Following the M&A deal, some employees may be redundant. Better Job Security. Some of the evident impacts that can be are:-The risk of layoffs after any merger or acquisition is higher. The initial headlines announcing mega-corporate mergers and acquisitions typically focus on Wall Street’s appreciation for improved finances, less duplication of services and staff, the ability to grow a company faster, and the anticipation of higher returns for … Mergers and acquisitions are common in today’s global marketplace. In addition, mergers can provide employees with greater opportunities to share their development ideas or put forward future suggestions, allowing employees themselves to contribute more towards the future of the merged business. However, once the merger has taken place, there may be new opportunities for development or different training routes introduced for employees. Advantages and Disadvantages of Employees of Mergers New Procedures and Training. When two companies come together,... Stress/Fear of Job Loss. Before the merger-and-acquisition (M&A) deal, each company had its own workers dedicated to producing, advertising, analyzing, accounting and other tasks. Employees may also suffer emotionally due to the changes … This is because there is a sudden cloud of uncertainty that envelopes the employees at the middle and lower tier of the management hierarchy. They are a way for companies to acquire technologies or products, improve profits and productivity, while reducing overall expenses. Mergers and acquisitions play a great economic impact on the employees of the organization. In the short term, this means that employees for both companies may need to be moved around or let go. A merger can have a positive impact on employees if … They may not allow for long adjustment periods, however, so the best approach is to plan. Effect of Mergers and Acquisitions on Employees. Mergers affect the shareholders of both companies in different ways and is influenced by several factors, including the prevailing economic environment, … Ambiguity in the Work Environment. Mergers & Acquisitions: How They Impact Employees. When two companies come together, it is interesting to observe how do mergers affect employees.