Mergers and acquisitions (M&A) spark stress and often come with layoffs, mass resignations, and a handful of people left to hold down the fort… at least for a little bit.
While you face daily operations with a reduced workforce, your talent acquisition (TA) team gets busy trying to fill vacancies. But the sudden exodus could lead to an unsustainable hiring urgency that quickly outpaces internal bandwidth.
So, what do you do when M&A demands talent but you can’t hire quickly? We’re breaking down the potential challenges that come with M&A and how recruitment process outsourcing (RPO) can help you recover fast.
Industry consultancies and research firms are signaling a private equity (P&E) watershed (also known as “devesting”) soon. And we agree. Despite a quiet 2023, mergers and acquisitions are predicted to spike in late 2024 and early 2025. Putting a plan in place now will ensure a smooth transition if—and when—an M&A is at your door.
These stressful transitions are notorious for layoffs and resignations. With fewer employees in-house to manage all the moving parts, you could be at risk for data breaches and lost information. Translation? Your greatest weakness could be the information technology (IT) department.
There are two major factors to consider: the cybersecurity risk and the knowledge gap.
No matter how employees leave—severance package or voluntary resignation—departures impact business. This is especially true in the IT department, where cybersecurity and systems require routine maintenance to ward off costly threats or issues.
When teams are strapped, even working longer hours isn’t enough to resolve every help desk ticket and patch updates needed to protect the network. It’s a perfect storm scenario for a cyber attack.
And broken workflows and a customer who needs to wait an extra business day are the least of your worries. It can also cost you millions and destroy customer trust. During M&A negotiations, there’s also a bigger risk for the buyer, which can cost jobs in the long run.
And there’s another looming issue, too…
Operations can grind to a halt when siloed knowledge walks out the door with your tech department. Even when processes are documented, being short-staffed makes productivity nearly impossible. Plus, the M&A might mean losing vital people who understand things no one else does—like someone who is an expert with your legacy IT system.
The knowledge gap impacts every customer and internal touchpoint, making running your business challenging.
According to a study from the University of Pennsylvania, 47% of acquired employees leave within the first year after an acquisition. TA leaders and the C-suite start to wonder:
While there are certainly many unknowns, one thing’s certain: you’ll lose people. But don’t worry—you have options and allies.
With key team members suddenly gone, knowledge gaps are just as obvious as empty seats—and avoiding immediate cybersecurity issues or broken systems becomes an urgent priority.
When things get too tight on the inside, it’s time to find some slack. RPO can help. The Hudson RPO sourcing and hiring process includes:
You can safely guide your workforce and company through uncertain times. And you don’t have to do it alone. What’s the old saying? “If you want to go fast, go alone. If you want to go far, go together.”
Whether you need a partner to support you with every facet of recruiting or just need additional help during a hiring frenzy, you’ve got options. At Hudson RPO, we tailor our offerings based on what you need.
No matter the capacity, Hudson RPO will work alongside you to fill the gaps and quickly get your tech team running with perfect-fit candidates. Contact us to learn more.
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