3 M&A Survival Strategies

Given the current trend toward consolidation in healthcare, there's a good chance you'll face the aftermath of a merger or acquisition at some point. What are the best strategies for leading employees through the transition?

While mergers and acquisitions aren't easy for anyone involved, human resources leadership may bear the greatest brunt of all.

"There's a long list of things that healthcare HR departments have to deal with post-merger," says Steven Gelineau, senior vice president at the Camden Group, a healthcare management consulting firm that frequently advises on health system and hospital mergers and acquisitions.

In the chaos of integrating benefits, eliminating redundancies, and negotiating new employment contracts, a topic that is often overlooked is proactively addressing employee concerns rather than responding after the fact.

"Questions, concerns, and anxieties of employees will arise early on," says Gelineau. You will likely find yourself fielding questions about changes in management, job security, and company culture. As an HR leader, you set the tone for the organization. Management will be taking cues from you, and you can expect to answer lots of questions."

Human resources should be a key partner in helping to ease the human side of the transition, suggests Gelineau. "I think one of the realities of many mergers is that the HR aspects … are oftentimes considered far, far too late in the ramp-up to the affiliation."

Here are three top strategies for HR leadership during the post-merger transitional period—applicable to both acquiring and acquired organizations.

Be visible and accessible

"Be there for individual meetings, informal gatherings, expressions of concern, formal gatherings, at all times of the day, at all times of the week," says Gelineau. "Do that for an extended period of time, until the two organizations are fully merged."

Even if you usually work from nine to five on Monday through Friday, come in early or late and on the weekends talk to shift employees. Have coffee and donuts delivered to the overnight workers and ask them to join you for a break.

Many health systems have multiple facilities; be sure to visit each one in person. Let them know ahead of time you're coming—this isn't a surprise inspection or a pop quiz. Make sure everyone sees you and knows that you're there to address questions and concerns confidentially.

Don't let the rumor mill churn unchecked

After a merger, the rumors will fly like birds. While you must be realistic regarding management's ability to control gossip, it's also important to address rumors when they crop up.

Monitor employee intranets, bulletin boards, and online communities for rumors of layoffs, changes in policy, management shifts, and so on. Don't be afraid to address misinformation. "Put forth the real message … be engaged in these conversations, address employee questions and concerns," Gelineau says. Let employees you catch gossiping at the water cooler—real or virtual—know that you understand their concerns but that they can't trust information they hear through unofficial channels.

After a few days or weeks, you'll notice which rumors you hear most frequently. In response, Gelineau suggests making a list of frequently asked questions and either posting it on an employee social network or sending it to employees in an email.

Include social media in your campaign. "Any HR executive worth their salt today must be cognizant of the presence of social media and how these communications tools can support a strong rumor mill," warns Gelineau. "Ignoring social media is done at the peril of the organization. There has to be a very deliberate strategy."

On a related note, be aware that emails, instant messages, and memos are easily uploaded to social media and shared publicly. If you don't want something on the front page of your local paper, don't put it in writing.

Communicate proactively

Now is not the time to sit back and leave employees wondering about where they stand. "Don't speak in legalese," urges Gelineau. Explain tough topics like reasons for layoffs or changes in benefits and management in plain English.

Now is also a good time to let your top employees know they're valued.

"What all merging organizations need to guard against is the loss of their best people," cautions Gelineau. Instability is a daunting prospect and your most valuable players will likely find it easy to move to another organization if they are uncertain about their current employer.

"Have a sit-down with them and tell them, "We're growing a new organization and there's a place for you in within it. You are valued here. We want you to contribute to our growth going forward," Gelineau suggests.

The most important thing is that you listen closely to what employees are telling you. It doesn't matter if you hear it from a janitor or the CEO, if it's an anonymous tip left in a comment box or it was a question asked in a town-hall style meeting—all messages are important, Gelineau concludes. "Pay attention to all avenues and conduits of communication. Don't discount any of them."