyal and dutiful to their own work. In this case, the acquirer has to spend a lot of time and labor costs to find new substitutes. In fact, the main purpose of M & A of financial enterprises is to obtain excellent talents in securities analysts, risk control, capital operation, etc. of the merged companies, drive the improvement of enterprise operation efficiency by retaining the high-quality human resources of the merged companies, and enhance the economic strength of the merged companies. Therefore, adopting effective retention strategies for key talents and retaining key talents is one of the key factors for the success of mergers and acquisitions

2. The human resources department intervenes too late, and the talent retention plan is not thorough.

in the practice of M & A of financial enterprises, M & A enterprises often spend a lot of energy on M & a negotiation, devote their energy to the bargaining of M & a price, and do not pay attention to the identification and retention of key talents in the process of M & A. The more common M & a mode is that the M & A integration process of enterprises starts only after the M & a negotiation of enterprises is completed. This mode causes the human resources department to intervene too late, makes the human resources department not understand the purpose of enterprise M & A, cannot provide a careful retention plan for key talents, cannot effectively identify the key talents of the merged enterprises, and brings great randomness and blindness to the human resources integration work, It has caused the loss of financial talents, affected the sustainability of enterprise operation, and even made the integration of human resources deviate from the M & a strategy of the whole company

3. The retention method of key talents is simple and rough, not from the perspective of corporate culture

many financial enterprises mainly consider the integration of assets, finance and other aspects in the process of mergers and acquisitions, and use financial means to solve the integration problems. The integration means are single, and the human resources integration method is even simpler and rough. Only the employees of the two enterprises are merged, resulting in many contradictions among employees, Even unable to carry out normal business. Enterprise mergers and acquisitions need to comprehensively consider financial, asset, market, human resources and other factors, which reflect the comprehensive strength of the enterprise. Therefore, we should think and solve the problem from a strategic point of view, especially using the corporate culture, starting from the business philosophy, values, behavioral norms and other corporate culture of the two enterprises, to solve the conflict between the corporate culture and management style after mergers and acquisitions. The incompatibility of corporate culture in enterprise M & A, like the incompatibility of finance, production or market, will lead to the failure of enterprise M & A. Mr. Drucker, a management master, pointed out that if diversified enterprises want to achieve successful M & A, they need to have a common unity core, which must have "common culture" or at least "cultural marriage", and the incompatibility of integrated management style and corporate culture is the main reason for the failure of M & A

corporate culture is very important for the retention of key talents in enterprise mergers and acquisitions. However, in the practice of enterprise mergers and acquisitions, M & A enterprises are more inclined to use incentives such as material incentives and high position incentives, ignoring the role of corporate culture. The retention means are still single, and half the effort

4. There is a lack of systematic personnel evaluation mechanism, and key personnel cannot be identified and retained.

the M & A of financial enterprises is actually the absorption process of core talents. Some financial enterprises gradually realize the importance of retaining key talents in M & A, but at present, there is a general lack of systematic key talent evaluation mechanism. The evaluation of the key talents of the merged enterprise is more from the subjective evaluation of the senior executives of the merged or merged company, and even from the impression of the M & A integration team in the contact. It is based on the subjective evaluation criteria of the above personnel that we make a hasty evaluation of whether the personnel are good or bad or professional, and formulate simple, rude and biased personnel retention measures according to these evaluation criteria, which is easy to cause the loss of key personnel

practice has proved that the human resources integration team will not get accurate personnel integration opinions, whether it is to listen to the opinions of the acquirer, external consulting institutions or the acquiree, or any of the three parties to evaluate the personnel of the acquired company. Therefore, when evaluating internal personnel, we should not only integrate the opinions of three aspects, but also start from the aspects of internal personnel's superiors and subordinates, performance assessment, skill evaluation, etc., in order to obtain relatively complete and objective employee evaluation information, and on this basis, we should establish a salary incentive system to deal with this signal by the processor, and clarify the career development direction and other smooth talent retention plans, In order to maintain the enthusiasm and professionalism of effectively retaining talents and retain the core personnel of the enterprise

II. Talent retention measures in enterprise mergers and acquisitions

human resources are the most active factor in the business process. The success or failure of the retention of key talents after mergers and acquisitions determines the success of mergers and acquisitions, and plays a decisive role in the production efficiency after mergers and acquisitions. The decisive talents in financial enterprises are mainly risk management, marketing and other talents, such as credit card personnel of China Merchants Bank, risk management personnel and Actuaries of Ping An insurance. The loss of key talents means the shock of enterprises and the decline of profitability. Therefore, the integration of human resources in the mergers and acquisitions of financial enterprises should always follow the principles of stability overriding everything, honest communication, enthusiasm first, retaining key talents and diversity of integration methods. The integration of human resources involves many intangible factors, such as individual and group internal psychology, motivation, interpersonal relationships, values and behavior, and it is difficult to integrate. Therefore, before the merger and acquisition of financial enterprises, we should formulate a detailed and systematic human resources integration strategy; In the process of enterprise M & A integration, we should take practical measures to retain talents, try our best to retain excellent financial talents such as risk management, credit and capital operation, and make good use of the executives of the merged enterprise to realize the benefits of enterprise M & A integration. We should also understand the needs of employees, clarify communication objectives, and strengthen effective communication; After the integration is completed, the general staff should be properly placed, the division of staff positions should be implemented as soon as possible, the doubts and panic of staff should be reduced, the pressure of 28 foot dual inline packaging staff should be alleviated, the staff incentive mechanism should be improved, and the talent efficiency should be given full play

Step 1: before the M & A and integration of financial enterprises, determine the talent retention strategy and formulate the talent retention plan

the retention of talents plays a decisive role in the process of enterprise M & A and is always implemented. If the positioning of key talent retention strategy is not clear, the direction of talent retention is unclear, and talent retention deviates from the theme of mergers and acquisitions, it is easy to lead to the failure of enterprise mergers and acquisitions. For example, one of the main reasons for Ping An's failure to acquire Fortis Group is that there is no clear talent retention strategy, risk management talents cannot be retained, and the capital operation is in deficit, resulting in the final failure of mergers and acquisitions. It can be seen that it is very important to choose a scientific human resources integration strategy and mode before human resources integration

in order to ensure the success of M & A of financial enterprises, before M & A integration, the human resources department should conduct in-depth investigation on the personnel structure, personnel status, core values, salary status, etc. of the merged enterprise, especially the risk managers, actuaries, fund managers, securities investment analysts, etc. who are involved in core positions, evaluate such personnel, and according to the overall M & a strategy of the enterprise, Initially set the tone for retaining key talents. For example, in the process of acquiring European Fortis Group, Ping An of China did not fully understand the human resources situation of European Fortis Group, the retention plan of core talents failed, a large number of management talents were lost, there were great differences between Chinese and foreign enterprise cultures, human costs rose, and management efficiency was low. Finally, Ping An announced the failure of acquiring Fortis Group

step 2: establish a M & a human resources leading group or send a human resources integration manager

after the M & a negotiation is completed, compared with the dominant assets of financial enterprises such as capital, credit business, equipment and facilities, financial managers have great liquidity, the risk of loss is greater, and it is not easy to integrate. A little improper disposal will have a great negative effect, and even endanger the acquisition value of the entire financial enterprise. From this point of view

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