TitleUnderstanding voluntary terminations following a merger announcement
NameStevenson, Kaja Jean (author), Riggs Skean, Karen (chair), Taylor, Flora (outside member), Rutgers University, Graduate School of Applied and Professional Psychology,
Consolidation and merger of corporations,
DescriptionThis two-part, exploratory study was designed to better understand voluntary resignations of employees during a merger. First, 30 former employees of an acquired company were interviewed to ascertain reasons for their attrition, factors that may have retained them, attractors to their new companies, and opinions on uncertainties and the adequacy of communication during the merger. Second, using chi-square functions, archival data of the 370 employees who resigned during the merger were compared to employees who resigned prior to the merger and to employees who stayed through the merger. Uncertainty, culture change, morale change and other merger-related causes were major reasons employees resigned. Reasons for resigning similar to past studies of attrition (i.e.: salary, future career opportunities) were also reported but not as frequently as merger-related reasons. Inadequate communication to employees during the merger was associated with an increase in uncertainties about the merger, the most prevalent reason for attrition. The findings validate past studies suggesting that preemptive communication during mergers may decrease uncertainties. Interviewees reported factors that prevented them from departing from the company sooner, the main factor being their manager. The majority of interviewees reported that nothing would have retained them after they found their new positions. Some suggested that a greater amount of honest communication, large bonuses or less uncertainty may have retained them, but only for a short time. Attractors to new companies were found to be analogous with reasons for resigning during the merger. Analysis patterns of departure were ascertained from archival data. These patterns were related to the assumed and then planned work-site closures. Prospective site closures influenced the rate at which employees departed from certain company divisions and work-site locations. Additional archival analysis suggests differences in attrition patterns between employees are congruent with their yearly performance review rating. Those employees with the highest rating were more likely to remain with the company while those rated above average, were more likely to resign. This study suggests that inadequate communication over the phases of a merger contribute to employee attrition and merger-related uncertainties.
NoteIncludes bibliographical references
Noteby Kaja Jean Stevenson
CollectionGraduate School of Applied and Professional Psychology Electronic Theses and Dissertations
Organization NameRutgers, The State University of New Jersey
RightsThe author owns the copyright to this work.