25 Sep Acqui hire, the hot trend
Currently, most companies are facing difficulties in finding new employees. The situation is worse, mainly when looking at IT industries. The industries are scrambling for the employees and putting new measures to secure those already in their reach from external forces. As a result, most companies have developed an acqui hire technique where the company secures its personnel. Due to this competition, individuals are being booked even before graduating from their respective colleges. In doing so , companies incur some expenditure. However, the value the employee adds in the company is going to counter it.
In depth analysis of acqui hire
Acquire-hire or acqui hire is the new term in town referring to the purchase of a given company to get a hold of their employees. Mostly, the company who employs this technique is on the brinks of extinction. If the acquisition works, the company would be saved from collapsing. Established rivals are the ones that purchase other companies that are experiencing a financial crisis. Sometimes the companies may not support merger but choose to release some employees at a given cost to save the company. At times, the technique ends up with the closure of the acquired company. Most companies have embraced the method to reduce costs and avoid any legal battles.
Acquisition and the related aspect
As businesses merger, it is not evident that success will characterize its lifespan. The company buying the other one will at first analyze the latter and extract relevant data. The cultural aspect of the companies is of no interest. Some factors have to be taken care of, for instance, an analysis should be undertaken to determine if the new employees would fit in the new environment. In addition, the impact of the merger on the company’s productivity and other staff morale should be taken care of.
Statistics proof that most acquisitions have been fatal. The main reason attributed to this situation is the acquirers focus on results rather than analyzing its impacts on the employees. As an acquirer all the human factors should be taken in a more dignifying way. The interest of both existing employees and those being acquired should be met. Otherwise, the industry will be on its way to elimination.
Currently, acqui-hires have been trending more so in the technological industries. The most notable one is that pertaining Facebook, Drop, and Hot potato. Facebook acquired both companies to rival their founders. Google managers developed alternatives to rival Facebook and Twitter, but they were unsuccessful. Just like the other acqui hire companies, the companies acquired by Facebook were facing a financial crisis.
The large companies such as Google and Facebook faces challenges regarding employment. The companies have to lure other people to leave their existing jobs by offering large sums of money. However, this does not go well with their already existing employees. The staff morale is going to be lower if the new ones are getting a higher pay than the exisiting employees. Thus, the best way is to give the latest employees a joining bonus.
Steps to follow before merging
You need to undertake various issues to have a successful acquisition. The first thing is to seek services from legal experts to avert any future wrangles. After ensuring everything is following the law, the next step is to determine if there would be post-merger liabilities. You should make sure you meet the creditors’ expectations. The most important factor to evaluate is to seek a way to compensate the new employees best while taking care of the interest of existing employees. You should not undertake any merger that will not benefit your industry. Also, you may choose to replace the existing employees with the new ones. However, it should be in a diligent way.
Acquiring might seem an easy thing, but when you take part in one, you will have a change in tune. Human factors are key issues to consider in any merger and meeting them isn’t a simple task. Many companies in the past have ignored these factors, and that’s the reason why most mergers have ended in disaster.