Facing a FinTech Merger? How to Navigate Talent Changes
For several years, FinTech and Payment Systems companies have turned to mergers and acquisitions to grow and penetrate new vertical niches. When a company is looking at a merger in the not-too-distant future, it is essential to have a strategic plan that specifically addresses talent. Such a plan will strengthen your position in the market during and after a merger or acquisition.
Communicate Clearly, Early and Often
FinTech and Payments companies are about more than their products and services. It’s the people who define a corporate culture and provide a framework for successful projects. However, while technology can be controlled, it is difficult to predict how human beings will react to change.
In order to retain your best people, communication is crucial. The internal team must feel confident the merger or acquisition is positive, and all customer-facing employees need to be given the tools to communicate confidently with customers. Every employee is potentially at risk of leaving but customer-facing positions are often especially vulnerable during mergers and acquisitions, thanks to client confusion and fluctuating confidence levels.
Develop a Retention Plan
It is also important to keep tabs on top talent. While redundancies in the new organization can often lead to layoffs, in some cases, top contributors won’t stick around to find out what will happen to their jobs. They will exit before the M&A is complete, unsure of where they will fit into the new organization.
It is necessary to deploy a retention strategy that includes:
- *Stay Interviews: This will communicate to the team that leadership is invested in their needs and concerns. It will also give you insight into which employees may have one foot out the door.
- *New Opportunities: Many employees see M&A as an ending, but it can often be a beginning, with a host of new opportunities that were not available before. Map out potential paths for growth to help talented employees see where they may be able to grow within the new organization.
- *Cross-Company Teams: Teams can be formed between the two companies, so employees get to know one another and work towards a common goal.
As you begin to deploy your retention plan, it will be easier to identify people who plan on sticking it out and people who are looking for their first opportunity to jump ship. Identify the roles and functional areas that may be vulnerable to talent loss.
Inventory Skills and Identify Gaps
People associate mergers and acquisitions with job loss, but many times, new roles are often created. It will be important to take an inventory of the skills, strengths and weaknesses of both teams and uncover any gaps that need to be filled.
Use this inventory, as well as the list of areas that may be vulnerable to talent loss, and partner with a FinTech and Payment Systems recruiter who can help you fill the voids quickly and efficiently. If your FinTech or payment services company is facing an M&A, the recruiters at MoneyTech Search are ready to help you develop and execute a strategic talent plan. Contact us today to learn how we can shorten your search time and help you achieve your transitional goals.