Acquired Firm Employees: Strategies for Engagement and Retention

The success of an acquisition often lies in the management and well-being of the acquired employees, who are crucial to the integration process. Research on the impact of acquisitions on target firm employees has typically focused on different organizational levels, such as senior and middle managers or lower-level employees, in isolation. However, all employees of an acquired firm experience the acquisition simultaneously, and their responses to change are distinct, but interconnected. Senior managers may face conflicts related to leadership dynamics and decision-making power. In contrast, middle managers are critical in facilitating communication, aligning team goals, and guiding employees through the transition. For lower-level employees, concerns such as job security, cultural alignment, and role clarity are paramount. We argue for a more integrated approach to understanding and managing acquired employees, emphasizing how effective HR practices, cultural integration, and clear communication can enhance employee retention and engagement. The discussion includes implications for management research and practice in improving acquisition outcomes.