Effect of mergers on job opportunities

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As recent news and events highlight, the bigger organizations are tending to capture the smaller firms of their sector. The recent SBI merger is an example of the same. That being said, everyone ponders upon and talks about the way economy will be impacted and the way profit and loss of the organization will be changed, but how do mergers impact the employees of the parent as well as child organizations?

Stress

The merger decisions are taken by the upper management or the authorities by evaluating the profit, loss, finances, etc. and the employees are not involved in the decision. This makes acceptance quite difficult for the employees. This might (and often) results in stress among employees.

Fear of Job Loss

Amid the increasing conflicts and ways of perceptions, employees start fearing job loss or staggering promotions. This fear results in negativity and inefficient methods. People start looking out for job opportunities and not only does their career suffer for a span of time, the organization’s status suffers as well.

Competitiveness

The unstable job security makes employees become more competitive and selfish in the work environment. A healthy competition always lets one grow but when the competition is only for proving yourself more worthy than the other, it results in spreading negativity, tension, and conflicts.

Culture shift

The most important effect of the merger/acquisition is the shift in culture. Mostly the culture of the parent company is kept and practiced but this makes the employees from child companies feel alienated. The impact is again on their work, mental health, and efficiency.

While mergers and acquisitions cannot be avoided and are a truth that every sector goes through, the work-life balance and mental health of the employees must not be hampered due to this.